Good morning. Did you enjoy your chocolate Easter bunnies despite the rise in cocoa prices? Apart from chocolate, we will also look at forecasts for fashion and travel trends, introduce a new investment firm, and look at the new collaboration between Microsoft and OpenAI. Additionally, the instagram page of our city curator, ‘Herr Ober’, has been launched: @herrobercity.

FINANCE
Chocolate is the New Caviar

Low Cocoa Crop Yields Increase Chocolate Prices Cocoa, chocolate's key ingredient, saw a price surge this year due to poor crops in Ivory Coast and Ghana. Prices peaked this week at over $10,000 per metric ton. Despite cocoa's rise, analysts like Pascal Boll at Stifel, suggest it's "risky" to expect a price drop soon. Chocolatiers have raised prices by 11.6% over 2023, exceeding the overall inflation of 3.4%. Mars and other manufacturers are reducing product sizes and considering removing chocolate to manage costs.

Despite cocoa prices spiking, further increases are expected. Consequently, chocolate makers have increased prices, shrunk product sizes, and considered cocoa alternatives like caramel and gummy ingredients.

MARKETING
How Kit Kat Conquered Japan

The Kit Kat bar, popular worldwide, is associated with good luck in Japan due to its phonetic similarity to 'Kitto Katsu', meaning 'surely win'. It's a popular gift during exam season. Since 2000, over 300 different Kit Kat flavours have been launched in Japan, including strawberry, banana, soy sauce, and cough drop, primarily to appeal to a younger market.

TECH
Microsoft x OpenAI’s Stargate

Microsoft and OpenAI are reportedly collaborating on a significant project to create a U.S.-based datacenter for an AI supercomputer named "Stargate," estimated to cost over $115 billion and utilize millions of GPUs.

The supercomputer aims to be the largest among the datacenters planned by the two companies within the next six years, with Microsoft covering the costs and aiming for a launch by 2028.

The project, considered to be in phase 5 of development, requires innovative solutions for power, cooling, and hardware efficiency, including a possible shift away from relying on Nvidia's InfiniBand in favor of Ethernet cables.

FINANCE
Equity Studio: A New Investment Firm

Rosie Huntington-Whiteley Joins The Equity Studio

Equity Studio, a new investment firm, aims to empower founders with funding, strategic advice, and guidance. The investment vehicle, backed by Sweeting and Huntington-Whiteley, plans to support brands in the U.S., U.K., and Europe with revenues between $3 million and $20 million. The focus will be on early to mid-stage businesses across beauty, wellness, and lifestyle sectors. The Partners aims to align closely with founders, scale brands with proven revenue generation, and build trust. She believes there's a gap in the market for backing successful, growing consumer brands overlooked by other investors.

FASHION
Canada Goose Cutting Jobs

Canada Goose announced plans to lay off 17% of its corporate workforce as part of a cost-cutting measure to simplify the organization. The winter wear retailer stated these layoffs are part of a broader transformation program aimed at increasing efficiency and aligning Canada Goose more closely with its strategic goals. More details about the transformation program and projections will be shared in its May 2024 earnings report. According to Reuters, the layoffs will affect 156 jobs.

FASHION
McKinsey & Co: State of Fashion 2024

McKinsey's fashion forecast predicts 2 to 4 percent global industry growth in 2024, with regional variations. The luxury segment is anticipated to contribute most to the economic profit. 2024, global economics will be uncertain, affecting fashion markets. Consumers are likely to favor trusted brands and hard luxury goods. Executives are preparing for a complex year.

Consumers are expected to travel more with evolving shopping expectations. Influencer marketing is changing, and the fashion industry is marked by the rise of AI, increased competition, a focus on brand marketing, sustainability regulations, and supply chain volatility.

REPORT
Travel Trends 2024

The 2024 Global Travel Trends Report from American Express identifies four key trends shaping tourism:

1. Vacations centered around sporting events

2. Expedition-style trips

3. Solo adventures

4. Spontaneous travel

The quality of experience is more important than cost for 77% of respondents, and far-flung destinations are gaining popularity. Solo travel is increasingly popular, especially among millennials and Gen Z, with 76% planning a solo trip. Sports-themed vacations are also on the rise, particularly with the upcoming Paris Olympic Games.

HERR OBER 
A city guide, uncovering unique spots & local favorites

4 Founders Questions

I interviewed Camilla Ferrera, the founder of INO SCENT, a brand specializing in scented candles. Having spent most of her life in Paris, London, and New York, Camilla established the brand as a way to evoke memories. Her growth strategies could be insightful for current or future founders.

1.Why did you choose this product?
Scent has always held a special place in my heart, evoking memories and emotions like nothing else. Aromatherapy's allure and the cozy ritual of lighting a candle mirror the comfort of pouring a fine glass of red wine—a sacred moment in the midst of life's hustle and bustle. That's why I decided to create INO SCENT—to offer both purity and aesthetics in one beautiful, clean burn.

2.Did you require funding to get started?
In embarking on this venture, I found myself fortunate to not require external funding to bring my vision to life.

3.How has your business grown?
INO SCENT has experienced significant growth by diversifying its offerings beyond my brand alone. In addition to creating my signature line of scented candles, I've expanded into crafting custom candles and offering white label services for various establishments such as restaurants, hotels, spas, and members clubs. Additionally, I've tapped into the corporate gifting market, collaborating with different companies to create bespoke candle sets tailored to their needs. Furthermore, I specialize in designing custom candles for weddings, adding a personal touch to couples' special day. As a creative individual, I relish the opportunity to embark on these new projects and collaborate directly with clients to curate their perfect fragrance. From selecting the ideal scent to customizing the jar and label, each project is a unique journey aimed at exceeding expectations and creating memorable experiences.

4.What advice can you offer?
Stay true to your passion, embrace opportunities for growth, and prioritize quality. Listen to your customers, innovate, and don't be afraid to take risks.

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