ECONOMY
New Jersey Deli Reaches $100 Million Stock Market Value YO UR HOMETOWN Deli, a tiny establishment based in Paulsboro, New Jersey has hit staggering market value despite the company’s modest sales totalling $35,748 over the past two years combined. As the single business owned by Hometown International (HWIN), the deli and its $100 million market capitalization, was used as an example by hedge fund manager David Einhorn to warn of the
market dangers for retail investors, as high-profile investors everywhere express uncertainty due to the unpredictable booms in shares over the past year. HWIN’s CEO, who works in his local high school as a wrestling coach, is yet to give comment. Despite the deli’s closure from March 23 to September 8, 2019 due to the pandemic, the company’s stock price rose during that period from $3.25 per share to $9.25 per share. Last trading was recorded at $14 per share. As part of the risky context of over-the-counter shares, the deli’s value is a striking example of the broken market.
FOOD & DRINK
PEPSICO REVIVES SALES FOR ROCKSTAR ENERGY R O C KSTA R E N E R GY drinks have received a total branding revamp, following the business’ acquisition by PepsiCo in 2020. This entailed the creation of a new logo, packaging and the brand’s first ever Super Bowl advert. This has resulted in a growth in sales for Rockstar, although PepsiCo CEO Ramon Laguarta has told analysts that it is still too early to tell whether this will lead to permanent consumer habits. Pepsi acquired Rockstar for $3.85 billion as part of their expansion into more heavily caffeinated drinks, as the company was struggling amidst competition with leading energy drink producer, Monster Beverage. R E TA I L
TARGET TRIALS NEW APPROACH TO SPEED UP DELIVERIES
ENERGY & UTILITIES
Tesla to boost solar energy efforts after disappointing 2019
PHOTO BY BNC319 - OWN WORK, CC BY-SA 4.0
T ES L A I S facing pressure to reinvigorate their solar energy business after the company’s energy revenue declined by $24 million over the course of 2019. In an annual
Tesla Solar Roof (2017), produced at Giga New York
financial report, Tesla announced that their photovoltaic production plant located in Buffalo, New York – Gigafactory 2 - would be increasing manufacturing of solar panels in collaboration with Panasonic. Although Tesla’s solar energy and storage systems reported a record fourth quarter, the full year saw a decline in sales. CEO Elon Musk is under duress from both the Mayor of Buffalo, due to the significant taxpayer funds deployed to build Gigafactory 2 which currently does not meet state requirements with the size of its workforce, and Tesla shareholders, who originally sued Musk after his controversial $2.6 million dollar acquisition of SolarCity in 2017.
I N A bid to increase the speed between online purchases and delivery to the customer’s door, leading US retailer Target are trialling a new delivery system in their hometown of Minneapolis. Supported by three businesses that Target have acquired, deliveries will now be packaged in-store by Target employees before being transported to a sortation center. Technology will be leveraged to group packages for the most efficient delivery routes. The final stage involves contract workers for Shipt – a company acquired by Target in 2017 that offers a same day delivery service. The new strategy will enable the brand to compete with e-commerce competitors such as Walmart and Amazon.
North America Outlook issue 03 | 7
