Step Right Up: Hot Dog Water

Global News: Thousands of people packed Vancouver’s Main Street on Sunday to take in the annual Car Free Day festival. And among the food vendors, merchant stands and music was one stall that stood out, inviting the public to enjoy a chilled, refreshing, healthful glass of Hot Dog Water … The drink’s impressive marketing advertises it as gluten-free, Keto diet-compatible, rich in sodium and a source of electrolytes. It also promises to help the drinker lose weight, increase brain function and look younger.”

“A bottle of Hot Dog water would set the adventurous water fan back $37.99, while a Father’s Day special’ will get you the bargain price of $75 for two. Hot Dog Water lip balm, breath spray and body fragrance were also for sale.”

“Tucked into the fine print at the bottom of the Hot Dog Water sales pitch is this: Hot Dog Water in its absurdity hopes to encourage critical thinking related to product marketing and the significant role it can play in our purchasing choices.”

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Collagen: A New Wrinkle?

The Wall Street Journal: “Foods infused with collagen and touting beauty and health benefits have been popular in Japan and Europe for years. Now they are making a splash in the U.S., in products from coffee creamer to protein bars. The rise of collagen as a food ingredient also comes as the line between food and medicine is blurring, nutrition experts say, and consumers seek ‘functional foods’ that promise more than just nutrition.”

“A longstanding beauty ingredient in wrinkle creams, shampoos and lip injections, collagen makes up about a third of the human body’s proteins, and dwindles with age. As an ingredient, it is sourced from the bones, skin or cartilage of animals including pigs, cows, chicken and fish. These tissues are typically treated with enzymes, dried and processed into smaller molecules—or peptides—to help absorption by the body.”

“Experts say much of the research that has been done on collagen supplementation is small in scale and often funded by the ingredient makers themselves. ‘The research is not there,’ says Mark Moyad, a director of complementary and alternative medicine at the University of Michigan Medical Center … Dermatologists say there isn’t any conclusive evidence that ingested collagen affects the hair, skin and nails. When collagen reaches the stomach, it gets broken down into amino acids just like any other protein.”

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Late & Great: Allen McKellar

The Wall Street Journal: “Allen McKellar, an African-American college senior in South Carolina, figured his chances were slight in 1940 when he entered in an essay-writing contest in a bid to win an internship at Pepsi-Cola Co … Pepsi chose him as one of 13 interns. After serving in the Army, he returned in 1947 to join a Pepsi marketing team focused on African-Americans at a time when few large companies hired blacks for white-collar jobs.”

“At Pepsi, Mr. McKellar and his colleagues persuaded Duke Ellington and other jazz stars to give shout-outs to the soft drink, according to ‘The Real Pepsi Challenge,’ a 2007 book by Stephanie Capparell, a Wall Street Journal editor. They were treated as celebrities in the black press as they crisscrossed the country to pitch Pepsi by giving interviews and visiting schools, church groups and mom-and-pop groceries.”

“Pepsi already had set itself apart by offering 12 ounces for a nickel, while most rivals sold 6-ounce bottles for the same price. Promising “twice as much,” Pepsi ads appealed to the less affluent. The soft-drink company hoped its willingness to hire African-Americans for prominent roles and to market directly to blacks would give it further advantages over Coca-Cola.” In a 2009 interview, Mr. McKellar commented: “Back in those days, there were one or two things a minority kid could expect to do: You could become a teacher or, if you had the financial resources, a doctor. I became the national sales representative for the black market in America. I have been told this was a precursor for blacks in the corporate world.”

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Late & Great: Charles Hooley

The Wall Street Journal: “Bargain shoppers can thank Charles Hooley for the no-frills feel of more and more U.S. grocery stores … Groceries at his stores were unloaded from trucks as close as possible to the wooden shelves where they would be sold, and displayed in their shipping cases. At Cub Foods, which he and three partners founded in Minnesota in 1968, Mr. Hooley and his family dispensed with price tags on each item. (This was before bar codes.)”

“Instead, Cub gave shoppers black grease pencils to carry with them through the store. They read the price for a can of soup or box of cereal off its shipping case, then scrawled it on the item themselves. Checkout clerks tallied up a total from the prices a shoppers had written on their groceries. Fewer workers to individually price and stock Cub’s shelves meant lower prices overall.”

