Quote of the Day: Jack McAuliffe, Who Brewed a Craft Beer Revolution, Dies at 80
SAM CALAGIONE, founder of Dogfish Head beer, on the wide influence of the New Albion Brewing Company, whose founder died this month at 80.
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Forbes
a minute ago
- Forbes
AI Boom Fuels San Francisco Party Scene As People Seek Connection
Secret salons, oyster happy hours, coffee raves--San Francisco is back and basking in idyllic weather as rent increases jump to the highest in the nation. Streets are teeming with people racing to events, despite tech season being weeks away, when conferences like Dreamforce, Disrupt, TedAI and SF Tech Week take over the city. Much of the frenzy is being attributed to the AI gold rush with people returning to town to get a piece of the action, so over the past week I popped into several happenings to hear what everyone is talking about. Finding your tribe At AGI House, a sprawling Hillsborough mansion just outside of San Francisco, known for hosting tech celebrities like Google cofounder Sergey Brin and Grimes, dozens gathered for a garden gala featuring talks with industry luminaries OpenAI's chief strategy officer Jason Kwon and former OpenAI interim CEO Emmett Shear. It was as insider as it gets with a pulsing DJ set by Twitch cofounder Justin Kan, meticulously curated by AGI House founder Rocky Yu and Icons podcaster Melanie Uno. In the mix was Poshmark cofounder Manish Chandra who shared with me his views on the AI transformation. I asked, what will people do with their lives as AI frees up time, and more importantly how will they pay for it. He replied, 'I feel like we're moving to more and more abundance, even though the path to abundance always feels a little uncertain and dark." "When the dot com boom was crashing, it was impossible to find a job. Highway 101 was emptier than Covid. There were see-through buildings, literally no jobs, and people were throwing in the towel.' Trying times, he recalled. "I remember it from a personal perspective, because I had young kids and had to figure out how to survive.' He expressed how hard times bring out things that can transform you, whether you discover superpowers or connect with new people. 'Human connections deepen when times are tough,' he said. 'When times are good, people just kind of ignore each other.' He also said there have been far crazier boom and bust cycles that have come before, with companies giving away BMWs and other outrageous perks to attract engineers. 'In the nineties, technology was changing so fast, it felt like everything you were doing was going to become obsolete, literally every day," he said. 'Every 10 years, we predict the demise of Silicon Valley, and we feel like whatever the technology is coming is dooming humanity, and is more severe than last time. Yet here we all are thriving, sitting here this lovely evening.' Emmett Shear, now cofounder of Andreessen-backed AI alignment lab, Softmax, sat down with me to discuss how people can best keep their head straight during these times. He explained that in the seventies there was a seminal work authored by Alvin Toffler, called Future Shock, that explored the psychological disorientation that can occur as a result of rapid technological change. 'This feeling of overwhelm, that if things keep changing, I can't learn fast enough to keep up with the system," he said. "But the way you keep up is actually by giving up on trying to understand everything at that level of detail.' He then shared his barbell strategy for surviving the next five years. 'In a high variance environment where things can change a lot in unexpected ways, you should just YOLO big things that might work, because even if you fail, your tried-and-true plan could also fail. So there's no point playing it safe, might as well be ambitious,' he advised. 'On the other hand, as things get riskier, you'll need to build up safety and reliability support to counterbalance.' He said hunter-gatherers lived in the same situation we're wandering into, a world of forces more powerful than themselves and beyond their control. Not only was it spiritually, emotionally and intellectually beneficial to be in a tight community, but also economically sound. When you store meat from the hunt in the bellies of friends, they'll be around to help when you find yourself in a tough spot. Futureproofing AI bets Back in San Francisco, at a Michelin starred restaurant where the meal was served community style making dining optional, AI unicorn Honeybook gathered the press to discuss how AI is birthing a new breed of one person startups and solopreneurs. It was here I had a chance to talk with Jeff Crowe, managing partner of Norwest Venture Partners, who told me the story of a 20-year old founder that landed seed funding to create text-to-sheets, text-to-deck apps right before ChatGPT made it a feature. This led to the question, how can VCs futureproof bets to prevent obsolescense in the age of AI. He said the first thing to look at is product. If it's a thin wrapper around a core, it's hard to futureproof as the LLMs eat their way further into the application layer. 