AI’s “Vibe” Is Shifting – and Making This Company a Winner
Hello, Reader.
In 1966, iconic Californian rock band The Beach Boys released “Good Vibrations” – and the song’s title turned into a popular phrase that’s been transformed in the decades since.
The ’70s hippie movement shortened it to “good vibes.” And today, Millennials and Gen Z-ers have made “vibe” their universal descriptor for the energy sensed in a given situation, person, or trend.
But vibes aren’t always good. And right now, AI is going through a so-called “vibe shift.”
For years, the AI boom burned hot with releases of large language models (LLMs), virtual assistants, robotic devices, and other AI technologies that continue to transform our daily lives.
But every trend has its ebbs and flows, and the AI vibe could be showing signs of cooling.
In the past week alone, Meta Platform Inc.’s (META) AI division, Superintelligence Labs, has halted hiring after its costly hiring spree this summer. Researchers at the MIT report that 95% of gen-AI programs fail to make revenue. And OpenAI CEO Sam Altman said he thinks we’re in an “AI bubble.”
It is still important to note that AI isn’t going anywhere. Even if the mania of the last few years somewhat slows, tech companies will continue to make, train, and deploy the technology.
Of course, here at Smart Money I’ve discussed the importance of investing through the lens of AI.
So today, I want to share how that lens includes a safeguard against any potential AI “vibe shift”… and includes a company that is curating its own popular “vibe” amongst young consumers.
Let’s dive in…
Finding the Right “Vibe”
Many of you may be familiar with what I call AI Survivor companies, or “future-proof” enterprises that produce goods and services that AI cannot replicate or replace.
These businesses operate in major industries like agriculture, energy in its various forms, mining, hospitality and travel, and international markets.
As such, these companies are primed to withstand the AI lifecycle, and any shift that might occur.
Some of these companies also possess a future-proof quality because they provide “affordable luxuries” like farm-to-table foodstuffs, artisanal home goods, premium coffees, or high-end spirits.
This last category is particularly interesting.
You see, the more that AI dehumanizes our daily lives, the more we humans will crave innately human experiences… like sipping (and photographing) a heart-warming cocktail.
These are the “good vibes” that Millennials and Gen Z-ers curate, and crave, from their social gatherings. And certain high-end spirit companies are leading the charge.
In fact, I’ve got my eye on one Italian-based spirit company that recently acquired a popular apéritif, one of the key ingredients in what’s become the most popular cocktail in the United States
The company’s financial results reflect this apéritif’s growing brand strength. Retail sales in the Americas grew 10% in the second quarter, despite a broad slowdown in the overall spirits market. It produced even stronger results in the UK and France, where retail sales jumped 13% and 17%, respectively.
Despite these impressive trends, the high-end spirit company is leaving nothing to chance. It is “leaning in” on marketing efforts across both traditional and non-traditional channels, like targeting its younger, trend-sensitive consumers by sponsoring dozens of music festivals across and Europe and in the U.S.
This omnichannel engagement strategy is especially effective for attractingMillennial and Gen Z drinkers, who value personalization, transparency, and aesthetic appeal.
What’s more, the company’s portfolio supports a premiumization strategy that aligns with the “drink less, but better” trend that is shaping consumer behavior. Young consumers in particular are moving away from “drinking a lot” to “drinking well” – a trend it is leading.
In effect, this company isn’t just selling spirits; it’s curating cultural participation.
And it has almost nothing to do with AI. It is a pure AI Survivor.
But this seeming deficiency is actually a strength right now.
I recently recommended this “good vibes” spirit company to members of my elite-trading service, The Speculator.
You can learn how to access all of the details of this company – and how to join me at The Speculator – by clicking here.
Regards,
Eric Fry
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