🍼 Where’s the baby formula?

PLUS: Marriott’s ad play, and Buffett’s favorite candy company. [The Hustle] We spend a lot of time trying to make The Hustle the best damn newsletter in your inbox. And our guiding force is your feedback. Please take our 45-second [annual reader survey here](. We read every single response. In today’s email: - Baby formula: Why it’s scarce and how it’s coming back. - Candy: Warren Buffett’s “dream” investment. - Marriott Media: Why a hotel is joining the ad game. - Around the web: An accelerator and incubator database, a photojournalist in Ukraine, and more cool internet finds. 🎧 On the go? [Listen to today’s quick podcast]( to hear the whole crew talk about Marriott’s advertising play, McDonald’s “de-Arching” of Russia, what the Home Depot’s big quarter means for the housing market, and more. The big idea [baby pushing away bottle]( The baby formula shortage, explained A baby formula shortage is scary. They can’t exactly make themselves a sandwich, and breastfeeding isn’t always a reliable solution. How’d such a crucial item wind up so scarce? In February… … an FDA investigation into infections in four infants, two of whom died, led to Abbott Nutrition’s plant in Michigan, where traces of the bacteria Cronobacter sakazakii were found. This resulted in a [recall]( of several of its brands while Abbott paused production. It turns out, just four companies produce ~90% of all US formula and, among them, Abbott is responsible for [about half](. This is partially rooted in [WIC]( — a federal nutrition program that helps low-income families — which requires each state contract with just one manufacturer. That domino fell against three more: - Formula sales boomed as pandemic shoppers hoarded in 2020. When sales fell back, manufacturers — unable to accurately predict demand — produced less, [per]( The Atlantic. - More babies were born in 2022, increasing demand. - US regulations for baby formula are so strict that most European formulas are illegal (even though European babies are fine), and US buyers risk shipments seized at customs. The foreign formula the FDA allows often comes with a high import tax. This all led to national out-of-stock rates of 40%+. Some parents were left scrambling, while retailers began [limiting purchases](. What about breastfeeding? Contrary to Bette Middler’s [controversial tweet](, it’s not always “free and available on demand.” Some people [don’t produce]( enough milk. Others — like those undergoing chemotherapy — can’t breastfeed. Some babies require special formulas or are adopted by parents who aren’t lactating. Breastfeeding also costs an estimated [$950/yr.]( in supplies, compared to $1.2k/yr. for formula — not including the mental and physical health effects or time spent doing it. What now? Abbott and the FDA reached [an agreement]( to safely reopen the plant in as soon as two weeks, which would put formula on shelves in six to eight. The FDA [also announced]( “increased flexibilities” for foreign imports and formulas typically made for export in the US. And more broadly, the crisis has [some legislators]( calling for more scrutiny into the very consolidated market known as “Big Bottle.” BTW: Poynter has compiled a list of resources and recommendations for parents [here](. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=The+baby+formula+shortage%2C+explained%0Ahttps%3A%2F%2Fthehustle.co%2F05182022-Baby-Formula-Shortage%3Futm_campaign%3DBaby%2BFormula%2BShortage%26utm_content%3D05182022-Baby-Formula-Shortage%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( SNIPPETS No hesitation: Federal Reserve chairman Jerome Powell [said]( the Fed will not hesitate to keep raising interest rates until inflation comes down and prices return to a healthy level. NFTunes: Spotify is [letting]( select artists promote NFTs on their Spotify profiles. Artists participating in the test include Steve Aoki and The Wombats. Raises coming: Microsoft [doubled]( its budget for raises and increased the level of stock-based compensation by 25% for employees below the senior director level. CEO Satya Nadella said the moves are an effort to retain top talent. Delayed: Apple is [pushing back]( plans to have workers return to the office three days per week due to a rise in covid cases. The company is also requiring masks for employees at 100 stores in the US. Surprisingly, our voices are bearable. Among the 3.2m+ podcasts on Spotify, [The Hustle Daily Show]( was chosen as this week’s top pick to stay informed on the news. Pop-up shops were a $50B-80B industry pre-pandemic, and now they’re ripe for a post-covid comeback. Our [Trends]( team outlined how ecommerce businesses [can capitalize](. --------------------------------------------------------------- Hey — enjoy getting quick updates on what you care about? Take [20 seconds]( to personalize your Snippets. Pick your preferences👇 and we’ll send you more of what you love. Boom. [Personalize