Episode 134: Rokt Soars, Healthengine, Reebok, Vending Machines go Hi Tech, Haigh's Branding Genius and Mike's Travel Report
The guys discuss Rokt's soaring valuation and dual listing, med tech, Flying Turtle enters Australia, Reebok founder's sad tale, the incredible story of Haigh's Chocolates and Mike's travel diary.
The Contrarians catchup
Adir’s hot tip for the summer: “You need to put sunscreen on your neck as well or else your face is going to stay young but your neck is going to look 114 years old”.
The guys discuss telehealth and how easy it is to get a prescription these days. Adam: “It's gone from one extreme to the other. Previously you had to go to a doctor, you had to wait for half an hour in the waiting room, you had to see the doctor, you had to pay for it. There was so much friction in that process.”
Adir, a former surgeon, shares that “the best way to make a lot of money as a doctor is to service people who are prepared to pay massive prices out of their own pocket, like plastic surgeons doing cosmetic surgery.”
Adir on the future of robotics in medicine: “People have some tolerance for human beings making mistakes, but there seems to be no tolerance for robots and AI making mistakes.”
In a case of “first world problems”, Adam was on an Emirates A380 flight with 72 seats in business class and had to wait 20 minutes to use a bathroom.
Adir’s latest book recommendation: ‘Shoemaker: The Untold Story of the British Family Firm that Became a Global Brand’ by Joe Foster. “Shoe Dog is a sad book in the end; this book is much sadder.”
Adir: “There's only one group of people that doesn't have a boss. And those are people who started their own businesses and never raised outside capital.”
Mike recounts his journey through South Korea, reviewing vending machines, Korean BBQ restaurants, and Olive Young health and beauty stores on every block.
Flying Turtle enters Australia
According to their website, “Flying Turtle is the world's only fully automated beverage machine that delivers over 180 drinks in 1sqm space using our patented groundbreaking AI technology.”
Adam: “Australia's vending machine technology is so backwards and finally we're making some progress that actually this is a great efficient way, especially for younger people. It's much cheaper, it's profitable, and just a great use of technology to create extra value.”
Haigh's branding genius
Adam describes Haigh’s Chocolates as “an overnight success, a century in the making”. The brand has been around for 110 years, brings in over $100M a year, has 200 chocolatiers, 22 stores around Australia, and just appointed their first non-family CEO, Peter Millard, who was previously the company’s COO.
Adam: “These guys are a mini Hermès. We talk about the powers and brand, and these guys work in chocolate, which is essentially commoditised. The quality of their product is pretty good, but it's probably not that different from international brands, but they've been able to maintain a significant price advantage.”
Adir: “If I buy a block of Cadbury, then I'll say I'm just gonna have two squares and then I'll just do the whole block. Like, that's how it ends for me. I'm an all or nothing kind of guy, okay?”
Adir: “Let me tell you the problem with this business. I've got no idea, I'm just going to be devil's advocate. Okay, $100M revenue, 22 stores, stores are expensive. I mean, I'd be very happy to own this business. But if you had over a hundred years to build a business, wouldn’t you get revenue beyond $100M by now?”
Rokt's soaring valuation
Australian-founded e-commerce firm Rokt has surged to a $7.2B valuation after outperforming expectations, lifting hopes of a Nasdaq IPO. Founded by Bruce Buchanan, Rokt grew revenue 40% to $600M last year. Backed by top investors, it’s now Australia’s third-highest valued private tech company, behind Canva and Airwallex.
Adir: “Nobody cares about Rokt in the US. I'm not being disparaging, there are so many great businesses in the US. $7B business with $600M of revenue. No one’s going to fall in love with that in the US, whereas in Australia, I think people will fall in love with it. I think this is the place I’d IPO.”
Five other stories worth following:
TikTok’s US sale attracts Dell, Murdochs, Ellison, Silver Lake, and Andreessen Horowitz. Trump hinted progress after Xi call. Investors may pay billions; China sees leverage.
Ticketmaster and Live Nation sued by FTC and seven states for colluding with resellers, inflating prices, misleading fans and artists, and abusing dominance in ticketing.
Harvard, Stanford, and UPenn top PitchBook’s MBA ranking based on founders and VC funding. INSEAD, Columbia, Northwestern, UChicago, MIT, Berkeley, and LBS follow.
Engineers propose “Project Rebirth,” using giant AI-triggered airbags to cushion planes in crashes. Simulations show promise, but weight feasibility questioned. Dyson Award funding sought.
A major study of 15,000 adults found daily aspirin provides no preventive benefit against heart disease and increases risks. It’s been a big week for heartbreak.