The richest 500 people in the world added $1.2T to their net worth in 2019 — a 25% increase over the previous year. And for the rest of us? Welp… we hope you got a holiday bonus. Today:
- Italian chocolatiers are at war
- It takes a lot of apps to run a retail store
- There’s a reason most concerts leave you feeling poor
See you back here tomorrow for one final recap of 2019 — and a look forward to 2020.
Cookie competition is driving Italian chocolatiers absolutely (hazel)nuts
Ferrero, the Italian food company coveted for its cocoa products, and Barilla, the Italian food purveyor prized for its pastas, are locked in a bitter competition to create Italy’s favorite hazelnut-flavored cookie.
For a long time, life was sweet for both Italian chocolatiers
After Ferrero introduced Nutella in 1964, the hazelnut spread became a global favorite. And Barilla’s Pan di Stelle breakfast cookies, which debuted in 1983, also quickly became a huge hazelnut hit.
For the most part, both companies stayed in their lanes — Ferrero kept its Nutella in its jar, and Barilla focused on its cookies.
Then, Barilla tried to make its own Nutella…
And you’d be nuts to think Ferrero didn’t fight back. Here’s how it went down:
- In 2018, Barilla’s Nutella knockoff, called Pan di Stelle Crema, launched.
- In early 2019, after Barilla broke the chocolate ceasefire, Ferrero heightened the hazelnut hostilities by testing Nutella-flavored cookies outside of Italy.
- Through most of 2019, Ferrero aggressively advertised its cookies across Italy.
- In November 2019, Ferrero finally launched its Nutella cookies — called Nutella Biscuits.
And early sales were… sweet
Nutella Biscuits were a humongous hazelnut hit: Ferrero sold a stomach ache-inducing 5.9m boxes of its cookies in just 4 weeks.
Since then, the 2 chocolate colossuses have continued their cocoa competition: Barilla rolled out a new line of Pan di Stelle cookies just a month after Nutella’s launch.
In the race to rescue retail, big merchants are arming their associates with an array of apps
For some retail workers, numerous apps are necessary to serve customers who expect the convenience of online shopping when they step into a store.
Knowing how to fold a V-neck is only part of the job
At an Old Navy in NYC, floor-level sales associates are expected to bridge the gap between in-person and online shopping, the latter of which boasts instant gratification and endless inventory. These associates are issued handheld devices loaded with numerous apps, including:
- In Stock On Shelf app, for locating easy-to-grab items
- Order In Store app, for arranging out-of-stock items to be delivered to customers
- Sell app, which provides hourly updates on sales and credit card sign-ups to inform workers on successful sales tactics
- Check-out apps that allow customers to complete purchases anywhere in the store
Blame it on the ‘Zon
Amazon and other ecommerce giants move tons of products without staffing retail sales teams. Meanwhile, brick-and-mortar stores are struggling. In New York City:
- Retail jobs in clothing stores were down 9% from 2013 to 2019… even while overall employment is up 14%
- The number of national retail chain stores decreased 4% in 2019 for the biggest drop since 2008
So it makes sense that stores have taken efforts to offer the same conveniences as their online competition… and then some.
Some have installed Easy Online Order Return stations — basically library book drops for buyer’s remorse.
Sales associates, meanwhile, have become much more than personal shoppers. They are cashiers, brand representatives, and database managers.
Our sales team has a secret pick-me-up, and it ain’t coffee…
Sometimes coffee doesn’t cut it — you want something that wakes you up and fills you up.
That’s why our entire Austin, TX office is obsessed with Verb. Eating a Verb Energy Bar is like downing a whole cup of coffee, minus the jitters and ants in your pants.
That’s because every single bar…
- Packs the same amount of caffeine as an espresso shot
- Uses all-natural ingredients, like organic green tea caffeine and real fruit
- Only has 90 calories — yeah, nine-zero
Plus, these bad boys are delicious. Try their Coconut Chai, Simply Cocoa, Maple Blueberry, and Salted Peanut Butter flavors — you won’t even notice they’re gluten-free and vegan-friendly.
