__Looking for traction…__ 10K __[John Deere](https://robinhood.com/stocks/DE)__ workers went on strike yesterday to protest the tractor giant’s latest wage contract, which they said offered too slim a pay increase. With prices rising like “Squid Game” views (#inflation), Deere employees aren’t the only ones demanding bigger paychecks and better benefits. 

- __Frosty Flake:__ Workers at cereal maker __[Kellogg](https://robinhood.com/stocks/K)__ and Oreo maker __[Mondelez](https://robinhood.com/stocks/MDLZ)__ went on strike recently to demand better benefits, like vacation pay. Mondelez workers succeeded in getting a pay increase and a higher company match for 401(k) contributions. 
- __Temp check:__ Nurses at __Kaiser Permanente__ voted to strike this month to protest low wages and poor working conditions. 
- __Action:__ Hollywood crews plan to strike Monday if they can’t secure better benefits, hours, and workplace treatment.

__Strike while the labor market is hot…__ It’s hard out here for employers trying to hire. Job openings soared to record highs this summer, labor-force participation is stalled at pandemic levels, and 4.3M workers quit their jobs last month. Workers know they’re hot commodities, so they’re demanding higher wages, better benefits, and stronger workplace protections. They’ve already made some progress:

- __+4.6%:__ the hourly-pay increase for US workers last quarter from a year ago. __[Walmart](https://robinhood.com/stocks/WMT)__, __[CVS](https://robinhood.com/stocks/CVS)__, and __[Costco](https://robinhood.com/stocks/COST)__ are among those who upped minimum wages to $15/hour.
- __Free college tuition__ is now available to __[Target](https://robinhood.com/stocks/TGT)__ and Walmart employees. One-third of companies with 20K+ workers also plan to expand health benefits.
- __Bathroom breaks__ are now protected for __[Amazon](https://robinhood.com/stocks/AMZN)__ warehouse workers — 74% of whom said they avoided pee breaks to hit quotas. 


Bacon

__Spending power isn’t just about wages…__ It’s also about prices. Hourly pay increased 4.6% last month, but consumer prices jumped 5.4%. Wages rose but spending power didn’t, because bacon, gas, and rent all got more expensive. Since lower-income Americans are especially sensitive to spikes, they don’t just want higher wages — they also want higher spending power and more valuable benefits. Until that happens, workers may keep asking for more.

John Deere strike aims to lift wages — but workers really want more spending power

__Sounds like a scary laboratory...__ actually just a really big software company. Once dubbed “the Facebook of programming,” __[GitLab](https://robinhood.com/stocks/GTLB)__ is a one-stop shop for developers to create, store, and distribute new software. Instead of sending a “per my last email: code change” to your coworker, you can see and make all changes in one place. 

- __Shares of GitLab jumped 35%__ yesterday after going public on the Nasdaq. GitLab closed well above its IPO price of $77, giving it a $14B+ valuation, nearly double what it was in January. 
- __During the pandemic,__ GitLab benefited from companies rushing to streamline their operations remotely. It generated $152M in revenue in 2020 — up nearly double from 2019.
- __Fun fact:__ San Francisco 49ers legend Joe Montana invested $100K in GitLab through his fund Liquid2 Ventures back in 2015, when GitLab’s valuation was just $12M.

__Like a sibling rivalry…__ except there’s no relation. GitLab’s main rival, __GitHub__, has more than 65M developers and was scooped up by Microsoft in 2018 for $7.5B. GitLab has attracted new users by offering its popular DevOps software free. The hope was more nonpaying users would turn into premium paying subscribers, but it hasn’t panned out:

- __<1%:__ how many of GitLab’s 30M users converted to a $19.99 or $99.99 a month subscription. For context: Spotify had a 46% conversion rate in 2019.
- __$40M:__ GitLab's loss last quarter as a result of ramping up its marketing budget to attract big spenders. 


Code

__Developers are the backbone of the hybrid work economy…__ but they need the tools to keep up with cloud demand. As more companies offer a flexible WFH lifestyle, it’s critical for businesses to make office apps available remotely. Companies like GitLab, whose employees are 100% remote, are gaining steam by trying to make that transition seamless. Still, it could be a while before they actually make money doing it.

GitLab goes public at an $11B valuation to support the hybrid work economy

Worker wage strikes, GitLab’s IPO, and more of today’s top Snacks stories

Dow Jones

S&P 500

Nasdaq

Bitcoin

_Head in the cloud [skynesher/E+ via Getty Images]_

🚫 John Deere in the headlights 

__Scratch the mango e-juice...__ For the first time, the FDA has authorized an e-cigarette to stay on the US market. Refresher: Juul, Puff, and others still *don't* have the green light. The FDA authorized three Vuse vaping products from Camel-maker __R.J. Reynolds__, one of the world's largest cigarette companies. Unlike competitors, this vape is far from “cute”:

- __The Vuse Solo e-cig...__ looks more like an emergency medical syringe — no bright colors and no puffy-cloud illustrations.
- __The approved cartridges__ are strictly tobacco-flavored. A far cry from watermelon ice or cotton candy. Still, they contain as much nicotine as a pack of cigarettes.
- __The verdict:__ FDA said the health benefit of helping smokers ditch tobacco cigs outweighs the risk of getting kids hooked... on tobacco-*flavored* Vuse Solo.

__First Vuse...__ The landmark decision means the FDA thinks some vapes could offer more benefits than risks — keyword: “some." The FDA rejected 10 other flavored Vuse products, which are popular with teens. As global tobacco use falls, smokers are trading paper for puffable nicotine tech. The e-cig market was worth [$14B](https://www.prnewswire.com/news-releases/global-e-cigarettes-market-to-reach-22-5-billion-by-2026--301302268.html#:~:text=Amid%20the%20COVID%2D19%20crisis,8.3%25%20over%20the%20analysis%20period.) last year, and is expected to hit $22.5B by 2026. So far the FDA hasn't been sipping the e-juice.

- __The Vape Purge:__ Over the past few months, the FDA has ordered thousands of vaping products off the market, including Puff Bars.
- __Puff has surpassed Juul__ as a teen favorite thanks to its candy-like flavors, cheap disposable bars, and colorful packaging.

