Thursday, October 17, 2024

You can't spell Mets without ‘meme’

A winning marketing strategy

It was a chilly night in Queens, and the New York Mets' bats were especially cold. But, as Businessweek's Max Chafkin writes, the team's meme strategy is the hottest in baseball right now. Plus: A breakout seltzer hit, a company working toward a brain science breakthrough, and AI's power plant pitch. If this email was forwarded to you, click here to sign up.

By any objective measure, the New York Mets are the weakest of the four teams still competing in Major League Baseball's postseason. Among the Cleveland Guardians, the New York Yankees and the Los Angeles Dodgers, the Mets had the poorest regular-season record and are the only team that didn't win its division. The conventional wisdom at the end of May was that the Mets were likely to trade away their best players and tank before the season ended, a view held not only among fans and sportswriters but also by at least one of the team's players, who publicly proclaimed them "the worst team in the whole f---ing MLB."

And yet the Mets are strong—world-class, even—in what might be the most important domain when it comes to building a fan base in the 21st century: memes.

There's "OMG," which refers to the viral Latin pop song written by the team's utility infielder Jose Iglesias, now ubiquitous at Citi Field: on hoodies, on signs and constantly blaring from the stadium speakers. There's "Gay Mets," referring to a win streak that coincided with a Pride Month promotion and the release of some rainbow merch. There's a whole thing with a 97-year-old World War II veteran named Seymour Weiner who became the face of the team's $1 hot dog promotion, and another with a "playoff pumpkin" that the team's first baseman acquired at a Wisconsin patch before the gourd itself acquired magical powers and started appearing on T-shirts.

And then there's Grimace.

Get Grimace a bat! Photographer: Adam Hunger/Getty Images North America

In June, when the Mets were still terrible, the team had the puffy purple monster from the McDonald's cinematic universe throw out the first pitch, while a mostly empty and indifferent stadium watched. I'm not sure why this objectively lame corporate tie-in—McDonald's has sponsored the Mets for a decade—so thoroughly captured the imagination of fans and set the Mets on a collision course with destiny. I assume that astrophysicists, philosophers, epistemologists and McKinsey consultants will study this for years and still struggle to articulate what exactly happened. But fans embraced the ridiculousness, the Mets started winning like crazy, and everyone decided Grimace was the reason.

A purple seat in honor of Grimace at the Mets' home stadium in September. Photographer: Dustin Satloff/Getty Images North America

McDonald's is making the most of the moment. Grimace has reappeared at several games, received his own special purple seat at Citi Field and taken over the brand's social media accounts. Last week, the fast-food chain paid to put Grimace's face on trains on New York's 7 line—the subway that runs to the stadium—and this week there was a billboard in Times Square taking credit for the Mets' success. "It wasn't luck. It wasn't fate," the sign proclaims. "It was Grimace."

There's a business story here, of course, or maybe several. The Mets' unlikely turnaround is at least partly thanks to a series of savvy moves that started last year, when the team managed to offload two of its biggest and most expensive stars. It continued in the offseason when the team, under newly hired general manager David Stearns, opted to avoid signing high-priced free agents and instead brought in a motley collection of veteran pitchers and position-player castoffs. Iglesias, the songwriter-slash-second baseman, had begun writing music because he believed his professional baseball career was more or less over. He had the highest batting average of anyone on the team this year and just released an OMG remix that features Pitbull.

As a marketing case study, the Grimace thing shows how traditional corporate partnerships can take on new meaning, and momentum. Grimace exploded as a meme not because the Mets and McDonald's planned it, but because the two brands were quick to recognize a culture of fandom and to embrace and nurture it. Something similar seems to be happening with Ellie, the suddenly omnipresent and TikTok-famous mascot of the New York Liberty. (The Liberty, by the way, are one win from a Women's National Basketball Association championship. Coincidence?)

Last night, I took the 7 train with my son to watch Game 3 of the National League Championship Series. It was a very cold night, and the Mets lost, 8-0, but the stadium was packed and the crowd was noisy. Ticket prices on the secondary market have been way up—much higher than for the Yankees, who have a larger fan base and a longer history of success—and there was a sense that no matter what happened we were all going to scream like crazy. There were playoff pumpkins, OMG signs, Grimace T-shirts and even full-on costumes. The baseball was bad, but the vibes were good.

