Top Amazon exec says it’s a ‘myth’ robots steal jobs

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A robot prepares to pick up a tote containing product at the Amazon Robotics fulfillment center on April 12, 2019 in Orlando, Florida.

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A top Amazon executive told CNBC Thursday that it’s a “myth” that robots and other technologies take jobs away from people.

Stefano La Rovere, director of global robotics, mechatronics, and sustainable packaging at Amazon, said that, rather than replacing jobs, advanced robotics, artificial intelligence, and other technologies are enhancing people’s roles.

He added that new technology is leading to the creation of entirely new job categories.

“It is a myth that technology and robots take out jobs,” La Rovere told CNBC’s “Street Signs Europe” on Thursday.

Amazon says that the introduction of new technologies has enhanced more than 50,000 jobs across its fulfilment centers in Europe.

The e-commerce giant says it has installed more than 1,000 new technologies across its European fulfillment center network over the last five years, for an overall investment of more than 700 million euros ($751 million).

“Robots and technology help our employees … by reducing walking distance between assignments, by taking away repetitive motions, or [by] helping them to lift heavy weights,” La Rovere  said.

“In turn, our employees can learn new skills, they can learn new competencies, they can acquire new capabilities that allow them to progress towards their career objectives,” he added.

La Rovere added that, “Over the last years, more than 700 new categories of jobs have been created by the use of technology.”

He cited the example of his own team, the Amazon robotics and AI division, which is focused on bringing automation to Amazon’s vast network of fulfillment centers that are responsible for getting orders packed and ready for delivery to customers.

 WATCH: Factories are heading for a ‘dark’ future — and it’s not what you think

Factories are heading for a 'dark' future — and it's not what you think

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AI’s role in innovation expanding rapidly

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SAN FRANCISCO — At times attendees of the Future Food Tech conference held March 21-22 in San Francisco may have been skeptical about the futuristic discussions taking place during the program and on the exhibit floor. At other times, it all came together and made sense. And even better – it made sense for right now.

“Foods have to be delicious and nutritious,” said Isabelle Esser, chief research and innovation, quality and food safety officer for Danone SA, Paris. “Technology needs scale and impact. It’s all about positive nutrition, and this requires collaboration.”

That’s much of what Elo Life Systems, Durham, NC, is striving to accomplish. Elo Life’s molecular farming platform produces ingredients that may be difficult to harvest from natural sources and may not be synthesized through artificial or other techniques. The company produces easy-to-grow crops as bio factories for the ingredients.

“We’re on a mission to unlock nature’s abilities to make consumers’ favorite foods more delicious, healthy and planet friendly,” said Todd Rands, chief executive officer of Elo Life Systems. “It’s about making foods more nutrient dense, not calorically dense, which has been the case with our food system since the second half of the 20th century.

“We use AI (artificial intelligence) and proprietary algorithms to gain deeper insights across native genomes, genes and traits. Innovation with healthy and sustainable food is desperately needed, and our collective future depends on creating new solutions that do not exist today.”

The company’s first product is a monk fruit-derived sweetener that will launch in 2026. Rands said the company is working on the production of varied bioactive ingredients and novel proteins.

Algorithms enable machines to learn and make decisions. Otherwise known as generative artificial intelligence, the technology is “transforming possibilities into reality,” said Lanette Shaffer Werner, chief innovation, technology and quality officer, General Mills, Minneapolis.

“For us, AI is a member of the team. It’s like having an intern on the team, who contributes like all other team players.” said Shaffer Werner. “AI provides input to our final decision. We still keep the consumer at the heart of everything we do.”

Lanette Shaffer Werner, chief innovation, technology and quality officer at General Mills. Photo: General Mills

She explained how AI is an active player behind the scenes and how AI allows us “to have one eye on today and one on the horizon. For example, before a new product goes into test market, we can work with digital concepts generated by AI,” said Shaffer Werner.

Another valuable use for AI at General Mills is for a review of scientific literature. The company works with the program scite to get answers to all types of food innovation issues, everything from ingredients to food safety to yield.

“There are billions of scientific articles, many containing insight and solutions to issues we are facing,” Shaffer Werner said. “With AI, we can dedicate our resources to ‘doing’ instead of untangling pandora’s box.”

