Good morning. In today’s edition:

• 🍫 The chocolate industry has a supply problem
• 💏🍍 Supermarket love
• 📱 Microphones + personalized ads

… and more.

🚀⏰ Ready, Set, Go: Today’s news should be a ~4.81-minute read (1,282 words).

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"It is good to have an end to journey towards; but it is the journey that matters, in the end."

–Ursula K. Le Guin (1929-2018)

Somewhere, Willy Wonka is crying – because the global chocolate river is starting to run dry. This sadness could be short-lived, however, as the industry is hard at work searching for a golden ticket to help it keep up with global demand.

Background: The price of cocoa, a key ingredient in chocolate, has been marching upward for over two years, and more than doubled over the past year.

This is largely due to a lack of supply. ~70% of the world's cocoa beans come from four West African countries – Ivory Coast, Ghana, Nigeria, and Cameroon – and these locations are dealing with weather issues and pests that have negatively affected output. This year marks the fourth straight season of poor cocoa harvests.

Scientists and entrepreneurs are chasing ways to combat this supply instability. One way? “Cocoa-free” chocolate. Multiple companies playing in this space have secured funding from investors over the past few quarters.

• California-based startup Voyage Foods, which has raised ~$65 million to date, makes cocoa-free chocolate designed to mimic the taste of traditional chocolate. The company currently sells chips and wafers – which feature vegetable oil, sugar, and grape seeds as the top three ingredients – that can be used in lieu of chocolate while baking, for instance.
• Germany-based startup Planet A Foods (~$43 million in funding) is convinced the taste of chocolate has more to do with the fermentation and roasting process, and less to do with having cocoa as the main ingredient. The company’s chocolate substitute, ChoViva, is instead made from ingredients like oats and sunflower seeds.

Lab-grown chocolate startups are also gaining traction… California Cultured, another startup in the space, is working on technology that would enable chocolate to be made in a lab with “identical characteristics to any cup of coffee or chocolate bar you will find at the store, down to the last molecule.”

…as are more natural ways of boosting supply. Mars, maker of M&Ms and Snickers, helps operate a research facility at UC Davis aiming to make cocoa plants more resilient to pests and changes in weather.

👀 Looking ahead: The chocolate-supply chain definitely needs a Mario mushroom-boost, because demand is only going up. The global chocolate confectionery market was valued at ~$239 billion last year, and is expected to reach ~$316 billion in 2028, according to data from Statista.

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🇪🇸 Singles in Spain are using fruit-based code to find love in supermarkets. The new trend involves shoppers placing an upside-down pineapple in their carts at stores of the supermarket chain Mercadona between the hours of 7-8 pm. This move invites other singles to bump their carts together if interested in a date – and if both people end up walking down the wine aisle, it’s a match. Many participants have indicated the trend stems from dissatisfaction with their current online dating options.

🇬🇧 The UK and Europe are investigating Ticketmaster over its dynamic pricing. This week, the UK government and European Commission both launched an investigation into whether Ticketmaster breached local consumer laws by inflating ticket prices for the British band Oasis. The probe comes after fans reported that prices for some Oasis tickets were inflated via dynamic pricing to more than $525 – despite tickets being advertised to max out at ~$200. Ticketmaster hasn’t publicly commented on the situation.

🇺🇦 Ukraine launched its largest government overhaul since the start of the Russia war. President Volodymyr Zelensky ordered the reshuffle on Wednesday after Ukraine’s Parliament accepted the resignation of four ministers, including the country’s top diplomat. Ukrainian officials say the outgoing ministers – who collectively represent half of the government’s cabinet – will be replaced this week.

Pokémon fans will soon be able to truly catch ‘em all.

Last month, the Pokémon Company announced a partnership with Canadian entertainment enterprise WildBrain to launch the first free ad-supported TV (FAST) channel airing all Pokémon, all the time.

• With the new 24/7 channel, fans of the highest-grossing media franchise of all time will be able to stream the first 22 seasons of the original Pokémon anime for free across WildBrain’s partners, which include Samsung, LG, the Roku Channel, Tubi, and Pluto TV.
• The announcement comes several months after the Pokémon Company discontinued its standalone Pokémon TV app, which made it virtually impossible to watch the series legally online.

The companies have yet to announce an official launch date for the Pokémon FAST channel, though analysts expect it’ll be up and running by the end of this year.