In Brief

The Day Starts With a Breakfast Seltzer

CEO Bill Creelman juggles cans of Spindrift at Manhattan's South Street Seaport. Photographer: Christaan Felber for Bloomberg Businessweek

It's a sweaty August morning on Pier 15 in Manhattan's South Street Seaport, and I'm cracking a blood orange tangerine Spindrift with Bill Creelman. I feel a bit like Homer Simpson getting handed a beer by Duffman, given Creelman's status in the world of seltzer. When I ask the Spindrift founder what his favorite flavor is, he punts, claiming that choosing is like picking a favorite kid. But when I point out that all parents do in fact have a favorite child, the father of four laughs. "If we're being honest, yes, we do," he says. (And no, he doesn't spill on his preferred progeny or beverage.)

Creelman's six-can daily regimen includes an entire brood: a "breakfast flavor" such as grapefruit or peach-strawberry in the morning, then a can of lemon alongside an espresso, then "half and half"—Spindrift's version of an Arnold Palmer—then whichever other three of the brand's 18 flavors speak to him. He seems confident this amount of seltzer won't destroy his, or anyone's, teeth. "What does your dentist say?" I ask. "Not much," he says. "I think they're happy."

More than a decade ago, Spindrift started rattling the booming seltzer scene—one awash with Perriers and Poland Springs and LaCroixs—with its recipe of part seltzer, part juice. It quickly won over converts willing to trade up to a more expensive eight-pack of bubbly that didn't have the artificial taste of a typical flavored seltzer. Creating a cult favorite wasn't exactly beginner's luck: This was Creelman's third crack at the food industry.

Anna Peele takes a walk with Creelman to learn why the third time was the charm: How Spindrift Broke Through the Cluttered Seltzer Craze

Making Neuroscience a Bit Easier

Science Corp.'s SciFi device. Photographer: Justin Maxon for Bloomberg Businessweek

The brain implant industry has boomed over the past decade as companies such as Neuralink, Precision Neuroscience and Synchron have each aimed tens of millions of dollars toward developing tiny devices that send information directly from people's brains to computers. While these startups have made remarkable progress, other companies and researchers still rely on less sophisticated technology rooted in academic and clinical settings.

Max Hodak, one of Neuralink Corp.'s founders, is trying to narrow that gap. His company, Alameda, California-based Science Corp., has several new products designed to bring down the cost and development time for research labs and startups looking to probe the mind. Hodak's hope is that the tools will increase the pace of brain research, resulting in therapies for some of the most crippling conditions facing humans. "Our goal is to get the brain computer interface industry to be a hundred times bigger than it is now," he says.

Ashlee Vance in his Hello World column visits the company making it easier for researchers to probe the mind: Neuralink Co-Founder's New Startup Sells a Brain Computer Toolkit

An AI 'New Deal' Has to Be a Fair Deal

Photographer: Balarama Heller for Bloomberg Businessweek

Sam Altman is hungry for power. Fresh off wrapping up a $6.6 billion funding round and consolidating his grip on OpenAI's leadership as other co-founders depart, the chief executive officer has hit on a strategy to cement his company's leadership over what he calls the most important technology the world has ever seen.

At a White House meeting in September, Altman and other representatives from the biggest names in artificial intelligence were assembled around the table to make their plea: We need more energy—fast. After the meeting, he followed up with a 15-page proposal containing more information on what specifically he thought the government should do. It called for construction of several 5-gigawatt power plants in various states across the US, each at a cost of around $100 billion, to be used by his own startup and other companies at the forefront of AI. The document was titled "Infrastructure Is Destiny."

Indeed it is. History offers plenty of examples of governments footing the bill for massive undertakings to support burgeoning industries, from the US interstate highway system under President Dwight Eisenhower in the 1950s to the broadband investments South Korea made in the 1990s. If America's destiny is to be the global AI superpower and not cede ground to China, investments in energy at the pace of Altman's vision must be seen as not only a target but also a minimum. The question is how we should pay for it and how we can ensure that the benefits extend beyond corporate interests to include civil society.

Bloomberg Opinion's Dave Lee looks at Altman's case in a column for Businessweek: Sam Altman's Energy 'New Deal' Is Good for AI. What About Americans?

Netflix's Sales Chill

340%
After a breakneck rally that added more than $230 billion in value, Wall Street is indicating that peak Netflix may have arrived. Shares in the streaming company soared almost 340% from a May 2022 low to their record high this month.

Trump Is Priced In

"You can see it in the bank stocks; you can see it in crypto."
Stan Druckenmiller 
Billionaire investor
Druckenmiller said in a Bloomberg Television interview that markets are pricing in a Donald Trump victory ahead of next month's US presidential election. Markets are "very convinced Trump is going to win," he said.

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