“In 1980, Mr. Hooley and his partners sold Cub Foods—an acronym for Consumers United for Buying—to Supervalu, which expanded Cub to more than 100 stores in 13 states. Mr. Hooley remained at Supervalu as Cub’s president until 1981.”

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Kicks: How Sneakers Sneaked Up

The Wall Street Journal: “How on earth have people who make freaking footwear apparently managed to reduce athletic powerhouses like USC and Louisville to the role of glorified money launderers? It all comes down to the outsize importance of sneakers in popular culture. In his expansive, thorough and entertaining book ‘Kicks: The Great American Story of Sneakers,’ author Nicholas Smith traces the history of this $20 billion industry, arguing that the power and allure of the shoe have shaped American business and fashion for decades.”

“Their manufacturers have thus become economic forces larger than the sports they’re supposedly there to support. In many ways, to hear Mr. Smith tell it, the shoes have been wearing us.’Kicks’ serves as a comprehensive look at how much the sneaker became a signature indicator of cool, from Chuck Taylor and his Converse All-Stars to Clyde Frazier’s Pumas to Run-DMC and their Adidas to, of course, Michael Jordan.”

“Today, the author suggests, sneakers have essentially replaced music as the go-to investment for companies looking at getting into the youth market. They have become so popular that most manufacturers make limited-edition shoes that exist solely to become valuable and are almost never worn. The shoes aren’t for wearing; they’re simply for having.”

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How Jewelry Rattles The Millennial Market

The Wall Street Journal: “Jewelers are following fashion’s playbook for romancing millennials who are left cold by traditional, museum-like high-end boutiques. Brands are pulling out all the stops, designing products that customers can personalize and flaunting their ethical sourcing and sustainability. They are making online and in-store shopping distinctive and are hosting pop-up shops with limited-edition items.”

“The challenge is twofold: designing pieces that appeal to young shoppers and then persuading them to buy jewelry for themselves any time—and not just as the occasional milestone gift. Many millennials reserve splurging for technology or vacations—not fancy jewelry … When millennials do buy jewelry, they often seek out eclectic pieces from Gucci and other trendy brands. They also favor artisanal jewelry from small or new brands.”

“Diamond giant De Beers added nightclub touches to its sleek new Libert’aime by Forevermark store in Shanghai. The shop, which opened last month, has a scented VIP lounge for big-ticket purchases and a “diamond bar” with jewelry meant to be worn every day. One wall features an enormous detail of a diamond, where browsers can take Instagram-friendly selfies surrounded by gleaming facets. The jewelry in the shop is ‘designed to appeal to the 420 million millennials in China,’ the company said.”

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Kanye Tests Bite-Sized Music

The Wall Street Journal: “Kanye West is betting that good things can come from small packages. The 41-year-old rapper has produced five albums, each with seven tracks, many under three minutes. Released on consecutive Fridays, mostly by his record label, G.O.O.D. Music, and its partner Def Jam Recordings, the minialbums are making waves in a music industry where bigger has increasingly been seen as better … G.O.O.D. Music’s experiment is the latest instance of labels and artists tinkering with release strategies in the streaming age. Streaming is now the most popular way Americans listen to music. As listening habits change, record executives and musicians are trying to figure out how to reach fans and distinguish their releases in an increasingly crowded market.”

“Similar to how Mr. West’s provocative tweets and interviews in recent months helped him break through the clutter of social media ahead of his new releases, his seven-track albums are generating buzz for G.O.O.D. Music, music-industry experts say … It’s too soon to tell if shorter albums will trump longer ones in the streaming world … Bite-sized LPs may go down smoother for music fans inundated each week not just with music, but movies, videogames and social-media.”

“Mr. West hasn’t detailed his strategy, but he hints at the idea of shorter tracks on 4th Dimension, a 2½-minute song on Kids See Ghosts. The track samples Someday, by gospel singer Shirley Ann Lee, which includes the lines ‘you only want 2½ minutes if you can get it…three minutes maximum’ and ‘when it get too many then they can’t remember it and then they lose interest’.”

