Link: The New Affluents

Time to reap: “Several traits about the new affluents distinguish them as ideal prospective customers for brands of all sectors. In particular, luxury brands looking to woo customers with a little extra in their pockets might find this group a good place to start. Gen Xers’ share of national wealth is forecast to grow from under 14% in 2015 to nearly 31% by 2030, while Millennials’ share is forecast to grow from just 4% in 2015 to 16% by 2030, according to Gartner research. Additionally, this group is likely to be raising families and becoming first-time homebuyers, making them prime targets for home and CPG brands…. Though the new affluents want to save, they are likely to be in the midst of costly life transitions related to family and are also paying off significant debt, meaning money management is definitely on their mind.”
Original source: The New Affluents

Link: How a holding company that sold pool chemicals pivoted into a $20B coffee empire

“In recent years, JAB has quietly plunked down majority stakes in some of the biggest coffee brands in the world, including Keurig ($13.9B), Peet’s Coffee ($974m), Stumptown, Intelligentsia, and the Caribou Coffee Company. JAB also bought out coffee-related food chains like Krispy Kreme ($1.35B) and Panera Bread ($7.5B), and put up $18.7B for soft drink giant Dr Pepper Snapple Group in a bid to bolster its distribution.”
Original source: How a holding company that sold pool chemicals pivoted into a $20B coffee empire

Link: How a holding company that sold pool chemicals pivoted into a $20B coffee empire

“In recent years, JAB has quietly plunked down majority stakes in some of the biggest coffee brands in the world, including Keurig ($13.9B), Peet’s Coffee ($974m), Stumptown, Intelligentsia, and the Caribou Coffee Company. JAB also bought out coffee-related food chains like Krispy Kreme ($1.35B) and Panera Bread ($7.5B), and put up $18.7B for soft drink giant Dr Pepper Snapple Group in a bid to bolster its distribution.”
Original source: How a holding company that sold pool chemicals pivoted into a $20B coffee empire

Devaluing shaving

the tech community is celebrating the massive return for Dollar Shave Club’s investors, but $1 billion for a 16% unit share of a market dominated by a brand that cost $57 billion is startlingly small. Indeed, that’s why buying Dollar Shave Club was never an option for P&G: even if their model is superior P&G’s shareholders would never permit the abandonment of what made the company so successful for so long; a company so intently focused on growing revenue is incapable of slicing one of their most profitable lines by half or more.

The point being: that’s a really low valuation and could cause all sorts of annoying and “value destructing” side effects in the spreadsheet.

Source: Dollar Shave Club and The Disruption of Everything