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United Airlines: Visualizing the Numbers Behind the Crisis

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The people in Pepsi’s marketing and PR departments must be relieved, because the internet’s viral outrage is finally being channeled in a different direction.

This time the fury is targeted towards United Airlines – a brand that is in full-blown crisis mode after a bloodied passenger was forcibly dragged off a plane, and millions of people witnessed videos of the incident being spread over social media.

Two days into the crisis, here are some charts that will help give context around what happened, as well as the potential effect on the United brand itself.

Damage Done?

First, let’s take a look at what’s happened to United’s stock price since the incident:

United's Stock Price

While some public relations crises have minimal effects on the long-term financial performance of companies, this market reaction is an interesting gauge to consider.

The stock’s lowest point today was -4.3% below the open, which is equal to a nearly $1 billion loss in market capitalization. At that point, it was speculated that Warren Buffett’s Berkshire Hathaway, which owns 9% of all outstanding shares of United Continental Holdings Inc., could lose up to $87 million.

The market clearly saw the crisis as creating risk around United’s fundamental business, but the stock has mostly recovered since those intraday lows. That said, if there are reports of top line revenue being affected because of boycotts or other issues, then the incident’s impact on the stock price could easily re-surface.

Social Media Blowback

With today’s interconnected world, a public relations crisis can start with one tweet. Here’s the snowball effect in brand mentions of United that occurred on April 10th:

Brand Mentions on April 10th for United Airlines

Courtesy of: Brandwatch

Here’s another look. This time, it’s a comparison of mentions over the last 21 days.

Brand Mentions over last 21 days for United Airlines

Courtesy of: Brandwatch

Yes, it’s only been about two weeks since United’s last PR crisis, called #LeggingsGate. As you can see, however, the most recent disaster is many times worse in terms of mentions.

With millions of references to the United Airlines brand occurring on social media, here is the split between positive and negative sentiment as of April 10th::

Positive and Negative sentiment for United Airlines

Courtesy of: Brandwatch

Denied Boarding Rates

But how big of a problem is making passengers deboard a plane, in the first place?

The next chart shows denied boarding rates, inclusive of voluntary and involuntary activity, from January to September 2016:

Total Denied Boardings

Data: U.S. Dept of Transportation

United and Delta are the two worst offenders here, with denied boarding rates that are worse than American, Virgin, Alaska, JetBlue, or Southwest.

Lastly, here’s the same figures, except contrasting voluntary vs. involuntary denied boarding rates from January to September 2016:

Voluntary vs. Involuntary Denied Boardings

Data: U.S. Dept of Transportation

Southwest and ExpressJet lead the way with the most involuntary denied boardings, and United Airlines is in the middle of the pack. However, in terms of voluntary denied boardings, United and Delta have much higher rates than other major airlines such as American or Virgin.

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The World’s 100 Most Valuable Brands in 2019

Technology brands account for 20 of the world’s 100 most valuable brands in 2019, combining for a whopping 43% of total brand value.

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The World’s 100 Most Valuable Brands in 2019

Brand equity can be a challenging thing to build.

Even with access to deep pockets and an innovative product, it can take decades of grit to scrape your way into the mainstream consciousness of consumers.

On the path to becoming established as a globally significant brand, companies must fight through fierce competition, publicity scandals, changing regulations, and rapidly-evolving consumer tastes – all to take a bite from the same piece of pie.

Cream of the Crop

Today’s visualization comes to us from HowMuch.net, and it showcases the 100 most valuable brands in the world, according to Forbes.

Here are the powerful brands that sit at the very top of the list:

RankBrandBrand Value ($B)1-Yr Value ChangeIndustry
#1Apple$205.5+12%Technology
#2Google$167.7+27%Technology
#3Microsoft$125.3+20%Technology
#4Amazon$97.0+37%Technology
#5Facebook$88.9-6%Technology
#6Coca-Cola$59.2+3%Beverages
#7Samsung$53.1+11%Technology
#8Disney$52.2+10%Leisure
#9Toyota$44.6+0%Automotive
#10McDonald's$43.8+6%Restaurants

It should be noted that the list is ordered by brand value, a measure that tries to calculate each brand’s ultimate contribution in financial terms to the parent company. You can see that full methodology here.

Finally, it’s also worth mentioning that brands with only a token representation in the United States have been excluded from the rankings. This means companies like Alibaba or Vodafone are not represented in this particular visualization.

Tech Rules Again in 2019

For another straight year, technology dominates the list of the 100 most valuable brands in 2019 – this time, with six of the top seven entries.

