
The History of How Vodka Became America's Spirit of Choice
This summer, millions of Americans will drink vodka in a stunning array of popular cocktails: from the well-known Moscow Mule and martini to the more obscure vesper or Great Gatsby. In 2024, vodka accounted for nearly a quarter of the spirits consumed in the U.S. The clear, neutral spirit has dominated American liquor sales for decades, far surpassing whiskey, which once enjoyed an unchallenged status as the nation's preferred spirit. While whiskey remains a cultural touchstone for claims on American identity, the reality is that American consumers have consistently chosen vodka as their spirit of choice for decades.
The story of vodka's rise in the U.S. was closely intertwined with Cold War-era cultural politics and shifting consumer tastes shaped by strategic marketing. While whiskey had long symbolized tradition, rural Americana, and old-world nostalgia, vodka emerged as a sleek, modern alternative. It became a beverage adaptable to changing American lifestyles marked by countercultural politics and globalized consumer culture. Even amid today's craft cocktail renaissance and whiskey revivalism, vodka still stands as the most consumed spirit in bars and homes across the country—proof that Cold War cultural conflicts continue to shape our tastes.
Initially, Americans greeted vodka with limited enthusiasm. Late 19 th century newspapers depicted the spirit as a foreign, exotic drink, associated primarily with Russian immigrants who brought their drinking traditions with them.
In the 1930s, vodka gained its first meaningful foothold in the U.S. when a Russian immigrant named Rudolph Kunett brought the Smirnoff brand to Bethel, Conn. Over the next decade, the spirit remained mostly a curiosity—far down the pecking order of Americans' drink preferences.
Read More: The History Behind Why Canadians are Boycotting American Whiskey
Vodka made its real breakthrough during World War II. Businessman John G. Martin, president of the Connecticut based Heublein import company, acquired the struggling Smirnoff vodka brand from Kunett for $14,000 on a whim. In the following years, Martin realized that vodka had huge untapped potential. He emphasized the spirit's flavorlessness as a selling point, rather than a liability. The businessman marketed vodka as "Smirnoff's White Whiskey: No Smell, No Taste," an odorless, flavorless mixer suitable for blending into a wide range of cocktails.
Seeing some initial success with this advertising strategy in the 1940s, Martin heavily promoted a wide range of vodka-based drinks to grow the brand's appeal. He popularized not only the Moscow Mule, in its distinctive copper mug, but also the Bloody Mary and the Screwdriver, all of which became household names over the following decades. All of Martin's concoctions emphasized ease of consumption—only requiring one or two ingredients—as well as distinctive presentation.
In the first half of the 1950s, vodka sales exploded, rising from 40,000 cases in 1950 to over 4 million by 1955. As a flavorless mixer, vodka filled a gap in the American spirits market, providing bartenders and home drinkers alike with an unchallenging tipple to mix with anything on hand.
Interestingly, vodka's rise came against the complex backdrop of the Cold War. As major Cold War events like the Cuban Missile Crisis, the space race, and the Vietnam War fueled American anxieties and obsessions about Soviet power, the spirit found a way to slip past political divisions and into American homes—despite its connections with the Soviet enemy.
Companies were aware of the risks of vodka being swept up in Cold War politics. Their marketing campaigns took care to avoid anti-Soviet hostility by emphasizing aspects of Russian culture disconnected from contemporary geopolitics. Advertisers invoked images of Imperial Russia rather than Soviet communism, hyping vodka's sophistication and European heritage. High gloss ads for Smirnoff showed celebrities drinking the spirit in locations ranging from the Russian imperial court to exoticized jungle backgrounds.
The vodka bottle became an emblem of elegance and international flair. Observing Smirnoff's success, the company's competitors—brands like Samovar and Wolfschmidt—quickly seized on the same marketing strategy.
The transformation of vodka from derided immigrant liquor to acclaimed opulent spirit operated in tandem with a broader cultural shift: as the Baby Boomers came of age in the 1960s and 1970s, they became major consumers and increasingly rejected the cultural norms of the previous generation. Baby Boomers' parents drank whiskey, and they wanted to rebel.
To the Boomers, whiskey symbolized traditional masculinity and rural values, deeply rooted in American history and nostalgia for a simpler past. Vodka, conversely, signaled sophistication, fitting comfortably into this generation's desire for newness. Despite the fact that almost all vodka consumed in the U.S. was made in America, the spirit's global associations intertwined with baby boomers' desire for cosmopolitan connection. The spirit's association with Russia only emphasized its freshness—countercultural opposition to the Cold War led many a baby boomer to drink vodka as protest.
Heublein, the manufacturer of Smirnoff, attributed their success to a 'youth-sparked movement' as the boomers embraced the company's product.
