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aab80edd12ef5fa088c53d0c424bafb0 | https://www.forbes.com/sites/chrisbarth/2011/09/26/new-study-old-news-stock-traders-are-psychopaths/ | New Study, Old News: Stock Traders Are Psychopaths | New Study, Old News: Stock Traders Are Psychopaths
The hubbub is just starting to pick up after NZZ Online’s report yesterday on a University of St. Gallen study that shows stock market traders display similarities to certified psychopaths. The study, authored by MBA students Pascal Scherrer and Thomas Noll, compares decisions made by 27 equity, derivative and forex traders in a computer simulation against an existing study of 24 psychopaths in high-security hospitals in Germany. Not only do the traders match their counterparts, but, as Der Speigel succinctly puts it, the “stockbrokers' behavior is more reckless and manipulative than that of psychopaths.”
The traders, according to Noll, were fixated on gaining more than their competitors in the computer simulation – to the extent that they “spent a lot of energy trying to damage their opponents." He compared the behavior to bashing a neighbor’s fancy car with a baseball bat in order to make your own car the nicest in the neighborhood.
This is fascinating stuff, but it’s not entirely new. In 2004, New Scientist compared ladder-climbing corporate employees to psychopaths for their shared characteristics of lacking empathy and compassion while thriving under stress. In 2005, Antoine Bechara, an associate professor of neurology at the University of Iowa, told the Wall Street Journal, “"It's possible that people who are high-risk takers or good investors may have what you call a functional psychopathy.” In 1996, Jason Bennetto, a crime correspondent for The Independent, noted that “stockbrokers share many of the same characteristics as criminal psychopaths.” That same year, a Scottish University found that “with the right parenting [psychopaths] can become successful stockbrokers instead of serial killers.“ And let’s not forget American Psycho, written in 1991, which makes the connection even more directly. The list goes on.
We’ve always known that traders – who thrive in a high stress, high adrenaline environment – are a little bit crazy; Noll and Scherrer’s findings just go further to illustrate that fact. In May, The Atlantic wrote an insightful piece that compared being a trader to being “given the keys to [a] F-35 Lightning II tactical strike fighter.” It’s a position that requires nerves of steel and quick-fire instincts, along with a borderline obsessive competitive drive. And you’d have to be a little nuts to enjoy the seesaw ride of the stock market in recent weeks.
According to a Vanderbilt University study in 2010, many psychopaths “appear to have such a strong draw to reward – to the carrot – that it overwhelms the sense of risk or concern about the stick.” A volatile market provides more opportunity for day traders than for long term investors, and many of the former are licking their chops.
Today, Alessio Rastani, a stock market and forex trader in Europe, admitted as much to the BBC (full video below), in a brutally honest -- and chilling -- interview: “I’m a trader. I don’t care about [investors' happiness and confidence]. If I see an opportunity to make money, I go with that. For most traders, we don’t really care how they’re going to fix the economy. Our job is to make money from it. Personally, I’ve been dreaming of this moment for three years. I have a confession, which is I go to bed every night and I dream of another recession. I dream of another moment like this.”
If it sounds crazy – and crazy enough to be true – that just may be because it is.
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00e944292e42e98f29136fe636d7013b | https://www.forbes.com/sites/chrisbarth/2011/12/28/amazon-wins-in-online-customer-service-netflix-sinks-like-a-stone/ | Amazon Wins In Online Customer Service, Netflix Sinks Like A Stone | Amazon Wins In Online Customer Service, Netflix Sinks Like A Stone
ForeSee Results, a company that measures customer satisfaction, released the results of its Holiday E-Retail Satisfaction Index today, and Amazon's score of 88 – the highest in the seven-year history of the index -- trounced all comers. Amazon has continued to improve its score since acquiring Zappos, a company known for its legendary customer service, in 2009. Meanwhile, last year’s co-leader, Netflix, dropped seven points from its 2010 number to score 79. Netflix has historically performed well on the index, but notably struggled with customer satisfaction in 2011.
The ForeSee study analyzes the top 40 online retailers by sales volume, using a series of customer surveys collected between Thanksgiving and Christmas. This year, companies scored higher across the board than in 2010, tying 2009’s all-time high score of 79. The lowest performing company in the study is Overstock.com, with a score of 72. Gap was also classified by ForeSee as a “laggard,” with a low score of 73. Unlike Netflix, Overstock and Gap have routinely struggled according to the index.
ForeSee’s report looks specifically at why Netflix has taken a hit this year. The company performed poorly on content, merchandise, functionality and price scores. Netflix’s price score dropped by 12%, reflecting customer unhappiness about Reid Hastings and Co’s decision to change the DVD and streaming price points in 2011. “Considering that most people who are visiting Netflix have already made the commitment of membership (and the prices associated with membership), the drop of 12% is alarming,” writes Larry Freed, CEO of ForeSee and author of the report.
Such scores are not merely a measure of past e-retail performance. “Customer satisfaction is a proven predictor of critical future behaviors that have a direct impact on the bottom line,” writes Freed. He predicts a 9% drop in future brand commitment stemming from the company’s drop, and an 11% drop in Netflix customers’ likelihood to recommend the service. Still, Netflix’s score is exactly average among the top 40 online retailers.
“A satisfied shopper is far more likely to purchase (online and offline), remain loyal, and engage in positive word-of-mouth recommendations than a dissatisfied shopper,” writes Freed. If that is indeed the case, it could be happy times for Amazon and other customer service leaders. Netflix still has time to get back on track, but it better get moving soon, before subscribers stop being customers and leave dissatisfied.
Six online retailers saw a substantial pick-up in customer satisfaction during the 2011 holiday season. TigerDirect.com rebounded from a weak 2010 to go up 6 points on the index. JC Penney improved by 5 points (a good sign for the new leadership team?) and Dell bumped up 4 points. VistaPrint, Home Depot, and Macy’s all registered 3 point improvements.
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723d2f7402efb2767348c8f35b7d9305 | https://www.forbes.com/sites/chrisbarth/2012/03/13/neil-degrasse-tyson-invest-in-nasa-invest-in-u-s-economy/ | Neil deGrasse Tyson: Invest In NASA, Invest In U.S. Economy | Neil deGrasse Tyson: Invest In NASA, Invest In U.S. Economy
Neil deGrasse Tyson
Neil deGrasse Tyson is an accomplished astrophysicist and popular author whose latest book, Space Chronicles: Facing the Ultimate Frontier, lays out the case for continuing to advance the space frontier. Tyson is the Frederick P. Rose Director of the Hayden Planetarium at the Rose Center for Earth and Space, as well as an astrophysics research associate at the American Museum of Natural History. He served on the Commission on the Future of the United States Aerospace Industry in 2001 and the President's Commission on Implementation of United States Space Exploration Policy in 2004, and is known for his passionate advocacy for space exploration.
Last week I had the chance to talk with Tyson about why he thinks space exploration is a necessary economic driver, and why funding NASA is an investment the U.S. government can't ignore.
Chris Barth: You’ve noted that NASA’s budget isn’t as much an expenditure as an investment.
Neil deGrasse Tyson: I think many people don’t think of it that way, but that’s certainly how I see it. And how the history of that money has revealed itself in our economy.
And the return on the investment comes in the form of innovation and technological advancement?
That’s correct. Not only innovations that come directly from solving the challenges of advancing a space frontier, but also the culture and society that arises from being a participant in that frontier. In other words, yes, of course you have to innovate to discover something tomorrow that you didn’t know today – some new idea has to arise, some new solution to a problem. Some new material has to be invented. Of course. That would go on, with direct reference to space achievements.
In fact, NASA puts out a book called Spin Offs, which is a complete discussion of all the fundamental patents and discoveries that became commercial products in the year preceding. But I would argue that that’s not even the greatest value of NASA. It’s the shift in attitude that it brings upon our culture, where people then see and feel the role that innovations in science and technology play in their lives. They embrace that as a part of the identity of our culture itself.
You get people innovating even if they’re not directly related to the space program, because we have an innovation culture. I assert that that was the culture that prevailed in the 1960s and into the early 1970s. Once you have an innovation culture, even those who are not scientists or engineers – poets, actors, journalists – they, as communities, embrace the meaning of what it is to be scientifically literate. They embrace the concept of an innovation culture. They vote in ways that promote it. They don’t fight science and they don’t fight technology. They recognize how fundamental those activities are to the identity of the nation, but more importantly to the economic health of the nation. Because these are the engines of the economy.
You can look at the 1960s, the peak of space exploration, and I think many people would characterize that period as the peak of the attitude that you’re talking about. So why is there this disconnect now? Why do people think of space exploration as an academic pursuit?
Because they don’t think of it the same way. They just don’t. I think I understand why – I didn’t do the tests on this, but it’s plausibly correct that we live in an era where we think of the solutions to problems by applying money directly to that problem.
For example, we need more scientists; let’s improve our science teachers. OK, we’re done there. We need more jobs; let’s create more factories so we have more jobs. We want more innovation; there are companies that do innovation, let’s fund those more.
The idea is that somehow these are all separate problems and we go over and just fix them one by one. But in fact, by my read of history, by my read of human behavior, by my read of government funding streams, these efforts amount to no more than Band-Aids on sores that have opened up in our society caused by a much deeper absence – the absence of an innovation culture.
So when you say “NASA creates jobs,” people think it’s because tax money buys the jobs that NASA pays directly for. The direct A-to-B thinking again. It takes more than a few steps of reasoning to see how NASA influences a culture and how that culture innovates, creates the economies of tomorrow, stabilizes and then grows your economy. That’s a multi-step exercise that certainly economists understand easily. To writers for Forbes, it’s self-evident. But everybody else, apparently not.
When you put money directly to a problem, it makes a good headline. It makes a good campaign slogan. You get to claim that you’ve engaged in these activities within an election cycle. But certain investments take longer than an election cycle. Those that take longer than an election cycle tend to be susceptible to people wanting to redirect them to immediate problems that they see sitting right in front of them.
This manifests itself even at the highest levels. The America COMPETES Act emerged from Congress – and the President signed a version of it – the President extols the value of NASA, back in that era, as the engine of economic innovation, of scientific and technological innovation leading to a booming economy. He says this. And then says (and I’m paraphrasing), “Given that we’re in the doldrums now, we’re going to re-invest in our science and technology.” And he talks about increasing the budget for the National Science Foundation and for the Department of Energy Science, which is the physics labs, and the National Institute of Standards and Technology, a little-known agency of the government that is very important. NASA is barely mentioned. Actually, he tops up NASA for one year, gives a 5% increase to NASA for one year, and then takes it back a year later.
Meanwhile, NASA formed the substance of the rhetoric that led to the speech that announced this plan. The America COMPETES Act put those same three agencies on a doubling path for their budget, and NASA went unmentioned. So there seems to be a disconnect.
People say, “We need more basic science? Let’s fund basic science research agencies like the National Science Foundation.” But who’s going to do that research? Doesn’t somebody have to be motivated to do it in the first place? Doesn’t there have to be some dream that people have, and reach for and feel compelled to participate in?
It goes back to the quote that I’ve heard you mention a couple of times – if you want to get people to build a boat, don’t drum up wood and supplies, teach them to yearn for the open sea.
