One of the greatest investing minds in history is also an avid Coca-Cola drinker. Besides owning billions in Coca-Cola stock, Warren Buffett also has a theory on why the soda brand is the global leader...and it has to do with "taste memory." The Oracle of Omaha believes the taste of Coke doesn’t accumulate in your mouth like other types of soda. Warren Buffett goes on to say that he’s never seen a word written about this phenomenon. Well…maybe because it’s more made up than Nessy and Big Foot. I asked a few of the top certified flavor scientists in the world…and they called bullshit. Coca-Cola’s popularity is simply because consumers enjoy all the sensations that come along with it…including the nostalgia, great taste, sugar, and caffeine content…not some hidden secret.

Mountain Dew is the unofficial drink of gamers…or at least that’s the stereotype, right? So, why did the energy drink version of Mountain Dew called Game Fuel end up failing? Mountain Dew is essentially the base of the food pyramid for people who spend marathon gaming sessions in front of a computer or console. The practical reason is obviously because Mountain Dew has more caffeine than Coke or Pepsi. And while not as much caffeine as coffee, a packaged drink has less effort and minimal upkeep. Caffeine consumption is something that all professionals enjoy but especially computer programmers in the mid-90s during the start of the Internet age. The direct connection to computer culture can be traced to an integral software development and coding manual published in 1995 that said one of the main ways a manager can support his programmers “is simply buy large quantities of Mountain Dew.” But when does the relatively cheap, brightly colored, caffeinated, and fun beverage get directly involved with the esports and gaming community? That would be in 2005 when Mountain Dew ran a promotion called “every 10 minutes” where they gave away Xbox 360 consoles. But the more famous linkage was in 2007 when Mountain Dew promoted the launch of Halo 3 with a new flavor called Game Fuel. So, here’s where the story of Mountain Dew, gamers, and a product called Game Fuel really starts. The energy drink version of Mountain Dew Game Fuel (or should I saw MTN Dew Amp Game Fuel) wasn’t launched until January 2019, but that limited-edition flavor history, annual gaming-themed promotions, strategic partnerships with game developers, alignment with gaming personalities, consistently increasing esports sponsorships, is important in that MTN Dew didn't overlook the community cost barrier to entry into the esports and gaming market. Even though MTN Dew would be seen as one of the positive non-endemic brands that didn’t simply “buy a seat at the table” only after all the writing was on the wall that esports had massive potential...why didn't MTN Dew Game Fuel work out?

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If you ain’t delaying…are you really Chapter 11 bankruptcy auction banging? Believe it or not…it’s been something like 250 days since Bang Energy filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code. That might seem like a long time, but Chapter 11 bankruptcy cases, especially complex ones involving creditor claims in the billion-dollar range, are not quick…and that doesn’t consider the hostile takeover element that’s relatively unique here. But this isn’t a piece of content about how the Bang Energy bankruptcy proceedings have amounted to almost 1500 document filings that equal 10s of thousands of total pages…thus likely making this one of the most expensive cases in Florida bankruptcy court history. Instead, I want to focus on the recent delays to the bankruptcy auction announcement. To be honest, it’s hard to keep up on how many delays they’ve had, but it’s probably up to four or five at this point. Now…there are two schools of thought on why this has been happening. The first one revolves around the theory that Bang Energy was such an attractive asset that the initial bankruptcy auction was filled with many strong and diverse bids. And so, to make the best decision for creditors, it would require a longer review period. That makes sense, right? But what if the most recent delay is due to an outside regulatory agency...which can only mean that my original prediction in mid-March that Monster Energy would acquire Bang Energy (https://youtu.be/Kr_PMyydlCw) is still alive. Because something I hadn’t noted in earlier content was the potential regulatory hurdle that Monster Energy would face because of its leadership position in the U.S. energy drinks market. Finally, I’ll talk through a few hypothetical scenarios based on what would happen next if each of the different diverse categories of acquirors won the Bang Energy bankruptcy auction.

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Did anyone else have former First Lady Michelle Obama starting a kid’s nutrition CPG brand on their Bingo Card? Well...you can check those December 2021 receipts on my YouTube video named HollywoodHouse Foods (https://youtu.be/-zXXmAS7bFI). But all jokes aside, I'm glad to see the Michelle Obama continuing her White House efforts to bring this next generation of kids into a healthier future. Beyond her ownership in Plezi Nutrition, Michelle Obama will “position the company to be a change agent and model for how food and beverage CPG brands can support the childhood health." If that sounds like big checks to cash for a first time CPG entrepreneur, it’s important to remember that Michelle Obama is no rookie in the space…as she previously held a Board of Directors seat for six years at the largest private label food manufacturer in America.