Gender also played a key role. Vodka advertisers marketed the spirit as less challenging for women, even a diet option in some cases. As more women entered the workforce and companies targeted them as consumers, it changed the gender norms around alcohol. Recognizing this, Samovar upset the traditional rules of advertising in 1960 by hiring five women to help market their vodka.
Marion Johnson, the company's brand manager and one of the first female liquor advertising directors in the U.S., commented on this new strategy: 'Women generally do not like the taste of liquor. Vodka is said to have no taste. So they can be sociable and still enjoy themselves.' In contrast to this female focused pitch, many whiskey brands in the 1960s and 1970s continued to lean into names and imagery evoking age, tradition, and masculinity. Brands like Old Crow, Old Forester, and Old Grand-Dad sought to signal a deliberate link to a gendered past.
The entry of Stolichnaya into the U.S. market in 1972 further cemented vodka's status. Paradoxically, the brand benefitted from its Soviet origins. While Smirnoff and other brands touted their cultural heritage in the pre-Soviet Russian Empire, Stolichnaya entered the U.S. as the first ever Soviet-produced spirit. Through a brand deal with PepsiCo that also saw Pepsi sold in the U.S.S.R, Stolichnaya represented a novel economic exchange between the two superpowers. At a time when Cold War tensions heightened curiosity and suspicion about all things Soviet, American consumers flocked to the new vodka as an edgy, exotic choice—drinking vodka became simultaneously an act of defiance and fascination.
A 1974 ad for Stolichnaya displayed four vodka bottles and noted where they were made—Samovar: Schenley, Pa.; Smirnoff: Hartford, Conn.; Wolfschmidt: Lawrenceburg, Ind., and Stolichnaya: Leningrad, U.S.S.R. The tagline proudly trumpeted, 'Most American vodkas seem Russian. Stolichnaya is different. It is Russian.' These claims to authenticity exploded consumption of Stolichnaya, specifically, and vodka, more generally.
By 1976, vodka had unseated whiskey as the most consumed spirit in the U.S. Vodka's dominance continued through the 1980s and 1990s with the meteoric rise of Swedish brand Absolut, whose artistic advertising campaigns captured the imagination of a new generation of young Americans. The brand's minimalist bottle and bold, art-infused ads made it a cultural icon, feted in magazines and billboards across the country. During this period, flavored vodkas—from citrus to pepper to vanilla—also took off.
American tastes had also fully shifted toward light, easy-drinking spirits whose ad campaigns promised them versatility, fewer calories, and a sense of modern sophistication. Vodka's newfound status as the country's go-to liquor reflected how thoroughly it had reshaped the American drinking landscape.
The craft cocktail revolution of the 2000s—when high-end bars, aproned bartenders, and carefully curated liquor menus surged through the country—seemed to pose a threat to vodka's dominance. Craft bartenders often turned their nose up at the flavorless spirit, and the Wall Street Journal in 2009 triumphantly declared, 'vodka is passe.'
Yet, despite repeated claims of vodka's demise, it remains America's top-selling spirit. That's a testament to its successful reinvention during a crucial period of American cultural change. Whiskey, which has experienced a resurgence over the past 15 years, has never regained its mass-market dominance. The Cold War era fundamentally reshaped American drinking culture, aligning vodka's blank-slate versatility with new cultural identities less rooted in tradition and place, and more in global consumerism and modernist aesthetics. Reflecting on vodka's ascendance helps illuminate how consumer choices are deeply connected to broader cultural and political trends.
The story of vodka is the story of modern America, encased in a clear, flavorless spirit that appears neutral but retains cultural power.
E. Kyle Romero is an assistant professor at the University of North Florida. He studies the history of American foreign policy, immigration politics, and global consumer economics.