Zoom out: Streaming is in its FAST era. Free ad-supported platforms have grown by leaps and bounds in recent years, with streamers like Roku, Tubi, and Pluto now drawing similar or higher viewership compared to conventional apps like MAX, Paramount+, and Peacock. Given current trends, Goldman Sachs projects the value of the combined FAST universe – which also includes Amazon’s Freevee, Rakuten TV, and the Comcast-owned Xumo – to grow by 15% each year until 2027.

And as we all know… Streaming platforms are always hungry for new content that draws viewers.

Ready for laugh-out-loud fun? Flip Side challenges players to guess how two groups of people feel about the same issues to win $10,000. Features fun topics like “Who have you googled most recently?”, “Why wouldn’t you quit a lousy job?”, and tons more.

Hosted by the talented Jaleel White of Family Matters fame, Flip Side is full of surprises and is a blast for the whole family.

Flip Side premiers Sept. 16 on Game Show Network – catch the preview here.

"Creepy? Sure. Great for marketing? Definitely."

Our devices could be like Dr. Frasier Crane – always listening. One of Facebook, Google, and Amazon’s alleged marketing partners can listen in on users' smartphone microphones and advertise to them accordingly, per a recently obtained November 2023 pitch deck put together by media giant Cox Media Group (CMG).

In the documents, which were leaked to 404 Media, CMG says its "Active Listening" software can listen in on conversations occurring near smart devices – including smartphones, smart speakers, and smart TVs – then use that voice data to hyper-target consumers with relevant ads with the help of AI tools.

The Big Tech connection (or lack thereof)... The same pitch deck includes a section where CMG counted Facebook, Google, and Amazon as clients – though it didn't specify whether the tech giants were involved in the "Active Listening" service.

• In separate statements, all three companies denied working with CMG on its “Active Listening” program and said the media firm was only a general partner.

💬 More from CMG: "We know what you're thinking. Is this even legal? The short answer is: yes. It is legal for phones and devices to listen to you. When a new app download or update prompts consumers with a multi-page term of use agreement somewhere in the fine print, Active Listening is often included."

• ☝️ A newly renovated home in Fort Lauderdale, Florida, is slated for demolition after selling for a local-area record of $70 million; the anonymous purchaser’s agent says the buyer plans to demolish the 20,000-square-foot residence and build a smaller home.

BUSINESS & MARKETS

in partnership with Surfshark VPN

• 💰 US markets closed mixed (S&P: -0.2%; Dow: +0.1%; Nasdaq: -0.3%) | 🏡 Mortgage refinance demand last week was 94% higher than the same period one year ago. | 💼 Job openings fell to their lowest level in ~3.5 years in July, per new Labor Department data.
• 🙅 President Biden is set to block Japan-based Nippon Steel's $14.9 billion acquisition of US Steel, per multiple reports, though a final signoff hasn’t yet occurred.
• 🤔 Nvidia says it didn't receive an antitrust subpoena from the DOJ, contradicting a previous Bloomberg report; Bloomberg followed up to say Nvidia is splitting hairs about the type of request it received, but it was in fact asked to answer questions by the DOJ.

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SPORTS, MEDIA & ENTERTAINMENT

• 🏈 The NFL regular season kicks off tonight with a matchup between the Baltimore Ravens and defending Super Bowl champs Kansas City Chiefs. | 🏈 Denver Broncos CB Patrick Surtain reportedly signed a 4-year, $96 million contract extension; the deal would make him the highest-paid cornerback in NFL history.
• 🤖🎶 A North Carolina man allegedly used bots and thousands of AI songs to fraudulently earn $10 million in royalties from streaming services like Spotify and Apple Music, per federal prosecutors; it marks the first criminal case involving artificially inflated music streaming.
• 🏌️ PGA Tour stars Rory McIlroy and Scottie Scheffler will face off this December against LIV Golf stars Bryson DeChambeau and Brooks Koepka in a made-for-TV match in Las Vegas. | 🎾 An American is guaranteed to play in the men’s US Open finals for the first time since 2006; Americans Frances Tiafoe and Taylor Fritz are set to square off in Friday’s semifinals; the women's semifinals matchups are also set.

