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Speaker 2: Really interesting headline came across the tape just a couple
Speaker 2: of minutes ago. According to a Wall Street Journal, the
Speaker 2: Department of Justice opens probe into the NFL on anti
Speaker 2: competitive concerns.
Speaker 3: I mean, who wants to mess with the NFL? I
Speaker 3: guess the federal government.
Speaker 4: You can. But let's break it down a little bit
Speaker 4: if we can.
Speaker 2: Randa Williams, Bloomberg Business of Sports reporter, random, what's the
Speaker 2: story here?
Speaker 5: So basically Senator Mike Lee, he's from Utah. He sent
Speaker 5: a letter about a month ago, maybe a little bit
Speaker 5: longer than that, and he encouraged the Federal Trade Commission,
Speaker 5: the SEC in the Department of Justice to review this
Speaker 5: Sports Broadcasting Act because of the fact that it cost
Speaker 5: over one thousand dollars to watch NFL games. Now, rising
Speaker 5: costs over broadcasting gals is pretty normal. I mean we've
Speaker 5: seen every single time a league goes to the negotiating table.
Speaker 5: Normally the costs are passed down to the consumer, but
Speaker 5: also the games grow and so I think that it'll
Speaker 5: be interesting to see how they approach this if anything changes.
Speaker 5: But the NFL still has four years left on its
Speaker 5: broadcasting rights agreement. There have been reports that they want
Speaker 5: to opt out of that and negotiate early.
Speaker 4: Those talks are very very early, so we'll see.
Speaker 6: Could there be possible political motivations behind this.
Speaker 5: I think with everything happening in the country right now,
Speaker 5: you never know who is setting your sights on the NFL.
Speaker 5: And I mean, you see what's happening with the Rooney Rule.
Speaker 5: There is a Florida Attorney General who has turned his
Speaker 5: sites towards the NFL and saying that the Rooney Rule
Speaker 5: goes against federal law. We'll see how that plays out.
Speaker 5: And I mean, there are no reports right now that
Speaker 5: those two things are connected, but we've seen different areas
Speaker 5: of this administration set the sites on sporting leagues and
Speaker 5: other organizations out there, so it wouldn't surprise me, but
Speaker 5: it hasn't been reported yet.
Speaker 2: So Randa, this is focusing primarily on the media rights
Speaker 2: deals for the NFL.
Speaker 3: Now most of those.
Speaker 4: Even going back.
Speaker 3: Thirty years, forty years, there's.
Speaker 2: Been some paid component to it because even if I want
Speaker 2: to watch my CBS game, I'm probably getting it through
Speaker 2: my cable package as opposed to having my rabbit ears that.
Speaker 2: So it's always been some consumers directly paying for sports.
Speaker 2: Is it different now that it's streaming?
Speaker 4: There are more partners now.
Speaker 5: So Amazon has a Thursday night football game you can
Speaker 5: stream on Peacock. Occasionally YouTube has streamed the game before.
Speaker 5: The NFL has been selling rights to these streamers and
Speaker 5: these broadcasting companies for many, many years, and as the
Speaker 5: game has grown, as the business has grown, the costs
Speaker 5: have grown as well. And I think in reference to
Speaker 5: what it costs to watch all NFL games, yes, it
Speaker 5: would be expensive because you would then be paying for
Speaker 5: NFL Sunday ticket, you could be paying for red Zone,
Speaker 5: you could be paying for each individual subscription of you know,
Speaker 5: some of these games. With that in mind, of course,
Speaker 5: the costs have gone up because they've added partners, they've
Speaker 5: added games, you know, all of those things.
Speaker 4: But again, like we're talking about.
Speaker 5: ABC, NBCCBS, i'm ESPN, all of these things are you
Speaker 5: could walk into a bar or just subscribe to your
Speaker 5: local cable and they would be right there. Now, you
Speaker 5: wouldn't be able to choose a game. And here in
Speaker 5: New York you would probably be subject to the Jets
Speaker 5: and Giants and other places. It would be the local
Speaker 5: markets there. So it really depends on if the customer
Speaker 5: wants to pay for all of these games that the
Speaker 5: NFL broadcast.
