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Jimmy Buffett finally gets into the weed game after agreeing to license his Coral Reefer brand with weed manufacturer Surterra. The Hustle Sponsored by Jimmy Buffett to license his Coral Reefer marijuana brand Jimmy Buffett and billionaire William “Beau” Wrigley...
By: Wes Schlagenhauf
September 12, 2018
Jimmy Buffett finally gets into the weed game after agreeing to license his Coral Reefer brand with weed manufacturer Surterra.
Jimmy Buffett to license his Coral Reefer marijuana brand
Jimmy Buffett and billionaire William “Beau” Wrigley Jr. are partnering with a US marijuana startup as they join a plethora of companies getting into the extremely oversaturated Mary Jane industry.
The “Margaritaville” singer, who has long sat atop his wicker throne as the king of beach bums, will license his Coral Reefer brand to Surterra Holdings Inc. for a line of cannabis products including vape pens, gel caps, edibles and lotions.
According to MarketWatch, the deal happened a month after Mr. Wrigley, the former CEO of the Wrigley gum and candy company, joined Surterra as chairman after his family investment firm led a $65m Series C funding round.
Changes in latitude, changes in attitude
Surterra is based in Atlanta but is also licensed to operate in Florida and Texas. It grows marijuana, manufactures medical cannabis products, and has raised more than $100m since 2015.
Buffett’s business partner, John Cohlan, said Mr. Buffett would receive royalties from the deal, but not a stake in the startup.
Don’t worry, the Parrothead king ain’t wastin’ away again this time
Since 1977, JB has built a licensing empire that includes Margaritaville-branded restaurants, hotels, casinos, a Broadway musical, and a retirement community for people aged “55 and better” -- cuz let’s face it, Parrotheads aren’t gettin’ any younger.
But, that doesn’t mean they’ve have stopped investing in the brand, which earned $1.5B in sales in 2016 alone.
And ganja’s a natural fit to be JB’s next Cheeseburger in Paradise
Because everyone and their stoney baloney mothers are looking to slang the legit good-good. And, if there’s one thing Buffett has an ear for, it’s a business opportunity.
According to WSJ, more than 60 cannabis startups have raised at least $5m from VC or private equity in the US over the past 5 years.
Meanwhile, other companies like Corona brewing giant Constellation Brands have announced big investments north of the border in Canadian cannabis, where recreational tokin’ is set to become legal in October.
Say it ain’t Sonos: As smart speaker revenue slips, stock nosedives 20%
Sonos stock fell more than 20% after the company announced that its revenue had declined 6.6% from the previous year. Following an underwhelming August IPO, Sonos seemed to get back on track with a stock price around $20 (up from an initial $15).
But, Monday’s earnings report shows that growth is slowing
Unfortunately for Sonos, the $208m in revenue that it reported for Q3 actually exceeded analysts’ expectations -- suggesting that investors may have had unrealistic expectations for the company’s performance.
Even worse, some fear that the smart-speaker company could be the next victim of the consumer hardware curse.
Trying not to go the way of the GoPro
Other tech hardware companies have also struggled to sustain stock prices after inflated IPOs. GoPro shares soared to $86.97 and Fitbit hit $47.60 before they fell back to less than $7 and $6 today due to market saturation.
Like GoPro and Fitbit products, Sonos’ expensive high-end speakers have a limited addressable market. But to make matters even worse for Sonos, the smart speaker market is also becoming increasingly crowded with tech titans such as Apple, Google, and Amazon.
So far, Sonos has kept hungry rivals at bay by digging itself a patent moat. But while the moat may work in the short run, Sonos will eventually need more than patents to protect itself from trillion-dollar troublemakers like Apple and Amazon.
All 3 big carriers announced 5G upgrades in the past 2 days -- but none have networks yet
After AT&T announced updated 5G partnerships and rollout plans on Monday, T-Mobile announced a $3.5B deal with Ericsson to build out 5G infrastructure.
The press made it seem like T-Mobile gained ground on AT&T and Verizon in the 5G race, but 7 hours later, Verizon set the record straight by outlining its plan to launch 5G internet on Oct. 1.
A lotta talk, not a lotta calls
Last year, AT&T announced the debut of its “5G Evolution” network -- but it was really just 4G. After rolling out fake 5G in 141 markets, AT&T now promises real 5G in Houston this year and 19 other cities by “early 2019.”
Not to be outdone, Verizon said it will offer 5G in 4 cities by October. But for both carriers, there’s a catch: 5G will only be available for home internet -- mobile won’t happen until 2019 at the earliest.
For 3rd-party suppliers, ‘profit’ is spelled with 5Gs
Until you’ve got a functional 5G wireless phone in your hand, it’s safe to assume 5G announcements are smoke and mirrors.
But, as 5G infrastructure spending soars to an expected $326B by 2025, 3rd-party component suppliers are the real winners. Nokia and Ericsson both have contracts to supply hardware to all 3 of the major providers -- and if T-Mobile’s deal is any indicator, they are likely $3.5B or more.
Japan’s Renesas Electronics has agreed to buy US chipmaker Integrated Device Technology (IDT) for $6.7B.
According to Reuters, this is the company’s 2nd major push into semiconductors for self-driving cars after purchasing US chipmaker Intersil Corp. for $3.2B last year.
Will the US lose its foothold in the computer chip industry?
While US chip production continues to grow, (exporting around $44B worth of semiconductors annually), its share of the market (now 13%) has declined as global chipmakers close in.
Renesas is second only to NXP Semiconductors NV in auto-related chips and commands 30% of the global market for microcontrollers used in cars.
There are still a couple of big question marks
Renesas has historically struggled in analog chip production, so they’ll have to lean heavily on IDT’s 20+ years of analog chip experience in their quest for domination.
And, for the deal to close in the first half of 2019 as projected, the companies still have to get approval from US and Chinese antitrust authorities, which, Axios notes, have been “reluctant to approve global semiconductor mergers.”
Three brothers launch a Super Coffee company to kill bean-flavored sugar milk…
In 2015, brothers Jordan, Jake, and Jimmy DeCicco launched Kitu Super Coffee out of Jordan’s college dorm room, turning it into a test kitchen for their organic, low-calorie, high-protein coffee drink.
By 2018, they were face-to-face with Shark Tank’s Mark Cuban, Barbara Corcoran, and Rohan Oza.
The Sharks commended the DeCicco brothers on Super Coffee’s great taste while being “high protein, high good fats, [and] low sugar.”
Kitu Super Coffee is all of those things -- plus 10 grams of completely organic protein and 5g of MCT Oil (healthy fats for energy).
Drinking Super Coffee is like filling your body’s tank up with premium fuel instead of corn oil: Your engine runs cleaner and you’re not gonna have a breakdown in the clutch (AKA, that 2pm presentation for your boss).
But hey, don’t just take our word for it, let Kitu speak for itself: Super Coffee is now sold in retailers like the legendary Wawa, high-end gyms like Equinox, colleges across the country -- and, of course, on Amazon. Hustle readers get 20% off with code HUSTLE2018.
Oh, and the other thing the Sharks complimented the DeCiccos on? Their “high energy.”