Colin Kaepernick joins the latest Wall Street craze

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Tonight: Kap joins the SPAC craze; Uber’s staggering loss is actually pretty good news; and don’t forget your spare quarter – Aldi is all about America. Let’s get into it.

Colin Kaepernick, the activist and former NFL quarterback, is the latest high-profile investor to join the SPAC craze.

A SPAC, or special purpose acquisition company, is a very trendy way to publicize a company. Rather than going through the expensive, time-consuming process of an IPO, private companies can merge with an SPAC, also known as a blank check company, which exists solely to raise money through an exchange listing.

Kaepernick will serve as co-chairman of Mission Advancement Corp., which aims to raise approximately $ 250 million to invest in socially conscious consumer brands. Kap follows on the heels of other top athletes competing in the – can we call it a bubble yet? – trend. Alex Rodriguez, former Yankee and future husband of J.Lo, has one. Billy Beane of “Moneyball” fame has one. And Shaq has a SPAC.

SPACs were once an obscure part of the market, but then 2020 happened. With pockets of easy money from the Fed, investors started looking for creative ways to invest. Last year, SPACs raised $ 76 billion – nearly six times more than in 2019.

LARGE PHOTO

While the GameStop frenzy has subsided, there’s still a lot of sense in risky investments, especially as interest rates remain close to zero.

You can see that in the zeal for unprofitable startups like Airbnb and DoorDash, which became gangbusters on their first day of trading. Or take Tesla, which doesn’t even make money from selling its electric vehicles, but has a market value greater than any other major car manufacturer put together.

And of course in SPACs. “What you’re doing is throwing money away – hoping to find an idea,” Richard Fisher, the former president of the Dallas Federal Reserve, told my colleague Matt Egan. “It’s another indicator that money is too cheap.”

ALDI IS IN EVERYTHING

Aldi, the German grocer known for mega deals and quirky shopping rules (like asking a quarter to use a cart), says it’s on track to become the third largest supermarket chain in the US, after Kroger and Walmart .

The grocer just announced it will open 100 new US stores this year, in addition to the more than 2,000 it already has in 37 states.

WHY THE SURGE?

This is, of course, a pandemic bump. For the past year or so, Americans have stocked up on essentials to eat at home instead of eating out. According to the US Department of Commerce, supermarket sales were up nearly 8% in December from the same month in 2019. And Aldi is ahead when it comes to price and scalability, my colleague Nathaniel Meyersohn reports.
  • Bottom prices: The store claims prices are up to 50% cheaper than traditional supermarkets. Aldi often beats Walmart in its own cheap game.
  • Smaller stores: At approximately 12,000 square feet, the stores are much smaller than a typical 40,000 square foot US grocery store, making it easier to shop in urban areas.
  • Private labels: More than 90% of the brands that Aldi sells are own private labels – a huge cash cow for grocers.

However, Aldi is not without its challenges:

  • The competitionLidl, another German grocer with a similar business model, is rushing to grow in the United States, with plans to open 50 new stores by the end of this year.
  • 2021 is not 2020Food sales will drop by 5% this year, according to a UBS analyst, as vaccines will (hopefully) help curb the pandemic and allow customers to return to restaurants.
  • Not all Americans like the quirks of the store. A quarter for a shopping cart? Of course you get it back when you return the car (that’s another way Aldi keeps labor costs low), but who still has change in their pocket? And at checkout, a cashier will take you to another location to pack your own groceries.

NUMBER OF THE DAY

92.5%

Double masking: Placing a cloth mask over a medical procedural mask, such as a disposable blue surgical mask, allows 92.5% of potentially infectious particles to escape by creating a tighter fit and eliminating leakage, US health officials said Wednesday.

FOOD

When fast food news breaks, Sleep Cap is on it.

THE COMBACK OF HI-C

Our long national nightmare is over. McDonald’s is bringing back Hi-C Orange. The fans’ favorite drink got the shoe almost four years ago when McDonald’s replaced it with Sprite Tropic Berry. People were so upset that they started a petition to get it back. You know, people say Americans are a justified lot – I say we fight what we believe in.

TO GO FISHING’

Popeyes opens a maritime front in the Great Chicken Sandwich Wars. The chain is rolling out a new crispy fish sandwich, which he hopes will give it an edge as more and more competitors take advantage of the chicken craze. Popeyes also offers “sandwich insurance” on the first day – for an extra 15 cents, people who buy the fish sandwich and don’t like it can exchange it for a chicken sandwich.

WHAT HAPPENS ELSE

  • Social responsibilityTarget gives employees free Lyft rides to receive Covid-19 vaccines.
  • Prohibited: According to Twitter’s CFO, former President Trump will not be allowed back on Twitter, even if he runs again and wins.
  • Tackling big tech: The man behind Fortnite is making the riskiest bet of his career. The payout can be huge.

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