I always corrupt the quote, but that’s the sense of it. [“If you want to build a ship, don't drum up people to collect wood and don't assign them tasks and work, but rather teach them to long for the endless immensity of the sea.”] Antoine de Saint-Exupéry. Who himself was an aviator and the author of The Little Prince, by the way. But he understood that when you long for the open sea, then the details of boat building all resolve themselves. Your dreams take care of that. It becomes self-motivated; you don’t even have to be taught it. You figure it out yourself, and in the process you innovate another way to do it, as well.
So you advocate doubling NASA’s budget.
From .5% of the federal budget, I say double it. That would give NASA enough money to do everything everyone has wanted NASA to do over all these years and enable us to go back to the moon and on to Mars in a bold and audacious way. Where it’s visible and advancements are being made weekly if not daily. And everyone says, “Oh, we’re going to Mars. We need biologists for that, because we might find life. We need aerospace engineers.”
And all of a sudden, all of the great science and engineering frontiers are aglow with the need to have the best students that are currently in the educational pipeline. That need will echo its way on down through to elementary school.
What’s the likelihood of such a budget increase happening? Does it take a foreign threat to make that happen?
There are a couple of drivers for this. Yes, war would be a driver; that’s what got us to the moon in the first place. Those that didn’t understand that somehow thought that “Oh, we’re on the moon by 1969, we’ll be on Mars by 1980.” That’s delusional. That means they didn’t understand why we went to the moon in the first place.
We didn’t go to the moon to explore or because it was in our DNA or because we’re Americans. We went because we were at war and we felt a threat. It was a kill-the-commie threat. In response to that threat we go to the moon. We find out that Russia’s not going to the moon – we’re done. Mars was never in anybody’s sights.
Of course, if China says it wants to put military bases on the moon or on Mars, we’re back. We’d be on Mars in two years if that were the case, no doubt about it. But no one wants war to be the driver for these things.
Fortunately, there’s another handy driver that has manifested itself throughout the history of cultures. The urge to want to gain wealth. That is almost as potent a driver as the urge to maintain your security. And that is how I view NASA going forward – as an investment in our economy.
By the way, in the 1960s we benefited from the economic influence of NASA and the cultural shift that it brought upon us. We benefited from that, but the motivation was war. So there was a cost, a heavy cost, of gaining that benefit – the cost of war and then the cost of NASA.
If we do it for economic reasons, then it’s just the cost of NASA. We don’t need the tandem investment in the cost of war. So the return on that investment – if you look at the total holistic picture – would be vastly greater than any return that could have happened in the 1960s.
I think people seem to overlook the idea of putting a dollar in and getting way more than a dollar back.
Way more. Of course, it’s hard to just run a calculation on that. If you did, it would be making a lot of assumptions en route to get to some dollar figure. A lot of this appeal, then, is simply to convey the sum of fundamental truths: That NASA innovates when it advances a frontier, and that innovations in science and technology are the engines of tomorrow’s economy.
When you innovate, you create new industries that then boost your economy. And when you create new industries and that becomes part of your culture, your jobs can’t go overseas because no one else has figured out how to do it yet.
When you stop innovating, as we have, then you stop thinking about tomorrow, because there’s no lure of having to wonder how you might invent a tomorrow that you just dreamt up, because people stop dreaming. When you do that – when you stop dreaming and you stop innovating – then you’re basically coasting. When you’re coasting, you eventually slow down and stop.
While that happens, other nations rise up, pass you by. And then we cry foul because they’re paying their employees less in their factories or we worry about trade tariffs. All of a sudden the conversation shifts from, “Here, you can have these jobs, because we don’t want them anyway, we’ve got these other jobs that we’ve just innovated,” to “Give us back our jobs, we need any jobs we can get.”
This is the line of reasoning. It takes a few steps. It might even take longer than an elevator ride to convey.
Imagine that. I think it would be interesting to for people to hear some examples of products that came from NASA developments. I know you mentioned LASIK as an example of one.
LASIK pre-dates the space program, but it was dangerous, error-prone and expensive. These are your eyes we’re talking about here! What NASA enabled in that procedure is for it to be done with precision, accurately and inexpensively. Now, hardly anyone doesn’t know someone who has had the procedure.
That was enabled by algorithms and tactics and techniques to dock the space shuttle with the space station. They wanted to do that accurately and reliably, without any damage to the surrounding hardware . There it is; directly applied to the LASIK surgery that people get today.
Also, the motivation to miniaturize electronics in the first place. That was driven by NASA because electronics back then were very heavy. Your grandparents had a radio that was a piece of furniture in their living room. Nobody at that time was saying, “Gee, I want to one day carry this in my pocket.” That just wasn’t a thought that anybody had. It was the living room radio.
The urge to miniaturize was motivated by NASA’s need to shave weight off of the payloads. Because every extra ounce you have to take, you pay a huge cost in fuel. Right now it’s like $10,000/pound to get something to low-Earth orbit. Once that movement got started, it became its own economically-driven enterprise. It doesn’t need to reference space today. But somebody got it started. Today that’s a $150 billion/year industry. The entire cost of going to the moon was about $100 billion.
Here’s an industry that thrives on the miniaturization of its components. It might have still happened, but it certainly wouldn’t have happened when it did. It certainly wouldn’t have happened as early as it did.
That’s fascinating.
There are many more examples. Space in general gave us GPS – that’s not specifically NASA, but it’s investments in space. There’s grooved pavements on the turns of roads – that’s low-tech, but greatly improves traction. Something no one had thought of until somebody really cared about the space shuttle landing on a runway. The space shuttle is not engine controlled as it lands, so they wanted to maximize traction and get that as secure as possible. They grooved the pavement, and there you have it: You have traction even under slippery conditions.
You have scratch-resistant lenses. And intracochlear implants, which are implants in the ear that enable completely deaf people to hear again because it stimulates the nerve endings that would have connected to the ear drum. That was a NASA invention.
Water filters. A NASA invention. You can say, “I need a way to filter water for my refrigerator.” I don’t know what a person would come up with, but nobody did. If you say instead, “There is a supply of water on a space station and it is the only supply of water we will ever have. I need a way to filter it.” That’s a cool problem to solve. Not just “Well you could get it out of your tap.”
We’re talking about how grand the problem is that is presented in front of smart and motivated people, people who want to make a difference in the world. Now we all have filtered water in our refrigerator. That’s all NASA.
By the way, that is not the best reason to fund NASA. I’m saying they happen to be reasons that also exist.
When the asteroid comes and it has our name on it? That’s a good reason right there. “Let’s deflect it.” “Oh no, we can’t because we’re under-invested in our space abilities.” That would be embarrassing if we went extinct from that.
Like you said, those aren’t the best reasons. But I think some people need those sorts of reasons.
They need the tangibility of it. This percolates across society as a motivation to do something cool and really interesting.
It really comes down to return on investment. It’s the greatest stoker of our economy that I know of and that I’ve seen in operation. Other than war; war does it too, but you’re also spending a lot more. You get great returns, but only at very great expense. With NASA, you get very great returns at a very small expense. And nobody dies unless, in fact, they are dying in an effort to expand a frontier, which is one of the noblest ways to go. Statues are built to such people. And there are those among us who embrace the risk, knowing that the reward is worth that risk.
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e857e0cf7d56c5873a3a1637ff4bb6cf | https://www.forbes.com/sites/chrisbarth/2012/09/20/starbucks-new-verismo-machine-sinks-green-mountain-will-you-buy-it/ | Starbucks' New Verismo Machine Sinks Green Mountain. Will You Buy It? | Starbucks' New Verismo Machine Sinks Green Mountain. Will You Buy It?
Onward, ever onward, Starbucks.
A price war may be brewing. At the very least, a coffee war has intensified. Starbucks’ Verismo coffeemaker is now for sale on Starbucks.com, intensifying a battle with Green Mountain Coffee Roasters that has been percolating for months, if not years. The new machine, which utilizes familiar-looking plastic cups of coffee grounds, also includes a “milk pod” that will allow home-brewers to replicate their favorite coffee shop drinks in their own kitchens.
“A perfect Starbucks Latte at home. And at the push of a button,” promises Starbucks’ website.
Starbucks has been on a tear in recent years, attempting to diversify its revenue streams away from simple coffee. A number of experiments jump to mind – some successful, some dismal failures: Via instant coffee, Evolution Fresh juices, new food offerings, wine/beer sales, etc. Although it remains to be seen whether consumers will latch on to the Verismo machine, Jeff Hansberry, president for channel development and emerging brands at Starbucks, told the New York Times that single-cup coffee sales grew by 143% last year.
The Verismo machines retail for $199, although the single-serving coffee market has long been described as a razor/razor blade type model, wherein companies sell machines for low profits and then rake in the big bucks on refills. The Times reports that the market for single-cup machines and single-serving pods exceeded $8 billion in 2011.
Green Mountain Coffee Roasters has dominated that massive market in recent years, emerging as the countertop coffee king thanks to 37 patents protecting the omnipresent K-cup coffee pods. Two of those main patents, however, expired last week, leaving GMCR wide open for competition.
Starbucks’ Verismo is that competition. And, in reality, Starbucks has been competing with Green Mountain for quite some time. Though the companies have a distribution deal in which Starbucks produces K-cups for use in Green Mountain’s Keurig machines – a deal that will reportedly continue even after Verismo’s launch – that arrangement seems to favor Starbucks. As David Einhorn noted in his presentation at last year’s Value Investing Congress (the espresso shot heard round the world?), it is likely Starbucks takes the majority of the profits on each of its branded K-Cups, resulting in lower profits per cup for GMCR and creating competition for Green Mountain’s higher-margin products.
In an interview today on CNBC, Starbucks CEO Howard Schultz revealed that his company already controls around a quarter of the K-cup market.
Although the launch of the Verismo was far from a surprise (it was announced in March of this year) Green Mountain Coffee Roasters’ stock has dropped over 7% in trading today, and now trades at just over a quarter of its all-time high of nearly exactly one year ago. Starbucks is up 1.5% on the day.
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1d78ee73e665ad0a50d75841873ae8ef | https://www.forbes.com/sites/chriscancialosi/2014/10/27/workplace-safety-doesnt-start-with-punishment/ | Workplace Safety Doesn't Start With Punishment | Workplace Safety Doesn't Start With Punishment
Let’s take a trip back to high school chemistry (but this time, please stifle your groans of boredom). Perhaps you remember filing into the smelly, cold laboratory and listening to the safety protocol presentation drone on with painfully self-explanatory directions: “If you get doused in chemicals, run to the chemical shower. If a vial breaks, alert a teacher immediately.”
Looking back, we can clearly see the value of those basic safety rules. But did it ever occur to you that those simple safety protocols wouldn’t extend to the nation’s Centers for Disease Control and Prevention?
That’s just what happened with the CDC’s recent anthrax and bird flu exposure, a serious example of a safety breakdown in the workplace. The lab didn’t use approved sterilization techniques and had no standard operating procedures in place regarding the safe transfer of hazardous materials. The resulting debate over safety protocol has brought a lot of attention to workplace safety and the pressures leaders face in trying to create safe operating cultures.