Brightseed, San Francisco, uses AI to discover bioactive compounds in nature and develop healthy food ingredients. The company served its newly launched bioactive fiber in yogurt parfaits at Future Food Tech.

The fiber ingredient was developed in partnership with Manitoba Harvest, Winnipeg, Man. It is a multi-benefit fiber solution developed from upcycled hump hulls. The product is unique for the fiber market as it has two phenolic bioactive compounds that research has shown may strengthen the gut lining to help maintain healthy gut barrier function.

“Bioactives are the unsung heroes of proactive health and today. The majority of people don’t consume enough to capture the full impact of their benefits,” said Sofia Elizondo, co-founder and chief operating officer of Brightseed. “Now that our AI Forager is powering the discovery and understanding of bioactives at an unprecedented rate, our mission at Brightseed is to transform those insights into accessible and powerful wellness products across the globe.”

Israel-based start-up Celleste-Bio uses a proprietary combination of biotechnology and AI to produce cocoa ingredients. Precision fermentation eliminates the dependence on cultivation of cocoa trees and will help ensure cocoa yield supply is invariable, not dependent on climate conditions, close to production sites and a final product of superior quality.

This is accomplished without genetic modification or manipulation by extracting cocoa cells from cocoa pods and growing them in a controlled setting with water and nutrients. It is a continuous cycle that repeats itself, without needing to crack open another pod.

“We want to offer people the pleasure and health that high-quality cocoa products provide, while eliminating the challenges of sustainable production that we face in cocoa production today,” said Hanne Volpin, co-founder and chief technology officer.

AI has helped Olipop, Oakland, Calif., grow its subscription platform by more than 35%. The company makes soda healthier, without necessarily broadcasting it, according to Olipop. While traditional soda has high levels of sugar, each can of Olipop contains 35 to 45 calories, 2 to 5 grams of natural sugars and 9 grams of prebiotic plant fiber.

“Americans have enjoyed soda for over 125 years. It has deep emotional and cultural resonance for consumers, and the category has become intertwined with our daily lives,” said Ben Goodwin, co-founder and CEO. “Our goal has always been to offer a product that can truly occupy the space that traditional soda has filled while also contributing to consumers’ overall well-being.”

Goodwin defended the concept of “ultra processing,” which has become the latest target in the food policing world. The reality is that the future of food depends on ultra processing.

“Ultra processing is necessary to make the fiber ingredient to get it into our beverage,” Goodwin said. “Rather than trying to tell consumers they can’t have soda, we are making it better for them. Olipop is more than ‘not harmful.’ It has a benefit.”

Providing a benefit in the form of sustainable practices also was a recurring theme at Future Food Tech. However, sustainability cannot be the No. 1 selling point, said Jack Bobo, director of the University of Nottingham’s Food Systems Institute in the United Kingdom. First comes taste, nutrition and price.

“Consumers don’t change their eating habits to save their lives. Why would they do so to save the planet?” Bobo said.

One Good Thing, Hertfordshire, England, believes it hits all the marks — taste, nutrition and price — with the extra plus of sustainability. The start-up has produced a range of wrapper-less oat and protein bars in a bid to reduce plastic waste for on-the-go snackers. Each bar is made from raw, cold-pressed ingredients coated with an edible beeswax film, that dries hard enough to hold and protect the contents but is thin and soft enough to chew easily.

The beeswax coating acts as a replacement to a traditional plastic or paper wrapper. Each bar is durable, and the packaging is waterproof. The only packaging is the cardboard boxes that the bars are delivered in, which is made of 70% recycled material and is 100% recyclable.

“The idea for One Good Thing came to me when I was out cycling and saw the sheer volume of snack wrappers. So, I challenged myself to think about how I could resolve the problem for people snacking on the go,” said Mike Bedford, founder. “We like to think of our bars as just like eating an apple. When you’re ready to eat one, you can just give it a quick rinse and pop it in. It’s that simple. Our innovation doesn’t just limit plastic waste. It removes it entirely.”

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Slideshow: New menu items from Taco Bell, Carl’s Jr., and Burger King

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KANSAS CITY — With temperatures warming up for spring, foodservice locations are heating up their menus with spicy new offerings.

Taco Bell is introducing a new line of menu items featuring the flavors of Tajín. Joining Taco Bell’s menu will be: Tajín crunchy tacos, Tajín twists and a Tajín strawberry freeze.