Speaker 6: In the letter here by Senator Mike Lee, he said
Speaker 6: to watch every NFL game during the past season, football
Speaker 6: fans spent almost one thousand dollars on cable and streaming descriptions. Yeah,
Speaker 6: I guess if you're a fan, Yeah.
Speaker 3: It's with it.
Speaker 4: I mean, it depends.
Speaker 5: I would just say this that the last Super Bowl
Speaker 5: was twelve to zero and then had one hundred and
Speaker 5: twenty five million viewers, And it was twelve to zero
Speaker 5: at one point heading I believe, heading into the fourth
Speaker 5: or you know, fairly well into the game. And it
Speaker 5: was the second most watched Super Bowl of all time.
Speaker 5: And with that in mind, if you're the NFL, of
Speaker 5: course you would like to go back to the negotiating
Speaker 5: table to try to get more money. Now, if let's
Speaker 5: just say that this investigation kicks things down the road.
Speaker 5: If your Super Bowl is twelve to zero and it's
Speaker 5: the second most watched game ever four years down the
Speaker 5: line might not be a bad thing. You just want
Speaker 5: that money right now. So evidently I do think that
Speaker 5: the NFL will get their money. It's just about when to.
Speaker 3: Get even more money.
Speaker 2: There's obviously very advanced talks to add an eighteenth game,
Speaker 2: and that would be that would be it.
Speaker 4: And that would well, see, I mean that is I
Speaker 4: would say it happen.
Speaker 3: You have to open up the whole agreement with the players.
Speaker 5: Of course, yeah, And the Players Association has been in
Speaker 5: flux for over a year. They've had three executive directors
Speaker 5: in under a year. And when you have three executive directors,
Speaker 5: the NFL then has to go to the players Association,
Speaker 5: rip up the collective bargaining agreements, and then they have
Speaker 5: to come to terms on a deal. Those negotiations have
Speaker 5: not started at all. So an eighteenth game, a six
Speaker 5: sixteen international game package that the NFL could sell, those
Speaker 5: negotiations haven't started at all. So I think that Roger,
Speaker 5: I've heard Jerry Jones, I've heard Robert Kraft. And those
Speaker 5: are the Patriots and the Cowboys owners all talk about
Speaker 5: adding these things, and I do think that they want to,
Speaker 5: but it's so so early, which is why, you know,
Speaker 5: going back to this investigation, in a worst case scenario
Speaker 5: for the NFL, if they had to wait four years,
Speaker 5: it might work out in their favor because of the
Speaker 5: fact that they haven't negotiated as CBA.
Speaker 4: So you know, I think that we'll see how this
Speaker 4: plays out.
Speaker 5: But right now, I think that if I'm the NFL
Speaker 5: watching this, it's like, Okay, we'll see.
Speaker 6: Yeah, what could possibly be the endgame here?
Speaker 4: I'm not exactly sure.
Speaker 5: I think that it could be to congregate some of
Speaker 5: these costs to make sure that the CBS and the
Speaker 5: ABC that there are less streamers involved, that it is
Speaker 5: not passed down to the customer as much. But again,
Speaker 5: like you got to think, this was one of the
Speaker 5: most watched NFL seasons of all time, So really, are
Speaker 5: the streamers hurting and I mean, excuse me, are the
Speaker 5: customer is hurting if they're continuing to tune in that
Speaker 5: That is what I think the NFL's defense to this
Speaker 5: would be is that people are watching regardless and they're paying.
Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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Speaker 2: One of the news that we covered earlier today, I
Speaker 2: want to cover it from a different angles the NFL.
Speaker 2: The DJ is investigating the NFL on anti competitive terrifs
Speaker 2: and it relates to the media rights deals that they have,
Speaker 2: and the media rights deals are so important to these leagues.