Most of these brands saw double-digit growth in value from the previous year, including Apple (12%), Google (27%), Amazon (37%), Microsoft (20%), and Samsung (11%). The one notable exception here is Facebook, which experienced a 6% drop in value attributed to various struggles around the company’s reputation.

Here’s a look at how industries break down more generally on the list:

Industry# of BrandsBrand Value ($B)
Total100$2,231.9
Technology20$957.6
Financial Services13$198.1
Automotive11$208.9
Consumer Goods10$123.8
Retail8$133.0
Luxury6$124.1
Beverages4$49.3
Diversified4$56.8
Alcohol3$69.8
Apparel3$34.7
Business Services3$33.5
Restaurants3$73.0
Telecom3$24.3
Heavy Equipment2$36.7
Leisure2$19.8
Media2$34.8
Transportation2$41.1
Tobacco1$12.6

As you can see, technology brands make up 20% of the list in terms of the number of entries – and a whopping 43% of the list’s cumulative valuation.

In total, technologies brands combined for $957.6 billion in value. Even when including Facebook’s recent drop, this is an impressive 9.7% increase on last year’s numbers.

Will the double-digit increases for the world’s largest tech giants continue into 2020, or are brands such as Amazon and Google going to start seeing the same type of pushback that Facebook has grappled with among consumers and regulators?

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Cannabis

The Allure of Craft Cannabis to Investors

Craft products are taking the retail world by storm. Find out why investors should be paying close attention to craft cannabis and its potential impact.

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The Investor Appeal in Craft Cannabis

They say if you do what you love, then the money will follow. In the multi-billion dollar cannabis business, that has certainly proved true for those who have been passionate about the plant for decades — otherwise known as craft growers.

Today’s infographic from Pasha Brands dives into the huge consumer demand for craft products, and why investors should pay attention to this trend as it extends into cannabis.

The Perfect Craft Product

Chances are, you may have encountered any of the following at least once: microbrewed beer, specialty coffee, premium wine, or organic food. They’ve become so popular, that craft versions of all these are steadily carving a valuable niche in their original markets.

 U.S. Market Size, 2017Craft Market Size, 2017Share of total
Beer vs Microbrew Beer$111B$26B23%
Coffee vs Specialty Coffee$32B$10B31%
Wine vs Premium Wine$80B$44.8B56%
Food vs Organic Food$898B$49.4B5.5%

Whether it’s introducing flavors into brews, slow-roasting beans, producing wine in small lots, or using a conscious “farm to table” label — what they have in common is the careful attention that’s paid to the process from start to end.

Craft cannabis bears a strong resemblance to all of these in that way, as growing it involves extra care, compared to large-scale producers. For example, hand-trimming is more labor intensive than using machines, but results in products with superior quality.

What are some other characteristics of craft cannabis?

  • Attention to detail
    A hands-on approach allows growers to personally ensure each cannabis plant is healthy.
  • Sustainable practices
    The use of organic farming to save energy, creating a smaller environmental footprint.
  • Social responsibility
    Smaller growers typically leverage local connections, creating employment opportunities.
  • Artisanal branding
    Sophisticated and modern packaging helps appeal to different types of craft cannabis consumers.

It’s clear why consumers care about craft cannabis. But what does it offer investors?

Making the Case for Craft

Investors should be paying close attention to craft cannabis for three key reasons: a higher price point, a focus on quality, and access to the retail market.

Upscale Price Tag

On average, organic cannabis has a higher price point attached to it, compared to regular grade cannabis.

  • Industry average: $9.02/ gram
  • Organic average: $11.40/ gram

Using organic methods to grow cannabis means that the final product on shelves boast an enhanced potency and effect. Since craft cannabis is also grown organically, it’s clear that consumers are willing to spend more to secure a premium product.

Promise of Quality

It might not come as a surprise that the most famous craft cannabis regions are also where the biggest volume of legal cannabis sales come from. California and Canada accounted for nearly 38% in global market share in 2017:

  • Worldwide sales: $9.5 billion
  • California sales: $3 billion
  • Rest of U.S. sales: $5.5 billion
  • Canada sales: $0.6 billion
  • Rest of world: $0.4 billion

These two areas have a foothold in cannabis sales, and with recreational legalization unfolding in both – and 75 million people living between the two jurisdictions – it will only continue to grow.

Opening the Doors

Following nation-wide legalization in Canada and an increasing number of states in the U.S., the continent is facing a cannabis shortage. Why? As it turns out, while craft growers are abundant, they still face regulatory hurdles in order to move from the “gray” underground market into launching legal operations.

Craft cannabis could be a cornerstone for industry growth, but its growers have been in the shadows for a long time. As cannabis gains momentum, tapping into the huge network of craft growers will be key for success.

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