Growth at all costs!

Growth, as we all know, can sometimes be a good thing, especially when it comes to cheese. It could be a mold, like those in blue cheese, intentionally cultivated for flavor and texture. Or… it could be a different type of mold, one that indicates spoilage. Beware growth (sometimes), cheddheads! Meanwhile, a “growth” in podcast listeners—or newsletter subscribers—is almost always a good thing!

Today's cheddlines you Need2Know

• PepsiCo buys Poppi for almost $2 billion

• The rise of Glowbar’s $65 monthly facial

  • ‘Modern Wisdom’ host on how to grow a podcast

  • Why Sweetgreen is serving fries now

  • Spotify’s next big bet: streaming video

Speaking of growth, get me some fries from Sweetgreen, please!

—Matt Davis, Need2Know Chedditor

P.S. We’ve got some thoughts from the Einstein of Wall Street about managing money in volatile markets.

Quote of the Day

Should You Check Your 401(k) Today?

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(we’ll let you know!)

PepsiCo buys Poppi for almost $2 billion

PepsiCo has announced the purchase of the prebiotic soda brand Poppi for $1.95 billion, as a shift in consumer preferences toward healthier drink options left the brand without a health and wellness vertical. Problem solved—with money!

"More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness," said PepsiCo chairman and CEO Ramon Laguarta.

Poppi originated from a personal need. Allison Ellsworth, co-founder of the Austin, Texas–based brand, concocted the drink after seeking a healthier soda alternative. Launched in her kitchen in 2015 as Mother Beverage, the mixture of fruit juices, apple cider vinegar, sparkling water, and prebiotics targeted the wellness market.

Poppi's big moment came in 2018 after a successful pitch on the business reality show "Shark Tank." Investment and guidance by Rohan Oza led to a major rebrand. Bright, fruit-themed cans marked the birth of Poppi, offering a guilt-free fizz that promised to cater to health without compromising on flavor.

The path to success, however, hasn't been entirely effervescent for Poppi. Facing several class-action lawsuits over “gut health” claims, the brand's litigation hurdles culminated with an agreement to settle, including creating an $8.9 million fund for consumer payments. Meanwhile, Poppi has been proactive, updating its packaging to more accurately reflect its offering and ensuring compliance with marketing standards.

The announcement wasn't just good news for the health-conscious—it also proved favorable on Wall Street. PepsiCo's $PEP ( ▼ 3.15% ) shares saw a nearly 2% increase in morning trading following the news of the acquisition.

It seems the future of soda is looking increasingly bubbly and bright, albeit with a healthier twist and, of course, without making any costly guarantees about “gut health.”

The rise of Glowbar’s $65 monthly facial

Rachel Liverman, CEO and co-founder of Glowbar, discussed the brand's expansion and the latest beauty trends with us at SXSW. Liverman's vision for Glowbar has always centered on accessibility.

"When I started the business, I wanted to create a facial that was accessible to the masses," she said. This vision is reflected in Glowbar's pricing model: "$60 for a facial membership. So we are the accessibly priced facial membership, and that's why we're the largest."

Glowbar has seen growth as people seek more affordable options, with Liverman noting, "people have gone away from their $200 facials and took that disposable income they had, put it towards Glowbar."

I’m not sure that’s how disposable income actually works, but sure. Glowbar pioneered the 30-minute facial membership—one facial a month for $60. With 20 locations across the East Coast, they've grown fast.

Glowbar's real estate strategy is key to its success. Liverman describes it as "a people business that does real estate, that the end product is skincare." They focus on "small format" locations, about 1,200 square feet—or three times the size of my apartment—which keeps costs down. As for expansion, Liverman says, "It's just a feeling. We start to see the business uptick and we're like, ‘okay, we are ready for more studios.’ And so the market also will tell us." Client feedback is also crucial. "When you have a question about your business, you go direct to the client," she said.