Puff

__Vice companies can’t have it all...__ Companies in industries like tobacco, alcohol, drugs, and weapons face unique risks. Case in point: Tobacco giant __[Altria](https://robinhood.com/stocks/MO)__, which bought a 35% stake in Juul, has been dealing with a torrent of litigation as regulators blamed Juul's marketing and Jamba Juice-inspired flavors for a teen-vaping epidemic — and Altria has lost billions. Juul and Puff rose to popularity thanks to their branding, but they may have to be more conservative like Vuse if they want to survive.

Vuse Solo becomes the first e-cig authorized by the FDA — after doing what Juul didn’t

__Say “supply shortage” again…__ Three major global problems have dominated headlines and weighed on markets. First, supply-chain snarls are straining everything from USPS delivery to Grape Nuts availability. Second, a chip shortage is slowing production of __[GM](https://robinhood.com/stocks/GM)__ trucks, gaming consoles, and lots more. Third, a surge in ransomware cyberattacks has disrupted a large variety of organizations, including beef suppliers and big governments. Meanwhile, the IMF lowered its forecast for 2021 global economic growth this week. To get things on track, President Biden and other leaders are getting involved.

__ETA on that rice cooker: 97 days…__ Corporations don’t necessarily have financial incentives to help solve global operations and security problems. So Biden’s encouraging them to address the far-reaching threats. Some examples: 

- __Unblocking the supply chain:__ Biden brokered a deal for ports in LA and Long Beach, which process nearly half of US cargo, to operate 24/7 to ease the backlog. 
- __Cracking down on hackers:__ Biden gathered 30 state leaders to combat cyberattacks, which cost victims $74B last year. The US also sanctioned a crypto exchange accused of letting criminals launder stolen __[Bitcoin](https://robinhood.com/crypto/BTC)__.
- __Supercharging chips:__ Japan reportedly might partner with __[TSMC](https://robinhood.com/stocks/TSM)__ and __[Sony](https://robinhood.com/stocks/SONY)__ to build a $7B chip factory to address the shortage. Meanwhile, the White House spearheaded a $52B bill to boost domestic chip making in June.

The great chip scare [Victor Dyomin/Moment via Getty Images]

Dilemma

__It’s a pandemic “prisoner’s dilemma”…__ When facing huge shared costs, individual companies often wait for *someone else* to pay first. But if no one pays, everyone loses — so governments sometimes get involved to spur action. Exhibit A: climate change. Without fines or rewards, companies have little financial incentive to curb pollution. Biden’s hoping that big bucks and hefty fines convince companies to tackle global economic threats together.

From supply headaches to cyberhacks, leaders tackle global business threats

The first FDA-approved vape, and more of today’s top Snacks stories

💨 Goodbye, Puff Bars

__A tall vanilla latte walks into a Porsche…__ Midlife crisis, __[Starbucks](https://robinhood.com/stocks/SBUX)__ edition. The chain is [celebrating](https://www.bloomberg.com/opinion/articles/2021-10-12/starbucks-is-50-and-emboldening-its-rivals-more-than-ever?srnd=premium&sref=q3KSFp38) its 50th birthday. Today, it's a corporate giant worth $131B that accounts for 40% of US coffeehouses. In honor of the big 50, we're taking a look back:

- __1971:__ The first Starbucks opened in Seattle’s Pike Place Market. But it only sold beans and equipment for DIY brews.
- __1982:__ Howard Schultz, a sales rep for a Starbs supplier, became Starbucks' marketing chief. He believed it could become “synonymous with great coffee.”
- __1987:__ Schultz ended up buying Starbucks, with a vision of turning it into a nationwide café chain inspired by Milan coffee bars.
- __1991:__ A year after turning its first profit, Starbs started a national rollout. LA stores were instant hits, with celebs like Paula Abdul rolling up for nonfat lattes.

__Cold brew, hot growth...__ Today Starbucks has over 33K stores around the globe, up from 1K in 1996 and [double](https://www.starbucks.com/assets/ba6185aa2f9440379ce0857d89de8412.pdf) what it had in 2010. Most Americans had never experienced "café culture" pre-Starbs. Now the US has 37K+ coffeehouses — Starbs accounts for a whopping ~15K. Since going public in 1992, Starbucks stock is up more than 300X, and has doubled over the past five years. It's the world's [second most](https://www.forbes.com/the-worlds-most-valuable-brands/#81d1a56119c0) valuable restaurant brand, trailing only __[McDonald's](https://robinhood.com/stocks/MCD)__. Two recent areas of focus:

- __Digital:__ Starbs has doubled down on store pickup, delivery, and drive-thru. Last quarter, more than 25% of transactions came from app mobile orders, and rewards members accounted for more than half of US sales.
- __Product line up:__ Since Starbs acquired the Frappuccino in 1994, it's expanded from hot coffee to fancy foods and premium cold bevs, including egg-white bites and Mango Dragonfruit Refreshers.

Go oat, brew cold [Adam Hester/The Image Bank via Getty Images]

Brew

__"Premiumization" could be a frothy growth opp...__ Starbs has upped the dividend it pays to investors since 2010, when it first intro'd dividends. But to keep growing profit in the face of hot competition, Starbs might need more premiumization — fancy-fied products it can charge extra for. That's why it’s pushing premium treats like __[Beyond Meat](https://robinhood.com/stocks/BYND)__ breakfast sammies and __[Oatly](https://robinhood.com/stocks/OTLY)__ iced coffees. We'll see if the premium push is still working when Starbucks reports earnings this month.

Starbucks turns 50: the past, present, and future of the world's largest coffee chain

__Sounds like a lake monster…__ the Seattle Kraken. The NHL’s newest hockey team hit the ice last night. This season, the NHL signed a $635M/year broadcast deal with ESPN and __Turner__ — nearly twice the size of last year’s deal with __[Disney](https://robinhood.com/stocks/DIS)__ and NBC, but far from the NFL’s recent $10B/year deal. The NHL has high hopes for Seattle’s first team in 97 years. Here’s why:

- __No expense spared:__ The Kraken raised $2B from billionaires like __[Amazon](https://robinhood.com/stocks/AMZN)__ CEO Andy Jassy, who along with his ownership group paid $650M — more than 20 of 31 teams are *valued* — to join the NHL.
- __The Climate Pledge Arena__, sponsored by Amazon, cost $1B+ to upgrade and is 100% renewable-energy-powered. Think: more LED video screens than any other arena.
- __Digital approach:__ The Kraken built a mobile app that gives fans personalized experiences, like finding their favorite wines waiting at their seats.
- __Monster demand:__ An average Kraken ticket sells for $188 on __SeatGeek__, double the NHL average. 