'It's how venture capital looked at personal software in the nineties and said what's the differentiation if Microsoft moves into the space. Thirty-plus years later, it's a similar phenomenon in AI products, where OpenAI, Anthropic and others keep adding functionality." As far as defensible moats, he looks for product capabilities not easily disruptable like those with domain-specific data, integration with large enterprise systems, and bespoke distribution tied to supply chain. If it's a product that's been around longer, he looks for how fast it's pivoting to AI, driving into core functionality as well as operations including development, customer support, sales, marketing, HR and finance. Because if operations aren't futureproofed, competitors can gain a superior cost structure and become more capital efficient and profitable. He looks to see whether customers are adapting because some are going to get accelerated, and others obliterated, with risks that have nothing to do with the core business. Lastly, he looks for a culture that's nimble and can move exceptionally quickly. A fan of young talent, Crowe believes hiring AI-natives is the best way to transform an organization, because their rate of change is less than a worker whose baseline is pre-AI. Embracing AI workers Across town, Initialized Capital was hosting its own press dinner, introducing their portfolio of agentic startups deploying digital workers. Runway cofounder Siqi Chen told me from the moment he launched his startup in 2020, he knew they'd never have more than 100 people, because they had early access to GPT-3 and knew they could scale faster with AI, than headcount. In contrast to Crowe's hiring strategy, Chen said, Runway is hiring only senior talent. 'The profile of how we hire is quite different today than it was even three or four years ago. It's staff or principal level only at this point, because junior stuff can basically be done by LLMs today." 'We're seeing non-technical people contribute on a technical level like never before-- tagging a robot to write the code for a bug--that's just magic," he said. Runway uses bots for everything, from qualifying leads to reviewing documents. One of Initialized other portco commented that they deployed AI in Slack for IT support under the name of Paul, not AI Paul. A bit head-spinning to think you can be chatting with an AI colleague and not know it, even if they are funny. Initialized Capital's managing partner Brett Gibson said it's the natural progression of where we're heading. I asked him whether this was the end of the app economy. He replied, 'Software is going to trend towards being generatable. There are going to be a lot of apps you still want a relationship with for a variety of reasons, because they have other people on them and you're collaborating, or perhaps the AI itself has a personality you want to interact with. It's not going away, it's just going to have to adapt.' And what about humans, I asked, what's next for humans? 'The one thing that makes me very hopeful is that if there's anything AI is very good at, it's personalized education. And so hopefully, that will be the path for those feeling left out. People should follow whatever they're interested in and curious about because a high agency person using high leverage tools are going to do something cool and that's valuable," he said. AI gets the last word Back at AGI House, hanging out with hashtag inventor Chris Messina, I asked what advice he would give Gen Alpha on where to focus their energies, considering how pandemic losers have become AI winners, with ballet dancers, hair stylists and bartenders the few trades AI can't replace. 'VCs are over, SAS is over, everything that's been going on for the last 10 or 15 years kind of doesn't really make sense anymore,' he replied. 'If you really want to invest in the future, it's about having a perspective, being able to bring people into that and creating movements.' Echoing what Chen said: "There's only one Mr. Beast--and so if you develop relationship as a brand, that becomes sustainable value because AI cannot replace brand. Or can it? ChatGPT, may have no defensible moat as an AI assistant, but as a cultural icon with an estimated 1 billion followers, it remains pretty much untouchable. Just like the city from which it came.
CNN
a minute ago
- CNN
Warren Buffett's Berkshire Hathaway reports operating earnings drop 4% in Q2
Warren Buffett's Berkshire Hathaway on Saturday reported operating earnings for the second quarter fell 3.77% from the same time last year. It's the company's first earnings report since Buffett, 94, announced his plans to step down as chief executive at the end of the year and named Greg Abel, the vice chairman of non-insurance operations of Berkshire, as his successor. Berkshire reported $20.8 billion in operating earnings for the first six months of the year, an 8.8% decrease from the same time last year. Earnings for the second quarter totaled $11.16 billion. Net income in the second quarter fell to roughly $12.37 billion, down 59% from the second quarter last year. The company's insurance underwriting businesses, meanwhile, earned $2.53 billion total before income taxes, led by car insurer Geico, which is one of the largest insurance companies in the United States. Between May and July, the company's cash pile decreased to $344 billion for the first three months of the year. Berkshire was sitting on roughly $347 billion at the company's annual meeting on May 3. The company revealed Saturday that it took a $3.8 billion hit on its stake in packaged food giant Kraft Heinz Co. In 2019, Buffett told CNBC's Becky Quick that he 'was wrong in a couple ways' on the Kraft Heinz deal. The company again warned that President Donald Trump's tariff policies are contributing to an uncertain outlook. Trump's trade war escalated Friday with the new tariff rates announced on various US trading partners to take effect on August 7. 'We are currently unable to reliably predict the nature, timing or magnitude of the potential economic consequences of any such changes,' Berkshire wrote in its earnings regarding macroeconomic conditions and geopolitical events. Year-to-date revenue declined at clothing and toy brands Fruit of the Loom (11.7%), Garan (10.1%) and Jazwares (38.5%), in part due to 'uncertainties arising from international trade policies and tariffs, which produced delays in orders and shipments,' according to Berkshire's earnings. Berkshire's energy and railroad companies reported earnings increases from the same quarter a year ago, with BNSF Railway's earnings before taxes up 11.5% and BHE net income climbing 18%. Shares of Berkshire (BRK.B) closed at $472.84 on Friday. The stock is up 4.82% since the start of 2025. This is a developing story and will be updated.
