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2012年5月4日 星期五

When Cupcakes Are the Enemy of Schoolkids

Public school students in Maryland’s Montgomery County know they’d better not even think of holding a bake sale to raise money for the football team or math club. Selling sweets is outlawed during the school day, and officials make the rounds to ensure no illicit cupcakes are changing hands. “If a bake sale is going on, it’s reported to administration and it’s taken care of,” says Marla Caplon of the county’s food and nutrition services. “You can’t sell Girl Scout cookies, candy, cakes, any of that stuff.”

Snack puppet by Jennifer Lew

Montgomery is one of a growing number of school districts around the country that have in recent years declared the humble, beloved bake sale a threat to children. Schools in California, Colorado, Hawaii, Mississippi, Nevada, New Mexico, New York, and Texas have regulations aimed at limiting bake sales to nutritious food. Massachusetts will soon join them. Beginning in August, it will prohibit fundraisers that sell non-nutritious foods in school, and take it one step further: Kids will no longer be allowed to hand out sugary cookies—or other treats deemed unhealthy—to classmates on their birthdays.

With so many overweight kids, it’s easy to see why schools want to discourage high-calorie snacks. Only, they sometimes have a funny idea of what “nutritious” means. New York City public schools prohibit students from selling unapproved home-baked goods, but allow some packaged, store-bought sweets that meet the schools’ restrictions on calories, sugar, salt, and fat. Under the rules, grandma’s fresh-from-the oven banana bread can be declared contraband, while some Kellogg (K) Pop Tarts are deemed wholesome. “You know what’s allowed? Junk food,” says Elizabeth Puccini, a filmmaker in Manhattan whose son is in first grade. “It’s a ridiculous regulation and should be overturned.”

To end the confusion, the federal government is expected to weigh in this year with its own national school nutrition standards for food sold outside cafeterias. Yet that’s only led to more questions. The Agriculture Department says the new rules will allow, infrequent bake sales during school hours but hasn’t said what infrequent means.

Meanwhile, enterprising kids are finding ways to get around the bans, at least until they get caught. At Fairview High School in Boulder, Colo., students started holding napkin sales. “It just so happened that a cookie was in the napkin,” says Jenny McCarthy, assistant to the principal. And that was the end of that.

Snack puppet by Jennifer Lew

Norm Fay of Attleboro, Mass., worries that the state’s coming nutrition rules will put an end not just to bake sales but the varsity booster club’s tradition of selling hot dogs and hot chocolate on game nights. The concession sales raise about $24,000 a year, money that’s used for team jackets and student scholarships. Who’s going to line up to buy apples and granola, he says, “when you can go right down the street and get Dunkin’ Donuts (DNKN)?”

The bottom line: New school nutrition rules in Massachusetts will restrict bake sales—and handing out cookies to classmates on birthdays.


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2012年5月1日 星期二

Enemy of My Enemy: Microsoft Hearts Barnes & Noble

On Friday, Barnes & Noble (BKS) was a dying big-box retailer in the point-blank crosshairs of multi-industry serial killer Amazon (AMZN). A bookseller. With expensive square footage. And bathrooms. Why not just deliver milk to doorsteps?

On Monday, Barnes & Noble became the latest example of a lode that was mined for hugely valuable assets no one knew it had. Shares of B&N rose the most ever—up more than 80 percent, at one point—on the blockbuster news that Microsoft (MSFT) will invest $300 million in a new subsidiary that combines the bookseller’s Nook digital reader and college businesses. Microsoft’s investment entails what the companies described as “a post-money valuation of $1.7 billion in exchange for an approximately 17.6 percent equity stake.” Barnes & Noble will own the remaining 82.4 percent of the new project. The zinger: All of Barnes & Noble is now worth $1.3 billion, less than the entire joint-venture with Microsoft. On Friday, B&N was worth $800 million.

Arbitrage craziness aside, why should anyone be at all shocked that this is happening? Last week, we got news that Amazon’s Kindle tablet somehow sports a 54.4 percent share of the tablets that run Google’s (GOOG) Android software—nearly twice where it stood in December, according to ComScore. That beats Samsung’s (SSNLF) Galaxy Tab, Motorola’s Xoom, and scores of other gadgets that have rarely been spotted in the hands of a sentient human being.

In B&N’s latest quarter, revenue from its Nook unit rose 38 percent, to $542 million; it has about 30 percent of the U.S. e-book market, vs. Amazon’s 60 percent. Give credit to Brett Arends for being one of the first to realize you could jury-rig a Nook to get a cheap tablet experience. Microsoft is nowhere to be found in the tablet biz, which is pretty much all Apple (AAPL) iPad all the time.

Today’s news reflects tech’s prevailing World War I-style balance of power, where an enemy of your enemy is suddenly your best friend, especially if you’re a hulking software maker that can easily afford to part ways with $300 million to assuage your insecurities over age and irrelevance. As the press release puts it, a Nook app for Windows 8 “will extend the reach of Barnes & Noble’s digital bookstore by providing one of the world’s largest digital catalogues of e-books, magazines, and newspapers to hundreds of millions of Windows customers in the U.S. and internationally.” All the more reason for B&N and Microsoft to settle their patent litigation—the intellectual property equivalent of a flea fighting a mastodon.

Barnes & Noble put itself up for sale in 2010 following pressure from investor Ron Burkle. John Malone’s Liberty Media invested $204 million in the company in August.

There’s some really lucky timing in this story. Activist hedge fund Jana Partners disclosed a 12 percent stake in Barnes & Noble earlier this month. Value investor Whitney Tilson u-turned from being short B&N to buying it. On Friday.


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