__Streamable hat trick...__ The Kraken’s debut is part of a bigger e-vamp for the NHL, whose ratings hit a 10-year low last season. The NHL-ESPN partnership is the first major US sports broadcasting deal that’s streaming-focused: It gives the NHL access to 15M ESPN+ subscribers and 43M Hulu subscribers — and an opportunity to boost its fan base. 

Puck

__The future of pro sports is omnichannel…__ and the NHL doesn’t want to miss out. The NBA and NFL have built ways for fans to consume live sports across *multiple* platforms. The NBA teamed up with __[Microsoft](https://robinhood.com/stocks/MSFT)__ to provide AI-customized content across streaming and social platforms, and the NFL partnered with __[Verizon](https://robinhood.com/stocks/VZ)__ to deliver 5G-powered stats in the stadium. The Kraken could spearhead the NHL’s plans to engage viewers in stadiums *and* on streamers.

The NHL’s pricey new puck drops in Seattle as it takes a page out of other leagues' playbooks

Starbucks turns 50, the NHL’s big deal, and more of today’s top Snacks stories

☕️ Starbucks’ big 50th

__Hard to swallow...__ because “molnupiravir” is a mouthful. American pharma giant __[Merck](https://robinhood.com/stocks/MRK)__ and __Ridgeback Biotherapeutics__ just [filed](https://www.wsj.com/articles/merck-asks-fda-to-authorize-promising-covid-19-pill-11633946402?mod=business_lead_pos1) for FDA approval of molnupiravir — aka *the Covid pill*. If approved, it would be the first swallowable antiviral Covid drug. So far, __[Gilead’s](https://robinhood.com/stocks/GILD)__ remdesivir is the only FDA-approved antiviral, but it's just for hospital patients and has to be injected. Merck said its pill reduced hospitalizations and deaths by *half* in high-risk people with Covid.

- __Only people with Covid can take the treatment__ (eight pills/day for five days). The goal: Prevent cases from leading to hospitalizations, which carry a dangerous health toll, and cost an average of [$20K](https://www.healthsystemtracker.org/brief/unvaccinated-covid-patients-cost-the-u-s-health-system-billions-of-dollars/#:~:text=While%20real%2Dtime%20data%20on,COVID%2D19%20hospitalizations%20average%20%2424%2C033.) per stay.
- __We're still waiting on final results__ from Merck's big study, but the FDA could clear the pill in the next few weeks.

__Winter is coming...__ and it could be chilly. Sheltering indoors could lead to another Covid surge. Merck is pushing to get this pill out: It's already started production and plans to manufacture 10M treatment courses this year. Oh, and it has a $1.2B contract to provide 1.7M courses to the US gov't, at $712 for each five-day course — or [40X](https://theintercept.com/2021/10/05/covid-pill-drug-pricing-merck-ridgeback/) what it reportedly costs to produce.

Pill

__Pharma’s Covid story is far from over...__ And pills could play a big role, both for those who aren’t vaxxed, and for those who *can't*. While 80% of US adults are vaccinated, [more than half](https://ourworldindata.org/covid-vaccinations?country=OWID_WRL) of the world's population *hasn't* gotten a shot, and only 35% is fully vaxxed. Since unvaccinated people are [11X](https://www.usnews.com/news/health-news/articles/2021-09-10/cdc-finds-unvaccinated-11-times-more-likely-to-die-of-covid) more likely to die from Covid, the pill could lower death rates in countries with poor vaccine access — *if* Merck makes it affordable. Merck says it plans to price its pill based on the wealth of the country buying it.

The Covid pill: Merck seeks FDA approval for its first-of-a-kind drug — it could be big

__Scratch the fuzzy pink neck pillow...__ and forget the Biscoff cookies. __[Southwest Airlines](https://robinhood.com/stocks/LUV)__ cancelled 2K+ flights between Saturday and Monday, causing headaches from Miami to Denver. SW blamed the cancellation-palooza on air-traffic issues and bad weather. Awkward, since the FAA reported no air-traffic-control issues, and angry customers posted [pics](https://twitter.com/KamVTV/status/1447614181402894344) of baby-blue skies. SW shares sank as much as 3% yesterday.

__The rumors were flying…__ unlike Southwest’s planes. Critics speculated that the cancellations stemmed from pilots’ massive “sick-in” protest of SW’s vaccine mandate. But SW — and the pilots’ union — said the cancellations weren’t part of a protest. Instead, they may have stemmed from Southwest’s opportunistic pandemic strategy: 

- __Unpredictable moves:__ While __[American Airlines](https://robinhood.com/stocks/AAL)__ and __[Delta](https://robinhood.com/stocks/DAL)__ cut flights in smaller cities to save cash mid-pandemic, Southwest *expanded* to 18 new destinations to try to grab market share.
- __Predictable delays:__ As flight demand ramped up quickly, SW struggled to staff its new flights. This summer, one-third of SW flights were late — much more compared to those of its rivals.
- __In context:__ __30%__ of Southwest flights were cancelled on Sunday. The next most affected airline, __American__, cancelled just *2%* of its flights.

Two days late for the one-day NFT convention [bymuratdeniz/E+ via Getty Images]

__It’s hard to refund a canceled rep…__ The financial cost of cancellations is bad for airlines, but the *reputation cost* is worse. Southwest soared to success with low prices and an aggressive expansion strategy. But after this PR nightmare, thousands of travelers may avoid it at a time when travel is rebounding. Domestic travel is nearly back to pre-pandemic levels, and is expected to keep growing. But Southwest could miss out.