“We are absolutely thrilled to see Taco Bell and Tajín fans come together to enjoy this exceptional limited-time offer, adding to the 1,001+ ways fans can enjoy Tajín, the top-selling chili lime seasoning in the US and Mexico,” said Haydee Fernandez, alliances director at Productos Tajín. “This is an unprecedented collaboration between two iconic brands that have the privilege of having some of the most devoted fans in the world and we eagerly anticipate welcoming many more to savor and experience this one-of-a-kind menu.”

Carl’s Jr. is bringing back its spicy Western bacon burger and is introducing the spicy breakfast burger, both twists on the Western bacon cheeseburger. The spicy breakfast burger features a beef patty, topped with jalapeño coins, crispy bacon, egg, pepperjack cheese, hash rounds and ketchup, on top of a seeded bun.  

“The spicy breakfast burger and the spicy Western bacon cheeseburger mark the first product launches in our Crave campaign, focused on satiating the craveable flavors that our guests desire,” said Anthony Nguyen, vice president of brand marketing at Carl’s Jr. “The campaign brings our big, bold, unique California-inspired flavors and audacious brand personality to life, and we’re excited to see more spins on classics like this going forward.”

Pat O’Toole, chief marketing officer of Burger King North America, added, “Since their initial launch to menus nationwide last year, our Royal Crispy Wraps quickly became the most popular limited time offering to hit Burger King menus in the US within the last four years. Despite being launched as an LTO, wraps are here to stay. And we’re excited to bring a new flavor to guests with fiery Buffalo, which brings a tangy, buttery Buffalo flavor with the perfect amount of spice.”

Click to view new menu items.

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NerdWallet says it did not file for bankruptcy, citing a fraudulent filing

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Rafael Henriques | Lightrocket | Getty Images

NerdWallet said on Saturday that it did not file for bankruptcy, saying a fraudulent filing appeared on an electronic public access service for U.S. federal court documents.

“NerdWallet did not file for bankruptcy. This is a fraudulent filing and we are actively investigating the situation,” the company said in a statement.

The filing that appeared earlier on Saturday was signed by Robert Johnson and listed an address in Buffalo, New York.

The corporate address provided appeared to belong to a residence.

This story is developing. Please check back for updates.

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Krispy Kreme ‘all in’ on making more donuts

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CHARLOTTE, NC. — As Krispy Kreme, Inc. heads into fiscal 2024 one of its points of emphasis will be modernizing “the making and moving of donuts,” said Josh Charlesworth, president and chief executive officer.

Speaking with analysts during a Feb. 13 earnings conference call, Charlesworth said the concept of modernization “goes all the way from the digitization of the process through to the automation of the donut making itself, and then all the way on to upskilling our donut transportation.”

“All in, we’re working to ensure the freshest donuts every time, delivered as efficiently as possible,” he said. “…We have a line running in New York, which is now automatically filling, topping, and even packing the donuts. We’re looking to perfect that and then roll it out as time goes on.”

Charlesworth also said rapid expansion of Krispy Kreme’s delivered fresh daily business has elevated the importance of logistics. To that end, Charlesworth unveiled plans for a Krispy Kreme pilot program covering select routes in Washington, DC, and Los Angeles.

“The purpose of that is to work with a third-party provider to see if we can maintain quality and service whilst being able to access new capabilities that they can bring and over time, improve our operations and indeed bring more efficiency,” he said. “Sob it’s an effort, end to end, to continuously improve donut making and moving.”

The pilot is expected to last four to six months, he said.

Krispy’s Kreme’s plans for 2024 came against a backdrop of mixed financial results. The company sustained a loss of $37.93 million in the year ended Dec. 31, 2023, which compared with a loss of $15.62 million in fiscal 2022. The most recent year included more than $29 million in costs associated with global transformation and US initiatives such as the decision to exit the Branded Sweet Treats business, which compared with $2.8 million in costs associated mainly of equipment disposals, equipment relocation and installation, consulting and advisory fees, and other costs associated with the shift of Branded Sweet Treats manufacturing capability to Winston-Salem, NC, from Burlington, Iowa.