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From Fool Global headquarters. This is Motley Fool Money. It's the Motley Fool Money Radio Show. I'm Ricky Mulvey, joining me on the Internet today. It's Motley Fool Senior Analysts Asit Sharma and David Meier. Fools, great to have you both here. Asit Sharma: Hey, Ricky. David Meier: It's great to be here. Thank you. Ricky Mulvey: We've got a retail rundown, a slowdown for a leader in cybersecurity, but let us start with the Big Macro. President Donald Trump has paused 50% retaliatory tariffs on the European Union until July 9th. Consumer sentiment has rebounded in the latest survey, the first note of optimism in five months. Asit, make sense the tea leaves. What are you seeing in the Big Macro? Asit Sharma: Well, you're right, Ricky, the conference board showed that consumer confidence via their index increased about 12 percentage points to a reading of 98.0 this month. That's pretty confident. What do I read into this? 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You can be happy about that in the short term, but we don't know what's going to happen once these deadlines hit for all the pauses that are out there. My guess is that there's probably a 50% chance that there will be some tariff on Chinese goods when that pause gets lifted. We'll see what happens with European tariffs. But, consumers and investors are happy to quote kick the can down the road. Consumer confidence is up. The market continues to grind higher, but let's revisit these risks in the second quarter earnings in July. Ricky Mulvey: David, if you ever need a good comeback for someone, you can be happy about that, in the short term, is a great one to use. Asit, before we get to the business stories, what is all this macro data that we've been talking about for the first few minutes? Does it mean anything for the type of investing we do here at The Fool? Asit Sharma: I think it means something, Ricky. Foolish investors are spongy. We like to absorb information. That doesn't mean that we're gonna act. As a sponge myself, I'm not looking for someone to come ring all this information out of me, but you have to keep apprised of the data. Doesn't change your focus on businesses, staying invested for the long term, finding great companies, trying to hold those companies over a long time. But you have to be aware. Sometimes the big picture does change enough that you have to start making changes around the edges. Just ingest it, don't necessarily have to act on it. David Meier: Completely agree. You need to be aware. Ricky Mulvey: Let's stick with our sponge, Asit Sharma. Asit, Salesforce agreeing to buy Informatica for about $8 billion earlier this week. This is a deal that Salesforce has wanted to do for some time now. Informatica is a data management company. One example is if you're a large company with customer data across a bunch of systems, Informatica will help you consolidate it and give you one view of that. That's what Informatica does. Why does Salesforce want this business for $8 billion? Asit Sharma: Ricky, I like the way you describe that. That's an app description of what this company brings to the table. It is very much into looking at where data originates, tracing it, making these maps of where the data is. It's also good at something called metadata cataloging. In other words, its systems can understand after a while, if you, Ricky, are a customer in a process flow, and may I'm on the other end of the transaction. It can keep up with lots of tags about different data that flows through an enterprise. Now, why is this important? Why would Salesforce care about this? Well, we all have heard how much Salesforce is into the AI agents game. It wants to put AI agents at your fingertips. You enterprise workers, knowledge workers who are out there listening today. How can they do this better is if they swallow up a smaller company like Informatica, which helps those agents act with better transparency, get to the data they need, show that that's traceable, and in general, be more confident with the information they're passing back to you, information worker. This is a crucial step to undergird what Salesforce is already good at with its AI agents. I think there's something here for the investing community to give us a decent grade. It's a strategic acquisition, that's for sure. David Meier: I think one thing this does is it actually integrates well with some of the other data-centric companies that it's bought, Data Cloud, MuleSoft, Tableau. As it is spot on. This is all about making its agents as productive as it can for its customers. I think this is a good acquisition for them. Ricky Mulvey: David likes it, and I spoke with our colleague Tim Beyers about this acquisition earlier this week, and he was bullish. 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David Meier: I think the first thing we need to do is understand that ACTA is actually the leader in identity management, and that market continues to be a critical part of cybersecurity, and it's growing. Its new products are gaining traction as we're starting to see, the company is starting to scale, margins are expanding. Cash flow generation is solid. Frankly, at six times forward sales, this is a very reasonable multiple for a stock which is still near its 52-week highs even after the pullback. I see this as an opportunity. Ricky Mulvey: After the break, we're looking at retail stocks and seeing if there's any deals on the rack. Stay right here. This is Motley Fool Money. Welcome back to Motley Fool Money. I'm Ricky Mulvey here with Asit Sharma and David Meier. Right now, we're going to focus on retail stocks, starting with Abercrombie and Fitch. Abercrombie posted Wednesday morning, and the results were not as bad as investors feared. Yes, David, there was a slight decrease in operating margin outlook, shout out to the tariffs, and Oh, no. But ANF in total is still posting comparable sales outlook. David, what did you see in the results here? David Meier: I see a company that is performing better than the market was anticipating, hence the nice jump today. Look, sales and earnings came in stronger than expected for the quarter, and management actually raised their guidance for the full year slightly, which was not anticipated by analysts and clearly not by the market. As we've said before, there's a lot of macro