Southwest cancels 2K+ flights, grounding its reputation as flight demand takes off

Merck’s new Covid pill, and more of today’s top Snacks stories

💊 The Covid pill

__Climate-change stress…__ is getting *financial*. Risks related to climate change could affect global markets in a big way, and US officials are taking note. Last week, the Fed moved closer to launching climate-risk safety checkups. And the SEC is trying to amp up rules for corporate climate reporting. The disclosures could change company valuations, and how investors view entire industries. The details:

- __Climate checkup:__ The Fed wants to require Big Banks to tally climate risks — aka how much $$ is threatened by intensifying wildfires and floods. 
- __Climate filings:__ The SEC wants public companies to share how climate change could affect their business (think: fossil-fueled lawsuits), demand for carbon-heavy products, and what they’re spending to stay compliant.
- __Targets:__ The SEC might also make companies share five-year plans for cutting emissions, plus net-zero goals. 

__Late to the climate rally…__ The US is playing catch-up with countries like England and France, which have already set corporate climate-reporting standards. Meanwhile, companies have been making their own rules:  

- __Neutralize:__ Tech giants like __[Amazon](https://robinhood.com/stocks/AMZN)__ and __[Microsoft](https://robinhood.com/stocks/MSFT)__ made plans to go carbon-neutral. __[Google](https://robinhood.com/stocks/GOOGL)__ says it’s been carbon-neutral since 2007.
- __Transition:__ Oil companies __[Exxon](https://robinhood.com/stocks/XOM)__, __[Shell](https://robinhood.com/stocks/RDS.A)__, and __[BP](https://robinhood.com/stocks/BP)__ have made multibillion-dollar plans to shift to renewable energy.
- __Clean-vest:__ Investment firms like __[BlackRock](https://robinhood.com/stocks/BLK)__ have prioritized renewables to de-risk funds.

__Green filter...__ About 90% of S&P 500 companies share *voluntary* climate reports. But they’re usually not regulated, and sometimes “greenwashed” to inflate progress:

- __Facts:__ Most Fortune 500 companies have emissions targets, but only 20% are based on science.
- __Dally:__ Amazon committed to carbon neutrality by 2040 in 2019, but its emissions have actually *grown* 15%+ annually since. 
- __Lip service:__ Companies like __[Costco](https://robinhood.com/stocks/COST)__ have said they want to reduce their footprints, but haven’t set formal targets yet.


This storm looks expensive [Rapideye/E+ via Getty Images]

Scrub

__Goodbye, greenwashing…__ Because climate accounting is about to be clearer. Standardized climate reporting through the Fed and SEC will likely make it harder for companies to fudge their environmental impact. US officials say better reporting will drive more capital to greener industries, and help countries reach net-zero emissions. Big money is at stake too: Extreme weather has cost the US [$1.9T](https://capitalmonitor.ai/institution/government/big-names-back-climate-disclosure-in-the-us/) since 1980, and $95B last year alone.

__Correction:__ In the original version of this story published Monday, Oct. 11, we misstated that __Netflix__ had not yet set targets to reduce its carbon footprint. The company *has* set targets, which you can read about [here](https://ir.netflix.net/governance/ESG/default.aspx) and [here](https://sciencebasedtargets.org/companies-taking-action). 

The Green Sheet: The Fed and SEC plant seeds for better corporate climate reporting

__Leaky roof…__ Last week the Senate raised the $28T debt ceiling by $480B, preventing a historic and [“catastrophic”](https://www.nytimes.com/2021/09/28/business/economy/yellen-powell-senate.html) default, for now. Lawmakers will need to go back to the drawing board to make a long-term plan in December. One solution: The President could order the Treasury to mint a trillion-dollar platinum coin to help offset the nation’s debt. The idea emerged a decade ago but was nixed over inflation worries. TBD if it will happen. 

__Lifting off...__ Flights to Cabo still haven’t returned to pre-pandemic levels, but US airline travel is poised to rev up during the holidays. __[United Airlines](https://robinhood.com/stocks/UAL)__ said it planned to offer 91% as many domestic flights in December as it did the same month in 2019. __[Delta](https://robinhood.com/stocks/DAL)__ said US business traffic is starting to grow, and next year could be its best year since before the pandemic. Flight searches for holiday trips are also up 16% compared to 2019. We’ll see if Delta concerns change airlines’ outlook.

Zoom Out

Stories we’re watching...

__Banks’ big week...__ __[Citigroup](https://robinhood.com/stocks/C)__, __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__, __[Morgan Stanley](https://robinhood.com/stocks/MS)__, and __[Wells Fargo](https://robinhood.com/stocks/WFC)__ all report this week. Earlier this year, banks profited from strong consumer spending (thanks, [stimmy](https://www.reuters.com/article/us-usa-banks-stimulus/cash-strapped-americans-ask-mnuchin-where-their-stimmy-checks-are-idINKBN294259) checks) and by moving billions of “rainy day [funds](https://snacks.robinhood.com/newsletters/2Dx6BpeCelL6ERgFEQBzuf/articles/7FGQ9LWK0pYQ0cJrD5MQd9/)” to reserves. __[Goldman Sachs](https://www.cnbc.com/2021/07/13/goldman-sachs-gs-earnings-q2-2021.html)__ and other top IPO underwriters have benefited from a [record](https://markets.businessinsider.com/news/stocks/ipo-volume-2021-spac-171-billion-us-capital-markets-boom-public-6) year for market debuts. Now, investors are watching loan revenue from products like mortgages. Loan growth has been stagnant, and makes up [more](https://www.reuters.com/business/finance/us-banks-see-big-jump-2q-profits-before-results-return-normal-2021-07-08/) than half of the banking industry’s revenue. 

__Dough-eyed…__ America’s biggest pizza chain saw sales skyrocket during lockdown when more people munched from their couch. Domino’s sales growth has slowed down this year, but the chain is still growing sales in places where Covid restrictions are lifting. Small price hikes for delivery fees and menu items have helped. When __[Domino’s](https://robinhood.com/stocks/DPZ)__ reports on Thursday, we’ll see whether the labor shortage impacts results (the chain hires its own delivery [drivers](https://www.wsj.com/articles/dominos-goes-it-alone-on-delivery-11566219685)), and if the pizza fever is still going strong as more cities reopen. 

Events

Coming up this week...