Adjusted net income in fiscal 2023 totaled $46.21 million, equal to 27¢ per share on the common stock, down from $49.61 million, or 30¢ per share, in fiscal 2022. Adjusted EBITDA in fiscal 2023 was $211.62 million, up from $190.73 million.

Net revenues in fiscal 2023 increased 10% to $1.69 billion from $1.53 billion in the same period a year ago.

“We continued to deliver double-digit organic revenue growth, with all markets and channels growing sales,” he said. “We expanded profit margins by leveraging existing production hubs to support our growth, especially in the US, where operating leverage was strongest. Our ongoing strategy is to scale the business efficiently, providing more fresh points of access. There are now more than 14,100 places where you can buy our melt-in-your-mouth fresh donuts in 39 countries. Our focus on operating excellence means that we’re building both a bigger and better Krispy Kreme business.” 

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SoftBank nets $16 billion on Arm earnings, exceeding losses in WeWork

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Billionaire Masayoshi Son, chairman and chief executive officer of SoftBank, which owns Arm, speaks during a news conference in Tokyo, July 28, 2016.

Tomohiro Ohsumi | Bloomberg | Getty Images

Masayoshi Son’s SoftBank made more in Arm’s after-hours trading on Wednesday than the total amount the company lost from its disastrous bet on now-bankrupt WeWork.

Arm shares rocketed as much as 41% late Wednesday after the chip designer reported revenue and earnings that sailed past analysts’ estimates. SoftBank took Arm public in September and still owns about 930 million shares, or roughly 90% of the chip designer’s outstanding stock.

Arm pared its initial gains, but SoftBank’s stake still jumped by almost $16 billion — from close to $71.6 billion to $87.4 billion — after the earnings report. Softbank acquired Arm in 2016 for $32 billion, and its shares were worth just over $47 billion at the time of the IPO last year.

The Arm windfall follows a rough stretch for SoftBank’s investment portfolio.

The company’s most high-profile wager was in WeWork, which spiraled into bankruptcy in November after the office-sharing company spent years burning through billions of dollars in cash from SoftBank at sky-high valuations. The Vision Fund, SoftBank’s venture arm, posted a $6.2 billion loss in the second quarter of 2023, tied to WeWork and other soured bets.

SoftBank told investors in November that its cumulative loss on WeWork exceeded $14 billion. In 2022, after a $32 billion loss in the Vision Fund, Son suggested that SoftBank would shift away from aggressive investments and into “defense” mode, selling down stakes in Alibaba and preparing to take Arm public. A little more than a year later, as hype over artificial intelligence mounted, Son said Softbank would switch back into “offense” mode, pursuing investments in AI.

Son can’t yet cash in on his company’s gains from Arm.

SoftBank is under a lock-up provision which prevents it from selling its Arm shares, with certain exceptions, for 180 days after the stock market debut. Arm went public in September, meaning that the lock-up restriction expires in mid-March.

WATCH: Masa Son flexes Arm

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ADM stock price falls amid SEC investigation

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CHICAGO — ADM’s stock experienced a sharp decline on Jan. 22 after the company announced that its chief financial officer, Vikram Luthar, had been placed under administrative leave amid an investigation into accounting practices in its nutrition segment. 

ADM’s stock opened at $56.88 on Jan. 22, down16.6% from its previous close of $68.19 on Jan. 19. The stock price continued to decline and traded at a 52-week low of $52.46 in mid-morning trading on Jan. 22.

Luthar has been placed on administrative leave following a Securities and Exchange Commission (SEC) “voluntary” request for documents. ADM’s outside counsel and board audit committee are looking at accounting practices in its nutrition segment, including intersegment transactions. Luthar was promoted to CFO in April 2022 and has been with ADM since 2004.

Ismael Roig, an executive who was president of both Europe, Middle East and Africa operations and president of animal nutrition at ADM, has been named interim CFO. He has been with ADM since 2004. Prior to ADM he spent 11 years with General Motors Corp. in various treasury, finance and controller positions.

“The board takes these matters very seriously,” said Terry Crews, lead director, ADM. “Pending the outcome of the investigation, the board determined that it was advisable to place Mr. Luthar on administrative leave. The board will continue to work in close coordination with ADM’s advisers to identify the best path forward and ensure ADM’s processes align with financial governance best practices.”