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If you’re an astute follower of my content, you’ve heard me mention the concept of precision fermentation (and/or name notable startups that are commercializing such material for functional CPG brands) in numerous pieces of content over the last handful of years. That being said, I’ve somehow overlooked the fact that I haven’t given precision fermentation the respect it deserves with its own dedicated content. But regardless of mentioning it before...how about we start with what the heck precision fermentation is and how it differs from what has been used in food production for thousands of years ago. Traditional fermentation uses intact live micro-organisms to modulate and process plant-derived ingredients. It results in products with unique flavor, nutritional profiles, and modified texture. Precision fermentation is a significantly newer technology that has been used within the food industry for let’s say the last two decades. Precision fermentation has now emerged as a leading edge of food and beverage ingredient innovation…with the list of mega-companies investing in the process growing extensively of late. Precision fermentation uses microbial hosts as “cell factories” for producing specific functional ingredients. Not only is precision fermentation being explored as a launchpad for cultivating new protein sources, but it’s also highly versatile in its capacity to be tailored toward producing other key food and beverage ingredients for texturizing, flavoring, and stabilizing.Unlocking the potential of precision fermentation within the CPG space has been made possible with the use of artificial intelligence to rapidly identify ingredients that may offer improved functionality or added health attributes. AI is the heartbeat of the precision fermentation movement. To keep this content concise, I'll focus on functional CPG applications involving nature-identical animal proteins (e.g. Perfect Day and The Every Company). There’s a few different short- and long-term value propositions that differentiate this precision fermentation material from the mainstay commodity ingredient that I mention including functionality and quality considerations, sustainability, and hedging commodity costs with supply chain stability. Finally, I'll walk through the different challenges and potential slowups around adoption of precision fermentation that's likely ahead for the food technology.

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There’s A LOT of misunderstandings when it comes to recessions. While it may seem counterintuitive, recessions aren't all bad news. The clouds that settle over the economy during a recession do in fact have a few silver linings…so I want to talk about the long-term impact of those within the context of the grocery business. And just so we’re on the same page, when I say grocery business…I’m talking about the CPG industry yes, but also grocery retailers, contract manufacturers, and agricultural businesses.

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Pivotal is an interview-style segment that tackles topics in consumer packaged goods (CPG) and fast moving consumer goods (FMCG) from the business leaders that live it EVERY DAY! This episode is a special one for a three reasons...(1) we recorded it in person at the "Carlsbad mecca of functional ingredients" aka Compound Solutions, Inc. headquarters (2) Matt Titlow gave us the FULL origin story from the company's inception to the major pivot points throughout the 25 years and where we are now. And then finally, the conversation was recorded during the month that marked the 25th business anniversary of Compound Solutions, which is a entrepreneurial feat that shouldn't be understated in any industry but specifically the supplement industry. I've known Matt personally going over 12-13 years, so I pepper him with insightful questions and even get him to ponder what the next 25 years looks like for Compound Solutions. But these are just some of the interesting topics we chatted about in this episode...

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CPG marketers are constantly trying to come up with ways to stop consumers’ infinite scroll, so why not utilize a remixed version of an 1860s military strategy, right? While most think about “shock and awe” as simply a massive application of firepower by the military, the real battleground is within the opponent’s mind. “Shock and Awe” accomplishes psychological victory by influencing the will and perception to get the adversary to do what the attacker wants. That might seem just a tad extreme for CPG industry strategy, but let’s swap a few words or phrases around and it would read like this…While most think about “shock and awe” as simply a massive production of content assets by CPG brands, the real challenge is within the consumer’s mind. “Shock and Awe” accomplishes attention getting by intriguing and influencing to get the consumer market to do what the CPG brand wants. Now…that sounds a bit more CPG strategy-esque, right? We are well past the point that more content is going to be the answer to disrupt the infinite scroll and get attention in today’s information-heavy society. CPG brands need to realize that precisely targeted communications could be the online equivalent of smart bombs, but also “shock and awe” can’t be carried out entirely online. Some kinetic force is still needed because you can’t fully “shock and awe” with information operations alone in the CPG industry. But this kinetic force is not sought on a large scale, but to give the impression that CPG brands can influence a consumer’s mind. What the heck am I talking about? Let’s dive deep into why CPG brands are using a shocking strategy that aims to combine playfulness and consumer interest into limited edition items that attract both social media attention and sales.

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Pivotal is an interview-style segment that tackles topics in consumer packaged goods (CPG) and fast moving consumer goods (FMCG) from the business leaders that live it EVERY DAY! Now, I don’t want to oversell this special edition episode, but it’s kind of a big deal. It would have been a big episode even during good times but consider the collective facts…I spoke with the founder and recently ousted CEO of Bang Energy Jack Owoc…at a time when the initial stalking horse bids were happening in that Chapter 11 bankruptcy auction and when his social media accounts have been taken away. Our conversation weaves in and out of a variety of impactful and insightful subject matter that includes who Jack thinks will acquire the company he founded and the reasoning behind it. Since Jack is locked out of company matters, he doesn’t have any insider knowledge…and neither do I…so any of these predictions were offered up for entertainment purposes only. If you haven't watched any of the other Bang Energy bankruptcy updates, make sure you check them out on my YouTube channel. (Note: this conversation was recorded on May 22nd, 2023)

The Vitamin Shoppe was just sold...again (technically)! What started as highly probable rumors became reality. In a deal that’s expected to close in the second half of 2023, The Vitamin Shoppe’s owner, Franchise Group, would be taken private through a $2.6 billion management buyout. The group buying the portfolio is led by current Franchise Group CEO Brian Kahn but includes a consortium of other investment banks and private equity firms. After the transaction is complete, the current Franchise Group management team, including the CEO, will continue to lead the company and run its current portfolio of retail brands. I'll explain what that MBO could mean strategically for current Vitamin Shoppe vendors, employees, and even little ole me. Additionally, I will update you on the recent business performance for The Vitamin Shoppe. I'll utilize the 2023 Q1 Franchise Group (NASDAQ: FRG) earnings report and conference call to provide quarterly segment-level financial details for The Vitamin Shoppe. I will also dig deeper into several areas of The Vitamin Shoppe, such as franchising activity and merchandising category trends (including the retailer's increased sports nutrition and private label brand focus).