1. __[Global](https://snacks.robinhood.com/newsletters/79a47f1ZHASWmFqj21BRZ8/articles/4vjRWY6cPN5u2Khu4WU4ft/):__ Netflix’s South Korean hit “Squid Game” didn’t become the top TV show in 90 countries by accident — it’s part of the ’Flix’s strategy to go global.
2. __[Levi’s](https://snacks.robinhood.com/newsletters/BsDe10e9xAgHvtNWL9X9r/):__ The denim icon's sales blew past pre-pandemic levels last quarter thanks to “casualization” (think: baggy), plus a sturdy supply chain behind the seams. 
3. __[Robotaxi](https://snacks.robinhood.com/newsletters/13cF1yKnOi3d4KGQe6K8q2/articles/4EByRZTA6SoI4Jqbuu9VmJ/):__ __[GM](https://robinhood.com/stocks/GM)__ isn’t only doubling down on EVs to catch up to __[Tesla](https://robinhood.com/stocks/TSLA)__ —– it’s launching a robotaxi fleet in a push to zoom past it.

ICYMI

Last week's highlights...

The Gov v. corporate greenwashing, and more of today’s top Snacks stories

🌳 The Gov v. greenwashing

__Cotton comeback…__ High-waisted jeans are in at __[Levi’s](https://robinhood.com/stocks/LEVI)__. Levi’s [lifted](https://www.cnbc.com/2021/10/06/levi-strauss-co-levi-q3-2021-earnings.html) its annual forecasts after last quarter’s sales blew past pre-pandemic levels for the first time. Rising cotton costs have caused shares of retailers like __H&M__ and __[Gap](https://robinhood.com/stocks/GPS)__ to fall over the past six months. But Levi’s stock surged 9% yesterday thanks to the denim powerhouse’s strong sales and proactive supply chain. 

__Casual clothes, serious supply chain…__ Levi’s is cashing in on denim demand. The overall apparel market has outgrown its pre-pandemic size, and denim sales have grown even *faster*. Levi’s leaned into the jean-aissance by investing in Levi’s-branded stores and embracing the post-pandemic “casualization” trend (think: baggier fits and yoga-wear). But there’s another secret to Levi’s success: smart supply-chain management. Here’s the skinny:

- __Splitting at the seams:__ The spread of Delta has caused widespread factory shutdowns in Vietnam, where __[Nike](https://robinhood.com/stocks/NKE)__ makes half its shoes, __Everlane__ produces 40% of its clothes, and Adidas gets 28% of its kicks. Retailers’ plans unraveled. 
- __Spread the threads:__ Levi’s makes only 4% of its products in Vietnam. The rest are made in 24 *other* countries.
- __Never miss a stitch:__ The supply shortage cost Levi’s *just* $10M last quarter — out of its $1.5B in sales. Adidas, on the other hand, could lose $600M from supply shortages in the second half of this year alone.

That new-jeans feeling [Flashpop via Getty Images]

__Reliable supply chains never go out of style…__ but fashion trends come and go. Levi’s sales are booming today because it diversified its supply chain years ago. Levi’s de-risked system ensures no more than 20% of products come from any one country, preventing pipeline wrinkles. In the wake of pandemic factory closures, more companies making everything from shoes to furniture are trying on Levi’s strategy and [diversifying](https://www.wsj.com/articles/firms-want-to-adjust-supply-chains-post-pandemic-but-changes-take-time-11609081200) their supply chains too.  

Levi’s stock surged thanks to “casualization” and an always-fashionable supply chain

__King of the sneaks...__ Nike is officially the No. 1 footwear and apparel brand among [teens](https://www.pipersandler.com/1col.aspx?id=6216), according to Piper Sandler’s Gen Z survey. It’s held the top spot in both categories for the past *decade*. The competition:

- __Runner-up:__ __[American Eagle](https://robinhood.com/stocks/AEO)__ took second — the same spot as the past two years. Converse, owned by Nike, came in fourth.
- __Big spender:__ Gen Z makes up [nearly half](https://www.businessinsider.com/retail-courts-gen-z-spending-power-over-140-billion-2020-1) of shoppers in the US and has a whopping $140B in spending power. Nike’s taken note.

__Slam-dunk strategy…__ Thanks to social media (Nike is IG’s most followed brand with 177M fans) and the rise of “[sneakerheads](https://www.bloomberg.com/features/2021-sneaker-investment/),” Nike has shown it's not just the sponsor of your favorite NFL team. For years, it’s been tailoring its products and reach to Gen Z: 

- __Virtual fits:__ Since 2019, Fortnite fans have been able to [purchase](https://esportsinsider.com/2019/05/epic-games-launches-fortnite-and-nike-air-jordans-crossover/) Nike skins and branded clothes for their avatars. 
- __Resale:__ 60% of Gen Z males use StockX, a sneaker-bidding marketplace where a rare pair of Jordans can cost $500 or more.  
- __AR Yoga:__ Nike’s augmented-reality [feature allowed Snapchat and TikTok users to experience](https://www.fool.com/earnings/call-transcripts/2021/06/24/nike-inc-nke-q4-2021-earnings-call-transcript/) everything from yoga to dancing. (__[Snapchat](https://robinhood.com/stocks/SNAP)__ was teens’ No. 1 social-media app.)
- __Gen J’s:__ This year, NBA player Zion Williamson became the first [Gen Z](https://www.fool.com/earnings/call-transcripts/2021/06/24/nike-inc-nke-q4-2021-earnings-call-transcript/) player to design a shoe for Nike’s popular Air Jordan line.

Swoosh

__Nike is like the Beyoncé of retail brands…__ and Gen Z is the music industry. Similar to how Queen B has resonated for decades and across generations, Nike has stayed relevant by reaching young customers where they are and leaning into styles that click. While Fortnite and Snapchat are in today, Nike will need to keep refocusing its strategy as social hubs shift. 

From Snapchat to StockX: Nike still reigns supreme with Gen Z 

Supply chains = trendy and today's top Snacks stories

👖Supply chains = trendy

__Putting the EV in rEVolution…__ __[General Motors](https://robinhood.com/stocks/GM)__ kicked off a two-day investor event yesterday by outlining bold plans to *double* annual revenue to $280B by 2030. GM says *all* its cars will be electric by 2035, and its eHummer goes on sale this fall. But EVs are only the start: GM says growth will come from *services*, like its fleet of Chevy Bolt autonomous EV taxis.