The conversation around skincare is evolving, especially with the influence of platforms like TikTok. Liverman acknowledges this, saying, "Skin Tok has taken on a whole world of its own."

Skin Tok!

She appreciates that it has "grown the market for us" as clients then seek professional advice from Glowbar's estheticians. Liverman also shared her favorite trend: "simplifying routines and also leaning away from clean beauty." She clarifies that "clean beauty" often lacks regulation and that "people just want results." She advocates for "a simple skincare routine that gives them effective results."

Glowbar also aims to be inclusive. Liverman is excited to see more men embracing skincare, noting, "It was 2% of our clients and now it's 5%." She believes Glowbar's "simple aesthetic" environment makes men feel comfortable, as "it's not a polarizing space — it's not a spa, it almost feels like a doctor's appointment."

Glowbar's success lies in its commitment to accessible, effective skincare and its ability to adapt to changing trends and customer needs. As Liverman says, "We're kind of there to take everyone as they kind of cut back on their spend."

Right now I spend nothing on my skincare routine so I’m not going to save quite as much as other people. But I am off to check out Skin Tok for some tips now that I know what Skin Tok is! Skin Tok! I can’t say it often enough!

From @cheddar

‘Modern Wisdom’ host on how to grow a podcast

Chris Williamson, host of the wildly popular podcast "Modern Wisdom," offered us a glimpse into his creative process at SXSW. With 900 episodes under his belt, "Modern Wisdom" has become a go-to source for understanding "yourself and the world around you," as Williamson puts it.

For those unfamiliar with the podcast, Williamson describes it as "a lot of human nature, psychology, social science, philosophy, culture, health, fitness, sex, relationships, anything I've been interested in for the last seven years of my life." It's clear that his personal curiosity drives the content, which he acknowledges by saying, "I think it's a thinly veiled autobiography, masquerading as a podcast."

One of the most intriguing aspects of the conversation was the shift to video podcasting on Spotify. Williamson shared impressive growth figures, stating, "We saw some huge increase. The team told me a 36% increase in January. And the only thing that we changed was adding video, which is pretty crazy." He emphasized the added dimension video brings, saying, "It's visually striking. It's more intimate as well… You get a more immersive sense about what the conversation was like if you can see it as well."

He also pointed out the subtle nuances captured on video: "the way that somebody sort of looks or smiles or grimaces when they start to tell a story or react to something, you know, it's important, I think, to be able to see that."

When asked about a favorite guest or episode, Williamson humorously replied, "That's like trying to get me to choose from 900 children." However, he did highlight his conversation with Matthew McConaughey, describing him as "the most charismatic, lovely man, very insightful." He recalled filming in "a 100-year-old abandoned barn in the outskirts of Texas" and discussing various topics, from relationships to self-confidence and even a review on “Interstellar”’s tenth anniversary.

Williamson's dedication to "Modern Wisdom" is undeniable. He produces three episodes a week and shared that he hasn't missed a single one, even when he "ruptured an Achilles." He explained, "If you're gonna do it, do it right." Reflecting on the growth of the podcast, he noted, "It's very gradual," and emphasized the importance of "consistency" and "not stopping."

For aspiring podcasters, Williamson offered valuable advice: "I think the best way to be successful is to just follow your instincts and do whatever is interesting to you… no one else has your particular blend of interests. So no one else can create the show that you can." He encouraged creators to take the leap, concluding, "Now the show that you can create might be terrible, but it also might be awesome and you won't find out unless you try."

Personally, I really like reading the newspaper. If only there were a way to turn that into a successful media empire!

Why Sweetgreen is serving fries now

At South by Southwest, Nicolas Jammet, co-founder of Sweetgreen, shared some exciting insights into the company's latest moves and ongoing mission. One of the biggest surprises? Sweetgreen is now serving fries!