uncertainty out there, and lots of companies are calling it out. In today's environment, that's about as good as a company can do. Ricky Mulvey: I worked out a thesis for Abercrombie and Fitch about a month and a half ago with Jim Gillies, and yes, I did it here on Motley Fool Money. One thing I mentioned was the buybacks. You like to see management buying back stock when multiples are down. Abercrombie took out about 5% worth of their stock in this quarter, and yes, they had the cash to do it. They didn't take out debt. When you look at that, is that a smart allocation move? Can I take a victory lap here on the show? David Meier: Dude, you should be running around that track with a big old flag saying victory. Yes, that was well done. Kudos to management for being very opportunistic with their repurchases, because that's not something that every company does well. The stock was significantly lower in the first quarter, and they took advantage of it. The other thing it does it's another valuable lesson about having a strong balance sheet. It gives companies optionality. Ricky Mulvey: I had to do some AI work with Abercrombie and Fitch, especially looking at their supply chain. They got factories all over the world. 5% of their workers are in China, which is really the center of the trade war. They've got more factories over in Southeast Asia, and that's something I liked was seeing that distributed supply chain. For investors looking at retailers, how should they be thinking about supply chains right now? David Meier: I think you're spot on. You need to find out where they are, because that information is available. Then, the other thing I think we need to do is to pay attention to any company that gives an estimate for what they think tariffs are going to cost. We've recently saw that from Deckers Outdoor, the maker of UGS and Hoka shoes. Now we see Abercrombie saying, Hey, we think it's going to be about 50 million for their business. Look, any piece of information like this helps analysts model the future. Again, with uncertainty, all that information helps. Ricky Mulvey: Let's move to Pinduoduo, Asit. I'm giving you a stock that investors were a little more sour on than Abercrombie and Fitch here. This is the parent company of Temu, where our engineer and colleague, Dan Boyd, loves to shop. Boy, oh, boy, does he like to buy little shiny things at very cheap prices, and then who knows what he's going to do with them? But, man, Dan loves Temu. Sales still growing for this company, but net profit falling 47%. Yikes. That's the Trade War in action, Asit. What'd you see in the results? Asit Sharma: Yes, it is, Ricky. The results show me a few things. One is that the and again, off again trade war is really starting to hurt confidence in management. Management here has a few headwinds that it's trying to work through. One is that competitors like and Alibaba are fighting back after just a really good run by Temu for example, is a great part of Pinduoduo. Then what we have is the de minimis exemption, which went away. In the first part of this trade war, the Trump administration took away the ability of companies like Pinduoduo to send goods of small value into the US without the imposition of tariffs. Now, after repealing that, they imposed a tariff, which was pretty high. Then, again, long story with anything you talk about in tariffs. Those are now down to a not-so-blistering 54%. Which simply means that it's going to be really hard for Pinduoduo to sell these cheap goods into the US through Temu. Now, on the other hand, you've got some subsidization going on from the Chinese government to spur consumer spending, and that benefits more its rivals than it does Pinduoduo, which operates something of a third party platform in China, so it can't directly participate in those subsidies, and it's having to keep its merchants happy who have always felt that they're squeezed by Pinduoduo, so it's having to invest in those merchants. You add all this up together, and you have this drastic decrease in net income. I'm not surprised on what level. I think that, going forward, it's probably going to even out among all the Chinese retailers as the consumer in China begins to adjust, and I think they'll spend a little bit more next year, so not out of the woods, but not terminal either. Ricky Mulvey: Asit, have you ever bought anything on Temu? Asit Sharma: No, I'm no Dan Boyd. I have many times thought that I should. I'm a thrifty guy by nature. I buy books and pencils, and most of the times I get those locally. Ricky Mulvey: Advice for investors who want to dip into a category like this because a Chinese retailer that is at the heart of a lot of this tariff war trade negotiations, this is a hated category. The PE ratio has been depressed quite a bit. Some investors may look at that and see a company that's still growing sales, taking a hit on the margin, and think, maybe I want to take a dip into this hated category right now. Be a contrarian. What say you to them? Asit Sharma: I wouldn't discourage that. I would almost say look more toward Alibaba. The Chinese big conglomerates are really good at doing tech as well as retail. Alibaba has its hands in so many tech investments. Ten cent is similar, although it's not really as much of a retailer. If you're looking for something that is getting beaten down on the retail side, why not stick with an Alibaba? You have more chances to win in the long term. Ricky Mulvey: Then while retail indexes have recovered since a rough start to the year, not all of the valuations have recovered. Maybe there's some deals still out there. We'll start with David. Are there any retail stocks in the bargain bin that you think are worth investors' attention, or maybe even a full price company, something like an on-holdings, where you're not getting any discount on the shares, but still a strong company to hold for the long term? David Meier: One company that I'm looking at is going to be Best Buy, which actually will report earnings on Thursday, May the 29th. The reason is because I want to actually get more info about the environment. If there was ever a company that was going to give me more information about the impact of tariffs, it's going to be Best Buy. I'm looking there first for information, and then I'll start looking to see if there's any others in the retail bargain bin. Ricky