__Your robotaxi has arrived…__ And it’s powered by GM. __Cruise__ — an AV startup majority-owned by GM that counts __[Honda](https://robinhood.com/stocks/HMC)__, __[Walmart](https://robinhood.com/stocks/WMT)__, __[Microsoft](https://robinhood.com/stocks/MSFT)__, and __[Softbank](https://robinhood.com/stocks/SFTBY)__ as investors — is key to GM’s software-centric strategy. Here’s why:

- __Cruising past Waymo:__ Cruise became the first robotaxi biz permitted to collect fares with no safety driver last month, beating Google-owned robotaxi rival Waymo. 
- __Robo-revenue:__ GM, which already signed a deal to sell a robotaxi fleet to Dubai, says robotaxi revenue will soon hit $50B — more than 30% of GM’s 2020 sales. Cruise was last valued at $19B in 2019, and Waymo at $30B in 2020.
- __Connected everything:__ Robotaxis are just one application of GM’s auto tech. Walmart already uses Cruise self-driving tech to deliver groceries, and GM plans to launch in-car subscriptions through its Ultifi operating system in 2023. 

Robotaxi drivers tell great jokes [Igor Alecsander/E+ via Getty Images]

Robo

__Tech-enabled mobility platforms > car companies...__ even EV car companies. Tesla is worth 10X GM — even though it delivered 10X fewer cars last year — because investors value __[Tesla](https://robinhood.com/stocks/TSLA)__ like a tech company, not like a carmaker. Now GM’s gunning for its own sky-high tech valuation by investing big bucks to take Tesla’s crown as America’s EV giant. But since that could take years, GM is also tapping revenue streams Tesla hasn’t touched, like robotaxis and driverless delivery services.

GM hopes to double revenue by catching up to Tesla in the EV race and rolling out robotaxis

__Greener nav bar…__ __[Google](https://robinhood.com/stocks/GOOGL)__ unveiled several new eco-friendly [features](https://www.theverge.com/2021/10/6/22711623/google-climate-change-greenhouse-gas-emissions-carbon-footprint-maps-search-travel) to help its 1B+ users make more sustainable lifestyle choices. They launch first in the US but will expand to Europe next year. The suite:
- __Shop:__ When searching for a new dishwasher, you might see water-saving models pop up alongside regular results in the Shopping tab.
- __Drive:__ Google Maps will offer an alternative “green leaf” route that shows how much gas you could save with minimal extra time. 
- __Fly:__ See how much [carbon](https://www.washingtonpost.com/travel/2021/10/06/google-flights-carbon-footprint-travel/) is emitted in every Google Flights route before booking your next getaway.
- __Nest:__ Google’s thermostat can automatically heat or cool your home based on when renewable energy is available.

__Big user base = big responsibility…__ Google reaches more than 10% of the Earth’s [population](https://www.livescience.com/global-population.html) through its enormous range of hardware products (Pixel phones, robotaxis) and digital tools (Chrome, Android, Google TV). But its wide reach comes at a jolting cost: 
- __12.4 terawatts:__ How much electricity Google uses to keep its network afloat. That’s nearly as much as the Dominican Republic uses, and it’s growing.
- __Other tech giants__ like __[Facebook](https://robinhood.com/stocks/FB)__ and __[Apple](https://robinhood.com/stocks/AAPL)__ have committed to zero-carbon or carbon-neutral initiatives, but have yet to roll out similar features for users.
- __Criticism__ is mounting against big corporations accused of putting climate responsibility in the hands of individuals instead of their own.

Poke

__A “nudge” in the sustainable direction…__ may be a key strategy for consumer companies facing pressure to go green. The gist of the “nudge theory” in behavioral research is that encouraging individuals to take an action is more effective than eliminating all other options. It’s why Google is *suggesting* sustainable options instead of picking them for you. Now that most people are seeking more eco-friendly lifestyle options, nudges could be the way that companies get their customers to go green.

Flying, shopping, or driving? Google just rolled out eco-friendly features to help ease your carbon conscience

🚕 Rise of the robotaxi

__Grumpy at the pump…__ Oil prices spiked to a seven-year high this week, while US prices are up 63% this year — a dollar more per gallon than last year. The spike is weighing on drivers’ wallets and boosting inflation concerns because higher prices mean pricier goods. President Biden asked OPEC to crank up production to keep economic recovery on track. But earlier this week, OPEC’s powerhouses rejected the request and said they’d make only gradual production increases to help prop up prices.

__A slippery slope…__ Demand for oil fell during the pandemic, when people stayed home and drove to the mall less. But demand rebounded faster than analysts expected. So to *keep* prices high and profits flowing, oil giants are capping supply. It’s paying off for oil companies, but costing everyone else:

- __Barrel half full:__ __[BP](https://robinhood.com/stocks/BP)__ and __[Shell](https://robinhood.com/stocks/RDS.A)__ doubled their profits last quarter from the previous year, and __[Exxon](https://robinhood.com/stocks/XOM)__ boosted profits 6X.
- __Barrel half empty:__ Gas prices have hit $4.41/gallon in California, while panicked petro-purchases have caused fuel shortages in Britain and China. Such high gas prices could also increase the cost of food, heating, plastic, and other goods.

Not pumped at the pump [Hybrid Images via Getty Images]

Gassy

__The US economy still runs on gas…__ Just like your uncle’s ’64 Impala. Many investors are shifting their dollars toward renewables, but the US economy still depends on fossil fuels. High oil prices don’t only affect consumers; they can also up supply-chain costs and shape policy priorities. Oil has cracked the $80-per-barrel mark for the first time in seven years, and could hit $100 by winter. So even though US consumer spending has been rebounding this year, businesses like restaurants and retailers could suffer if consumers blow their cash on gas — and their products and services cost more.

Oil stalemate: OPEC’s refusal to crank out gas means higher prices — and more profits for oil giants

__Sounds like a hunting tool…__ actually a wine. __[Duckhorn Portfolio](https://robinhood.com/stocks/NAPA)__ is Napa Valley’s first publicly traded winemaker in decades, and the stock (perfect ticker: NAPA) is up 20% since its $2B March IPO. Its 10 luxury wine brands include Decoy, Duckhorn Vineyards, and Kosta Browne, with bottles ranging from $20 to $200. Last quarter, the supplier swung a profit and beat pre-pandemic levels with 36% sales growth. Behind the boon:

- __Wide net:__ Duckhorn wines are sold in bars, restaurants, and grocery stores across the US. Last year, it sold more than 1.4M cases.
- __Member fees:__ Duckhorn’s Wine [Club](https://www.duckhornwineshop.com/Wine-Clubs/Duckhorn-Vineyards-Limited-Wine-Club) sends three to four of its top bottles to your doorstep for up to $420/month.