Speaker 4: It is a.
Speaker 2: Primary driver of value for the franchises across pretty much
Speaker 2: all sports. And it's equally valuable to the broadcast networks
Speaker 2: and to the cable networks and to the streamers that
Speaker 2: put this stuff out there, because boy, advertisers love live programming.
Speaker 2: Ethan Ynek, and she's the expert here, she's a US
Speaker 2: media analyst here. So Keitha just talk to us a
Speaker 2: little bit about this dooja investigation into the NFL. What
Speaker 2: are the big media companies who are so vested into this,
Speaker 2: What are they saying?
Speaker 7: This is actually good news, Paul, for the media companies.
Speaker 7: So remember we are right smack in the middle of
Speaker 7: what is expected to become a very very contentious media
Speaker 7: rights renegotiation process with the NFL. So the NFL is
Speaker 7: seeking something like about a sixty percent increase in its
Speaker 7: rights fees basically from companies like Fox, Paramount Skuidance from Comcasts,
Speaker 7: and be Seeing from Walt Disney. Those are the companies
Speaker 7: that are the most exposed.
Speaker 3: And with the.
Speaker 7: DOJ going after the NFL on anti competitive practices, it
Speaker 7: looks like what they're saying is that the NFL is
Speaker 7: trying to harm consumers by basically making it more and
Speaker 7: more difficult to access their programming. So we know that
Speaker 7: the NFL in the past has tried to sell these
Speaker 7: smaller packages to streamers, you know, whether it's Christmas Day
Speaker 7: games to Netflix or the Thursday night football package to Amazon.
Speaker 7: They try to carve out these smaller deals basically in
Speaker 7: a move to kind of maximize you know, monetization. But
Speaker 7: obviously that's not sitting well with the DOJ. But this
Speaker 7: is good news for the broadcasters because I think, you know,
Speaker 7: we think it gives them definitely better negotiating leverage when
Speaker 7: they go back to renegotiate deals this year with the NFL.
Speaker 6: What about let's now head to Disney, they're reading to
Speaker 6: cut a thousand jobs, largely in marketing. You've talked a
Speaker 6: lot about efficiency, So where exactly are these job cuts
Speaker 6: happening and how do you make sure that or as
Speaker 6: an analyst, how do you make sure that these don't
Speaker 6: hit the creative engines of Disney and really affect the
Speaker 6: future of the company.
Speaker 7: Yeah, so it looks like it's about these job cuts
Speaker 7: are really happening in the marketing departments. So let's just
Speaker 7: look at you know, if you kind of take a
Speaker 7: step back and look at the whole Disney engine. I mean,
Speaker 7: they have over two hundred and thirty thousand employees, so,
Speaker 7: you know, cutting about one thousand jobs, it's less than
Speaker 7: one percent. It's really just a drop in the bucket.
Speaker 7: But you know, the layoffs are really part of this
Speaker 7: whole cost cutting and as you just said, the efficiencies.
Speaker 7: You know, Ever since Barb Byger returned to Disney as
Speaker 7: the CEO in November of twenty twenty two, he embarked
Speaker 7: on this whole efficiency cost cutting program. He eliminated about
Speaker 7: eight thousand jobs, which resulted in about seven and a
Speaker 7: half billion dollars of cost cuts. And really this latest
Speaker 7: wave of another thousand layoffs is just part of that.
Speaker 7: So it is not in any of the creative parts
Speaker 7: of the company. This is really more in the marketing department.
Speaker 7: So we already know that, you know, Disney has many
Speaker 7: multiple operations, so they have like a whole team supporting
Speaker 7: Disney Plus. They have a very similar team supporting Hulu,
Speaker 7: which is basically, you know, a product that is very
Speaker 7: soon going to be integrated. So Disney Plus and Hulu
Speaker 7: are going to become one consolidated, integrated product, which means
Speaker 7: there's really no need to have two separate treat teas teams,
Speaker 7: and so this is just really a process of streamlining
Speaker 7: and removing redundancies and increasing the efficiency in the business.
