A Taste of the US Open

The Grocer is written and managed by Sam Sherfey. To get access to all of The Grocer’s content and to receive the newsletter in your inbox, subscribe here.

If you’re already subscribed, log in to read the full post.📱💻

Powered by:

A TASTE OF THE US OPEN
The Honey Deuce

We’re in the midst of the US Open and that likely means your cool friend who lives in New York City has mentioned “grabbing a Honey Deuce” at least once three times this week.

The notoriety of the official drink of the US Open is deserved. After all, the Honey Deuce is the best cocktail in sports! It's become as much of a US Open staple as questionable line calls and overpriced merchandise.

The Kentucky Derby’s Mint Julep can take it up with my people.

New York’s Favorite Lemonade

Picture this: You're at the US Open, the sun's beating down, and you're about to watch some of the world's best tennis. What's missing? Oh, just a refreshing, slightly tart lemonade with vodka, raspberry liqueur, and honeydew melon "tennis balls" as garnish. It’s exactly what one needs on a late summer day watching tennis in Queens (Meredith Hayden).

Born in 2007, this boozy beauty was developed by Nick Mautone as a large batch cocktail to help serve the masses at the Billie Jean King Tennis Center (Forbes). It’s safe to say it’s been a success…

The Business School Case Study

Now, here's where it gets interesting. The US Open isn't just selling a drink; they're selling an experience. Each Honey Deuce comes in a collector's cup featuring the names of the US Open Champions dating back to 1968. The perceived value is higher than your average Saturday afternoon orange crush at the ballpark or your concourse beer at Sunday’s football game.

It's a symbol, a tradition, even a status symbol, if you will. It's genius, really, and leads to some impressive sales. We're talking 450,000 drinks sold during the 2023 US Open at $22 each, raking in a cool $9.9 million (Joe Pompliano). Not too shabby for some spiked lemonade, huh?

But here's the kicker – the folks at the US Open know they have a star on their hands… today, the drink costs nearly double the $12 it debuted at in 2007. Between 2012 and the most recent price increase in 2022, the cost was up 57% compared to the 29% increase in the consumer price index during the same time (Sportico).

A Signature Experience

With its widespread popularity and significant revenue generation, the Honey Deuce has become a key part of the US Open’s identity. Its success has not only added to the atmosphere of the event but has also set a benchmark for how signature cocktails can enhance the experience of major sporting events.

Whether you're a seasoned fan or a newcomer to the sport, enjoying a Honey Deuce at the US Open — or even from the comfort of your own home — provides a delicious connection to the action on the court. It might not improve your backhand, but it'll definitely make those five-set matches fly by. Cheers!

EXERCISE AS A SERVICE
The Peloton Comeback

Peloton closed at an all-time high of $162.76 on December 23rd 2020 and has since torpedoed to a 52-week average of $4.51.

But, earlier this week, the company announced positive cash flow for the second straight quarter and its first YoY revenue growth since 2021 (Morning Brew). This marks a significant turnaround for the fitness brand that once seemed to be spinning its wheels.

Peloton’s journey has been a rollercoaster. The exercise as a service company was a rocket ship to the moon during the COVID-19 pandemic as gyms closed and hundreds of millions of people were stuck in their homes. However, by the end of that year, the excitement waned as demand for home workouts depleted.

Since then, Cofounders, John Foley (former CEO) and Hisao Kushi have departed the company along with ~3,600 other employees (Front Office Sports). Throughout the transition, Peloton battled quality control issues with their bikes and treadmills leading to lawsuits and recalls.

Peloton has been executing a focused turnaround strategy, shifting from aggressive revenue growth to prioritizing profitability. This includes cutting operational costs, reducing hardware sales, and emphasizing its subscription model.

In addition, Peloton is adapting to current fitness trends. The new Peloton Strength+ app caters to those interested in gym-based strength training with guided workout videos designed for gym environments. For home users, a new feature allows reading Kindle books while using the bike, enhancing the at-home workout experience.

POWERED BY
The Most Powerful Email Platform on the Internet

With beehiiv, the tools that power The Grocer are available to everyone.

A platform built by early Morning Brew employees that makes it dead simple for anyone to create their own newsletter, just like the one you’re reading right now.

It has everything you need:

• no-code website builder

• beautiful newsletter templates

• referral program for readers

Plus, beehiiv even helps you monetize with premium sponsors.

Thousands of publishers and professionals—from the Boston Globe to Arnold Schwarzenegger—are already using beehiiv to publish newsletters, grow readership, and drive revenue.

You can launch today!

*This is an unpaid ad showing you what advertising with The Grocer might look like!
**This advertisement contains affiliate links. The Grocer’s Content is supported by readers like you. If you start a newsletter on beehiiv after clicking one of these links, The Grocer may be paid a commission without costing you anything extra.

THE EXECUTIVE CAROUSEL
New CMO Set to Stir Up AG1

After five years of making coolers cool and turning YETI into a $1.7 billion lifestyle sensation, Paulie Dery, is stepping down to take the CMO role at AG1.

Dery, who spent over five years with YETI, including more than three as Chief Marketing Officer, sees similar growth potential at AG1 (formerly Athletic Greens), which has over $600 million in annual revenue and is about the same size as YETI in 2019 (AdAge).

AG1's marketing has focused on podcasts and influencers, partnering with athletes and celebrities such as Lewis Hamilton. Dery plans to build a stronger community and evolve the brand into a lifestyle leader using a model similar to the model he used at YETI — a strong in-house team with agency support.

OTHER
Self-Checkout

• Travis & Jason Kelce sign 3-year deal worth more than $100 million, giving exclusive ad-sales and distribution rights of their weekly podcast, New Heights, to Amazon’s Wondery.

• Ted Lasso and AFC Richmond may be coming back for season 4 as Warner Bros. Television has started contacting core cast members.

• The Starbucks PSL is back earlier than ever and analysts predict the popular drink will bring in over $500 million this season.

• Netflix & Google partner to bring a shopping integration to the latest season of “Emily in Paris”, plus custom shoppable ads on Netflix’s ad-supported plan.

• Instacart is expanding its Connected Stores initiative to help grocers to combine in-store and online experiences with its AI-powered smart carts, Caper Carts.

• Walmart’s eComm business reported a 22% YoY increase in Q2 sales while capturing 37% of the online grocery market in the U.S. during the same period.

• Cooper Flag, an All-American and the No. 1 prospect in ESPN's 2025 NBA draft class, signs endorsement deal with New Balance, joining Cameron Brink, Coco Gauff, Kawhi Leonard, Marvin Harrison Jr., and others.

Want to advertise with The Grocer? Ad Opportunities.

Other newsletters recommended by The Grocer.