Members of the oversight committee were rightfully livid that CDC scientists exposed themselves and others to potentially life-threatening biohazards. However, their anger took the path of quick-fire blame and punishment instead of effective resolution and future avoidance. Rather than moving the organization toward a culture of safety, this approach based on punishment pushes it far, far away.
Leaders can learn an important lesson about workplace safety from this incident and the resulting staff changes: Workplace safety requires a whole new approach to safety violations, and you need to get started now.
Immediate Alternatives for Workplace Safety Incidents
Not every change to policy and procedure needs a long-term adjustment period. Here are three methods of handling safety and culture issues that will push your company toward a culture of safety now:
Don’t shoot the messenger. If you punish employees for reporting safety issues to leadership, it will only lead to a culture of cover-ups. The real enemy is the cause of the risk, not the employee. And the only way safety can be proactively managed is by creating a safe environment where employees can fearlessly report safety problems. Embrace complexity. Dr. Levi Nieminen, director of R&D at Denison Consulting and a renowned safety culture expert, noted that serious incidents often create legal pressure to hold someone accountable, which amplifies our already potent tendency to attribute error to a single source (often the fired employee). Members of leadership need to fight the urge to oversimplify these incidents and be open to the fact that many factors play into each serious event. Learn from your mistakes. Nieminen also explained that the deepest learning opportunities are often outsourced to panels of experts who only partially involve organizational insiders, viewing them as the subjects of investigation rather than an important set of co-investigators. Rather than sitting back and waiting for results, organizations need to internalize the knowledge gained through the incident investigation process.
How to Proactively Create a Culture of Safety
Adjusting your company’s approach to safety right now can help you avoid short-term problems, but for long-term success, you need to work toward building a more effective process overall. Here are four ways to do it:
Establish common safety standards. Every safe environment starts with establishing and enforcing clear standard operating procedures. But safety can mean different things to different people. To establish an authentic culture of safety, your entire organization needs to accept common definitions and act out these safety standards among employees and leadership alike. Invest in equipment and training. Continuous investment in training and education provides employees with the latest knowledge, skills, and abilities to do their jobs safely. It also provides consistent reinforcement that safety is a top priority in the organization. Adopt a reporting-friendly process. Your employees need to be able to report safety issues without fear of punishment. Consider adopting an approach that puts the focus on accountability and honesty rather than blame, such as the Aviation Safety Action Program, which many U.S. airlines use to encourage individuals to foster an environment where employees are incentivized to report safety issues. Track safety issues. With an increase in reporting comes an incredible amount of useful data. Track and analyze this data to identify and uproot the causes of risk, which will allow you to prevent incidents before they happen.
Our impulse to assign blame and punish quickly is an outdated, reactionary measure that will destroy a company’s culture of safety before it reaches maturity. Instead, apply what we’ve learned from the CDC’s publicized safety breach to build a healthier, safer workplace culture.
Chris Cancialosi, Ph.D., is managing partner and founder at gothamCulture.
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a167457ff277cf7f4be2914a51022b2e | https://www.forbes.com/sites/chriscancialosi/2015/01/12/is-your-anonymous-employee-survey-doing-more-harm-than-good/ | Is Your Anonymous Employee Survey Doing More Harm Than Good? | Is Your Anonymous Employee Survey Doing More Harm Than Good?
We live in an era of oversharing. While most people are comfortable sharing what they ate for lunch, what they watched on TV, and what their relationship status is with 500 of their “closest” friends on Facebook and Twitter, the idea of telling their boss what they really think still feels pretty risky.
The traditional feedback process that’s become the norm in most businesses today relies on anonymous systems so employees can feel safe being open and honest with their employers. But there’s something fundamentally wrong if your employees are fearful to be open when providing feedback.
Meanwhile, leaders worry their employees won’t be forthcoming with their opinions unless they’re anonymous, so they default to the nameless employee survey, which limits their ability to follow up with employees who have particularly helpful ideas.
The idea of anonymity is outdated and ultimately unproductive. In fact, the confidentiality can interfere with the accountability you’re looking to build on your team and lead to other unintended consequences, including:
1. Skewed results. In most organizations, a small minority harbors a tremendous amount of anger toward leadership or their workplace in general. An anonymous survey just gives them a platform to vent. When their names aren’t attached, their feedback can be pointed, jaded, and even inflammatory, which can skew your results.
2. Misinterpreted feedback. The purpose of feedback is to gather information to help you make better business decisions. Unfortunately, with unidentified feedback, there’s no way to understand the context of issues that may only affect one department or even one employee. You may end up misinterpreting the data, which can cause you to make the wrong decisions.
3. A lack of follow-up. If a respondent has a moment of brilliance in an anonymous survey, you have no way to dig deeper into his ideas or recognize this visionary for his contribution. On the other hand, if an employee is unhappy about something, you miss the chance to have a productive conversation to identify solutions.
Non-anonymous feedback allows you to initiate that conversation and build upon the feedback loop throughout the year.
4. Limited responsiveness. Gathering anonymous feedback is time-consuming. You must first ask employees to fill out a survey, take part in a focus group, or share opinions in a confidential interview. By the time someone has gathered and processed the data, the information may no longer be relevant.
5. The inability to hold leaders accountable. Unfortunately, some leaders will react inappropriately to feedback, which is why organizations favor anonymity in the first place. Rather than tailoring this process to ineffective leaders, you need to start holding them accountable.
An open feedback system establishes an environment where leaders must learn how to accept criticism so employees feel comfortable being open and honest.
How to Create a Transparent Feedback Loop
If you want to encourage transparency and increase engagement in your organization, it’s time to ask employees to cowboy up and take ownership of their ideas. With that said, you’re also going to have to take responsibility for creating an environment where people feel safe sharing.
Moving from an anonymous survey to a transparent feedback loop won’t be easy or painless, but there are several things you can do to make the transition successful:
Invest in a platform to gather feedback. Thanks to techie wizards, a variety of platforms are now available to tackle the issue of employee engagement. Software like Officevibe, Vennli, and 15Five allows you to gather meaningful feedback from employees on a regular basis that you can use to make critical business decisions.
Coach supervisors on how to respond to feedback. For this process to work, leadership must understand how their reactions to feedback can shut down an employee’s willingness to participate. In those instances when a supervisor responds inappropriately to feedback, you must be willing to take swift action. If employees can’t go to leadership with their concerns, resentment may spread within the ranks.
Show employees it’s OK. Such a drastic change in feedback style will be met with some apprehension. However, the best approach is to jump in with both feet and reward people who provide useful feedback. Look for ways to demonstrate how you’re using feedback to implement positive changes so employees see that it’s safe — and even commendable — to be honest.
Removing anonymity allows your employees to become active players in the decision-making process, which can boost their dedication and allow your team to benefit from multiple perspectives. When you open an honest dialogue with employees, you can expand on ideas, gather continual feedback, and arrive at productive solutions to improve your company.
Chris Cancialosi, Ph.D., is managing partner and founder at gothamCulture.
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88c75eba5929434ddb3911bc1b1a62cf | https://www.forbes.com/sites/chriscancialosi/2015/11/11/the-rise-of-military-spouse-entrepreneurs/ | The Rise Of Military Spouse Entrepreneurs: What You Need To Know | The Rise Of Military Spouse Entrepreneurs: What You Need To Know
Veterans Day is our annual tradition of pausing for a few moments to acknowledge those men and women who have shouldered arms in defense of our nation. But with only 0.4 percent of the American population currently serving on active duty in the Armed Forces and a scant 7.3 percent of Americans alive today having ever served in their lifetimes, the majority of people in this country have no firsthand experience of the true sacrifice that these men and women have made.
What’s more, most people are largely unaware of the immense sacrifices that military families (1.8M strong as of 2014) make in supporting these service members. Many have endured over a decade of constant deployments to combat zones and an operational tempo that would quickly put the idea of work-life balance into perspective for civilians here at home.
Career minded military spouses (91% of whom are female) face the added challenge of maintaining careers while relocating every few years. This mobile lifestyle oftentimes includes moves overseas, which can make finding and holding professional jobs extremely difficult. As a result, a growing number of these military spouses have taken the skills they have developed managing military families and translated them into businesses that move with them when the military relocates their families to the next duty station.
photo: l i g h t p o e t | Bigstockphoto
Nicole Hope, co-founder of the MilSpo Project, is one of the unsung leaders at the forefront of this issue. Her organization is taking a proactive approach to supporting this previously underserved demographic of military spouse entrepreneurs.
In the first year and a half of the organization’s existence, they have opened a stunning 30 local chapters located across the globe. Providing a combination of local chapter support, an annual conference and remote learning initiatives, the Milspo Project is able to provide education and support to hundreds of military spouse entrepreneurs who reside around the world.
“There is a huge population of military spouses who are very career motivated, but have had to set aside those aspirations in support of their service-member spouses,” says Hope. “The Milspo Project wants to be the premier resource for these spouses should they choose to get creative about balancing all of these demands by becoming entrepreneurs.”
Historically, military spouses have had to forgo professional careers in support of the highly mobile military life. Thankfully, advances in technology and the realization that entrepreneurship is a feasible path for many military spouses has created a groundswell of well-intended, resourceful and educated women who are moving past the hardships of military family life to create scalable businesses that provide job opportunities for others in their communities.
Take Ashley Thompson for instance, owner of Pressed, a purveyor of uniquely curated stationery, gifts and artisan made items based in Fayetteville, NC. Thompson shared that military spouse entrepreneurs, “face so much uncertainty in their future plans and really must be ready to change everything at a moment’s notice.” She also suggests that this constant possibility of change provides these entrepreneurs for success by instilling in them a certain resilience that comes from the fact that they must become, “really good at picking up the pieces and moving forward over and over again.” Thompson has prepared her business for her inevitable moves by hiring and training a management team to run her brick and mortar store upon her departure. The internet also enables her to continue her sales from wherever she and her family may end up.
Lindsey Germono, another entrepreneur and member of the Milspo Project, finds that the networks she has developed have helped her and other military spouse entrepreneurs “tap into support systems and local organizations for networking and for understanding the local market of their new residence.” Germono has overcome the hurdles associated with military life by starting her own advertising firm, Germono Advertising, out of her husband’s current duty station in Norfolk, VA. Germono values the strong support networks that the military thrives on and says that although there may be many things about military life that are outside of your control, support systems such as the Milspo Project help entrepreneurs thrive no matter where they may relocate.
Several large brands have stepped forward with meaningful efforts to provide veterans and military spouses with employment opportunities in the last few years. Starbucks, for example, committed to hiring 10,000 transitioning veterans and military spouses by 2018. But some military spouses have selected the alternate path of entrepreneurship as their way to fulfill their career goals. Together, these efforts afford those who serve multiple opportunities for career fulfillment and economic progress, regardless of their specific goals.
On Veterans Day we take time to acknowledge those who have served in our nation’s defense. I’d ask that we all take a moment to acknowledge those military families that sacrifice as well. They are working every day in support of our servicemen and women by developing thriving, scalable businesses that can weather the unique challenges that military families face.
Thank you all for what you do in making our country great.
Chris Cancialosi is a Partner and Founder at gothamCulture.
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6d08f1e3939a7279201abc73fd84ba73 | https://www.forbes.com/sites/chriscancialosi/2016/11/15/can-artificial-intelligence-unlock-our-full-potential-at-work/ | Can Artificial Intelligence Unlock Our Full Potential At Work? | Can Artificial Intelligence Unlock Our Full Potential At Work?