Speaker 2: KEITHA, what's the latest on the Paramount Skydiance and Warner
Speaker 2: Brothers Discovery.
Speaker 3: When is that deal going to close?
Speaker 2: And what's some of the feedback you're getting from investors
Speaker 2: about this deal?
Speaker 7: The deal Paul is expected to get regulatory approval and
Speaker 7: to close by September thirtieth of this year, so we
Speaker 7: have a few more months. It looks like some of
Speaker 7: the biggest investors are recommending that Warner Brothers shareholders obviously
Speaker 7: vote in favor of the deal. That vote is set
Speaker 7: for April twenty third, So it definitely looks like they're
Speaker 7: not going to head into any big regulatory problem, something
Speaker 7: that we were kind of anticipating with Netflix. This path
Speaker 7: seems a lot more cleaner, a lot more smoother, and
Speaker 7: in good news for Paramount, what they've done is they've
Speaker 7: kind of secured the Middle Eastern funding, so they've got
Speaker 7: about twenty four billion dollars, you know, some sovereign wealth
Speaker 7: management funds. This was kind of a little bit of
Speaker 7: an investor concern just kind of given all of the
Speaker 7: geopolitical tensions and the regional conflicts there. But with that
Speaker 7: kind of locked and loaded, I think investors are definitely
Speaker 7: kind of heaving a sigh of relief here, and it
Speaker 7: looks like everything will go, you know, as per plan.
Speaker 7: The question, really, Paul, is whether they're going to be
Speaker 7: able to deliver after the deal closes. That's really what
Speaker 7: investors are going to be looking for, especially with the
Speaker 7: six billion dollars of synergies that they've outlined and.
Speaker 2: A lot of debt on the boundaryt talked to us
Speaker 2: just real quickly how the market's thinking about their leverage
Speaker 2: profile because they're gonna be the most or one of
Speaker 2: the most levered media companies out.
Speaker 7: There, absolutely right, Paul seven times leverage about eight billion
Speaker 7: dollars in debt when the deal closes. So that is
Speaker 7: really what you know, the market is worried about, as
Speaker 7: you pointed pointed out, and you know, again we have
Speaker 7: so many different parts here, but I think the biggest
Speaker 7: worry is really the exposure to the linear TV ecosystem.
Speaker 7: It's you know, at fifty five percent of revenue still
Speaker 7: is going to come from, you know, the linear TV bundle,
Speaker 7: and really it's about how well they can manage that.
Speaker 7: So this is going to be a wait and wat story.
Speaker 7: We've not seen very good results in the past, so
Speaker 7: fingers crossed.
Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
Speaker 1: Auto with the Bloomberg Business app, Listen on demand wherever
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Speaker 2: You know, it seems like a lot of these big
Speaker 2: tech companies are almost tripping over themselves to get press
Speaker 2: releases out, saying how big their AI revenue is, how
Speaker 2: fast it's growing, and.
Speaker 3: Amazon's no difference.
Speaker 2: Amazon CEO Andy Jase, in a shareholder letter set aws's
Speaker 2: AI revenue run rate is over twenty billion dollars, as
Speaker 2: Selections was just reporting. That's up from fifteen billion just
Speaker 2: in first quarter. So that's pretty good. Stocks trading higher
Speaker 2: on rog ranaj here technology channels for Bloomberg Intelligence. He's
Speaker 2: out there in Chicago anrah Amazon twenty billion.
Speaker 3: It seems big to me, how about you?
