Oh To Live On Sugar Mountain

“The goal for soda companies is to spritz up fizzling soft-drink sales. The appeal: Sugar is natural,” The Wall Street Journal reports.

PepsiCo CEO Indra Nooyi: “If you had asked me a few years ago, people were moving to diet sodas. Now they view real sugar as good for you. “They are willing to go to organic non-GMO products even if it has high salt, high sugar, high fat.”

“PepsiCo says the formula of its new line, called 1893, is inspired by the cola created by Pepsi founder Caleb Bradham. The company says it is made with premium kola nut extract … cane sugar and ‘a touch of aromatic bitters.’ Pepsi Made with Real Sugar launched in 2014 … Last summer, it introduced a line of fountain drinks called Stubborn soda, sweetened with sugar, for restaurants.”

“Nutritionists caution that more-natural ingredients don’t necessarily mean they are health foods. Some types of sugar may promote vitamins or minerals. That doesn’t mean consumers should reach for them to get those nutrients, says Sara Haas, a dietitian based in Chicago and spokeswoman for the Academy of Nutrition and Dietetics.”


High Times Plots Pot as Lifestyle Brand

The New York Times: “Just as Playboy transformed from a skin magazine to a branding behemoth during the sexual revolution, a new management team at High Times is looking to pare back its outlaw image to become a lifestyle brand. Its big plans to capitalize on the era of legalized marijuana include a revamped website, apparel, furniture, nightclubs and eventually ganja-themed cruises, hotels and casinos.”

“While deals have not been completed, the company is deep in talks with partners to open a series of high-end cannabis-consumption lounges in Colorado, where adult use of marijuana is legal, and in Las Vegas, where medical marijuana is legal under Nevada state law. In Las Vegas, the company’s partners have also secured a cabaret license and a gambling license as well as approval for an off-site dispensary at an undisclosed location 150 feet off the Strip … this cannabis gambling lounge would provide a springboard for a potential High Times hotel and casino, following the model of the Hard Rock Cafe.”

“ArcView Group, a cannabis research and investment firm, recently called legal marijuana ‘the fastest growing industry in America,’ having rocketed 74 percent, to $2.7 billion, from 2013 to 2014. Attitudes seem to be changing just as quickly. In popular culture, potheads are no longer portrayed only as glazed-eyed dolts, but everyday professionals with children and mortgages.”


Introducing the Meat-O-Mat!

The Wall Street Journal: “Attached to a laboratory-like plant in this upstate community is a neon-lit vending machine dubbed the Meat-O-Mat, where customers can buy locally raised meat whenever they like. If Joshua Applestone has his way, carnivores will flock to it the way that banking customers visit the ATM. His invention is stocked with pork chops, dry-aged burger patties, bratwurst meatballs and his beloved pork roll, a deli meat native to New Jersey. Customers swipe their credit cards, push a button, slide the door open and retrieve their hormone- and antibiotic-free selection.”

“Mr. Applestone and his partners at Applestone Meat Co., the attached plant, are attempting to develop a new, meat-centric business model. For the past two years, they have been exploring ways of making high-quality cuts available at lower prices by slashing labor costs and considering offbeat distribution methods like the Meat-O-Mat. ‘We’re going for a highway-roadside-attraction type of approach,’ said Samantha Gloffke, the company’s general manager and a part owner. ‘The goal is to make sustainability really exciting.'”

Mr. Applestone envisions them stationed at supermarkets, football stadiums and picnic sites, places where you might welcome the convenience of buying something to toss on the grill. ‘Think about it at any music festival,’ he said. ‘Anywhere someone brings a cooler, you no longer have to bring fresh meat. How much is peace of mind worth?'”


The Incredibly Shrinking Netflix

Quartz: “No, you haven’t gone crazy. Netflix’s catalog of movies and TV shows really is shrinking. The streaming service’s library for American subscribers has shrunk by a third since 2014, according to a report by AllFlicks, a website that lists and categorizes Netflix content by country … In total, US Netflix has lost 32% of its titles in a little over two years.”

“Netflix may be getting rid of a lot of the older (most of it obscure) content that subscribers weren’t watching in the first place. That doesn’t explain why lots of great movies have left Netflix in the last few years, but it might explain, in sheer, raw numbers, why the US Netflix catalog has dropped a third of its weight since 2014.”

“While US Netflix might be shrinking, it still has a lot more content than the rest of the world … The reason is that securing international streaming rights to shows and movies is exceedingly difficult—laws and regulations differ by country, as does the type of content that people around the world consume.”


Netflix Throttles Customers For Their Own Good

The Wall Street Journal: “Netflix, a leading proponent of open-Internet rules, has been lowering the quality of its video for customers watching its service on AT&T or Verizon Communications wireless networks” Netflix says the throttling is in the best interests of its customers because it protects them “from exceeding mobile data caps … Watching two hours of HD video on Netflix would consume up to 6 gigabytes of data, Netflix says. That is an entire month’s allowance under an $80 a month Verizon plan.”

“Netflix said it doesn’t limit its video quality at two carriers: T-Mobile and Sprint Corp., because ‘historically those two companies have had more consumer-friendly policies.’ When customers exceed their data plans on Sprint or T-Mobile, the carriers usually slow their network connections, rather than charge overage fees.” Jim Cicconi of AT&T says the carrier is ‘outraged to learn that Netflix is apparently throttling video for their AT&T customers without their knowledge or consent.’ Jan Ozer, a consultant … said Netflix’s strategy is a smart one,” but suggests they should be more “upfront” about it.

“The issue came to light after T-Mobile US Inc.’s chief executive last week said Verizon and AT&T customers were receiving lower-quality Netflix streams. The carriers denied throttling Netflix videos. The fact that Netflix, not the carriers, is responsible for the lower quality illustrates the dilemma mobile-app makers face with data caps.”


The Uber Model Isn’t Uber Great for Others

“Investors saw Uber’s success as a template for Ubers for everything … But Uber’s success was in many ways unique,” writes Farhad Manjoo in The New York Times. “For one thing, it was attacking a vulnerable market. In many cities, the taxi business was a customer-unfriendly protectionist racket that artificially inflated prices and cared little about customer service.”

“The opportunity for Uber to become a regular part of people’s lives was huge. Many people take cars every day, so hook them once and you have repeat customers. Finally, cars are the second-most-expensive things people buy, and the most frequent thing we do with them is park. That monumental inefficiency left Uber ample room to extract a profit even after undercutting what we now pay for cars.”

“But how many other markets are there like that? Not many. Some services were used frequently by consumers, but weren’t that valuable — things related to food, for instance, offered low margins … Another problem was that funding distorted on-demand businesses. So many start-ups raised so much cash in 2014 and 2015 that they were freed from the pressure of having to make money on each of their orders … The lesson so far in the on-demand world is that Uber is the exception, not the norm. Uber, but for Uber — and not much else.”