World of Watson opening session. Photo courtesy of IBM.
They say what happens in Vegas stays in Vegas. But that would be a wild mistake if applied to this circumstance. If you’re a business leader or entrepreneur intent on staying competitive in the years to come, you’d best pay close attention.
Last month, IBM hosted the World of Watson conference in Las Vegas aimed at raising awareness and educating participants about advances in computing over the last decade. The gathering also showcased a wide variety of real-world use cases from IBM and their wide range of partners, including the likes of office supply retailer Staples, and Grammy-winning music producer Alex Da Kid. But how did we get to this point?
In 2007, when a small group of IBM’s artificial intelligence (AI) experts approached Dr. John Kelly III, SVP of Cognitive Solutions and Research, pitching authorization to build the world’s first cognitive computing system, he had a big decision to make. Some might say a gamble. But the company continued to put chips on the table to support this endeavor as it progressed exponentially over the last decade.
Cognitive technology is used in a variety of use cases across industries, the arts, and music; from winning a popular game show to helping oncologist boards determine cancer-fighting strategies. In a matter of five years, Watson progressed from Jeopardy winner to a technological capability that is available to everyone.
If you still aren’t convinced that cognitive technology is going to impact your life and business, think again. This isn’t a far-off vision of the future. It’s already happening. A few weeks ago I wrote about how Watson is beginning to change life as we know it, and there seems to be no end in sight.
In fact, Thomas Freidman, Pulitzer Prize-winning journalist and author of “The World is Flat” and “Thank You for Being Late”, suggests that cognitive technology is one of the three largest non-linear accelerations currently reshaping life and work as we know it (digital globalization and Mother Nature being the other two). Non-linear, meaning the line charts look akin to hockey sticks and they will undoubtedly have a significant impact on all of us.
Dr. Kelly agrees. Within the next five years, he expects every medical professional in the world will be utilizing the power of Watson to support decision-making, as well as enhancing the patient experience.
It’s Not All Rainbows and Unicorns.
Artificial intelligence and cognitive computing, as concepts, are not welcomed across the board. Many people view these advancements as encroaching on their livelihoods.
IBM prefers the term ‘augmented intelligence’ over artificial intelligence. They believe that rather than computers taking over for humans, cognitive technology will serve a critical role in augmenting the humans it supports. This augmented intelligence will create unparalleled opportunities to draw out the full capacity and potential of the human spirit by relieving people of transactional and mundane tasks that take up so much time today.
So, What Does This Mean for Business Leaders?
From data to insights. Imagine if you had the ability to consolidate and analyze massive amounts of structured data with lightning speed. Your data and insights were never forgotten. And a piece of technology could begin to learn through its interactions and proactively provide you with insights you need without even asking? I’m sure this possibility might intrigue more than a few business leaders. New opportunities and new markets. As the era of cognitive computing dawns and drafts off of the momentum that the cloud era created, a multitude of new business opportunities will emerge. Entrepreneurial thinkers will begin to conjure up new ways to solve problems using cognitive technology. Take, for instance, Local Motors, the startup behind the world’s first cognitive-enabled, autonomous vehicle, Olli. An enhanced way to serve your customers. Greg Spratto, VP of operations at Autodesk, shared with me an example of how his organization is using Watson to improve customer service. “Our agents typically get one of two types of inquiries from customers. The first being those related to accessing the information they need. In these situations, customers often don’t want to talk to a human being; they just want to get what they need so they can move on. By teaching Watson to interact with these customers and provide them with the information they need quickly and accurately, our service agents are now freed up to support the calls where customers truly need or want to talk with a human being. Helping free up your people to focus on work only humans can do. By freeing people from mundane or repeated tasks and augmenting them with technology to support rapid data analysis and insights, the human capital in your organization can spend more of their time creating and innovating; solving problems that computers cannot. The ability to keep pace with the world. The non-linear acceleration of technological advancement is quickly outpacing the ability of humans to adapt to these changes. Cognitive computing presents a way to help people effectively keep pace in a world that is continuously accelerating around them. An entirely new way of working together. Learning how to operate and thrive in this new world will take quite a bit of adaptation and time will tell how augmented intelligence will reshape the dynamics of the workplace.
I will continue to explore the cognitive era, as well as the potential impacts and risks tied to it. Whatever happens, it seems a new era of human existence may be upon us. The question is, how can we take advantage of the opportunity to augment the human experience at work?
Chris Cancialosi, Ph.D., is a Partner and Founder at gothamCulture.
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a6bccbcd29b6fa46d0823ebe1a2e8b3d | https://www.forbes.com/sites/chriscancialosi/2018/06/01/nine-questions-every-leader-must-ask-before-letting-someone-go/ | Nine Questions Every Leader Must Ask Before Letting Someone Go | Nine Questions Every Leader Must Ask Before Letting Someone Go
Photo credit: pixabay.com pixabay.com
If you have worked in the professional world as a leader for any length of time you have undoubtedly found yourself managing a team member who was failing to live up to expectations. While it might be tempting to cut someone loose if their performance is sub-par, the turnover may cost more than you think.
A study by the Center for American Progress suggests replacing an employee can cost over 20% of their annual salary while the Society for Human Resource Management (SHRM) pegs that number as high as 50%-60%. That doesn’t even take into account the indirect costs, which SHRM suggests could be up to 90% to 200% of their salary.
It’s easy to focus on skills. Job openings are typically placed for your company’s immediate needs and similarly, people are let go when they struggle to meet the expectations they were hired to achieve. What is taken into consideration less frequently is that fact that there is another side to the coin that spans beyond skills. When employees are struggling to succeed, first ask yourself if they're a cultural fit. If they are, it's your job as a leader to remove the roadblocks that keep them from using their skillset to push your company forward.
In order to dive a bit deeper into this topic, I had an opportunity to interview Piyush Patel, author of Lead Your Tribe, Love Your Work, is an entrepreneur and an innovator in corporate culture with more than 20 years of experience. As the founder of Digital-Tutors, a world-leading online training company, he has helped educate more than one million students in digital animation, with clients including Pixar, Apple, and NASA.
CC: What are the nine questions every leader must ask themselves before letting someone go?
PP:
Is this person in the right seat? Sometimes a person’s skill level may not be adequate for the job they’re hired for, but their skill-set may still be valuable to the company elsewhere.
Do they need more training? In today’s fast-paced organizations, training on the latest techniques and workflows isn’t a “nice to have” anymore.
Do they live the core values? If they’re a great cultural fit, you can save yourself the cost of replacing a valuable employee and damaging your culture by finding a valuable use for their skill-set in the company in another seat.
Is it a leadership issue? Unfortunately, leadership can often set their people up for failure.
How much coaching has been provided? When it is time for someone to be let go, it shouldn’t be a surprise to anyone.
Did we use the GROW model to mediate? Clarify the goals and current reality of the situation while giving them a chance to come up with options. Finally, agree on steps they can take to improve their performance.
Did this person break a policy? Policies come in all shapes and sizes, and most people read employee handbooks like they read the terms and agreement to websites they visit. Clarify the policy in question and make sure it wasn’t a simple miscommunication. Sometimes the message sent isn’t the message received.
Are they derailing our culture by staying? Toxic people can be detrimental to a culture.
Why are they not producing? It’s easy to point the finger at the lowest person on the totem pole for not getting something done without fixing the root problem.
CC: How do leaders share the news with other employees to minimize impact on morale?
PP: Don’t make a knee-jerk decision. Letting someone go shouldn’t be a surprise to the people involved, but depending on the size of your company it may still come as a shock to some.
Start by checking with your local laws to make sure you’re following them, but I would recommend taking the time to explain the decision. Be up front about the steps you took to help get them to where they need to be. This clarifies a pattern of behavior for your team that there will be coaching and training before letting someone go.
CC: Can you share an example from experience of having to do this yourself? What was the outcome?
PP: Jeff was a talented artist. He seemed like a perfect fit into our culture. For years, he helped build many of our artistic standards that defined our growing brand. Jeff's experience found him blossoming into a leadership role for younger artists hired after him.
All of that changed one day when a startling revelation was brought to my attention: Jeff harbored a prejudice against one of his co-workers.
"Aw, I'm just joking around," Jeff said when I approached him about his behavior. No. His jokes weren't funny to anyone but himself. His conduct clearly violated one of our core values, so I let him go.
Immediately after letting Jeff go, I called an impromptu all-staff meeting to explain my decision. For some who were familiar with Jeff’s behavior, the decision wasn’t a shock. For others who didn’t work as closely with him, this was the first time they’d heard about it. My purpose for gathering the whole company up at once was so everyone got to hear the information at the same time.
There was no chance for gossip stemming from multiple versions of the story. I explained the situation in as much depth as I could legally as well as the reason for why I made the decision to let him go. In this case, it wasn’t a skill-related issue that could be trained away. It was clear to everyone that even though Jeff was a high performer in the company, his behavior was breaking our core value of respect. For my tribe, I defined this core value as: We will not tolerate the disrespect of people or property.
Finally, I opened the floor for questions. Again, it was the chance for everyone to get answers at the same time.
To my surprise, some of my employees used this time to express their thanks for making the tough decision to stick to our core values. Even those who weren’t aware of Jeff’s behavior were shocked to find out—as much as I was when I first heard—but they weren’t surprised by the consequences.
CC: What can leaders take away from this example to apply in their work environments?
PP: There are a few key takeaways from Jeff’s scenario that you should start doing today.
The first is a focus on your core values. Clarify them for your team as often as possible. Make sure everyone is on the same page so there's no room for misinterpretation of what they mean. That sets the expectations that they won't be compromised. Look for opportunities to reinforce and affirm positive behavior.
Secondly, clarifying core values only holds meaning if you make it. When you tolerate someone breaking your core values just because they’re a high performer sends the message to your tribe that your core values aren’t really important. Your core values aren’t something hung on a wall somewhere to be forgotten. Values aren't something you declare; they're something you live. Your values are what you reflect in your actions and what you believe to be true.
Finally, work to build trust with your tribe. If you wait until you need to explain why you let someone go to start building trust with your tribe, you’re too late. The more trust they have in you as a leader, the more they'll trust you to do the right thing when things go wrong. Should a situation force you to choose between sticking to your values or sweeping things under the rug, you'll be able to show your tribe that your core values are more than just words.
In closing.
Making the decision to let someone go is never easy. Sometimes, it is the best solution for your organization and for the person in question. By taking the time to follow some of Piyush’s tips, you can help to ensure that you have exercised every option to reposition an underperforming employee into a role that is a better fit before incurring the financial and morale-related costs that can come with having to replace an underperformer.
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c99c1d7db492a65c62863fe403337683 | https://www.forbes.com/sites/chriscancialosi/2019/11/06/the-art-of-unlearning-what-works/ | The Art Of Unlearning What Works | The Art Of Unlearning What Works
Image from rawpixel.com
As an organizational psychologist and a firm believer in continuous development, I have often found myself in the position of advising people on creative ways to keep learning throughout their careers. I have worked with clients seeking to become “learning organizations” – where individuals and teams are continuing to figure out what works through learning in order to outperform their competitors. Research, experiment, succeed, fail, learn, improve, repeat.