Speaker 8: Yeah, no, it's a very big deal. In fact, this
Speaker 8: is the first time they are actually putting a number
Speaker 8: around it, because if you remember a couple of years ago,
Speaker 8: Microsoft was throwing its number out and everybody else was
Speaker 8: asking Amazon, where is your number? Where are you? But
Speaker 8: you know, one of the things we talked about at
Speaker 8: that point, Amazon's writing on the chat GPT wave where
Speaker 8: Amazon's more enterprise focus, and now those enterprise workloads are
Speaker 8: coming in and that's where we see the AI revenue
Speaker 8: for Amazon.
Speaker 6: How does this change the calculus for the outlook of
Speaker 6: the company, like the are you more bullish than you
Speaker 6: already are?
Speaker 8: That's a very good question. In fact, we published a
Speaker 8: note yesterday saying that we anticipate aw's growth to pick
Speaker 8: up this year, in fact even in the first quarter,
Speaker 8: because one of the things we saw just now it's
Speaker 8: two days ago was Anthropics revenue went from I think
Speaker 8: nine billion to thirty billion within no time. And AWS
Speaker 8: is one of the preferred partners. And if you remember
Speaker 8: two years ago, it was all Opening II Microsoft. Now
Speaker 8: we are seeing Anthropic doing really well and that helps
Speaker 8: Amazon Web Services. So this year we think Amazon Web
Speaker 8: Service is going to do better than what most people anticipate.
Speaker 2: And rag updates on kind of the competitive landscape. Now
Speaker 2: where is Amazon fit in these days?
Speaker 8: Yeah, so you go back and look at it. Prior
Speaker 8: to the AI era, Amazon Web Services was the largest.
Speaker 8: It's still the largest, but it was the largest by
Speaker 8: a massive amount compared to Microsoft and Google. Since then,
Speaker 8: after charge GPT, Microsoft really closed the gap with them
Speaker 8: and became a much bigger cloud vendor, you know, compared
Speaker 8: to Google, but not as big as Amazon. But all
Speaker 8: three of them are doing phenomenally well. Because remember, this
Speaker 8: is a business where you need to put in a
Speaker 8: lot of CAPEX and data centers in order to gain
Speaker 8: this revenue. This is not something you and I can
Speaker 8: build in house using you know, either Claude or anything,
Speaker 8: because you need physical infrastructure, data center chips. Amazon talked
Speaker 8: about their chip business for example. So Amazon still is
Speaker 8: in the driver's seat with the largest market share, but
Speaker 8: both the others I would say Microsoft and Google are
Speaker 8: catching up fairly faster at this point.
Speaker 6: So speaking of this flu of deals, we also have Core.
Speaker 6: We've expanding their metadal for AIA computing the twenty one
Speaker 6: billion dollars. At a headline level, what does the deal
Speaker 6: tell you the size and duration was what is that
Speaker 6: signal and does it tell you METASAI demand is stronger
Speaker 6: than expected?
Speaker 8: I think Beta is spending so much because they need
Speaker 8: to be relevant. Also in the large language model space,
Speaker 8: it seems to me that this particular deal is tied
Speaker 8: more so for the training of the model rather than infancing.
Speaker 8: Because one of the things what we are seeing is
Speaker 8: when it comes to even hyperskid cloud providers, whether that's
Speaker 8: Microsoft or Google, they're doing some of the work in
Speaker 8: house with their own data centers, but as they can't
Speaker 8: expand that rapidly, they're going out to these neoclouds, whether
Speaker 8: it's Nebeis or code and renting out their capacity so
Speaker 8: that they can parse out some of that work to
Speaker 8: them as well. So this is just a continuation of that.
Speaker 8: The bottom line is AI infrastructure demand is very strong
Speaker 8: and it actually helps out everybody, not just the hyperscal
Speaker 8: cloud providers, but also the neoclouds.
Speaker 4: And you cover all the software providers.
Speaker 2: They've had a tough go over it over the last
Speaker 2: several months, four or five months as investors try to
Speaker 2: sense which one of these software companies and sectors and
Speaker 2: verticals could be at risk from AI.
Speaker 3: Where are we now? Where Where's what's the market selling
Speaker 3: these days?