Even better? Verb will send readers of The Hustle a free sampler pack of all four flavors when you order within 48 hours — just cover shipping ($0.95).
|Try Verb →|
In the past decade, the average price for a concert ticket increased 55%. What gives?
If you were shocked to see your Ed Sheeran ticket cost $160, don’t worry. You weren’t imagining it — concerts really are getting more expensive. The question is: Why?
Mostly, concert ticket prices increased because the entire business model behind popular musical artists has shifted away from album sales and toward concert ticket sales.
Musicians now make more revenue from concerts than albums
In the ’80s and ’90s, concert ticket sales accounted for 30% of musician earnings — today, they account for 75%, according to the Wall Street Journal.
So promoters and musicians alike have made moves to maximize revenue from concerts — even if it means pricing out some fans.
Pricier tickets have succeeded in raising revenues (for the artists who can pull it off). In the past decade, the average gross per concert more than doubled to an average of $958k.
And concerts will continue to be moneymakers for major musicians
Some performers have already shifted their focus to near-constant touring. Here are the highest grossing tours of the decade (inflation adjusted):
- Ed Sheeran (2017-19). Gross: $737m.
- Guns N’ Roses (2016-19). Gross: $563m
- Coldplay (2016-17). Gross: $546m
- AC/DC (2008-10). Gross: $507m
- Roger Waters (2010-13). Gross: $493m
- The Rolling Stones (2017-19). Gross: $416m
- Metallica (2016-Ongoing). Gross: $414m
- Pink (2018-19). Gross: $397m
- Bruce Springsteen and The E Street Band (2012-13). Gross: $382m
- Bruno Mars (2017-18). Gross: $376m
Small business of the week: London’s rolled alcoholic ice cream
Scott Burgess and Harry Simpson met when they were 16, selling ice cream at a beachside hotel. Years later, they noticed a peculiar trend rolling across the United Kingdom: rolled ice cream.
They launched Good Times Roll in 2018 after finishing college. Their first shop was beachside in Devon, with an ice cream machine under a gazebo. They’ve also sold their tasty concoctions by the iconic Tower Bridge in London.
Good Times Roll grew quickly to over $100k in revenue, thanks in part to a viral video of its Jägerbomb ice cream — made with a combination of Jägermeister and Red Bull rolled together, and paired with a cheeky shot.
The young founders hope to keep riding the rolled cream wave by focusing on product innovation (lemon and beetroot ice cream, anyone?) and delivering a memorable customer experience through their team of “Roll Models.”
- Founders: Scott Burgess and Harry Simpson
- Employees: 35 (including PT workers)
- Years in business: 1½
- Cost to launch: $68k
- Funding methods: Personal savings, loans
- 1st-year revenue: $135k
- Current annual revenue: $1.2m
📺 Binging is good business. Netflix stock rose 4,181% over the past decade, making it the best-performing stock in the S&P 500.
🦄 The unicorn stampede is slowing down… slightly. According to year-end data, 142 companies achieved the mythical $1B valuation mark this year — a drop from the 158 who joined the unicorn club last year. This year’s new ’corns were most concentrated in the US (78), China (22), Brazil (5), and Germany (5).
👷 American workers are training their overseas replacements. According to an Axios report, AT&T — which received a $3B tax cut last year — is laying off thousands of employees and partnered with outsourcing firms to use its laid-off employees to train their outsourced replacements.
🐑 Sheep-drones are taking to the skies. Farmers in New Zealand, Australia, and Britain are using drones to herd their sheep. Sorry, Lassie…
🚘 Tesla is putting the pedal to the metal in China. Tesla secured a $1.29B loan from Chinese banks to build a Shanghai factory. The new production facility will be the electric carmaker’s first outside of the US.
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