As someone who has dedicated his professional life to the topic of organizational culture, I realize that groups of people, over time and through collective experience, figure out what works and what doesn’t. Doing so allows them to begin to bake into their organization’s systems and processes methods for repeating successes and minimizing failures (or they cease to exist). Doing so allows members of these organizations to routinize processes and behaviors that lead to success so they can utilize their mental capacity on other things. Easy enough in theory.
The real challenge presents itself when the old ways of doing things that once yielded success stop working (or stop working as well as they once did). It is during these times that I often get people reaching out to me to help them figure out what to do in order to right the ship before things go too far afoul. In all of these situations, some common realities have bubbled up that are important to acknowledge.
Reality #1: You don’t operate in a vacuum.
If we all operated our businesses in an alternate reality where outside influences didn’t affect us we would simply need to figure out the most effective way of delivering our products or services, optimize those processes, and watch the billions roll in. Unfortunately, the world has a funny way of “rewarding” companies that operate without adapting to external changes in the market. Just ask those typewriter manufacturers. Or Kodak. Or any of the countless other companies that were leaders in their fields until the world evolved around them and they had their lunch eaten (technical term) by a competitor who evolved faster than they did.
Reality #2: Technology will force you to evolve faster than you may want to.
No other external evolution has rocked the worlds of so many businesses as the advances in technology that we have seen in the last decades. To make matters worse (if you’re on the lagging side of things technologically speaking) is that the pace that technology continues to innovate and evolve is getting exponentially faster over time.
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This reality means that organizations that may have been comfortable having mastered life in a more static environment can now be quickly stymied or disrupted by competitors who are able to adapt more quickly or by a pesky startup that can nimbly adapt to changes to better meet customer needs and expectations.
Reality #3: The networked nature of our economy means that incremental change is increasingly being replaced by exponential change.
While this is largely due to the advances in technology discussed above, it warrants its own call-out here. Mark Bonchek suggests in his article in Harvard Business Review that, “Companies like Google, Uber, Airbnb, and Facebook focus on how to remove limits rather than set them. They look beyond controlling the pipe that delivers a product and instead builds platforms that enable others to create value.” It is precisely this approach that unleashes the possibility of massive change.
Reality #4: Ignoring realities #1, #2, and #3 won’t make them go away.
You can certainly take the “head in the sand” approach and argue that Realities #1 and #2 don’t apply to you or your industry for one reason or another. Your market share is significant or your balance sheet has never looked better. Famous last words.
Ignoring reality doesn’t inoculate you. You have spent years learning what works and your customers have rewarded you by doing business with you. Yeah, things are changing around you but your performance is still strong (for now). If it ain’t broke, don’t fix it. Sound familiar?
Reality #5: There is a way out for you and your teams.
The good news is that there are ways to position yourself for future, long-term success in this fast-paced operating environment but it involves doing something that comes very unnaturally to us from an organizational culture perspective. We must learn to “unlearn”.
Those organizations that are able to outperform their competitors will be those that are able to see an impending change in the environment and unlearn what works today in order to adapt quickly to what requirements the new operating environment will hold.
And therein lies the real problem. We have forever focused on the importance of learning. What we’ve failed to master is the power to unlearn – our ability to take an honest look at our mental model and make the conscious decision to work outside of it. Destin Sanlin does a great job of demonstrating how difficult it can be in this TEDEd video. But how, exactly, do we master the art of unlearning in ways that drive long-term performance? Here are a few things to think about.
Continually prove that what you believe to be true actually is. Force yourself to ask, “Is there another way?” Acknowledge that you may, in fact, not actually know what’s best. Challenge the beliefs and assumptions within your organization and be open to letting people challenge the beliefs and assumptions you, personally, hold to be true about what ‘right’ looks like. Give yourself time and space to master new ways of thinking and behaving. Ask a trusted third party to give you feedback on their observations of your mental model and how it shows up in your interactions with others.
Those individuals and organizations that will excel in the dynamic markets of tomorrow will be those who are able to knock themselves out of the “rut” of success and challenge themselves to unlearn what has always worked for them in order to test their assumptions and beliefs. Only in doing this will they be able to identify areas where their “usual way of doing things” may threaten their future success.
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5cb4af24ef6a2e3569027aecd3d20b66 | https://www.forbes.com/sites/chriscarey/2011/04/21/raising-prices-its-easier-than-you-think/ | How To Raise Prices: Part 1 | How To Raise Prices: Part 1
With the hangover from the recession still throbbing, most companies are extremely hesitant to raise prices. But you can't expect to provide great service at rock bottom prices forever.
There are three main tactics for raising prices. (Begging, while it may occasionally work, is not a sustainable strategy.)
Tactic #1 - Full disclosure on costs Tactic #2 - Achieving performance goals Tactic #3 - Creating additional value
Before you embark on any of these strategies, you need two important pieces of information.
First, you need to get feedback on the level of satisfaction perceived by your customers. Get someone's spouse or college kid, stick them on the phone, and start calling your customers. The script: "I am calling on behalf of our CEO who wants to know in confidence your level of satisfaction with our organization." Keep it simple, not more than 5-6 questions, and get some narrative.
Collate the results by customer service area, sales person, type of business, division, whatever is important for you to qualify performance. I can tell you, if you are providing good service (at least “meet” to “exceed expectations”), raising prices is a lot easier. If the scores are low, don't worry. Tactic #2 addresses this.
The second thing you absolutely need is a client profitability model. Simply take the client revenue over the last 12 months, calculate the variable costs (labor, suds, materials, etc.) and subtract to get gross profit. Then take and allocate all of the fixed costs associated with that account. (Make sure you are sitting down--I have never found a CEO who wasn't surprised by the results.) Remember: Pricing must be tied to profit.
Ok, now for the tactics.
Tactic #1 – Full Disclosure
Every chief executive hates this, and usually puts up a big fight that it won’t work. Believe me, I have done hundreds of these and it works. Here is the pitch:
“Mr. Customer, I am here today to share with you our costs in supporting your business. It is our intention to share highly confidential information as a way of getting your feedback on how we might solve a problem, which is that we are losing money. This is not just about raising prices, it’s about developing a viable financial plan, and the changes could include many other things that affect expenses.
"To start,
We have fair market costs on rent, labor, materials, We have productivity systems that mean we are fair market on output, We are losing money.
"The alternative for you is to find another provider at these prices. I can tell you, it will just be a matter of time before they too will find that they are unprofitable. We provide good service, you are happy with our performance, and we know how you want things delivered. I suggest we put our heads together and find a solution."
I would not hesitate to show your excel spreadsheets and be prepared to provide backup. This approach is a very disarming, and will make your request for a price increase go a lot more smoothly. Some customers won't bite, of course, and you may need to decide if they are worth the effort at the price they are willing to give you. Most good customers want you to make a small, but reasonable profit.
As for tactics #2 and #3, stay tuned.
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57db84e65e01bb90124017d6449559ae | https://www.forbes.com/sites/chriscarey/2011/06/27/raising-prices-tactic-2-achieving-performance-goals/ | How To Raise Prices: Part 2 | How To Raise Prices: Part 2
Raising Prices – Tactic #2, Achieving Performance Goals
Everyone is scrambling to cut costs, trying to maintain some level of profitability. Don’t forget there is always the opportunity to raise prices. I know, most of you are saying to yourselves, he is crazy; my customers won’t even entertain the conversation.
Most Customers' Response to Price Increases
Last post we addressed the opportunity of taking an approach of full disclosure, sharing with your client profitability spreadsheet as a way to position for higher prices. The argument is that most customers will allow you to make a modest profit.
The next approach that you can consider taking is to identify specific performance goals that the customer will agree in advance and, once achieved, will accept some increase in prices. As before, it is important that you have the two base pieces of information available; customer satisfaction and client profitability.
Customer satisfaction can be obtained by surveying your contacts at the customer and asking a series of questions about your performance. Try and get a quantitative rating on some scale like 1-5, with 3 “met expectations”, 4 “exceeded expectations”, 2 “below expectations”. Having this measurement will help in establishing goals with your client.
You also need to understand the level of profitability with that customer. Make sure you take into account your variable costs to get to a gross profit and then fully allocate all of your fixed costs associated with that account. This client P&L model will give you some idea of what level of price increases you need to get to a profit.
Once armed with these two pieces of information, sit with your management team and hold a profit strategy session. Make sure you include people who are working with that client on a day to day basis. Most times they are the ones who will know what is possible. Try and identify things that may be important for your client that could become performance goals. It could be improved quality to reduce their defects in manufacturing, it could be improved levels of service to reduce delays, and it could include increasing customer service to get a better outcome.
I worked with a security guard business that was losing money and could not improve margins through productivity gains (they charged for every hour worked). After doing the customer surveys we found that the customers were pretty pissed off at their service with an average rating of 62%. We met with a select group of customers and found that they were willing to increase hourly rates if the company could improve the level of service provided by the guards. We predetermined that if we could achieve 90% customer satisfaction or better, the customer would be willing to increase hourly rates by $1.50.
We met with the guards assigned to that client and found a pretty disgruntled group. They were unmotivated, often late for work, and had been beaten up by their regional manager to improve service. We communicated that unless we improved, the customer would probably go elsewhere. We told them that if we could improve satisfaction to 90%, they would receive another $1.00 per hour. They became incredibly motivated. In a teaming exercise with the client, we identified a number of areas where the company and the customer could improve.
The guards suggested fence mending (not the emotional kind), replacing lights, accepting of greater scrutiny in inspections. The company gave the guards amazing freedom to become self-managed (along the lines of the Whole Foods model). This was the first time for many that they had any self-determination. Within days, they lit a fire at the customer location.
"What Gets Measured Gets Done!"
Within months customer satisfaction scores jumped to 92%. Within 90 days the customer agreed to the increase. The guards know if the scores drop they lose their additional compensation and have kept diligent.
After this test the company rolled the approach out to all other locations. They found a tremendous added benefit with a dramatic drop in turnover from 140% to 67%, which reduced recruiting, training, and uniform expense. They had to hire 400 fewer guards! Within twelve months the company went from a $65,000 quarterly loss to a $200,000 profit.
The company entered into a quid pro quo relationship with its customers. They set significant performance goals and found an exciting way to approach execution. Once achieved, they realized an increase in revenue and added to the workers’ compensation. These goals became the standard of performance for all their associates. It also became a marketing tool which improved their close rate on new prospects.
The next post will be a third part in this series. Stay tuned!
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6483e47188accd0de521859b68df9047 | https://www.forbes.com/sites/chriscarosa/2019/10/08/near-retirement-youre-headed-for-trouble-if-you-havent-started-this-yet/ | Near Retirement? You’re Headed For Trouble If You Don’t Have A Cash Cushion | Near Retirement? You’re Headed For Trouble If You Don’t Have A Cash Cushion
Why does it make sense for you to have a cushion of cash when you retire? Many financial professionals say that it’s a winning strategy. It helps smooth some of the inevitable rough spots. It offers peace of mind. In the end, it can mean the difference between a comfortable retirement and an anxious one.
If you’re already living a disciplined financial lifestyle, you probably have a cash cushion (although you may not realize it).