Speaker 8: So you can see them. I mean the index is
Speaker 8: down quite a bit even today. Every software company is down,
Speaker 8: and yesterday we heard that, you know, there's going to
Speaker 8: be some new model by Clouds. So every time there
Speaker 8: is a brand new model from Anthropic or anybody else,
Speaker 8: there is pressure on these names, and I don't think
Speaker 8: that's going to change anytime soon. What these companies have
Speaker 8: to do is show that they are not going to
Speaker 8: get cannibalized by these large language models, but actually embed
Speaker 8: them in their core product and can continue with that
Speaker 8: profitabil growth that they have. But that's not an argument
Speaker 8: that gets settled in the next twelve months. It's going
Speaker 8: to take a few years to build that out. What
Speaker 8: we want to see from companies like Salesforce is to
Speaker 8: go out and buy back a lot of the shares,
Speaker 8: which they did twenty five billion dollar buy back that
Speaker 8: they have announced. If these guys are able to embed
Speaker 8: some of these models in their own products and protect
Speaker 8: what they have, I think this is going to be
Speaker 8: a change around in sentiment. But again, that's not going
Speaker 8: to happen anytime soon. It's going to be a few
Speaker 8: years before that shows up.
Speaker 3: Stay with us more from Bloomberg Intelligence coming up there
Speaker 3: for this.
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Speaker 3: Bernie's they're out there.
Speaker 2: Constellation Brands was last night after the close, stock straining
Speaker 2: higher here. I thought some of the guidance was a
Speaker 2: little soft, but I guess the street says, hey, it's
Speaker 2: better than we thought it was to be able. Let's
Speaker 2: break it down with the red Brown Bloomberg consumer reporter
Speaker 2: read what do we hear from Constellation about their business.
Speaker 9: Yeah, you're right, the guidance was a little soft last night,
Speaker 9: but I think this morning on the call, the company
Speaker 9: kind of made the case that March sales were quite strong.
Speaker 9: They feel like that momentum in this early part of
Speaker 9: the year is going to kind of carry on through
Speaker 9: the summer, and with that, they're planning to kind of
Speaker 9: support the early momentum with I think the word they
Speaker 9: use was an aggressive marketing campaign. So if you think
Speaker 9: about the big events we have in the summer, makes
Speaker 9: a lot of sense. Of the World Cup, the company
Speaker 9: expects that to be kind of a growth driver, especially
Speaker 9: for their bigger brands Modello Corona, you know, we associate
Speaker 9: those with the summer as well, so makes a lot
Speaker 9: of sense. So I think that's kind of explaining a
Speaker 9: little bit of the share move that we're seeing. The
Speaker 9: question now, I guess, becomes whether or not that this
Speaker 9: is just a blip or they're still kind of subject
Speaker 9: to the sort of secular decline we're seeing in the
Speaker 9: other parts of the alcohol industry.
Speaker 6: How much of this softer outlook is macro driven. We
Speaker 6: know that it's not really a good economy consumers are
Speaker 6: feeling pinch as opposed to with the products themselves.
Speaker 9: Yeah, no, the company is making the case with the
Speaker 9: when they kind of justified their guidance and it is
Speaker 9: the lack of economic visibility. They also withdrew their twenty
Speaker 9: twenty eight guidance as well for the same reason. They say,
Speaker 9: we just can't see that far out in advance at
Speaker 9: the moment. But again, it kind of comes back to
Speaker 9: this question about whether or not it is an economic
Speaker 9: situation that they're kind of dealing with right now or
Speaker 9: it is just their subject to the kind of consistent
Speaker 9: decline we see in the beer market. Analysts are kind
Speaker 9: of split on what the real situation is.
Speaker 2: You mentioned some of their brands, Modello and Corona, brands
Speaker 2: that identify with the Hispanic audience in this country.
Speaker 3: The companies in the past has.