Mulvey: Asit, how about you? Asit Sharma: Ricky, I think investors can still get the MAX for the minimum at TJ MAX or its parent company, rather, TJX Companies. This is a business that has a lot of discipline in its global buying teams. They're great at buying through all environments. Surprisingly, the tariff environment isn't affecting them as much as you might think. Solidly run company, great balance sheet, great brands under its umbrella. I might look their symbol, TJX. Ricky Mulvey: Fellas, we're going to see you a little bit later in the show, but up next, we've got Klaus Kleinfeld. He's the former CEO of Siemens talking about what investors should look for in turnaround stories. Welcome back to Motley Fool Money. I'm Ricky Mulvey. Klaus Kleinfeld is the former CEO of Siemens and ALCOA. When you're the leader of a multinational company, you've got to learn how to manage your energy. Kleinfeld is also the author of Leading to Thrive, mastering strategies for sustainable success in business and life. We talk about his book and how to look for companies with sustainable competitive advantages. Much of your book is focused around this idea of energy management, and many people think about just time management. We've talked about energy management a bit on the show in previous conversations, but when you were leading multinational companies, is there anything you wish you knew at that time about energy management that you know now? Klaus Kleinfeld: Well, fortunately, I learned early enough but still late in my career about energy management. I could apply that in a good part of my business life, at least in the last 10, 15 years. But I was an addict of efficient time management before, as somebody who was born and raised in Germany, always used to discipline use of time. I think energy management is a very important concept, which was one of the reasons why I wrote the book. The question is, how does that work with energy? You wake up in the morning, and hopefully you have a lot of energy, but it burns through during the course of the day. Every time you have to use willpower, you actually use some of the energy resources. That's one thing that I think most people don't fully understand. You have to recharge it. Then comes the question, how do I get energy? What is energy? It goes back to the simple things like body, mind, and soul, and I distinguish in the mind between the emotional and the mental side of things. The body part, the physical energy part, is relatively well understood. But there are concepts like breathing, sleep that are not so well understood. But on the emotional side, many people think the emotions are brought onto you by somebody else, not realizing that you yourself allow an emotion to be created in you, and you can learn a lot of tricks, also from the high-performance world, how you can control. Same thing on the mental side. Mental is all about focus. How many times have we seen that great leaders see an opportunity when others see a challenge. There's tons of those stories. Then comes this thing that we almost never talk about in the business world. It's the spiritual side. I don't know whether you have in your friendship group. I do, people who actually have realized at some point in time that they feel very empty and they are lost in a certain way. I was most surprised that in the business world, people burn out much earlier, whereas in the sports world, you see people basically being at the very top for much longer. I personally love tennis, and if you look at tennis, how this has changed over the last 20 years. The top players are way older than they ever were. But when you look at the tenure of CEOs, it's way down. Ricky Mulvey: Something surprising in your book, as well, is that as a leader, you were actually looking for people who are quietly cynical in meetings, making a cynical remark, and making other people laugh. There's a read on that, which is that leaders want cheerleaders and people who are positive about the mission going on. I'm sure there's a story there, as well. If you're in a meeting with people, why are you looking for someone who's quietly making cynical remarks? 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Usually, the dumb jokes don't have that much of an impact on people, and people say you're just an idiot. But somebody who can make a good cynical comment typically understands the industry often understands the business, and you can learn from it. I try to involve the person in a conversation and just learn. What happens is that very often I do learn from the person for instance that things like that have been tried out before, failed, and then I can get into a conversation. Why did they fail? What can we do different to have it not fail, or are there other approaches? Number 1, I learn something. Number 2 also is, if you then can involve the person and say, here are the reasons why I think we should do it, and this is how I would do it, which avoids the issues that you are implying. You can win the person over. The moment you win the person over, this person has a followership and is known as somebody as who's cynical. If this person changes, in a change environment, the followership that person brings you is enormous, because people around there know this is not somebody who would kiss the new boss's ass. This is somebody who usually stands up against the person quietly, though. The impact of winning a larger crowd over to basically be behind this, also not just with their head on with it but also with their heart. Ricky Mulvey: That's a look behind the scenes at turnarounds. We were talking from the investing side about how difficult it is for investors to get into turnarounds, often because in the financial media, people get excited about them as soon as you hear about a CEO change. Starbucks is a recent example of that. We were also talking about Nike and the troubles going on at Nike, where they have to win back their distribution partners after shutting them off to pursue their own strategy. One of the themes of it, as I was talking to my colleague Jim Gillies, about this is it takes much longer than many investors want to believe that a turnaround story is going to take. Having been in the middle of it, is there anything you think investors should know, especially on the retail side? We're talking to people who are investing a few hundred