my Email →]( Feature [Warren Buffett eating candy]( Zachary Crockett The small candy company that’s Warren Buffett’s ‘dream’ investment If investing were a video game, you might suspect Warren Buffett of using a cheat code. His holding company, Berkshire Hathaway, boasts [$969B]( in total assets. It owns companies in dozens of industries, ranging from insurance (Geico) to underwear (Fruit of the Loom), and maintains a $340B+ stock portfolio. But Buffett’s favorite investment isn’t in the Fortune 500: It’s a small candy company that he bought 50 years ago that represents less than 0.1% of Berkshire’s holdings. He frequently brings up the company in interviews and even keeps a box of the candymaker’s peanut brittle on hand at shareholder meetings. In an era that prizes flashy, fast-paced investments, the story of See’s Candies reminds us that a company’s true value can’t always be quantified on a balance sheet. [Read the full story →]( Free Resource Podcast playlist: Mental health and self-care Staying driven and inspired isn’t always the cakewalk we pretend it is. We’re not sure who’s in your corner, but if you need a boost today — here are some voices with uplifting and empowering messages on wellness. May is Mental Health Awareness Month, by the way. We’re very big fans. Listen to [the self-care playlist]( curated by the HubSpot Podcast Network. Featured episodes: - An achiever’s guide to burnout and balance - Managing mental health in the workplace - Is your inner critic running the show? - The science of stress (and three ways to beat it) - How to “Do The Work” and release negative thinking - Waiting for inspiration to strike? Try this instead There are 15 episodes fit for binging. [Listen here →]( Ads Everywhere [Marriott logo]( Why Marriott launched a media network As  third-party tracking has grown more difficult (thanks, [Apple](), a slew of companies have entered the advertising game. Among them — Walmart, CVS, and Macy’s  — all tout their ability to target consumers based on their own first-party data. Now, Marriott International is [doing the same](, per WSJ, and there’s reason to believe the hotel juggernaut will be successful. Marriott Media Network… … will let brands target consumers on Marriott’s app, through TVs in its hotel rooms, and in hotel lobbies, gyms, and bars. As a travel company, Marriott offers brands a unique value proposition: access to consumers who have specific needs, like ground transportation, restaurants, and entertainment options in the city they’re visiting. But there’s no shortage of companies looking to become a [one-stop shop for travel](: - Google Travel combines Google Maps, Google Flights, and other tools to help users plan their next trip - Uber recently announced it would allow users to book planes, trains, buses, and car rentals through its app this year - Airbnb offers trip planning features through its Experiences tab along with a wide range of places to stay Marriott’s biggest differentiator… … is its rewards program, which counts 164m members and is renowned for its [cultish loyalty](. The program allows Marriott to know when its members are traveling, which means brands will likely be able to target travelers before their trip, and while they’re captive in Marriott’s quarters. For more, check out why sports writers [love Marriott]( more than just about anything. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Why+Marriott+launched+a+media+network%0Ahttps%3A%2F%2Fthehustle.co%2F05182022-Marriott%3Futm_campaign%3DBaby%2BFormula%2BShortage%26utm_content%3D05182022-Marriott%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( Business Building Social Media Workbook: It’s not homework, you’re just bettering yourself. Sharpen your approach to content strategy and audience engagement with [this bundle of activities]( curated by the pros at HubSpot Academy. AROUND THE WEB 📈 On this day: In 2012, Facebook [went public]( for $38 a share. On Tuesday, it closes at $202.62. 🤓 Useful: [Accelerator Hunt]( is a database of accelerators and incubators for your startup. 📷 That’s interesting: A photojournalist [traveled]( to Ukraine to document those who stayed in their homes after Russia’s attack. 🌟 Cure boredom: This [game]( asks you to guess the price of various celeb videos on Cameo. 🐇 Aww: And now, this [bunny]( is very large. Meme [tech stocks meme] Sad but true. (Source: [imgflip.com]() SHARE THE HUSTLE Hey. Stop keeping us a secret. Refer just 3 people and we’ll start to send some goodies as a thank you. [My First Million ebook]( Spread the news. Help us grow 🌱 [Share The Hustle 🤠→]( Or copy this custom referral link: [ Your referral count: 0 How did you like today’s email? Today's email was brought to you by [Jacob Cohen](, [Juliet Bennett Rylah](, and [Rob Litterst](. Editing by: Jennifer “Candy is my dream investment, too” Wang. Was this email forwarded to you? Sign up [here](. 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