Speaker 2: Caught out the change in immigration policy is impacting having
Speaker 2: an impact what they have.
Speaker 3: They updated their thoughts there.
Speaker 9: So during the call they said they actually saw a
Speaker 9: sequential improvement and those zip codes that have.
Speaker 4: A higher Hispanic population.
Speaker 9: So you know, I guess it doesn't tell us a
Speaker 9: ton if it just a sequential improvement from sort of
Speaker 9: a lower start.
Speaker 4: Right.
Speaker 9: They didn't give any sort of specific details on just
Speaker 9: how much of an improvement it was, so I guess
Speaker 9: it's something that we still need to kind of keep
Speaker 9: an eye on.
Speaker 6: What about I mean, the company in general has benefited
Speaker 6: from premiumization. Are we seeing customers trade down and what
Speaker 6: trends are they pointing to?
Speaker 9: Yeah, the company said that that trend is continuing, so
Speaker 9: they're still seeing some strength within their premium brands. I
Speaker 9: think what may be going on is that people are
Speaker 9: drinking less, but when they do drink, you know, maybe
Speaker 9: I'll reach for the nicer options. So we've seen that
Speaker 9: in other parts of the alcohol industry as well, So,
Speaker 9: like you know, Spirits tend To has been pushing premiumization
Speaker 9: as well, so that that trend might you know, maybe
Speaker 9: we don't think of beer as necessarily always like a
Speaker 9: premium option, but there are sort of ways to trade
Speaker 9: within the category.
Speaker 3: All Right, you're of that demo, a younger demo, Thank you?
Speaker 4: Are you guys drinking beer?
Speaker 2: Drinking the Red White Claws and all that iced tea
Speaker 2: stuff and all that.
Speaker 9: Yeah, No, it's I guess when you go. I mean,
Speaker 9: obviously in New York's a specific you know beer, I
Speaker 9: mean alcohol culture, bar culture. But I guess when you
Speaker 9: do go out there, you do see more people kind
Speaker 9: of holding cans. A lot of the times, it's less
Speaker 9: a white claw, that's it's more less seltzers. These days,
Speaker 9: it's more theas ready to drink. So think of like
Speaker 9: a serf side, which is like a spiked lemonade, a
Speaker 9: spiked ice tea. Those are really popular right now. And
Speaker 9: it all kind of comes back to this idea that
Speaker 9: people are just changing the way they drink. They're being
Speaker 9: more conscientious with how they drink. You know, they still
Speaker 9: want to be social, be out talking to people, you know,
Speaker 9: like their inhibitions go, but they want to not deal
Speaker 9: with all that all of the health consequences when it
Speaker 9: comes to drinking. They don't want they want something that's
Speaker 9: a lower calorie. They want something that's lighter, easier to drink.
Speaker 9: So I guess you know, that's it's a debate that's
Speaker 9: been going on for a long time of like our
Speaker 9: younger people actually drinking less. It's it's really kind of
Speaker 9: hard to like tease out in the data or they're
Speaker 9: just like changing, like we're saying, they're just picking difference
Speaker 9: in constellation.
Speaker 2: Are they happy with their portfolio of brands or they
Speaker 2: think are they always buying and selling stuff?
Speaker 3: But I think right now they should be happy.
Speaker 9: They have some of the most popular brands like Modella
Speaker 9: obviously unseated bud Light a few years ago as the
Speaker 9: most popular beer brand in the country. Corona, I think
Speaker 9: is fifth. They also have Pacifico is one of the
Speaker 9: highest growing brands as well, So I think that they
Speaker 9: should be pretty happy with that stable. But you know,
Speaker 9: we've seen deals happening in obviously the sort of rumors
Speaker 9: around Brown Foreman potentially merging in a couple of weeks ago,
Speaker 9: so they're, you know, in this sort of shrinking market
Speaker 9: to gain growth, there's going to be probably more of
Speaker 9: these sort of swaps, you know, in portfolios.
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