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How Moosejaw & Walmart Make Music

The Wall Street Journal: “Walmart is betting that even under its umbrella, Moosejaw and other brands like the feminist-leaning ModCloth and men’s fashion clothier Bonobos can remain convincingly hipster. But Walmart has such a distinct culture; will it be able to maintain an appropriate distance or will executives from Bentonville swoop in, forcing everyone to wear those iconic blue big-box vests? … Some suppliers of high-end gear abandoned Moosejaw’s shelves to avoid doing business with its new parent.”

Yet: “Moosejaw’s loyalist shoppers appear unfazed. While there have been reports of social-media backlash against Walmart ownership of firms like ModCloth, Walmart’s overall e-commerce sales have picked up … Moosejaw will soon have a rolling pop-up store pulled across the U.S. by a semi truck—another innovation private-equity backers may not have sponsored. With access to Walmart’s shipping rates, Moosejaw.com offers free two-day shipping, which is increasingly expected by online shoppers.”

“Then there is the beer cooler. Much has been made of alcohol policies at Walmart subsidiaries, and Moosejaw’s victory in this category is notable. Before the acquisition, Bentonville executives noticed a padlocked beer cooler at its Madison Heights, Mich., headquarters … Shortly after the deal … Chief Executive Doug McMillon concluded that because Moosejaw had responsible policies, the cooler could stay. At this month’s shareholder meeting Mr. McMillon gave analysts a glimpse of why he’s bending the rules. He carries a list with him of top retailers from decades gone by, a sobering list that includes struggling Kmart and Sears that reminds him of the fleeting nature of success. Yesterday’s retail kings die ‘because they don’t change,’ he said.”

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Ikea Future: (Not) Plastics!

Fast Company: “By 2020, if you order ‘Nordic fruit water’ with your vegetarian meatballs at one of Ikea’s in-store restaurants, you’ll no longer be able to drink it with a plastic straw. The company will stop using single-use plastic including straws, cutlery, and drink stirrers in its cafes … It will also remove single-use plastic products, like garbage bags and 200-packs of straws, from the shelves of the store.”

“It’s a small part of the company’s sustainability strategy. Ikea is already planning to phase out virgin oil-based plastic in its products, moving to either plastic made from renewable materials or recycled plastic. It was the first major retailer to stop using plastic bags, in 2007. It invested in a plastic recycling plant in 2017 to help with that goal.”

Sander Defruyt, who leads the New Plastics Economy initiative at the Ellen MacArthur Foundation, comments: “I think the approach of Ikea is interesting in that they take a full-systems perspective. They recognize the need to eliminate some of the most problematic or unnecessary plastics where possible, and at the same time, also make sure that they decouple the plastics they do use from virgin fossil fuel plastics by using recycled plastic as much as possible and for the remainder switch to renewables. It’s a nuanced and quite comprehensive strategy.”

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Meatless Meat Stampedes Grocery Stores

The Wall Street Journal: “For thousands of years, meat came from slaughtered animals, and milk was squeezed from cows. Tech-style disruptions are now upending supermarket meat cases and turning the stomach of cattle ranchers … dismayed to find the meat replacements sold next to the real thing. High-tech startups are building burgers from plant proteins and compounds that grill and taste more like the real thing than old-fashioned veggie burgers. Other firms are using cell-culture technology to grow animal muscle tissue—otherwise known as meat—in stainless steel bioreactor tanks, similar to the fermentors used to brew beer.”

“The U.S. Cattlemen’s Association has petitioned the Agriculture Department to bar plant-based products from bearing labels that say ‘beef’ or ‘meat,’ with similar restrictions on meat grown from animal cells … Stakes are high for the roughly $200 billion U.S. meat market. Sales of alternative meat products account for less than 1% of fresh meat sales in the U.S. but are growing at an annual rate of 24.5%, according to Nielsen Total Food View.”

“To get better exposure, Beyond Meat requires that retailers carry its products in the grocery meat section, rather than the frozen foods case—what Mr. Brown called the ‘penalty box.’ Alison Pham, 22, of Bokeelia, Fla., is a vegan who sees the realistic looking Beyond Meat patties as a way to get her father to try a plant-based diet. She reaches for the package in the same meat-filled cases she long avoided.”

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