💸 Cashless-biz bans

…and France destroys its wine   Sweetgreen scrapped its cashless policy after some backlash (Jahi Chikwendiu/Getty Images)   [Sponsored by]( Yesterday’s Market Moves   Dow Jones 34,560 (+0.62%) S&P 500 4,433 (+0.63%) Nasdaq 13,705 (+0.84%) Bitcoin $25,970 (-0.46%) Dow Jones 34,560 (+0.62%) S&P 500 4,433 (+0.63%) Nasdaq 13,705 (+0.84%) Bitcoin $25,970 (-0.46%) Hey Snackers, If you couldn’t get your hands on one of [Home Depot]( viral $300, 12-foot Halloween skeletons, you can skip straight to the holidays: [Costco]( is [selling]( a 5-foot Minnie Mouse Nutcracker for $700. PSA: it’s still August. Stocks rose yesterday and the S&P 500 notched its first consecutive gains of the month after slumping for most of August. Volatility in the famous index has been relatively low: the S&P 500 hasn’t moved more than 2% on a single day in over six months. Swiped LA is considering a ban on cashless businesses as the plastic shift leaves some behind Take a penny, leave a penny… just don’t pay with one. As Americans’ cash usage declines, more shops are refusing to accept physical currency. With no federal law saying a business must accept cash, cities that want to keep cash flowing have to pass legislation. This month, lawmakers in LA [proposed]( a ban on cashless businesses, arguing they exclude people with low incomes, older adults, and unbanked communities. - Cashless-biz bans have already passed in cities like San Francisco, NYC, Philly, and DC. - Cash made up only 20% of all US payments in 2021, a steep drop from 31% in 2017. As of last October, 4 in 10 Americans weren’t using cash at all in a typical week. [Square]( said that in the first year of the pandemic US cashless businesses more than doubled. - Paper or plastic: Cashless businesses say the lack of paper currency discourages theft and is more efficient (picture: no cash transport and storage costs). Cashless has other biz perks… Studies show that customers paying with a card tend to spend more. Credit-card companies, which earn a transaction fee on every swipe, have (unsurprisingly) encouraged no-cash trends: in 2018 [Visa]( held a cashless contest, paying $10K to 50 businesses that stopped accepting real currency. Card and digital payments (like Apple Pay) also give merchants data on consumers, which can be used for targeting your latte habits. THE TAKEAWAY Fast change can leave some short-changed… As cashless transactions take over, large populations could be excluded. Some groups still rely heavily on cash, like unbanked populations (7% of CA), older people who haven’t transitioned to digital payments, and kids or teens who aren’t old enough to get a credit card. Sponsored by Hedonova Hedonova: Making Alternative Investing Easier The popularity of alternative investments is on the rise, with a significant 67% of institutional investors predicting that portfolios holding 20% alternative assets will likely achieve superior performance compared to the conventional 60/40 stock-bond investment blend, according to the 2023 Natixis Outlook Survey.* [Hedonova]( gives you a single place to invest in different alternative assets like media royalties, pre-IPO startups, wine, and fine art. It’s under SEC regulation and was recognized as the[top multi-strategy hedge fund]( at the 2023 Hedgeweek European Awards. Take the first step towards building a well-rounded investment portfolio by investing in Hedonova,[starting at just $5k.]( Crushed France pays farmers millions to destroy wine as young people cut back on drinking Pinot Au Revoir…. The French government is paying farmers about $215M to [destroy]( this season’s surplus wine — enough vino to fill 100 Olympic-size pools. The wine won't just be dumped, though: it’ll be distilled into ethanol that can be used in cleaning supplies and perfumes. Separately, France is paying farmers to destroy their vineyards to avoid a future glut. Through the program, Bordeaux farmers have applied to rip out 8% of the region’s vines. - Getting crushed. Contributing to this year’s surplus: increased global wine competition and a sales dip in China. But the industry’s also prepping for a longer-term trend: people drinking less alcohol. Sober-curious generation… The French sipped 32% less red wine last year than they did a decade ago, and the drinking decline’s steeper among the country’s youth. While some of their drinking preferences have shifted to beer and spirits, many are simply drinking less. That’s true in the US too: 62% of those aged 18 to 34 said they drink alcohol in a recent Gallup poll, down from 72% two decades ago. Young people have also cut back on how much they drink. - Hangover-free: Non-alcoholic beverage sales (including n.a. wine) grew 21% last year, and mocktails like [non-boozy]( botanical spritzes are being added to trendy menus. - Treat yourself: When people do imbibe, they may be opting for more premium wines and Champagne — which have seen demand jump — as well as rosé. THE TAKEAWAY Adapt or shrivel up… Wine and spirits are among France’s top exports, and the government’s hoping this short-term pruning will prep the market to flourish. The cash incentive to dump wine is intended to keep prices from crashing while winemakers seek new revenue sources — like growing olives. French Agriculture Minister Marc Fesneau said farmers need to “adapt to changes in consumption and adjust production to the demand of tomorrow.” What else we're Snackin' - [Plug]( [3M]( the company behind Post-its and Scotch tape, could pay ~$5.5B in a settlement over its military-grade earplugs. Veterans say that the plugs didn’t protect them from hearing loss. - [BizGPT]( OpenAI launched ChatGPT Enterprise, a premium tier of its bot for businesses. The company has been in a rush to monetize its services because AI servers are wildly pricey to run. - [Pill]( The Biden admin is set to roll out the first 10 prescription drugs in its Medicare price negotiation plan. [Merck]( [J&J]( and[Bristol-Myers Squibb]( have sued over the discounting plan, which could lose them billions. - [Uncomfy]( The US Transportation Department slapped a $4.1M fine on [American Airlines]( for keeping passengers sitting on the tarmac too long (a record fine for such a delay). The airline blamed “exceptional weather.” - [Twinkie]( [Hostess]( shares surged after Reuters reported that it’s exploring a sale to snack giants like [General Mills]( and Oreo maker [Mondelez](. Snacks are thriving in America, but Hostess has struggled. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day The first modern credit card, the Diners Club card, was introduced in 1950 [Read more]( Tuesday - July job-openings report - Earnings expected from Best Buy, HP, and JM Smucker Authors of this Snacks own shares of Apple *See full report [here]( 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](