Roig said he would be working in partnership with the team at ADM to move forward, despite the SEC’s probe.

“I look forward to working closely with the management team and board, including the audit committee, as we resolve this matter and continue to drive value for our stockholders and customers,” he said.

ADM’s nutrition segment accounted for $468 million of the company’s $4.67 billion operating profit through the first nine months of the year. ADM’s outside counsel and board audit committee are looking into accounting practices in its nutrition segment, including intersegment transactions. 

The company also missed profit expectations, reporting adjusted earnings per share of above $6.90 for the fiscal year, which is lower than the $7.27 expected by analysts. ADM’s ag services and oilseeds and carbohydrate solutions units will report results in line with expectations it gave in the third quarter, according to the company.

ADM’s stock has fallen 19% over the last year, while the S&P 500 has gained 22%. The stock’s 52-week high is $87.30, while its 52-week low is $52.46.

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The Israel-Hamas war is affecting traveler confidence and bookings

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The Israel-Hamas war is affecting travel across the Middle East and beyond.

International arrivals to the region grew in the fourth quarter of 2023 — mainly owing to an increase in visitors to Saudi Arabia — to a level that matched 2019 numbers, according to the travel data company ForwardKeys.

But it’s a far cry from the 30% rise in inbound travelers the region was expecting compared to 2019 levels, based on the number of airline tickets purchased before the Oct. 7 attack on Israel, the company said.  

The outlook for 2024 doesn’t look much different.

“The forward-looking situation for arrivals to the Middle East in the first quarter of 2024 as of 6 Oct. — the day before the recent conflict started — was very positive, with tickets issued up by 49% vs pre-pandemic levels,” said Olivier Ponti, the company’s vice president of insights. “Fast-forward to 5 Jan. … with tickets issued now up by just 9% vs. 2019.”

Data showed air tickets to the Middle East purchased after the war fell 6% from 2019, with purchases to the United Arab Emirates down 8%, Morocco 15%, Turkey 17% and Egypt 21%. Tickets to Jordan were affected the most, falling 50% from 2019 levels, according to ForwardKeys.

Canceling plans a continent away

Yet, the war’s effect on travelers extends far beyond the Middle East, according to a survey from Morning Consult.

The data research company surveyed some 2,200 Americans in November, with one in five people saying they have delayed, rescheduled or canceled a travel booking as a direct result of the Israel-Hamas war. 

Respondents said these plans included visits to the Middle East (12%) and North Africa (7%), as well as Western Europe (14%), according to the survey. However, the bulk of the cancelations — 41% — were for trips within the United States, the survey showed.

Cancelations were high for domestic trips because most Americans travel within the 50 states, thus “there are simply more trips on the table to disrupt,” the report stated.

But as to why the war is making Americans feel uneasy about traveling in their own country, the report stated: “This is also emblematic of the larger tensions — for example, concerns related to antisemitism and Islamophobia — stoked by the conflict, and peoples’ resultant apprehension to venture far from home.”

Following Hamas’ attack on Israel on Oct. 7, tensions spilled over to college campuses, workplaces and suburban neighborhoods, with many countries reporting a rise in hate crimes against Muslims and Jewish people.

A worldwide travel advisory, issued by the U.S. State Department less than two weeks following Hamas’ attack on Israel, may have affected traveler confidence as well, the report stated. Some 62% of respondents said they knew about it.

Worldwide Caution

“Due to increased tensions in various locations around the world, the potential for terrorist attacks, demonstrations or violent actions against U.S. citizens and interests, the Department of State advises U.S. citizens overseas to exercise increased caution.” — U.S. Travel Advisory issued on Oct. 19, 2023

In addition to weather and natural disaster alerts, the U.S. State Department Bureau of Consular Affairs’ account on X, formerly Twitter, has pushed out numerous security alerts in the months following the Hamas attack — for Cyprus, Egypt, Jordan, Lebanon, Kuwait and Turkey, among others — as well as demonstration alerts for cities in Turkey, Malaysia, Colombia, Oman, Egypt, South Africa, the United Kingdom, Poland and Denmark, some connected to rising anti-U.S. sentiment over the war.

U.S. domestic travel in the fourth quarter of 2023 fell below 2019 levels, according to ForwardKeys. The downturn happened after the outbreak of the war, the company said.