__One-stop wine shop…__ Empty vineyards and shuttered tasting rooms put a strain on most luxury vineyards during the pandemic. Duckhorn offset those losses by increasing its presence in grocery stores, where most consumers [shopped](https://www.foodandwine.com/news/usa-alcohol-sales-in-2020), and by launching new products and features: 

- __Wine seltzer:__ Duckhorn unveiled a line of canned Decoy wine seltzers this year, like “Chardonnay with Clementine Orange.” 
- __Tastings with Alexa:__ Its new Alexa assistant means its 55K club members don’t have to sip alone. Think: virtual tasting rooms and wine-pairing suggestions.  


Wine

__In crowded markets, differentiation is key...__ When customers walk into the wine section of a grocery or liquor store, they’re overloaded with options. While IRL wine tours paused and in-store and online shopping competition spiked, Duckhorn innovated to reach a target audience: millennials, who spend more per bottle than any other demo. Differentiation worked: Brand-new products like seltzers and its Alexa feature helped its wine portfolio sales grow faster than those of the other top 20 US suppliers.

For Luxury winemaker Duckhorn, supermarkets and tailored launches are a winning pairing

🛢Oil giants = pumped

__Not your average extension cord…__ The world’s longest undersea electricity cable [started](https://www.cnbc.com/2021/10/04/worlds-longest-under-sea-electricity-cable-begins-operations.html) sending electricity between the UK and Norway earlier this week. Shares of __[National Grid](https://robinhood.com/stocks/NGG)__, the UK energy giant behind the 450-mile cable, which trades on the NYSE, rose nearly 2% yesterday. NG has big plans for its network:

- __Wind, water, wire:__ The new $1.9B North Sea Link cable will send British wind power to Norway and Norwegian hydropower back to the UK.
- __Underwater energy superhighway:__ NG already built “interconnectors” in the Netherlands, France, and Belgium — and it has plans to connect even more countries. 
- __Low carbon:__ NG aims for 90% of its imported electricity to come from zero-carbon sources by 2030.

__Energy sharing = energy caring…__ One issue with renewables is intermittency, which happens when solar panels stop generating electricity on cloudy days and wind turbines slow down in less gusty weather. But power grids need to keep the lights on in *all* kinds of weather. One solution: electricity sharing. National Grid’s new cable enables both the UK and Norway to borrow spare juice from each other when their own wind and water systems slow down.

With great cables come great responsibility [Westend61 via Getty Images]

Plug

__Better grids are key to a renewable future…__ Shared energy grids are crucial now that 160+ countries have adopted renewable-energy targets and need backup when their sources wane. Businesses and orgs like the Renewable Energy Institute are working to connect cables across borders to make “supergrids.” Others, such as battery giants __LG__ and __[Panasonic](https://robinhood.com/stocks/PCRFY)__, are building mega-batteries that can store renewable energy, while carmakers __[Tesla](https://robinhood.com/stocks/TSLA)__, __[VW](https://robinhood.com/stocks/VWAGY)__, and __[Nissan](https://robinhood.com/stocks/NSANY)__ are working to transform their EVs into mini power plants. But countries still have a ways to go to reach targets: The US needs to triple its renewable investments by 2030 to hit its global climate goals.

The UK just plugged in the world’s longest undersea cable — but the transformation of the power grid is just beginning

__"Hunger Games" meets "Black Mirror"…__ __[Netflix’s](https://robinhood.com/stocks/NFLX)__ new South Korean fictional thriller “Squid Game” debuted 10 days ago and is already on track to becoming its [biggest](https://www.nbcnews.com/pop-culture/pop-culture-news/netflix-s-squid-game-sensation-here-s-why-it-s-n1280646) show ever (sorry, “[Bridgerton](https://www.businessinsider.com/bridgerton-compared-to-other-netflix-top-original-shows-viewership-2021-1)”). The drama follows hundreds of cash-strapped contestants competing in children’s games for a big $$ prize (think red light, green light), but losing could mean death. The results are viral:

- __From the couch to the monitor:__ Fans are using apps like __TikTok__ to recreate the series’ tasks (see the Dalogna candy [challenge](https://www.techtimes.com/articles/266041/20210930/netflix-squid-game-dalgona-candy-recipe-revealed-tiktok-viral.htm)). Game makers on Roblox are also creating playable spinoffs. 
- __82M million subscribers__ are [expected](https://fortune.com/2021/10/02/squid-game-series-netflix-everything-to-know/) to tune in by the end of the month. It’s now the top show in [90](https://www.forbes.com/sites/paultassi/2021/10/03/squid-game-is-now-the-1-show-in-90-different-countries/) countries.

__Netflix’s streaming passport…__ is full of stamps. Since its international debut in Canada a decade ago, ’Flix has added 180+ countries to its roster. America still accounts for about a quarter of Netflix’s 209M global paying memberships, but US growth is tapping out. To unlock new audiences, Netflix is looking overseas:  

- __International reels:__ This year, Netflix plans to spend half its $17B original content spend on [productions](https://www.wsj.com/articles/netflix-disney-and-amazons-streaming-wars-heat-up-overseas-11619083801) outside the US. 
- __Hits:__ Popular shows like Germany’s “Barbarians,” the French series “Lupin,” and South Korea’s “Sweet Home” have boosted Netflix’s international subscribers 18%+ since [2018](https://www.comparitech.com/tv-streaming/netflix-subscribers/). 


Squid

__Going global means it might be time to “copy and paste”…__  Netflix’s US subscriber base is no longer growing — it actually dropped by 400K people this year — which means the streaming giant has two options to grow: Raise prices or win new customers somewhere else. With hits like “Squid Game,” Netflix is doubling down on high-quality international content to win over new subscribers overseas. The push seems to be working, but it does bring some new costs: Think pricey licensing fees and conflicts with broadband providers facing traffic spikes.

