🥣 Campbell’s premium play

…and Berkshire Hathaway’s double record   An iconic can buys a premium jar (Spencer Platt/Getty Images)   Yesterday’s Market Moves   Dow Jones 35,473 (+1.16%) S&P 500 4,518 (+0.90%) Nasdaq 13,994 (+0.61%) Bitcoin $29,163 (+0.41%) Dow Jones 35,473 (+1.16%) S&P 500 4,518 (+0.90%) Nasdaq 13,994 (+0.61%) Bitcoin $29,163 (+0.41%) Hey Snackers, Press X to escape: Elon Musk said he might need back [surgery]( after Mark Zuckerberg suggested Musk would likely back out of a much-hyped IRL battle of the billionaires. The pokes, it seems, will stay online only. US stocks rebounded yesterday after a losing week. Investors are waiting to see June inflation #s on Thursday. The consumer-price index could influence the Fed’s future rate decisions. Chunky Campbell’s plans to scoop up Rao’s sauce as Big Food expands its premium palate Just noodling around… As [Campbell]( US soup sales cool after pandemic soup-mania, the canned icon is [slurping]( up premium brands. Yesterday the chicken-noodle standard-bearer announced plans to acquire [Sovos Brands]( the maker of Rao’s tomato sauce (and soups) and Noosa yogurt, in a deal valued at $2.7B. - Rapid boil: The deal’s price tag reflects Sovos’ growth since going public in 2021, when it was valued at $1.3B. Rao’s organic sales grew 35% last year, making up more than two-thirds of Sovos’ total sales. - Saucy: Campbell’s says Rao’s won’t compete with its budget sauce brand, Prego, which retails for less than $3/jar (Rao’s costs about $8). - Sea Salt & Vinegar: The deal is reminiscent of Campbell’s 2017 snack-quisition of Snyder’s-Lance, which gave it premium chip brands like Kettle and Cape Cod. Trying to stay fresh… Campbell’s thrived during the pandemic as millennials used its condensed soups to level up recipes (think: tomato bisque + cauli rice) and they nostalgia-snacked on Goldfish. Now it aims to keep its soup hot by catering to premium palates. Other brands have made similar moves: Oreo maker [Mondelez]( bagged Clif Bar for $2.9B last year, after nabbing fancy-cookie brand Tate’s in 2018. In June, ice-cream giant [Unilever]( said it would buy premium frozen Greek yogurt biz Yasso, while Snickers owner Mars added nutritious-meal maker Kevin’s Natural Foods to its candy-filled cart. THE TAKEAWAY “Premium” products command a premium… Campbell’s agreed to spoon over $23/share for Sovos — 27% more than the company’s closing share price on Friday. Similarly, shoppers are willing to shell out more $$ for foods with health-associated labels (organic, non-GMO, all natural). Recent acquisitions show that companies are putting stock in premium brands as some shoppers splurge for quality. Warren Berkshire Hathaway hits a high as Buffett’s slow-and-steady approach grows profit Never too old… to lead your company to its [highest-ever]( operating profit. [Berkshire Hathaway]( headed up by nearly 93-year-old Warren Buffett (wish him a HBD August 30), notched $10B in quarterly operating profit for the first time. After Berkshire shared the results on Saturday, the stock hit a record yesterday. - Cash pile: BH grew its holdings of cash and cash equivalents (mostly Treasuries) to $147B in the quarter as interest income rose, courtesy of Fed hikes. - Blue chips: BH’s Geico shares boosted its portfolio as the insurer had fewer auto claims, while the value of its massive [Apple]( holding (~$178B) paid off as the tech giant touched a $3T market cap this year. Warren-nomics… After taking over Berkshire Hathaway in 1965, Buffett built a reputation as an investment genius, aka “The Oracle of Omaha” (back in the day, Berkshire's holdings often outperformed the S&P 500). Still, investors look to the long-standing conglomerate for a glimpse into the broader economy because its holdings are a sampler platter of insurance giants, railroads, utilities, and Big Tech. Buffett’s economic musings, laid out in his annual shareholder letter, are analyzed by investors as if they were Shakespearean sonnets. - Patience and profits: Buffett highlighted a long-term investing strategy in his most recent yearly missive: “At Berkshire, there will be no finish line.” - In practice: BH has sold $18B more of stocks than it’s bought so far this year, and it’s made only one big acquisition since 2016 (insurer Alleghany for nearly $12B last year). THE TAKEAWAY Sitting on your hands can pay off… when they’re clutching billions worth of Apple shares and Treasuries. Buffett believes that his conservative strategy of passing on buzzy investments and focusing on value-based investments has helped Berkshire beat the market during tough times. As Buffett (poetically) wrote in February: “The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders.” What else we're Snackin' - [Frozen]( [Tyson]( stock fell after the nugget icon (which supplies ~20% of US meat) reported that its chicken sales dropped 3.5% last quarter as prices fell. Now it’s shuttering four poultry plants. - [Barbillion]( Warner Bros. said “Barbie” surpassed $1B at the global box office, making Greta Gerwig the only woman to have directed a billion-dollar flick. The mega-marketing campaign leveraged countless brand collabs. - [MOC]( [Tesla]( “Master of Coin” (aka: CFO) Zachary Kirkhorn will cede his role to chief accounting officer Vaibhav Taneja. In his 13-year tenure, Kirkhorn helped Tesla avoid bankruptcy and turn a profit. - [RTno]( Remote-work legend [Zoom]( said WFH employees within 50 miles of an office must now come in at least 2X/week. Hybrid cos are hiring at twice the rate of those mandating full-time in-office work, one [report]( said. - [NFLawsuit]( Trading-card titan Fanatics (picture: MLB cards) has countersued Panini America (NFL, NBA cards). Last week, Panini had filed an antitrust suit accusing Fanatics of gobbling up the $44B card market. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day The ubiquitous three-arrows recycling symbol was designed by a 23-year-old student in 1970 [Read more]( Tuesday - Amazon Cooperation Treaty Organization summit begins - Earnings expected from Bitfarms, Take-Two Interactive, Duolingo, AMC Entertainment, UPS, The New York Times, and Lyft Authors of this Snacks own shares of Apple and Tesla Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( • [Our Editorial Principles]( • [Contact Us](mailto:hellosnacks@sherwoodmedia.com) • [Privacy Policy]( • [Advertise with us](mailto:advertising@sherwoodmedia.com) [Unsubscribe](