If other life priorities have gotten in the way of your financial plan, fear not. There still may be time for you to build that cash cushion before retirement.
In short, a cash cushion is a free ride to financial comfort. “Cash reserves are the ballast of any financial plan, used to cover unplanned expenses in a budget,” says Angus Schaal, Managing Director of Phoenix-based Tandem Wealth Advisors. “Who doesn’t need a financial cushion?”
What is this “cash cushion”? Think of it as a cross between the ever-popular “emergency fund” and the increasingly ubiquitous “bucket strategy.”
You should have an “emergency fund” no matter what your age. While it can be used to handle unexpected expenses, the rule of thumb regarding an emergency fund is based on everyday living expenses. Most financial planners will suggest you have anywhere from 6 to 18 months of living expenses saved away in a safe, liquid account.
The reasoning behind this reflects the magnitude of the most unexpected of all unexpected of events: losing your job. With up to a year-and-a-half of your living expenses stowed safely in an accessible account, you have enough saved until you find a new job. At least that’s the prevailing theory behind an emergency account.
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At least while you’re working.
When you retire, the calculus changes. You no longer have to worry about tiding things over between jobs. But there remains the possibility of surprise expenses popping up every now and then. “It definitely makes sense for people to have a cushion of cash when they retire for the unforeseen things that pop up in life: A broken washing machine, car repairs, a family member needing some money and just the peace of mind knowing you have some liquid funds in the bank available at a moment’s notice,” says Craig Kirsner, President at Stuart Estate Planning Wealth Advisors in Coconut Creek, Florida.
Remember, though, a cash cushion heading into retirement is not the same as an emergency fund. Whereas an emergency fund addresses unplanned contingencies, a retirement cash cushion is part of the plan itself. “Cash in the retirement portfolio is for risk mitigation; not emergency funding,” says Rob Drury, Executive Director of the Association of Christian Financial Advisors in San Antonio. “It is important to differentiate between an emergency fund and cash in a retirement portfolio. An emergency fund is something that should have been funded on an on-going basis for one’s entire adult life; and while this is not as separate an issue as when one was earning an income, it should still be set apart, as not doing so potentially upsets one’s portfolio allocation.”
Here’s an example of where you might allocate retirement cash to a specific bucket.
“Planning for paying one's health insurance premiums until Medicare takes over is extremely important,” says Timothy G. Wiedman, Emeritus Associate Prof. of Management & Human Resources (Retired) at Doane University in Crete, Nebraska, “If folks are planning to take an ‘early’ retirement, they should build a cash cushion that’s large enough (at the very least) to cover their health insurance premiums until they become eligible for Medicare. And this cash cushion is above and beyond the emergency fund that they should already have. Paying those health insurance premiums are recurring monthly expenses that have nothing to do with ‘emergency’ spending! Thus, it would be wise to keep that health insurance cash in a separate checking account (preferably one that pays solid interest).”
Here's where it gets tricky, but this also helps clarify the difference between the role of the cash cushion and the emergency fund. While paying the insurance premiums is something you can plan for (and thus allocate the funds to that bucket), a medical emergency, by its very definition, is unplanned.
Guess where you get the money to pay for a medical emergency? Why, the emergency fund, of course.
“It’s especially important to have an emergency fund during retirement,” says Brian Fry a financial planner at Safe Landing Financial in Austin, Texas. “Emergency healthcare expenses are significant and more likely as time passes. There’s always the potential to incur emergency costs with your home and car among other things. You don’t want to have to pull from retirement investment accounts and be forced to time the market. Facing sequence risk and withdrawing funds at the wrong time can have a devastating impact on your retirement plan.”
You may recall reading about this “sequence of returns risk” earlier. It represents a big reason why you need a cash cushion heading into retirement.
“One issue retirees need to be concerned about is the so-called sequence of returns risk,” says Stoyan Panayotov, Senior Advisor and Founder at Babylon Wealth Management in the San Francisco Bay Area. “The sequence of returns is the order of how your portfolio returns happen over time. If you are in your accumulation phase, the sequence of return doesn’t impact your final outcome. You will end up with the same amount regardless of the order of your annual returns. However, if you are in your withdrawal phase, the sequence of returns can have a dramatic impact on your retirement income.”
In this case, the strategy of the retirement cash cushion begins to take on the same purpose of a pre-retirement emergency fund. It’s there to provide income during a particularly turbulent period. Before retirement, that turbulence occurs when you lose your job. After retirement, turbulence happens when the market drops dramatically.
“A cash cushion will protect you from having to sell investments to cover expenses,” says Brandon Renfro, professor and financial planner, Brandon Renfro LLC, Hallsville Texas. “The reason this is so important is if the market drops when you retire and you are forced to sell, you’ll have to absorb those losses. With adequate cash savings, you can simply spend the cash and wait for the market to bounce back.”
Which is why you can’t get too fancy with your retirement cash cushion. In the old-style terminology of investment management, it’s there for only one thing: safety. So, don’t go worrying about investing it to maximize income or, heaven forbid, growth. “It is important to have access to highly liquid assets that can be accessed quickly and without a loss of value to manage unexpected spending shocks in retirement,” says Wade Pfau, Curriculum Director of the Retirement Income Center at The American College of Financial Services in King of Prussia, Pennsylvania.
The “bucket” half of the emergency fund/bucket strategy hybrid offers additional value to you. It allows you an ordered sense that matches your financial resources to your retirement goals. “It makes sense for people to have a cushion of cash when they retire because they will want to enjoy their retirement with the ease of already having money set aside ahead of time,” says Kayse Kress of Physician Wealth Services in San Diego.
By assigning these assets to specific objectives, you can rest assured you can ride out the typically ups and downs of spending.
“A cash reserve is needed is to ‘smooth out’ spending,” says Matt Sotir, with AXA Equitable Life in Wellesley, Massachusetts. “It is hard to spend the exact same amount every month and often there are large ‘spikes’ month to month (for example, taking a vacation, an emergency home repair). The cash reserve allows the retiree to spend the money that is needed (without running a credit card balance) and then build the reserve back up when the spending reverts to normal.”
Keep this in mind: there’s a lot of uncertainty in those first few years of retirement. It’s not an uncertainty related to what you’ll be doing, it’s more of an uncertainty of what it will really cost to do it.
“A larger cash reserve ahead of retirement can give retirees a sense of confidence as they head into one of the largest transitions of their lives,” says Jon Anderson, Head of Retirement Plan Solutions at Cetera in San Diego. “Having a cushion of cash not only protects them through market down-turns or an emergency, it also allows retirees to spend on hobbies, traveling and important lifestyle changes they’ll be making. Retirees who have cash funds set aside to invest in their new lifestyle tend to approach retirement with confidence and make an easier transition as it prevents them from tapping into investments or less liquid assets that may have tax repercussions.”
This may be the best motive to build a cash cushion stockpile before you retire. “The primary reason it makes sense for people to have a cushion of cash when they retire is because there will be an adjustment period the first several months of retirement,” says Bob Forrest, Financial Advisor at Jacobitz Wealth Management Group at RBC Wealth Management in Omaha. “Yes, you have a plan for how much you’ll spend, but that doesn’t always line up with reality. Having some cash on hand will save you from having to draw more than you want from an IRA or 401(k) – which creates more income tax. It will also save you from having to sell some highly appreciated stocks that you’re not ready to let go of yet, which can also create more taxes.”
Retirement, like any other change, brings with it worries and unease. This is natural. Still, there’s a way to rationally mitigate those fears. That’s what the retirement cash cushion does.
“A cash cushion provides certainty in uncertain times,” says Riley Adams a Senior Financial Analyst for Google in the San Francisco Bay Area. “Having that ready supply of cash can buffer you against stock market volatility, disruption in cash flow or other financial events outside of your control. Cash on hand is peace of mind.”
The best time to start building your retirement cash cushion is in the few years before retirement. It requires the same discipline it took you to build up and maintain your emergency fund throughout your working career. Even if you never had much of an emergency fund, it’s not too late to begin saving for your retirement cash cushion.
After all, who doesn’t want a more comfortable retirement?
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acd594287b52c874ba2a9b6dd1f53bd2 | https://www.forbes.com/sites/chriscarosa/2020/01/22/how-can-boomerang-kids-help-you-retire-faster/ | How Can Boomerang Kids Help You Retire Faster? | How Can Boomerang Kids Help You Retire Faster?
For a variety of reasons—student debt, lack of marketable skills, etc…—you may find your once empty nest no longer so empty. Many view this predicament with a frown on their face. Smart folks smile, seeing it as an opportunity to turn lemons into lemonade.
You, too, can be a “smart folk.” And it just might nudge you closer and quicker to a comfortable retirement.
Of course, the nudge can be a shove. The prospect of having kids return home may cause you to consider the alternatives. “Moving to a retirement community sooner than you might otherwise is one way Boomerang Kids can help you retire faster,” suggests Michelle Fait, Founder/Financial Life Planner at Satori Financial LLC in Seattle.
All kidding aside, Boomerang Kids can accelerate your transition to retirement. “I have had clients that were able to retire a bit earlier after having their Boomerang Kid pay rent,” says Abbey L. Henderson, CEO, wealth advisor, and coach at Abaris Financial Group in Concord, Massachusetts.
Broadly speaking, parents should see their returning prodigals as an asset. And you know what you can use assets for.
“First and foremost, Boomerang Kids should not be a liability,” says Robb Hill, President of R Hill Enterprises, Inc. in Aurora, Illinois. “The best and fastest way for them to help their parents is to assist in paying down the parents’ liabilities.”
Most financial planners will tell you that reducing debt is among the most important things for you to do as you head into retirement. “Boomerang Kids living at the family home for a longer period of time can help you tackle debt faster and allow you to set a good financial foundation for the rest of your life,” says Deacon Hayes, President of Well Kept Wallet in Scottsdale, Arizona.
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The financial mechanics of matching this new-found asset to an array of liabilities encourages parents to do what they should have been doing all along. “Boomerang kids often force you to revisit your budget, and that’s a good thing,” says Chris Bach, Senior Vice President and Wealth Advisor at RMB Capital in Minneapolis. “The exercise of reassessing your spending and savings habits can uncover opportunities to cut expenses.”
While you’re looking at day-to-day budgeting, you can also look at the impact a Boomerang Kid can have on long-term planning. “Supporting adult children can focus pre-retirees on updating their plans and prioritizing when to retire,” says Howard Safer, CEO of Argent Trust Company in Nashville.
In fact, it’s not a bad idea for you to start making plans for a kid boomeranging back well in advance of the scenario actually occurring. “If I incorporate planning around having the kids living with me, then I am financially sound,” says Shannon McNulty a Canadian real estate agent in Vancouver, British Columbia. “If they end up not living with me, then I am even more prepared.”
Don’t limit yourself to just one aspect of your child’s potential contribution. “Children that move back home can help your own retirement in a few ways,” says Brian Jarosinski, Senior Advisor, Wealth Management at NFP in Bethesda, Maryland. “The main one is charging them rent (and thus teaching financial responsibility) once they move back home. Others include doing chores and errands around the house to save the cost of paying someone and/or the opportunity cost of the lost time away from work and/or leisure.”