bucks a month in the stock market that they should know if they're looking at a turnaround story in the market. Klaus Kleinfeld: What do you need for a good turnaround? You can say, I have a short-term turnaround, I need a big gun, and I tell them, hey, you know what? You follow my orders or else. But if you want a sustainable turnaround, that's usually not how it works. You pretty much have to start from what value do I create for the customers. The value for customers is relatively simple. You have two dimensions. You either do something for them that increases their revenues or decreases their cost because in the end, they all want a higher profitability. You really have to understand as well as possible, what is the offering? How can the offering be improved? That's one thing. The second thing is you also need to understand what is the motivation of the team? How good is the team, the quality of the team, and how do they work together? Because in the end, and I have seen again and again, the only sustainable competitive advantage you have in a business is the talent and the way they work together. Both of these things, this is the magic. The third thing is, you just have to take a look at the cash flow. Don't trust any EBITA numbers. In the end, it's cash. I think with those three-dimension customer people, and cash, I would always look at that as my first true north to understand, does that work or does it not work? By the way, one other thing that I've seen again and again, that investors fall for the great storytellers. I've seen many times a great visionary, so to say, that a great vision is only as good as the implementation, and a great vision, if it's not translating into success for the customer, basically burns to people out and people will not follow anymore. They follow for a first moment, but then they lose interest because they see we're not winning. The moment people see we're winning, they will follow. Ricky Mulvey: You mentioned people as a sustainable competitive advantage. For our audience, that's pretty tough to identify. You can look at glass door reviews. Sometimes those can be gamed a little bit, let's say. Klaus Kleinfeld: Let's put it that way. Ricky Mulvey: It's incredibly difficult for us investors to know what's going on inside of a company, especially we don't have research teams. We're in it on our own. It's still important to find sustainable competitive advantages. How do you think about those? What are some ways that our listeners can find companies with sustainable competitive advantages? Klaus Kleinfeld: Well, I started with customer advantage. That's pretty easy for investors also to figure out. Number 1, many of the investors have knowledge about the industry and understand what does the industry need, and how do the offerings today and in the future fit this? It starts with that. I can highly advise the better you become with evaluating that and checking the box on that, the better off you are. I would always talk to some customers and also some competitors. They also have good information about that. That's one thing. The other thing is on the people's side, most companies these days have investor days or invite investors. Typically, it's not just the CEO, but definitely also the CFO and CTO and some of the top leaders. First of all, attend those meetings. Secondly, I would not be shy as an investor to say, I would encourage the leadership in the next investor meeting to bring on your first line management. Before that, I'd like to have probably a better CV. I've seen many people do that, but if you feel that they don't do it, then you can ask for it. The third thing is, which I personally, as a CEO, have always done is factory visits, facility visits, and just walk-throughs. It's very interesting. I think it's hard to fake a good walk through because you can see how people look from the shop floor, look at the leaders. Do they look away? Do they wave at them? Does the leader know anything about them? How does the leader deal with the others? I think if there's an offer to visit some facilities, I would always hop on it and potentially even ask for it and say, hey, you know what? Is there a chance to visit some of your facilities? You've been talking about these great things, can we see those? Can we just invite a few folks, 10, 20 folks. I'll pay for my flight myself. I'll come. I think most companies actually would enjoy investors doing that because it also makes the conversation between investors and the company much better. Ricky Mulvey: As always, people on the program may have interests in the stocks they talk about in Motley Fool, may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. On personal finance content follow us on Motley Fool editorial standards, and we're not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only, see our full advertising disclosure. Please check out our show notes in our podcast description. Up next, we've got radar stocks. You're listening. It's Motley Fool Money. I'm Ricky Mulvey, joined again by Asit Sharma and David Meier. Fools, a momentous thing happened this week, and that is that Southwest has officially ended its two-bags fly free policy. Unless you've got the right status or the right credit card, it's now $35 for your first bag and $45 for your second bag. I know how I feel about this as a consumer, but we'll keep it on the investing angle since this is an investing show. Asit, good idea, bad idea for Southwest long term? Asit Sharma: Bad idea. Ricky, I discussed this at length with Dylan a few months ago, and we talked about unit costs and all metrics in this industry, and maybe Southwest had to do this. But the more that I've sat on it, the more I thought, Look, guys, cut your costs somewhere else. Do you have something that's inextricably tied to your brand? That's why people fly Southwest. What are you doing to this brand? I've actually landed on the other side from it's ambiguous to, No, this wasn't a great idea. Ricky Mulvey: You've made me a brand promise, and now you're breaking it. David, do you feel the same way, or are you looking at those baggage fees and thinking, Man, they need to get that cheddar for the shareholders? David Meier: No. I frequently fly Southwest, and they can put whatever baggage fee they want inside the price of their ticket. That's what they already do. It makes me feel good as a