Miami Herald
13 minutes ago
- Miami Herald
Craft beer is dying, but this brewer is bucking the trend
Craft beer is in decline. For the first time in nearly two decades in the U.S., more breweries closed in 2024 than opened, according to the Brewers Association. But one brand, Dogfish Head Brewery, is celebrating its 30th anniversary and bucking the trend, expanding its business and staying relevant while others close their doors. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter Part of the decline is a hangover from the pandemic shutdowns, which hit restaurants and breweries hard. Even as pandemic restrictions lifted, breweries found themselves in an altered landscape. Many didn't survive. The ones that did faced a new set of challenges. At the top of the list: rising rents and labor costs, supply chain disruptions, and inflation on ingredients and packaging. Then came tariffs, affecting brewing equipment, steel kegs, and aluminum cans. These headwinds made the financial pressures facing many brewers impossible to overcome. Image Source: Bloomberg/Getty Images The entire alcoholic beverage industry has been facing an existential problem: changing consumer behavior. Americans are drinking less beer, particularly younger consumers, who are opting instead for hard seltzers, canned cocktails, nonalcoholic drinks - or skipping alcohol altogether. Recreational cannabis is now legal in 24 states, which is also taking a bite (sip?) out of the market. Then there is the growing use of Wegovy, Zepbound, and Mounjaro, drugs that curb appetite and often reduce alcohol cravings. Related: Beloved brewery faces Chapter 11 bankruptcy, asks for help Amid this perfect storm, Dogfish Head Brewery stands out as an exception - and a blueprint for resilience. The Delaware-based craft brewer is marking its 30th anniversary in 2025 with continued growth and a broader business model that's helping it weather the industry downturn. "Weed, wellness, and weight-loss drugs are all impacting the way people drink," Dogfish Head Brewery founder Sam Calagione told TheStreet in an exclusive interview. "Instead of fighting that, we've expanded the portfolio to meet people where they are." When Dogfish Head founders Mariah and Sam Calagione started making beer for their Delaware restaurant in 1995, they had no idea they were at the forefront of a new industry; twenty years in, Dogfish Head Brewery's sales were reportedly between $110 and $120 million. Then, in 2019, Dogfish Head announced it was merging with The Boston Beer Company, bringing the country's second-largest craft brewer (Boston Beer, maker of Samuel Adams) together with the 13th largest, Dogfish Head. The merger was massive, but it preserved the independent craft brewery status of both brands, as defined by the Brewers Association. Related: Another popular beer and brewery brand files Chapter 11 bankruptcy The Boston Brewing Company acquisition was worth around $300 million in cash and stock to the Calagiones. Following the merger, Calagione joined Boston Beer's board of directors, and he and his wife Mariah are the company's largest individual shareholders outside of Jim Koch, founder and chairman of The Boston Beer Company. Today, Dogfish Head's portion of the Boston Beer Company's sales is around $275 million (out of a total $2.01 billion), according to RocketReach. So what's Dogfish Head's secret? There's more than one. First, Dogfish Head has been making ready-to-drink canned beverages almost since day one. The company distills its own Dogfish Head spirits, including vodka ("Awe-Spray"), gin ("Compelling"), and rum ("Barrel Honey") for use in its Vodka Lemonade, Vodka Mule, and Rum Mai Ta, among other drinks. Dogfish Head's business model, which Calagione calls "beyond beer," isn't limited to just beverages. The company operates a boutique hotel in Lewes, Delaware, as well as brewery and distillery tours that he says draw hundreds of thousands of visitors annually. Retail closings: Popular retail chain to close unprofitable store locationsBankrupt retail chain unloads store leases, key assetPopular discount retailer files bankruptcy, closes all stores This hospitality component adds a revenue stream independent of distribution or retail, and gives the brand a valuable experiential marketing engine. Visitors become loyal customers, and the tours reinforce Dogfish Head's position as a craft pioneer. That kind of vertical integration - product, experience, and lifestyle brand - is a key differentiator in an otherwise saturated industry. Dogfish Head has always been known for its off-centered ales, using unexpected ingredients – from black limes and saffron to Mace and even human saliva – to create bold flavors. One of its earliest successes was Midas Touch, a beer brewed with honey, white Muscat grapes, and saffron, inspired by an ancient recipe found in a 2,700-year-old drinking vessel from King Midas' tomb. The company's bestselling beer today is its 60 Minute IPA, which Calagione says gives him inspiration even as he rethinks his own drinking. "I spend 60 minutes every day on a paddle board or my mountain bike out in the bounty of Mother Nature," he says. "I do that to earn my beer calories for the evening." When Dogfish Head Brewery was founded, Calagione says there were 600 craft brewers in the U.S. Today, there are around 10,000, so there is a lot of competition to fend off, but Dogfish Head is a model showing how craft breweries can evolve into multi-channel businesses that go beyond beer. "Short term we're facing some challenging trends, but we need to remember beer's been around and part of human community building for 10,000 years," he said. "There are a lot of closings and bankruptcies and sad stories," Calagione said. "So we're really excited to tell the story of how we're bucking those trends." Related: Popular Off the Las Vegas Strip casino bar closing The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