Another big advantage comes with your adult child contributing in some way to the family operating budget. “Boomerang kids can help you to retire faster in that they’re typically of an age when they’re working and have an ability to contribute to the household expenses. This cost savings to you can be earmarked as additional retirement savings,” says Michael Gerstman, CEO of the Dallas-based Gerstman Financial Group, LLC.
It’s not all dollars and cents, either. Face it. If you’re a parent, you’re a parent. That doesn’t change. You have to admit there’s a certain joy knowing you’ll have your little nestlings stick around a bit longer. Plus, you get to act like a knowing mentor in a face-to-face manner.
“Boomerang Kids can be great,” says Matt Ahrens, Chief Investment Officer at Integrity Advisory, LLC in Overland Park, Kansas. “Not only do you get to spend more time with your kids, but you get a chance to teach them some great money habits.”
Remember, as tempting as it might be to think this way, Boomerang Kids are not boarders, they’re your offspring. As such, they represent an investment in your future. Training them well now will give you comfort in your retirement. But this training shouldn’t mimic the teacher-student model of their youth. They’re full partners now. You’re a team.
Use their proximity to give them a turbo boost when they eventually do launch off on their own. “Boomerang Kids and parents should work together to outline a saving plan,” says Tyler Zanini, CEO and Founder at Retire in San Francisco. “Boomerang Kids should have a strict and specific time period they are allowed to stay home and when they are expected to move out. Boomerang Kids have ample opportunities for side jobs and part time work.”
Here’s an idea. Think of Boomerang Kids not just as a chance for you to retire early, but for the kids to achieve financial success, too. “If they are able to establish a good financial foundation by living at home (for a short agreed upon time) and truly save for their own financial goals, it can mean you can focus on your own goals,” says AJ Smith, Vice President of Financial Education at SmartAsset in New York City.
Beyond this, there’s more to the question of how can Boomerang Kids help you retire faster. “Ideally, those approaching the end of their working lives would be financially independent and not reliant on children to start the transition into retirement,” says Mike Hennessy, Founder & CEO at Harbor Crest Wealth Advisors in Fort Lauderdale, Florida. “A more important twist on this question is how to discuss, openly, family finances and the legacy or estate goals of the parents. This is a tough conversation to have, but much better than foisting it upon your teary-eyed children at the will reading.”
A child returning home as an adult for an extended stay can reduce your living expenses and allow you to save more for retirement. These twin benefits can certainly help you retire faster.
But Boomerang Kids present a far more substantial opportunity.
You and your kids are a lifetime partnership. Spending quality time together as they are just starting their careers will pay dividends to the both of you in the future.
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f640fbcf4e5f3377705cf27f95cd16a9 | https://www.forbes.com/sites/chriscarosa/2020/02/20/moving-over-and-up-heres-how-to-fit-in-at-your-new-job/ | Moving Over And Up? Here’s How To Fit In At Your New Job | Moving Over And Up? Here’s How To Fit In At Your New Job
Job hopping is a tried and true way to build wealth—but only if you do it right. Fortunately, you have a built-in mechanism that helps you. It’s your innate desire to be liked.
Everyone wants people to like them. It’s a natural response whenever you find yourself immersed in a crowd of people.
Think of how you felt during freshman orientation at college. Or when you join a club as a new member. Or the time you moved to a new house and met your neighbors for the first time.
You may think you were just being tentative or shy, but what you were really doing was trying to figure how to fit in.
This same is true when you start a new job. No matter how many times you may have changed companies, that first day of work brings with it a desire to be liked.
“The first thing on most new employees’ minds when they first start a new job is worrying about fitting in or proving that they belong,” says Sean Collins, VP of Operations at Maine Marketing Association in Portland, Maine.
The easiest way to blend in is to familiarize yourself with the operating standards at your new place of employment. Showing a willingness to toss away your old way of doing things and embrace the company’s way demonstrates to others your ability to adapt. It offers evidence that you will defer to your new environment. This expresses to others you are more than happy to be a part of your new team.
“Most employees focus on making a positive impression at their new place of employment,” says Duncan White, Search Consultant for Judson Group in Grand Rapids, Michigan. “They’re also getting familiarized with new software, processes, and procedures that differ from their previous employer’s way of doing business. It is extremely important for them not to assume that everything is done the same way it had been done in their previous organization.”
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Still, it’s critical to keep your eyes and ears open to other non-technical traditions your new coworkers might expect you to adopt.
“The first thing on my mind is usually the cultural fit,” says Scott Jennings, Senior Vice President of Sales at Centage in Natick, Massachusetts. “It’s difficult to know how you will actually gel with your team, and the company as a whole, before you are in the day-to-day, but the cultural fit is such a vital element to your success in a new job.”
The challenge you face is that, unlike standard operating procedures, there is no employee manual that describes the intricacies of the company’s ethos. You may get a sense of the corporate mission and values, but those are merely formal platitudes.
What counts is how your peers interact with each other. What kind of jokes do they tell? Where do you usually eat lunch? How often do they get together outside of work? They are all unwritten rules that may not even be shared with you until you’ve already taken steps to illustrate you fit in.
“One of the major aspects of a new job is understanding and getting a feel for the dynamic and culture of the team,” says Ali Fazal, Senior Director at Hibob in New York City. “The hardest thing about starting a new job is figuring out where you are in this new ecosystem amidst so much tribal knowledge. Figuring out who reports to who and who’s responsible for which cultural initiatives and who to email when you need something can quickly become a full-time job if they don’t have a system to help.”
Chances are, your new company will have such a “system” for you to engage in casual activities. It’s important that you avoid that tendency towards tentativeness and take advantage of these opportunities.
“Stepping foot into unchartered territory can be intimidating for a new hire,” says Brad Goldoor, Chief People Officer at Phenom People in Amsterdam. “New jobs are exciting for people—but accompanied with the thrill can be a sense of longing for camaraderie. Every company has a different culture so it’s crucial to encourage employee participation around the office. Events, contests, and holiday parties are a great way to engage new hires with their tenured colleagues and increase retention rates.”
So, be sure to keep calm and get your head in the game the moment they lead you to your new desk. The clock starts ticking even before then when it comes to making a good initial image.
“When somebody starts a new job, feelings of excitement, enthusiasm and even a touch of anxiety about making a good first impression are somewhat universal,” says Steve Renier, SVP Talent at Broadhead in Minneapolis. “Think, ‘First day of school’.”
But don’t worry too much. It’s OK to feel a little tense on the first day of your new job. You’re no different than anyone else.
You’re just fitting in.
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b14bb936421b2fbe03b8767b4108fcef | https://www.forbes.com/sites/chriscarosa/2021/04/08/10-parent-tips-to-make-money-smart-kids/?sh=3294709a24cf | 10 Parent Tips To Make Money Smart Kids | 10 Parent Tips To Make Money Smart Kids
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April is financial literacy month, and while many see this as an opportunity to focus on adults, the secret to long-term success lies in teaching children. No one is in a better position to accomplish this task than the parents.
“There is absolutely no question in my mind that parents can make their kids better savers by teaching them about saving from an early age,” says Matt Schulz, Chief Credit Analyst for LendingTree TREE in Austin, Texas.
Smart parents like you start their kids early when it comes to sports, musical instruments and academic learning. Young minds are malleable at these ages. They’re more likely to pick up and retain fundamental concepts. And once they’ve got the basics down, they can more quickly move to the advanced topics.
This gives them an edge in whatever field you allow them to concentrate on.
Why not do the same when it comes to money?
Here are ten tips offered by financial professionals to parents seeking to give their kids a leg up on the competition when it comes to financial matters.
1. Give Them a Goal
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Before kids can even read, they understand pictures. This means they’re more likely to be able to draw something they want before they can spell it. Use this visualization technique to help them establish small attainable goals. This is a great habit to develop early as it has applications well beyond money and will help both at school and at work.
“Encourage children to make goals,” says Nicole Watson, SVP/Territory Delivery Director at UMB Bank in St. Louis. “One way to teach young children financial responsibility, particularly saving, is by instilling a goal-setting habit. Make a savings goal chart and use stickers or drawings to visually demonstrate the amount of money saved each week. If your child wants to save up for a specific item, consider adding a picture representing what he or she wants to purchase with the saved funds as a motivation.”
2. Delay Gratification
The hidden secret to obtaining any goal but especially financial goals is patience. It takes time to build what is necessary to achieve what you seek. It’s actually easier to demonstrate this with modest money-based goals. That’s because there’s not a long wait between the anticipation and attaining that which you seek. This is important because too often kids “want it now.” So start small as you build the habit.
“Show the value of delayed gratification,” says Tremaine Wills, Financial Planner at Mind Over Money in Newport News, Virginia. “Instead of spending one dollar on candy today, save the dollar and keep saving until the child has saved enough to buy a larger desired thing like a new bike or game system. This is effective because it teaches discipline to put money to the side for a later much more rewarding benefit.”
3. Teach Them to Spend
In the course of setting goals and teaching patience, what you’re really doing is teaching your child how to spend. Still, don’t make this a theoretical exercise. Place your child in the position to actually make the purchase. They’ll learn (and remember) more from real-life experience than from any simulated role-playing.
“Make them pay,” says Josh Bennett, Founder of Vincere Wealth Management in San Francisco. “You’ll often have expenses for your child (hair-cuts, dinners, sports, textbooks...etc). Instead of giving them an allowance and paying for their needs out of your pocket, give them the money to pay for their own needs. For example, give them $500 per month, but then don’t pay for anything else for them. Make them pay their own bills. Make them choose between needs and wants. This will help teach them the value of a dollar.”
4. Tie Activity to Earnings
Now you’re ready to broaden the activity to include generating income. Think of the first three tips as basic training. Here’s your child’s first opportunity to take things to the next level. And the faster your child can reach this level, the faster your child can begin to master money in ways that can produce solid long-term rewards. As before, however, you want to start small.
“To teach children to save, create a set list of chores they can do that are age-appropriate,” says Jennifer Garcia, Managing Director for the Garcia Private Wealth Group of Wells Fargo Advisors in Encino, California. “Determine an amount that they receive for each type of chore and have the amounts vary based on the task. Then your child can start making decisions themselves on what chores they want to do. Make a chart to show them how much they have saved over a set period of time so they can see their progress. This exercise motivates your children to learn how to make choices and see the benefits of their ‘labor’.”
5. Be a Player Not a Spectator When It Comes to Saving
Once an honest days’ work begins to reap a steady income, your child is ready for the next stage: actual saving. You can’t save until you’ve learned to spend, and your child passed that test a few tips back. But you can’t truly save until you’ve found a way to get paid for doing work. Once you start bringing home the bacon, the door to saving opens.
And this means it’s time to “open a savings account,” says Watson. “Having their own independent account may encourage kids to save more money, and it will make them feel more responsible. Select a local bank and open an account, whether it’s a standard savings account or an account built specifically for parents and children. Consider asking the banker to discuss why saving is important so your child hears it from someone other than you. A monthly trip to the bank or ATM where the child personally deposits their new savings and receives a balance slip is positive reinforcement that they are growing their account. Additionally, this repetition will help solidify the importance of stashing away money.”
6. Expose Them to the Magic of Compounding
OK, this tip is really just for advanced classes. Nonetheless, it represents a tantalizingly delightful piece of the financial knowledge pie that’s simply too tasty to put off much longer. As adults, we understand the power of compounding. Kids might not appreciate it immediately. Still, it’s a seed worth planting.