The day before the attack, the travel outlook for U.S. domestic travel in the fourth quarter of 2023 was positive (+4%), but it ended down (-5%), “highlighting the impact of the ongoing conflict in Israel,” said Ponti.

More feel unsafe

Numerous reports indicate Muslims and Jewish people worldwide no longer feel safe.

Morning Consult’s survey indicated those who know about the war may be feeling less safe as well.

Some 52% of respondents with knowledge of the war said they viewed traveling to the Middle East as “very unsafe,” compared to 29% of those who had not heard about it.  

Those who had heard about the war also indicated that they felt less safe traveling to North Africa and Eastern Europe too, the survey showed.

Zicasso’s 2024 Luxury Travel Report named geopolitical conflict as one of the three most significant obstacles to booking travel this year.

In a survey of 200 global travel specialists, 18% said uncertainty and safety issues in certain regions may discourage travelers from booking.

“After the October events in the Middle East, we did see a significant fall-off in trip requests to Israel and the surrounding region,” said Zicasso’s CEO Brian Tan. “Typically, when travelers have second thoughts about overseas travel to a certain region due to obstacles such as geopolitical conflict, we find that travelers will redirect to other international destinations.”

He said the war in Ukraine hasn’t materially affected business since Zicasso doesn’t receive many requests for bookings there, but that his company is carefully watching the situation in Ecuador, where gang violence erupted last week.  

Tan noted that his company has seen a recent rise in trip requests for Morocco, which he noted is thousands of miles from Jerusalem.

Yet, according to Morning Consult, the Israel-Hamas war could reduce travel interest to the region “for months and even years to come.”

   

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Slideshow: New products from AMC Theatres, Williams Sonoma, and Dunkin’

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KANSAS CITY — Companies are adding products to their portfolios before ringing in the new year.

AMC Theatres is expanding its retail presence with the introduction of its AMC-branded line of chocolate candies under the brand AMC Cinema Sweets. The new line of candies features four varieties: milk chocolate covered pretzels with a dark chocolate drizzle, milk chocolate covered almonds, milk chocolate covered raisins, and milk chocolate covered peanuts.

Over the past year, AMC has expanded its portfolio with several introductions, including AMC popcorn at Walmart locations and Hidden Valley ranch-flavored popcorn at movie theaters across the United States.

“We spent the last year in research and development ensuring that AMC Cinema Sweets, carrying the AMC name, are candies we are proud of, and just as important — really delicious snacks that our guests will enjoy and seek out when they come to the movies,” said Hank Green, vice president, food and beverage, AMC. “The launch of AMC Cinema Sweets — these four premium gourmet candies, with more on the way — are another way that AMC consistently makes movies better — and makes the movie-going experience even sweeter.”

On the foodservice side, Dunkin’ is adding its newest seasonal menu, which features the return of the pink velvet macchiato and the pancake wake-up wrap. The layered pink velvet macchiato features espresso and the flavors of red velvet cake and notes of cream cheese frosting. The new menu also includes a frosty red velvet donut and the pancake wake-up wrap, which is a pancake wrapped around bacon or sausage, egg and melted cheese. Making its debut as part of Dunkin’s seasonal menu is the new white hazelnut bark coffee, a drink that features the flavors of toasted hazelnut paired with white chocolate.

Williams Sonoma, a portfolio brand of Williams-Sonoma, Inc., is partnering with Netflix and Shondaland to launch a line of products inspired by the popular “Bridgerton” series. The Bridgerton collection includes over 20 products, including baking mixes; cakes, cookies, pastries, and petite fours; artisanal chocolates, candies, gelato, honey, and curds; and beverage mixes, available in several flavors.

“We are proud to partner with Netflix and Shondaland to develop products inspired by the sets, fashion and storylines that have made ‘Bridgerton’ a global phenomenon, and one of the most watched shows on Netflix,” said Felix Carbullido, president at Williams Sonoma. “Fans of ‘Bridgerton’ will appreciate the design details that are apparent throughout the collection.”

Williams Sonoma is not the only company looking to expand to “Bridgerton” fans. Danone North America’s International Delight brand released three limited-time offerings, including coffee and coffee creamer.

Click to view new products on shelves and menus.

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Tech corporate bonds are one of Bank of America’s top trades for 2024

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