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October 31, 2019
CNN 10 - October 31, 2019
Update on California`s Wildfires;
Significant Rule Change From the NCAA;
Business Side of Selling Candy
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CARL AZUZ, CNN 10 ANCHOR:
Hi, I`m Carl Azuz for CNN 10. Some of you on Twitter asked if I`d be dressed up for Halloween. No, but if it`s ever appropriate for someone in a Salvador Dali costume to bring you the news, I`d be happy to paint that picture. Let`s get to what`s happening.
Update on California`s Wildfires
First story out of California, hurricane force is a term to describe wind speeds that blow at or faster than 74 miles per hour and some of the winds buffeting wildfires near Los Angeles are at hurricane force. These are the Santa Ana winds. Hot, dry, dusty gusts that blow from the desert across southern California out towards the Pacific coast.
They can be at their worst in October and they make it very difficult if not impossible for firefighters to contain or wall in a wildfire. What`s known as the Getty Fire was threatening more than 7,000 homes around L.A. last night and it was just one of at least 10 wildfires burning across California. Tens of thousands of acres, each one roughly the size of a football field, have been scorched across the state. Dozens of homes have been lost. Power`s been cut off to hundreds of thousands of homes and businesses because California`s largest utility company doesn`t want its equipment sparking new fires in the windy conditions. Schools, houses, businesses even museums have been evacuated.
(BEGIN VIDEO CLIP)
Well you can see this now called the Easy Fire because it started near Easy Street, ironically but these gusts are so powerful.
These 40, 50, 60 mile - - mile an hour Santa Ana winds come howling through these canyons. It`s pushing it so fast and no place seems to be safe. Of course the precious artwork inside the Getty Museum, the point of concern, that place if fortified and safe. We think of (ph) the same is the case here. Just give you some perspective, this is the Reagan Library. Right in there is Air Force One. This has been the site of Presidential debates on CNN in the past in addition to the smoke in the air, the air pollution, the stress of evacuating yet another evacuation zone.
You have people dealing with those rolling black outs as PG&E, Pacific Gas and Electric, catches so much wrath from the public. They`re shutting down huge swaths of - - of their service area to try to prevent more fires from sparking out there in the wild lands. They need to fortify something like 7,000 miles of vulnerable power lines in the state. This year they managed 100 miles. Whoa. And there goes a (inaudible) bomber right on queue.
We`ve seen helicopters coming through. The super-soakers dropping retardant trying to contain this but whoa it`s raining down now. In the history of Cal-Fire, they have never been able to contain, fully stop, a fire that`s being fed by Santa Ana winds. All they can do is wait for the weather to change and try to fortify human life (audio gap) Reagan Library. That is a stunning thing and you stand in it and you see it swirl as you mentioned. It`s - - it`s no wonder you can`t stop a fire like this.
(END VIDEO CLIP)
10 Second Trivia
10 Second Trivia. Which sport sees the highest percentage of U.S. college athletes drafted to a major professional league? Baseball, basketball, football or ice hockey. Last year almost 10 percent of eligible college baseball players were drafted into Major League Baseball though many won`t actually play there.
Significant Rule Change From the NCAA
Well then the NCAA had been adamant for years that they were against college athletes being able to make money but due to the building public pressure, they`re finally changing their stance. The NCAA Board of Governors voted unanimously on Tuesday to begin the process to change the rules to allow college athletes to profit off their name, image and likeness and this will be much more than just a college quarterback being able to sell jerseys or sign autographs.
When this goes into effect in 2021, which is what they`re shooting for, volleyball players, soccer players, they`d be able to hold camps for kids in order to make money and they can advertise it. Hey, I`m a star athlete at my university. That`s something that they can`t do right now. Now there is no framework in place yet and that`s going to be the tough part for the NCAA. They say they want the new rules to still be in line with the collegiate model. What that means exactly? We don`t know yet and NCAA Mark Emmert says making these new rules is going to be challenging.
Collegiate sport, unlike any other sport has a recruitment process. You don`t - - you get to choose your school. You don`t get drafted. You don`t - - it`s not like the Olympics where you`re - - you`re an American so you - - you play for the American team and that - - that recruitment process is really part of the core of what constitutes anything like a fair level playing field. And - - and structuring a model for allowing students to monetize a name, image and likeness as well, maintaining some recruiting balance is - - is one of the biggest and hardest issues that everyone`s dealing with.
And this all comes after California signed the Fair Pay to Play Act into law, that will allow college athletes in the state of California to profit off their name, image and likeness beginning in the year 2023. Other states have similar legislation in place right now. How the NCAA makes those rules stricter and is able to enforce it? Well that`s still yet to be determined.
(END VIDEO CLIP)
Business Side of Selling Candy
The National Retail Federation, the world`s largest retail trade association, says Americans who participate in Halloween events plan to spend $8.8 billion this year. It works out to just over $86 per participant going for everything from candy to decorations to costumes to pumpkins to outfits for their pets. According to the NRF survey, this years spending will be short of last years record of $9 billion but for the candy industry Halloween is like an annual Super Bowl.
(BEGIN VIDEO CLIP)
Halloween is very important to Mars-Wrigley. It is our number one season and it`s a $8.8 billion season for our retailers. We start to prepare for Halloween two years out. One of the things that have really changed is adults are participating at a much higher level. Over the last two years, we`ve seen a 45 percent increase in adult participation. There`s also a couple other trends. It`s really become an eight week season and we`re seeing it happen in three stages. As Fall rolls in people are thinking about baking so there`s a baking element.
Then it transitions into a celebration time where you have those neighborhood parties. And last but not least, it is trick-or-treat where the majority of our sales come from.
I would say one of the biggest trends we`ve seen over the last five years is consumers willingness to spend more. Where the traditional bag was maybe a - - a medium size bag. You`re seeing consumers buying 60 ounce, 80 ounce, 100 ounce bags of product because it gives variety. Consumers love variety. Consumers come in looking for America`s favorites and that`s everyday items like Twix and Milky Way, Starbursts and Skittles but it`s critical to bring new innovation along the way. R & B (ph) Group and our food scientists work very closely to identify trends. Really the best example of doing that would be Zombie Skittles.
The main inspiration for Zombies was to bring excitement and fun back into Halloween. Our customers are really enjoying it and they`re daring each other to see if they can get the gross zombie flavor and if they can keep it in their mouth.
When you get to the final stages of Halloween, the most important elements is how your products show up in store. Confectionary is very much an impulse category but seasons are planned. So it`s critically important to make sure the product available. We talk to our retailers about where you put the top selling items, where you put the displays. Location really, really matters. The best real estate is in the fun end of the store. This is the prime real estate of the store. When you look at the display, you have our beacon yellow that attracts consumers to the destination. We use our iconic M&M characters. We have a theme, best house on the block and we have multiple price points. You want to disrupt the consumer as they walk in with an empty cart and the opportunity to drive conversion.
(END VIDEO CLIP)
10 Out of 10
Apparently even galaxies far, far away aren`t immune to Halloween hoopla. Is it an alien, C3PO, The Iron Giant, no silly. Scientists say it`s two galaxies of equal proportion involved in a head on collision 704 million light years away from Earth, of course. The eerie image was captured by the Hubble Space Telescope in June and get a good look while you can because scientists say this will only be visible for 100 billion more years.
It`s a sight to "galaxsee". A distant fright that space can`t flee. It`s eyes leave you "incredulous" even if its cause seems "nebulous". It`s more "star fright" than "fighter", a "stellar collider". Run and "hideher". Good thing there are light years between the "space face" and us this Halloween. I`m Carl Azuz for CNN 10.
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