SCIENCE, SPACE & EMERGING TECH

in partnership with HISTORY Channel Trivia Game

• 🤖🍄 A team of researchers created two types of robots whose hardware is intertwined with living mushrooms; the robots can sense and respond to their environment by harnessing electrical signals the fungus creates due to its sensitivity to light.
• 🦈 A pregnant porbeagle shark who was tagged by scientists appears to have been eaten by a larger shark, per a new study; it represents the first known instance of a porbeagle shark – an apex predator – getting eaten by another animal.
• ⚛️🕰️ Scientists recently created the first-ever rudimentary nuclear clock, per a new study; the breakthrough is key to scientists’ attempts to observe whether the laws of physics vary over time, as predicted by many fundamental theories.

*From our partners: 🗿 Love history class?... The officially licensed HISTORY Channel Trivia Game was made just for you. Features 2400+ questions, 6 diverse categories, plus exciting strategy. LIGHTNING DEAL – save 33% on HISTORY Channel Trivia Game here.

MISCELLANEOUS

• 🙏🏫 A 14-year-old student opened fire yesterday at Apalachee High School in Winder, Georgia, killing at least four people and hospitalizing at least nine others; the student was arrested and charged with murder; officials say he’ll be tried as an adult.
• 🇷🇺🗳️ The Departments of Justice, State, and Treasury announced actions targeting alleged Russia-backed efforts to manipulate American opinion leading up to the 2024 election; the alleged efforts include the use of Russia-backed media network RT to influence US opinion. | 🇧🇷🚀 SpaceX is evacuating its employees from Brazil and warning others against traveling to the country; the move comes amid CEO Elon Musk’s ongoing battle with Brazil’s Supreme Court over one of his other companies, X.
• 💰 VP Kamala Harris, the Democratic presidential nominee, announced a proposal to tax long term capital gains at 28% for Americans who earn $1+ million/year; the proposed top capital gains tax rate is nearly 12 points lower than a plan from President Biden earlier this year, but higher than the current top rate of 23.8%. (From the Left | From the Center | From the Right)

CLICKBAIT

• 🥣🥇 Ranking the all-time best breakfast cereals.

🍷 Stat of the Day: Constellation Brands, which makes Corona and Modelo beers along with Robert Mondavi and Casa Noble wines, says it expects to book a loss of up to $2.5 billion related to its wine and spirits business last quarter because American wine drinkers and the GIF of Homer Simpson receding into the bushes have a lot in common. The company attributes the projected loss to declining US demand for wine in recent months, which Constellation blamed on macroeconomic challenges like rising unemployment. It marks the latest example of prolonged negative trends in the US wine market, where consumption has declined in each of the past three years.

🤔 Did You Know? Leonardo da Vinci devised experiments to demonstrate that gravity is a form of acceleration, and further modeled the gravitational constant “G” to within 97% accuracy – all of which occurred roughly a century before Galileo Galilei or Sir Isaac Newton first proposed their theories on gravity.

📰 Worth a Read: The bizarre siege behind Stockholm Syndrome → (BBC Culture)

Yesterday, we covered how a growing number of US schools, teachers, and academic experts are rethinking whether homework still carries value for younger students.

❓ Our question to you: In general, to what extent do you think homework was harmful or helpful to your personal education?

• Very helpful: 22%
• Somewhat helpful: 30%
• Neither helpful nor harmful: 18%
• Somewhat harmful: 17%
• Very harmful: 13%

Click here to read the most thoughtful longform responses.

+Note on sample size: We received 4,285 votes and 439 longform responses.

Eight inmates at a detention facility in Las Cruces, New Mexico, have a new quartet of furry best friends.

Last year, a no-kill animal shelter in the area started the Deming Animal Guardians program. Its goal is simple: have the inmates train the dogs in hopes of getting them adopted. 

• The inmates work with professional dog trainers twice a week to teach the pups basic commands and boundaries, as well as to socialize them with the inmates.
• The program has been a huge success, so much so that the inmates held a fundraiser within the facility to help pay for program’s costs.

“I am changed by this experience,” said one of the inmates. “I believe these men will go home more prepared for the world by finally owning up to being responsible, rather than careless, with another life.”

📚Read: For those who love to read: Here’s a list of new books released this month to satisfy your cravings.

🇬🇷 Season 5: In ancient Greece, the transition from summer to fall was known as Persephone Season.

🍽️ Eat: The secret to finding the best places to eat while traveling.

🤔 Play: Can you guess which brands Democrats and Republicans love?

⚖️ Balance: FounderIV is the free weekly newsletter that helps you achieve breakout founder performance. Their objective? To help today’s top founders build great businesses while building great lives for founders.*

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