traveler to know that my big old snowboard on the way to Denver doesn't cost me anything, even if it does cost me something already. I do not think this is good for their brand. I think this is just a money grab. Frankly, why would you want somebody to now try to be a price shopper when you usually have very good prices to begin with? I don't understand this. Ricky Mulvey: Then quickly, before we get to radar stocks, because rehearsals and airplanes are hot in the streets right now, Asit, open seating, that's going to be gone from Southwest in a little bit, but quickly, in the meantime, while Southwest does have open seating, how are you going to keep someone from sitting next to you on your next Southwest flight? Asit Sharma: It's real simple, Ricky. Just look six seats ahead of me when I'm seated. Everyone who's coming toward me, smile at them really big from six seats away. They look away. They look back at you. This guy is still smiling at me. What is going on here? I usually can just curl up on the next two seats when I do that. Ricky Mulvey: Let's get to stocks on our radar. Our man behind the glass. Mr. Dan Boyd is going to hit you with a question. Asit, we'll keep it on you. You're up first. What are you looking at this week? Asit Sharma: Ricky, I am putting a tiny company called SoundHound AI, symbol S-O-U-N, on my radar screen. This is an AI stock that briefly had meme status. What it does is it provides voice technology. I think what's so interesting to me about SoundHound is that they've got their own foundational model for AI. In-house, they've built this great model which can articulate human speech. It can really analyze voice patterns. The technology is so good that they're using it now in drive-throughs. Some major quick-services restaurant chains are using it. They're selling this to original equipment manufacturers in the auto industry. Companies that could work with these great big tech companies are choosing to work with SoundHound because their technology is so good. You can also use it on your phone as an app to identify sounds and music in particular. I find that a lot of fun to hear a song and try to figure out where it's from just by opening this app, Shazam like in that sense. This is a company that's, again, very tiny. Revenue was only 29 million this past quarter, but that was up 151%. This company is going to have losses for a while, for at least the next 3-4 years, but it is one of the companies that I've seen that seems to have its own unique value proposition out in AI Land, so it's worth following. Ricky Mulvey: Dan, I think I heard AI there four or five times. That better get your attention. Maybe a question about SoundHound. Dan Boyd: Losses for the next 3-4 years sure does sound good, Ricky. You'll love to hear that. Can't wait for yet another product out in the market that can't understand me when I shout into my phone agent. Ricky Mulvey: Asit, a response to Dan's insult. Not really a question about SoundHound. Asit Sharma: Valid. I have this experience myself with so much of the tech I use, so I'm not going to be disingenuous here and try to get all used car salesmen on Dan. Time will tell. Ricky Mulvey: David, what you got this week? David Meier: The stock on my radar is SentinelOne. The ticker symbol is S. This is an almost $7 billion company that continues to gain traction in the cybersecurity market. Its specialty is endpoint security, which is the protection of individual devices that connect to networks. One of the interesting things about this company is it's been marketing its AI capabilities since before its IPO in June 2021, before AI was seriously hot. The stock has pulled back since its high-flying IPO, and the company still expects to generate about 20% annual sales growth and recently turn cash flow positive in fiscal year 2025. It also reports earnings on May the 28th, and I want to revisit the company to hear what management has to say in terms of its vision for the future. That's because it trades at a much more reasonable valuation at just under six times forward sales, which is close to its 52-week low. Ricky Mulvey: Dan, a question, comment, or even a backhanded compliment about SentinelOne? Dan Boyd: It's a cybersecurity firm. There's not exactly, I don't know, a whole lot of shine on that apple. It's just nuts and bolts to me, personally. But hey, they're located in Mountain View, California, which is a nice part of the United States, so I can't hate that. Ricky Mulvey: David, not enough shine on the apple for you. David Meier: You're exactly right, that cybersecurity is a very competitive market. But the interesting thing is, that means there's room for all competitors. With SentinelOne, focusing on the endpoint, they have carved themselves out a nice little niche. As they continue to gather more data from the customers that it has, as well as data from the new customers, its AI capabilities only get stronger. Ricky Mulvey: Dan Boyd, not a lot of room on your watchlist. What's going on the watch list this week? Dan Boyd: Let's go, SentinelOne, Ricky. Ricky Mulvey: That's going to do it for this week's radio show. I'm Ricky Mulvey. This show is mixed by Dan Boyd. Thanks for listening. Asit Sharma has positions in Salesforce. Dan Boyd has no position in any of the stocks mentioned. David Meier has no position in any of the stocks mentioned. Ricky Mulvey has positions in Abercrombie & Fitch. The Motley Fool has positions in and recommends Best Buy, Deckers Outdoor, Nike, Okta, Salesforce, Starbucks, and TJX Companies. The Motley Fool recommends Alibaba Group, and Southwest Airlines. The Motley Fool has a disclosure policy. The Economic Mood Brightens was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

an hour ago
Jack Daniel's maker Brown-Forman sees sales fall as Trump trade conflicts weigh on spirits producers