Netflix’s K-thriller ‘Squid Game’ series goes viral, underscoring Netflix’s big opportunity overseas

🔌 Clean cable energy 

__Same name as the Jetsons’ dog...__ Except it has a tablet for a head. __[Amazon](https://robinhood.com/stocks/AMZN)__ [rolled out](https://www.wsj.com/articles/amazon-event-today-expect-echo-updates-and-a-little-weirdness-11632837993?mod=business_lead_pos4) new home gadgets at its hardware event last week, including a smart thermostat and a wall-mounted echo. The most interesting drop: a $1K Alexa-powered robot named Astro. Picture a 10-inch tablet on wheels. Control it like a metal dog, with voice commands or through an app.

- __Multitask queen:__ Astro follows you around while you video-chat on its tablet, and plays music and shows as you do laundry.
- __Host with the most:__ Astro transports stuff around the house in its storage compartment. Just don't ask it to take the La Croix upstairs (it can't climb).
- __Better than a bulldog:__ Astro patrols your home while you're on vacay, and can scope out areas where movement is detected.

__Connection, still loading...__ Amazon will offer a limited number of Astros starting later this year. So far the reviews have been underwhelming: Amazon developers [reportedly](https://www.theverge.com/2021/9/28/22699284/amazon-astro-real-world-stairs-fragile-developer-claims-documents-tracking) claim it's "terrible" and will "throw itself down" stairs. Still, Amazon has been building its suite of connected-home products, from Echo speakers and tablets to Amazon-branded TVs, and now robots. The goal: plant its flag in the connected home.

- __Today__ we have smart speakers like Amazon's Alexa and Google's Home Mini, along with thermostats, security cameras, and light dimmers. And let's not forget __[iRobot's](https://robinhood.com/stocks/IRBT)__ Roomba.
- __Tomorrow__ we could have [showers](https://time.com/5634791/smart-homes-future/) that turn on at your preferred temp when your alarm rings, health sensors that order Advil when they detect a fever, and AI bots that whip up spaghetti while you drive home.
- The smart-home market is projected to [grow](https://www.marketsandmarkets.com/Market-Reports/smart-homes-and-assisted-living-advanced-technologie-and-global-market-121.html?gclid=CjwKCAjw49qKBhAoEiwAHQVTowIwoFavyZ4cb5paTresHBzClz8-1Ux70sN090Cu1ATN606ers2f1BoCJIEQAvD_BwE) from $84.5B this year to $139B by 2026. And [63M](https://time.com/5634791/smart-homes-future/) American homes will qualify as smart by 2022.

2040: Your avo toast is ready [onurdongel/E+ via GettyImages]

__The smart future could unlock smart profits…__ The smarter homes become, the more connected hardware they’ll need to power them. That’s an opportunity for companies like Amazon to not only sell new hardware like Astro but also boost subscriptions and e-comm sales. Think: A smart fridge that automatically restocks groceries via Prime. But IoT is still early. Plus, all that connectedness requires tons of data on your home life. That could turn off some consumers.

Smart Home: Amazon unveils a home robot in a bid for the connected future

__Shots fired...__ __[United Airlines](https://robinhood.com/stocks/UAL)__ [said](https://www.nbcnews.com/news/us-news/nearly-600-united-airlines-employees-face-termination-defying-vaccine-mandate-n1280304) it would fire nearly 600 US-based employees who failed to comply with its vaccine mandate. Meanwhile, chicken giant __[Tyson](https://robinhood.com/stocks/TSN)__ is requiring all 120K of its US workers to be [vaxxed](https://www.nytimes.com/2021/09/30/business/tyson-foods-vaccination-mandate-rate.html) by November 1. It offered a $200 vax bonus and says 91% of its workforce has already gotten the shot. Last month, President Biden signed an exec order requiring companies with 100+ workers to ensure  employees are vaxxed or submit them to weekly Covid tests. Expect corporate pressure to keep intensifying.

__Flated shopping spree...__ Consumer spending, aka the biggest driver of US economic growth, [jumped](https://www.wsj.com/articles/consumer-spending-personal-income-inflation-august-2021-11633027180) 0.8% in August after falling in July. Personal incomes ticked up thanks to wage gains and $300/month child tax credits. Splurging suggests economic recovery is ramping up heading into the holidays. Also ramping up: inflation. Prices popped 3.6% in August from last year, eating into households' buying power. Adjusting for inflation, August spending rose only 0.4%.

Stories we’re watching…

__Kim Crawford wine, chilled...__ Booze giant __[Constellation Brands](https://robinhood.com/stocks/STZ)__ owns grocery go-tos like Robert Mondavi wine, Svedka vodka, and Corona Hard Seltzer. Constellation benefited during the pandemic, when bar and restaurant closures had us couch-sipping hard seltzers and quarantinis. From March to December 2020, US liquor store sales hit $42B — up 20% from the same period in 2019. But sales have slowed this year as home-sipping declines. We’ll see if that has continued when Constellation reports earnings Wednesday.

__The blowout is back…__ __[Helen of Troy](https://robinhood.com/stocks/HELE)__, whose brand portfolio includes Hydro Flask, Vick’s, and Dry Bar hair products, reports earnings Thursday. Helen owns or licenses trademarks for a variety of household, beauty, and health products. Sales jumped 29% last quarter, driven by growth in beauty as salons reopened and “going out” life picked up. But Helen still has regulatory issues to iron out, and it lowered its sales forecast for the rest of the year. 

- __[Roof](https://snacks.robinhood.com/newsletters/6agvqKBLkHAmQdjfWIviz8/articles/dDAJRs3v8aC0I1za037Xz/):__ The debt ceiling, explained: Why Congress’ fight over borrowing could tank the US economy — and its reputation. 
- __[Ad-icted](https://snacks.robinhood.com/newsletters/33JsqHWKUqNBFoxkqiZToY/articles/psOEOADIm8V369AIxofkr/):__ __TikTok__ became one of few social networks to hit 1B+ users. It may have been cloned by Insta, __Snap__, and YouTube — but it’s not owned.  
- __[Vision](https://snacks.robinhood.com/newsletters/6agvqKBLkHAmQdjfWIviz8/articles/3cXEqrGe81eKKG3rIA2kCP/):__ Direct-to-consumer glasses pioneer __[Warby Parker](https://robinhood.com/stocks/WRBY)__ is worth $5B after directly listing its shares on the market. But customer love doesn’t always mean profit.