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| Hey Insiders, Thanks for joining us for another edition of Inside Business. We look at the evergrowing spirits industry in the U.S. and how some retail brands are finding it easier to sell in department stores. Plus, the aviation sales boom is upon us. Make sure to continue reading for Quick Hits and the Knowledge Hub. Christopher
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| 1 | | Many companies resisted the urge to sell in department stores and traditional retailers for years. But noticing a slower return through e-commerce has many brands heading to wholesale offerings. More: - Nike will resume selling its apparel in Macy's in October, reversing a decision the company made in 2021 to pull products from the retailer to focus on selling through its own stores and website.
- Sunday Citizen started as an online-only brand in 2019. Now it sells blankets at Nordstrom and Bloomingdale's.
- Co-founder Mike Abadi says he eventually expects wholesale to account for 40% of the company's business.
- Companies realized that it takes longer to build up an online following or open up your own brick-and-mortar store and attract customers than to use a middleman like a department store.
- Allbirds has opened up physical stores but has seen a much bigger growth in sales from department stores, which it began to do last year.
- "We get maybe 1,000 eyeballs on a pair of shoes in one of our marquee partners for every one pair that we sell through that channel," Allbirds co-founder Joey Zwillinger told analysts in August.
- "Beating customers over the head with marketing is far less efficient than shipping a crate of shoes to Nordstrom," said Tom Nikic, an analyst with Wedbush Securities.
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What the data says: Vodka is the highest-earning spirit in the United States. Vodka took in $7.2B in revenue in the U.S. in 2022 and remained flat YoY as it continued its trend of being the most popular spirit sold in the nation. Tequila and Mezcal saw a sales growth of 17.2%, totaling $6B in revenue. American Whiskey, Brandy and Cognac, and Cordials rounded out the top three revenue-earning spirits. Relevance: The Distilled Spirits Council of the United States held its annual conference last week in Chicago, highlighting some key trends in the U.S. spirits market. Of note, they highlighted that celebrities attached to spirits brands help them sell, luxury spirits and ready-to-drink (RTD) offerings are seeing a significant rise, and no- and low-alcohol options are a top alternative. Also, consumers want to feel connected with brands, and inflation and supply chain issues persist in the industry. More data: The fastest-growing spirits in the U.S. in 2022 were premium cocktails, which include RTDs, followed by Tequila/Mezcal, American Whiskey, Irish Whiskey, and Blended Whiskey. | | | |
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| 3 | | Airlines that are desperate for aircraft are placing huge orders, potentially causing a glut of needs without the means to meet them. On Monday at the Paris Air Show, IndiGo agreed to buy 500 Airbus SE jets, eclipsing the record set a month ago by Air India. More: - With the 500-plane Airbus purchase, IndiGo is waiting on a backlog of 1,000 undelivered aircraft as of right now.
- Ryanair Holdings Plc and Riyadhi Air have made huge purchases this year as well, as announced deals reach 1,500 aircraft.
- Some industry veterans are warning against this, as the want for aircraft may set back the industry.
- "We have players flooding the market with a huge number of planes; I just hope that they're doing this right," said Akbar Al Baker, chief executive officer of Qatar Airways.
- The order flurry, which started two years ago as the world came out of the COVID-19 pandemic, has caused Boeing's 737 Max planes to be sold out until 2028 and Airbus with few delivery spots before 2030.
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| 4 | | Odey Wealth Management has told clients that it is "considering several options" regarding how to conduct its business further. The wealth management firm must pick up the pieces amidst the fallout from sexual misconduct allegations against founder Crispin Odey. More: - Banking partners cut ties with Odey's hedge fund last week, and Odey Wealth's board sent a letter to customers saying, "The events of the last week have had a serious impact on our business."
- JPMorgan, Morgan Stanley, Goldman Sachs, and Exane all cut ties with the hedge fund Odey Asset Management last week.
- The U.K.'s Financial Conduct Authority announced restrictions on both Odey Wealth and Odey Asset, demanding details of its bank accounts and the need to seek regulatory approval for payments above £20,000.
- The FCA's register revealed that Crispin Odey lost the approval to work in financial services on June 12.
Zoom Out: - 13 women have made sexual harassment allegations against Crispin Odey over the past 25 years.
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| 5 | | Taking advantage of the struggling retail real estate industry, Picklemall, a new startup, is turning vacant mall spaces into indoor pickleball courts. Pickleball is the fastest-growing sport in the United States, and the demand for pickleball courts is high. More: - This July, the startup is opening its first location in Tempe, Arizona, with 24 courts.
- Picklemall founder and billionaire philanthropist Steve Kuhn provided the company with funding.
- There is one tennis court for every 30 tennis players but only one pickleball court for every 250 pickleball players, according to Kuhn.
- Picklemall's indoor concept comes with benefits such as controlled climates and championship-style courts. However, the biggest issue of it being played indoors is the loud sound that's made when a pickleball is hit.
- A solid pickleball hit registers 70 decibels of noise.
- The startup plans to open up 50 locations in the U.S., ranging from San Antonio to Chicago.
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| 6 | | Over the past few years, restaurants have begun testing out AI tech for drive-thrus, leaving customers and workers frustrated. While the companies aim to unburden overworked employees with AI, so far, the results have been less than stellar across the board. More: - Customers have already documented cases of AI getting orders wrong and how noisy drive-thrus are a challenging environment for technology.
- Speech recognition is said to be one of the most challenging technologies for AI to handle, as accents and noisy areas make it difficult for it to be accurate.
- AI will also take away jobs or at least hours from fast food service employees.
- Restaurants like Wendy's, Carl's Jr., Hardee's, and White Castle have begun implementing the technology.
- Hardee's and Carl's Jr. announced in May they would be rolling out AI ordering more broadly, and Wendy's announced a partnership with Google Cloud to include an AI tool at the drive-thru.
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- Singapore Air was valued at more than three times its rival, Cathay Pacific.
- CNN dove into how entrepreneurs aim to change the fact that only 1% of U.S. wineries are Black-owned.
- A court document showed that Jeffrey Epstein was treated like an adviser by JPMorgan Chase executive James E. Staley.
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INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Editor | | Christopher Hachey is a freelance writer and editor based in the New York City area. He has spent most of the past 15 years in newsrooms covering all kinds of topics like sports, tech, business, finance, and commerce. He's now returning to his broadcast journalism roots by diving into podcasting news. Reach out to him at chris@inside.com | | This newsletter was edited by Aaron Crutchfield | |
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