LOUISVILLE, Ky. -- Brown-Forman Corp. reported weaker sales Thursday as the maker of Jack Daniel's Tennessee Whiskey confronts challenging market conditions amid global trade conflicts and pinched consumer spending. The Louisville, Kentucky-based spirits giant said its full-year net sales of nearly $4 billion were down 5% from a year ago, and fell 7% in in the fourth quarter. Net income was down 15% for the full fiscal year and plunged 45% in the fourth quarter ending April 30, the company said. The quarterly drop came as Brown-Forman and other U.S. spirits producers who rely heavily on foreign sales felt the reverberations from President Donald Trump's sweeping tariff plans and consumer anxiety about the economy. Brown-Forman also offered a sobering assessment for the coming year. Having steered the company through an 'extremely challenging and uncertain operating environment' in the past year, Brown-Forman CEO Lawson Whiting predicted another challenging year ahead. 'Fiscal 2025 was a year unlike any other that I've seen in the past three decades,' he said during a conference call with industry market analysts. Whiting pointed to industry figures showing that many consumers are purchasing smaller sizes of spirits. He called it unusual and said it reflects a consumer 'who's pinched and just goes to the store with a $10 bill instead of $20 and then they get the smaller size.' 'The consumer and their wallet just doesn't have as much money in it," he said. "They're spending money on things like vacations and lodging, and other things like that. But then when it trickles down and they go to the grocery store, I think in some cases, spirits have fallen out of the basket a little bit.' In its outlook for the next year, the company said the challenges include continued consumer uncertainty and the 'potential impact from currently unknown tariffs.' 'We know it's highly volatile," Leanne Cunningham, the company's CFO, said while fielding a question about tariffs during the conference call. "None of us can predict what's going on." The company believes the market volatility will "create sustained levels of consumer uncertainty, which we believe will lead to another year of below historical total distilled spirits trends,' she said. Trump has often announced changes and pauses to his sweeping tariff plans on his social media platform. Trump hiked nearly all of his tariffs on steel and aluminum imports to a punishing 50% on Wednesday in a move that's set to hammer businesses from automakers to home builders, and likely push up prices for consumers even further. Brown-Forman executives said Thursday that American spirits brands mostly remain off store shelves in Canada. Trump has angered Canadians with his trade war and calls to make Canada the 51st state. Spirits makers in Kentucky have expressed fears of becoming "collateral damage' by getting caught up in trade conflicts. 'The uncertainty of the tariffs continues to weigh down distilleries large and small," Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said in a statement Thursday. "We are urging the Trump administration to help get the spirits sector back to fair and reciprocal trade with zero-for-zero tariffs with our major trading partners.' Meanwhile, Brown-Forman's full-year results showed that net sales for its whiskey products were flat. Growth from Jack Daniel's Tennessee Whiskey and its Woodford Reserve brand was offset by the negative effect of foreign exchange and declines in other super-premium Jack Daniel's products, it said. The company will launch a new product, Jack Daniel's Tennessee Blackberry, this summer. 'BlackBerry is a globally recognized, well-established flavor trend, and naturally complements the flavor of Jack Daniel's Tennessee Whiskey," Whiting said. In January, Brown-Forman announced it was reducing its global workforce by about 12% and closing its hometown barrel-making plant in Louisville. Whiting reaffirmed Thursday that those actions are expected to produce about $70 million to $80 million in annualized cost savings.

an hour ago
Musk's threat to withdraw Dragon capsule would leave NASA with 1 option: Russia
As President Donald Trump and Elon Musk argued on social media on Thursday, the world's richest man threatened to decommission a space capsule used to take astronauts and supplies to the International Space Station. After Trump threatened to cut government contracts given to Musk's SpaceX rocket company and his Starlink internet satellite services, Musk responded via X that SpaceX "will begin decommissioning its Dragon spacecraft immediately.' It's unclear how serious Musk's threat was. But the capsule, developed with the help of government contracts, is an important part of keeping the space station running. NASA also relies heavily on SpaceX for other programs including launching science missions and, later this decade, returning astronauts to the surface of the moon. SpaceX is the only U.S. company capable right now of transporting crews to and from the space station, using its four-person Dragon capsules. Boeing's Starliner capsule has flown astronauts only once; last year's test flight went so badly that the two NASA astronauts had to hitch a ride back to Earth via SpaceX in March, more than nine months after launching last June. Starliner remains grounded as NASA decides whether to go with another test flight with cargo, rather than a crew. SpaceX also uses a Dragon capsule for its own privately run missions. The next one of those is due to fly next week on a trip chartered by Axiom Space, a Houston company. Cargo versions of the Dragon capsule are also used to ferry food and other supplies to the orbiting lab. Russia's Soyuz capsules are the only other means of getting crews to the space station right now. The Soyuz capsules hold three people at a time. For now, each Soyuz launch carries two Russians and one NASA astronaut, and each SpaceX launch has one Russian on board under a barter system. That way, in an emergency requiring a capsule to return, there is always someone from the U.S. and Russian on board. With its first crew launch for NASA in 2020 — the first orbital flight of a crew by a private company — SpaceX enabled NASA to reduce its reliance on Russia for crew transport. The Russian flights had been costing the U.S. tens of millions of dollars per seat, for years. NASA has also used Russian spacecraft for cargo, along with U.S. contractor Northrup Grumman. The company has used its rockets to launch several science missions for NASA as well as military equipment. Last year, SpaceX also won a NASA contract to help bring the space station out of orbit when it is no longer usable. SpaceX's Starship mega rocket is what NASA has picked to get astronauts from lunar orbit to the surface of the moon, at least for the first two landing missions. Starship made its ninth test flight last week from Texas, but tumbled out of control and broke apart. ___