| Here’s your daily business briefing. - 🔧 AMD launches AI chips amid Nvidia, Intel rivalry
- 🍺 Deep Dive: Healthy drinkers boost no-alcohol beer
- 🍜 ‘Swicy’ emerges as the latest food craze
Thanks for reading! Shriram
p/Shriram | |
| 1 | | At the Computex Tech Conference in Taipei, AMD revealed new artificial intelligence chips, underscoring AI as their primary focus and significant role in diverse sectors. Lisa Su, AMD's chair and CEO, introduces the Ryzen AI 300 series for next-gen AI laptops and the Ryzen 9000 series for desktops, slated for a July release. More: - AMD aims to rival Intel's Lunar Lake and Qualcomm's Snapdragon X in the AI chip market, intending to release new AI chip technology annually, in line with Nvidia's approach.
- On Sunday, Nvidia introduced Rubin, its latest AI chip, which succeeds the previous "Blackwell" model.
- AMD outlines its data center chip roadmap, announcing the availability of Instinct MI325X accelerators in the fourth quarter.
- AMD offers a preview of the fifth-generation EPYC server processors, based on the "Zen 5" architecture, with an anticipated launch in the latter half of the year.
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What the numbers say: The global no-alcohol beer market, valued at $13B, has grown at an annual rate of 3.6% since 2018, outpacing the 0.3% growth of alcoholic beer. In the U.S., the percentage of adults aged 18 to 34 who drink alcohol has decreased from 72% in the early 2000s to 62%. Relevance: Health-conscious consumers are shifting towards no-alcohol beer, prompting major brewers like AB InBev, Heineken, and Guinness to invest heavily in this growing segment. The trend is highlighted by events like the Olympics, where AB InBev promotes Corona Cero to reach a health-focused audience. More data: AB InBev aims to boost Corona Cero's visibility during the Paris Olympics, leveraging high viewership to promote no-alcohol beers. Innovations like vacuum distillation have improved taste, aiding brewers' efforts to increase low—or no-alcohol beer sales. Despite being behind schedule, AB InBev is targeting 20% of sales by 2025. | | | |
| 3 | | The "swicy" trend, driven by bold flavor preferences, is growing in the U.S., with major brands infusing spicier elements into various products. Demographic shifts and globalization are boosting the popularity of spicy, culturally diverse foods, with continued growth expected as consumers seek adventurous tastes. More: - Coca-Cola's recent launch of Coca-Cola Spiced mirrors the growing consumer demand for spicier drinks.
- Starbucks debuted spicy lemonade drinks inspired by the "swicy" trend to attract younger consumers' interest.
- According to Circana, spicy food and beverage dollar sales have surged by 9% annually, fueled by younger demographics like Gen Z and Millennials seeking bold flavors.
- Pepsico and Nestlé are leveraging the trend with Flamin' Hot snacks and spicy frozen pizzas.
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| 4 | | Renault and Geely formed a 50-50 joint venture, HORSE Powertrain, to develop efficient combustion and hybrid engines. The venture aims to enhance its traditional auto business by producing lower-emission gasoline engines and hybrid systems amid slowing electric vehicle sales. More: - Based in London, the venture aims to supply Renault, Geely, and others, targeting $16.2B in revenue and producing around five million powertrain units annually.
- Renault focuses on electric vehicles and restructuring its Nissan alliance, while Geely expands international partnerships, including a hybrid engine deal with Mercedes-Benz.
- The joint venture experienced regulatory approval delays in China, originally anticipated in early 2023.
- Competitors such as Toyota and BYD are making strides in hybrid technology, presenting next-generation engines and more efficient fuel consumption systems this week.
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| 5 | | Aston Martin anticipates achieving positive cash flow in the third quarter of this year amidst a substantial transformation centered on introducing new high-performance and luxury models. Despite prior financial hurdles, Aston Martin is positioned for a turnaround driven by enhanced manufacturing methods and strategic investments. More: - The new model lineup comprises the Vantage, DBX707 SUV, DB12 Volante, and the upcoming supercharged V-12, the Vanquish, which is slated for release later this year.
- Deliveries of the $800,000 hybrid supercar, Valhalla, are projected to start early 2025 or after this year.
- Aston Martin's customization initiative, showcased by the "Q New York" showroom, has increased the average selling price of its vehicles by 35% to $294,000.
- The company's involvement in Formula 1 has led to a younger customer base, reducing the average buyer's age from 55 to 42 in four years.
- Due to limited demand from its high-performance clientele, Aston Martin intends to postpone the release of its all-electric vehicle from 2025 to 2026.
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| 6 | | Tastemade and Shopsense AI launched "Kitchen Glow Up," a shoppable home improvement series hosted by chef Ellen Marie Bennett, founder of Hedley & Bennett. Airing Tuesdays at 7 p.m., each episode features new kitchen redesign products available through the Tastemade store, leveraging data showing nearly 90% of U.S. consumers use mobile devices for shoppable content. More: - Shopsense AI and Tastemade work together to improve viewer engagement by integrating inspiration and commerce in contemporary media.
- Launched in April, Shopsense AI partners with Paramount and TelevisaUnivision for shoppable experiences at events like the CMT and Latin American Music Awards.
- The company also partners with CBS Sports Golazo Network and "The Talk" for shoppable content featuring merchandise inspired by teams, players, and hosts.
- Last week, Shopsense AI partnered with Magnite to launch ad programs that enhance brand exposure and conversion across digital platforms.
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| 7 | | Quick Hits: - Join industry's leading AI conference - free passes available! Register Now! Passes are selling quickly.*
- Spotify will raise its prices in July, with U.S. subscribers facing a $1 monthly increase for the ad-free premium plan, reaching $11.99 per month, marking a 20% rise in the past two years.
- A recent KPMG survey reveals prevailing concerns about the U.S. economy, with 65% planning more discount shopping and 14% considering buy now, pay later services, including nearly 60% of high earners.
- GameStop shares surged after a Reddit account linked to the 2021 meme-stock craze disclosed a $116M position, marking the biggest rise since May.
- Ford's new technology campus in Motor City involves the restoration and reopening of the abandoned Michigan Central Station, alongside an adjacent 270,000-square-foot building and other supporting facilities, constituting a $950M project.
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 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Shriram Jeevakumar | |
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