This is what the flux.
I'm justin and I'm harsh deep and it's Friday, the seventh of June.
Block spam. If you thought fifteen hour flights to LA was already too much, Contous has another thing coming for you. Get this. Contius of CEO says it has plans to launch non stop flights to Europe and the US and they're on track for twenty twenty six. Some of these flights could be up to twenty two hours.
Oh my god, that's so long.
Maybe some good movies on the phote.
Oh yeah, Fluxpam. We're giving away fifty dollars today in our weekly game Quick six And just for those listening to the pod, we're gonna give you a clue. The queers will be dropping between nine am and ten am today, So make sure you've got the fluxap and notifications turn on for your chance.
To win three turbulent stories today HD.
Let's get into it.
For our first. SPC is cutting back it's canned fruit production because the cost of living is seeing customers opt for cheaper imported options.
Could not forget the taste of those insanely sweet canned peaches, even if I try what's the story here.
Does SPC is one of Australia's largest food processes and they started over one hundred and five years ago.
Fun fact for you, it actually stands for Shepperton Preserving Company.
Interesting good for trivia, and hd SPC owns a number of canned fruit brands like SPC, Golden Valley and Admona as well.
Those SBC fruit saled SnackPacks were definitely a primary school staple.
Well now hd SPC said it's going to be cutting some of those canned fruit productions because cost of living pressures are pushing consumers towards cheaper options.
Yeah, so SBC has told its AUSSI suppliers that it'll cut peach and pair intake by almost forty percent.
Turns out the cheaper alternatives in the market are actually imported from countries like China and South Africa.
Where production costs are lower.
And that's why Australian farmers and food processes are pushing the government to bring in another import tariff.
So tell me what's the key learning here.
An import tariff is a tax that's imposed by the government on goods imported from another country.
Governments can levy tariffs for a range reasons, like to increase revenue, or to exert political power, or like.
In this case, to protect the local economy.
You see, Jazz, SPC and local fruit processors are competing against brands that use cheaper imported fruits.
And therefore they're able to price themselves lower and gain market share.
That leads local processes like SPC in the dust and has consequences for the entire Australian fruit processing industry. And we've seen this happen in China with the wine import tariffs. Yep.
Remember when China imposed more than two hundred and eighteen percent tariffs on Australian wine after some political tension.
So Jazz until there are increased tariffs on these overseas fruit producers, it looks like there's going to be less fruit salad snacks in primary school lunchboxes.
For our second story, the owner of Champion, the sportswear brand, will sell the Champion business for nearly one point five billion US dollars to narrow it's focus on inner wear.
I feel like Champion has really made quite the comeback recently. Tell me about this.
Champion actually started back in nineteen nineteen, but was first acquired by Sarah Lee in nineteen eighty nine. Guess that Sarah Lady.
But clearly it didn't quite match with their cheesecakes and sticky date puddings. So they spun out all of their apparel brands into another company called Haines Brands, and.
That company owns Haines Teas, They owned Wonder Bra.
And they also owned some iconic Aussie brands like Bonds, Undies, Early Bras and Sheridan Homework.
But now I see Haynes Brands will sell the Champion brand to another company called Authentic Brands.
And how much are we talking here?
Well, it'll be one point two billion US dollars upfront, with an additional three hundred million bucks if Champion hit certain performance thresholds.
I feel like Champion is really starting to hit its peak again. So why the sudden sale.
Well, Haines Brand says it wants to focus on extending its innwear category like Bras and Undies. But really this might just be a case of good timing.
So what's the key learning here?
In the fast paced world of fashion, timing the market can define a company's trajectory.
Haynes Brands knows all too well, what happens when a brand goes out of fashion?
Yeah. After partnering with the NFL and college football in the late eighties, Champion became an iconic and super popular.
Brandt's say, bills nearly doubled between nineteen eighty five and nineteen eighty eight to over two hundred million US dollars.
Then they're required by Sarah Lee and Champion became a bit of a discount brand and they were sold in stores like Walmart in the US.
And suffered a clear fall from Grace whatever.
The past five years, Champion seen a major turnaround. It leaned into gen Z's love for the nineties culture.
It announced a collab with Supreme, then wood would and then Vetaments.
And celebs like Selena Gomere's Chance the Rapper and Hailey Bieber all started wearing the brand as well.
Now, Champion generates more than two billion US dollars in sales in twenty twenty three.
Actually, Champions owner knows how fickle consumer trends can be.
And when you've got a good offer on the table for a consumer brand, you take it, cash it and run.
For our third and final story, Zoom wants to create a digital twin to attend meetings for you, so you can go to the beach instead of being.
At worse Sign me up, Sorry, no, I mean I love meetings. Tell me more.
So. We all know Zoom, the video conferencing software that launched back in twenty eleven but when absolutely bananas when the the whole world went into lockdown.
Although Zoom may not have wish COVID on us, it's fair to say it was one of the biggest beneficiaries.
In fact, its share price jumped over seven hundred and fifty percent between January and October twenty twenty, but just.
Since then it returned to its previous levels, which is why Zoom needs to think of some new innovative ways to get its users to fall in love again.
Let's be honest, nobody was loving seeing their colleagues and constantly being on muses.
Zoom has already attempted to become more of a productivity tool like Microsoft and Google.
But now zoom CEO has announced plans to build an AI avatar that will be your digital twin in meetings.
So the idea is you can clone yourself and your AI clone can make business decisions on your behalf in meetings and Zoom recons If successful, you'll only need to attend ten percent of the meetings you do today.
But before you go searching to sign up the CEO warrant day are still some time away from turning this into reality.
So does it's no surprise that this magical idea for years down the path didn't actually move Zoom's share price.
So tell me what is the key learning here?
Well, ambitious tech announcements to excite investors, they can often have the opposite effect.
Yeah, tech announcements like cutting down your meetings by ninety percent are intended to capture the imagination of investors, but.
When these advancements failed to materialize, they actually erode trust and enthusiasm.
For example, Elon Musk had projections that Tesla would have fully self driving capabilities. Oh yeah, well repeatedly pushed back.
In twenty sixteen, he said that self driving cars could be ready by twenty seventeen, and.
It was going to be twenty twenty.
And now we're in twenty twenty four and I ain't seen many self driving cars and taxis yet.
There's a fine line between inspiring innovation and fostering investor skepticism.
And given Zoom CEO warn this might be six to seven years away, it's kind of hard to get excited about it right now.
Bring on the digital twins, Flux Am. If you want to win fifty bucks to start your weekend on a high, then all you've got to do is make sure you've got the Flux app downloaded, notifications turned on, because we'll be dropping the quiz between nine am and ten am today.
Thanks for listening, and we'll see you on Monday.