When asked why Sweetgreen is "betting that I want fries with my salad," Jammet explained, "Well, I mean, there's no better combo than salad and fries. And for us, as we think about redefining fast food, we think about where our menu and experience needs to evolve to. And we got really excited about this idea of taking the most ubiquitous fast food menu item and doing it the Sweetgreen way with our ethos."

That means "air frying, the no seed oils, and making it something that you can feel really good about eating and feel really good after you eat it." He also highlighted the new sauces, stating, "I'm particularly excited about the two new sauces, the pickle ketchup…and the garlic aioli, again, made without any high-fructose corn syrup, flavor enhancers, or seed oils. And so, but still really cravable."

Indeed. I could go for some myself.

"When you look at the ingredient list of french fries at one of the largest fast food chains in the world… 50 years ago, the ingredients were simply potatoes, beef tallow, and salt. Today that list is almost 20 ingredients you can't pronounce, and so for us it's bringing it back to the roots of fast food,” he said.

Which has really put me off going to McDonald’s. Or any other large food chain he could mean. He means McDonald’s, though. Right?

Sweetgreen's customer base has broadened significantly. "Who you see in a Sweetgreen today is very different than who you would have seen 10 or 15 years ago," Jammet said. Since going public in 2021, Sweetgreen $SG ( ▼ 7.24% ) has seen several benefits. "The capital has been really great. It's allowed us to just really think about accelerating our growth, making some investments in automation, making some investments in the brand and supply chain," Jammet said.

Sweetgreen aims to be carbon neutral by 2027. Addressing the addition of beef to the menu, Jammet said, "We've been spending so much of our energy building a beef ethos at Sweet Green around grass-fed, grass-finished cattle that we think actually when done right and raised from with ranchers that are regenerating the soil actually has positive effects." He continued, "We try to balance all these things together, and ultimately we're really proud of serving grass-fed, grass-finished beef, which is really challenging supply chain, especially domestically, to think about."

Grass-finished beef means cows that have been fed grass their whole lives, incidentally. It does not mean cows that are “finished off” with blades of grass. That would be time consuming, I can tell you from experience.

Spotify’s next big bet: streaming video

Jordan Newman, head of content partnerships at Spotify, shed light on the platform's significant push into video podcasting.

"We've really seen a shift in terms of the appetite of our audience. They really want more video," Newman said. This shift has led Spotify to invest heavily in video, supporting creators who are embracing this engaging format. "There's a lot of things you can do on video that you can't just do with audio," he said.

The numbers speak for themselves. "About 50% of our top 20 podcasts are now video podcasts. We have more than 330,000 video podcasts on the platform. We've got 270 million people streaming video podcasts," Newman revealed. The growth is undeniable, with video podcasts seeing a 20% increase at the start of the year. "There's no question that it's really taking off.”

One of the key advantages of Spotify's video experience is flexibility. "People go back and forth," Newman explained. "What's great about our video experience is you can start by listening to the show. You can foreground the app and watch. Then you can listen again." This seamless transition between audio and video caters to how listeners consume long-form content. "It'll usually be multiple sessions and multiple devices. And so we are seeing people go back and forth, and I think they like having that flexibility."

For creators considering adding video, Newman offered encouragement. "If you add that video component, I think chances are you will see all the numbers move in the right direction," he said, echoing Chris Williamson’s experience above!

He also highlighted the new partner program, where premium subscribers get ad-free video content, and creators are compensated based on viewership. "It means you can earn from advertising, but also you can earn from this new Bucket of premium revenue, and so the time has never been better to be a video creator."

Addressing the concern about market saturation, Newman emphasized authenticity. "If you have an authentic voice and a great relationship with your audience, there is a place for you in this podcast industry." He noted that many top podcasts are created by individuals with genuine connections to their listeners, not just big celebrities or media companies. "Some of the best podcasts, the ones that are at the top of the charts are the ones that are the most authentic and not highly produced."

Which makes me wonder: Why haven’t you started a podcast, yet?