“I would encourage parents to inspire their children to save by showing them a compound interest table of how dramatically money can increase if you continue to save it over a long period of time,” says George Kinder, President and Founder, Kinder Institute of Life Planning, Littleton, Massachusetts. “I’ve done this with my two 17-year-old daughters.”
7. Offer to Match Their Contribution
To really show actual compounding requires years and years of waiting. That’s probably too long for most kids. There’s a quick and dirty shortcut that does a good job of getting the idea across while at the same time encouraging your child to save. Think of it as the parental equivalent of the 401(k) plan.
“It can often be difficult to see the reward of saving during the early stages,” says Chanel Dorée, Wealth Advisor in RMB Capital’s Lake Forest, Illinois office. “Today, the $100 your child earned from walking the neighbor’s dog all summer will earn maybe $0.50 over the course of a year in their local savings account. However, if as a parent you are able to match what your child is saving, it is a much more impactful and rewarding training tool. This exercise opens the door for conversations about longer term savings, the impact of compound interest and one day, an employer match in a 401(k).”
8. Start Building a Great Credit Score
Here’s another advanced tip that moves your child up the financial literacy ladder faster than most. Be careful with this one, though, as it is ripe for abuse. On the other hand, when would you rather have your children make a “major” credit mistake: when they’re still living under your roof and “major” isn’t that big, or, when they’re on their own and “major” has a lot more digits in it?
“Get them a store credit card,” says Bennett. “I’ve worked with hundreds of teens from high school through college-age and most don’t have a credit score. Establishing credit can help them get low interest rates and even employment. If they have to refinance student loans or buy a house after college, then starting early on credit can save them hundreds of thousands on interest payments. In-store credit cards are often easier for teens to get and harder to mismanage as they learn proper credit card management skills.”
9. Have Them See Their Progress
Remember how visualization helped young children “see” their goals more clearly. Spoiler alert: Things don’t change as you get older. Consider how long it takes you to watch a movie versus how long it would take you to read the book the movie was based on. Pictures, graphs and charts all work wonders in communicating quickly and precisely.
Make sure your kids know where to find them, what to make and how to interpret them when it comes to their own finances. Start doing this at a young age and don’t stop, even when your kids are adults. There are a lot of creative ways to do this.
“Make the saving process visual,” says Aaron Shapiro, Founder and CEO of Carver Edison in New York City. “Putting money in a clear jar that builds over time is a great example of this. People often forget that pennies turn into dollars and dollars into hundreds of dollars. By saving and fighting the urge to always spend money as you go, the jar will serve as a reminder of how quickly money can grow.”
10. Be the Best Example You Can Be
Finally, the apple doesn’t fall far from the tree. When the child sees how organized the parent is when it comes to operating the family budget, the message is clear and memorable.
“The best thing you can do is to be a good role model when it comes to saving,” says Schulz. “You may not think they are, but your kids are watching what you do and listening to what you say. If you spend like crazy and never give any thought to saving, your kids will see that and assume that it is the right way to handle money. However, if you make a point to save what you can and talk about it with your kids, that can have a huge impact. I’m not saying you should give your kids all the deepest details of your finances, but just letting them know that you’re saving because it is an important thing for your family can be enough.”
The best part of practicing these ten tips is that, not only will they give your kids money smarts, but you’ll sleep better at night knowing your kids are ready to leave your financial nest.
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3393979d45690f665315280bcd890c28 | https://www.forbes.com/sites/chriscarosa/2021/04/14/are-you-ready-to-play-the-401k-game-hint-you-already-are/?sh=442ce6e74ab7 | Are You Ready To Play The 401(k) Game? Hint: You Already Are | Are You Ready To Play The 401(k) Game? Hint: You Already Are
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You may have heard of the term “gamification.” It means what it sounds like: taking an everyday activity and turning it into a game, or at least something fun. Mary Poppins did this when she reframed the boring mundane chore of cleaning up one’s room into a delightful spoonful of sugar.
It’s true. “In every job that must be done, there is an element of fun,” as Mary instructed her young charges.
And it’s not just make-believe. It’s about to happen in your 401(k).
Actually, it already has, but you don’t want to spoil the fun, do you? To really appreciate this coming transformation, you need to understand what’s compelling it. And—surprise!—you can’t blame this on the young folk.
“The concept of gaming is becoming ‘the new family room’ as it has replaced TV as the medium which drives the most engagement for broad-based audiences,” says Beth Garner, BDO’s Employee Benefit Plan Audits National Practice Leader in Atlanta. “Nearly 3 billion people are gamers. As the 401(k) retirement account market is expanding to include Millennials and Gen Z, it’s also worth noting that one of the fastest-growing demographics for video gaming in the U.S. is Baby Boomers. Gamification can be applied to employee education to generate greater engagement and an immersive experience to help make the process more fun and less stressful.”
Forward-looking service providers have already incorporated popular gaming elements into their 401(k) employee training programs. These may be the role models for the future.
“Learn from industry leaders like TIAA, who has been using gamification strategies for retirement planning for a decade or more,” says Keith Lichtman, Principal and Director of Financial Planning for Maycomb Wealth Advisors LLC in Atlanta. “TIAA identified that half of plan sponsors were only ‘somewhat confident’ in their employees’ retirement futures. Most worried employees are not saving enough (75%) or not choosing to actively participate in their retirement plan (55%). Those grim statistics, coupled with the fact that millennials are now the largest generation in the workforce, prompted TIAA to launch Financial IQ, a game that allowed employees to compete against one another in a series of financial education quizzes. It has expanded the program to allow clients to build their own questions tailored to their particular retirement plans.”
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But the real lure of gamification isn’t merely recreating the 1950s quiz show, it’s morphing employee education into an elaborate video game. There’s a reason why you can get addicted to these types of games. Without getting into the chemical-neurological science behind it, suffice it to say, when constructed properly, games excite you in ways that have you wanting to come back for more.
What are some of these elements and how might you see them being used in your 401(k) some time not far from now? Consider just four of them: “leveling up,” “the boss fight,” “leader boards” and “badges.”
“In gamification terms, ‘leveling up’ means reaching the next stage of progression of cumulative learning, and is an effective concept for triggering self-motivation,” says Garner. “Leveling up can be applied to 401(k) education as the complexity of the educational lessons increase and concepts build on themselves. In other words, the level of sophistication for employees’ understanding retirement building and financial wellness increases gradually in levels. In hypothetical terms: Level One could be understanding foundational building blocks of good financial saving habits and the benefits of sound retirement planning; Level Two could be an overview of different types of investment allocations; and, Level Three could be learning about Target Date Funds, and so on.”
In gaming, what separates you from advancing to the next level is something called “the boss fight.” It’s called the “boss fight” because it’s the bigger and stronger version of all the other obstacles you had to overcome as you progressed through the level.
“While not as well known in 401(k) planning as it is in the video arcades of the 1980s Generation X grew up in or the home gaming Millennials and Generation Z now do, it would be an easy theme to develop,” says Lichtman, who envisions a rather creative way of doing this in 401(k) education.
“The employee playing the 401(k) game is going through a maze of options to set up their ideal plan, navigating a map to get to the treasure at the end of the game,” says Lichtman. “At each stage, they must face an increasingly harder adversary, such as:
Level 1: ‘Alexis’ - This high-flying foe (think aerial combat scene) embodies high expenses that one must avoid to have a better investment experience.
Level 2: ‘Diver’ - This sea-dwelling foe (fighting underwater) embodies a lack of diversification, which the employee must avoid at all costs.
Level 3: ‘Freud’ - This wizard can trick the player into making all kinds of bad decisions. The player must beat Freud to avoid making the kinds of mental mistakes and behavioral finance missteps that all too many investors make, hurting their returns in the process (buying low, selling high, trying to time the markets, trying to beat the markets etc., etc.)”
You get the picture. The boss represents a personification of all the preliminary lessons learned before confronting the final challenge. In essence, it’s the final exam based on the small quizzes you took earlier in the semester. Only it’s more fun. It’s not school. It’s a game.
And if you’re playing a game, you’re going to want to keep score. And if you’re keeping score, nothing motivates you more than the yearning to compare yourself to others. This is where “leader boards” come in. Like in a golf tournament, it’s an ever-changing ranking of players after each round is played.
Unfortunately, you can’t apply it the same way you do with regular games. This is where 401(k) gamification has its limits.
“Leader boards are typically used in gaming to compare players’ achievements,” says Garner. “For some of the more confidential issues associated with 401(k) education, leader boards aren’t used. Instead, apply judgment when a record of achievements should only live on the employee’s private page and are not socialized publicly.”
“Badges” present the same kind of privacy issues.
“Awarding of badges is an element of gamification that provides recognition for unlocking an achievement. Also, it adds a collectability component to learning a new skill. In addition to winning badges, plan sponsors may find their gamification initiative more compelling if there’s a financial incentive or a reward,” says Garner. “Some of the more confidential issues associated with learning in this area, that badges only live on the employee’s private page and aren’t socialized publicly. For some of the badge-earning topics that aren’t associated with confidential retirement and financial issues, badges can be a fun way to add competition and ‘bragging rights’ to a game.”
Still, at their most basic level, whether private or public, badges nudge people closer to practicing the ideal behavior.
“It’s no different than a teacher in a classroom using gold star stickers on a student’s paper to encourage them,” says Lichtman. “The human brain is hard-wired to love these kinds of rewards. It is a basic tenant of behavioral psychology.”
Indeed, think about it. You’ve been given “badges” from the very beginning of your participation in your company’s 401(k) plan. It’s called the “company match.” Once you contribute enough of your own money, the company rewards you with some sort of matching contribution.
You see, you’ve been playing the 401(k) game all along.
Only now, that game is about to get more enticing (within limits, of course).
“It’s important to evolve with your workforce, but at the same time, remember to respect confidentiality and act as a fiduciary first and foremost,” says Garner. “In terms of tips for implementing gamification elements to employee education, consider precautions when educational topics involve matters of confidentiality. For instance, when awarding badges or showcasing players’ leader boards, be careful to not give participants points or public recognition for things that should stay confidential. It’s worth thinking through if this strategy is the best fit for the organization or if taking a differing approach to sprucing up the 401(k) employee education process would be more appropriate.”
Of course, once you think of retirement as a quest for a treasure sought through the ages, you may find yourself wanting to explore all the nooks and crannies the game has to offer. Just be careful of the snakes.
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4ccb9d0b115a0ac9b6b2b584d171c9e5 | https://www.forbes.com/sites/chriscarosa/2021/04/19/how-parents-can-use-storytelling-to-raise-financially-literate-children/ | How Parents Can Use Storytelling To Raise Financially Literate Children | How Parents Can Use Storytelling To Raise Financially Literate Children
credit: EPAM Systems
Does it irk you to no end seeing your kid stare at the screen for hours on end playing a pretend game? Do you think your child will live a healthier life playing a real game outdoors instead? Are you driven up the wall watching your youngster get irrationally angry at a mindless set of bits and bytes whenever the game wins?
Well, you might reconsider your view of this behavior. In fact, if you understand anything at all about jiu-jitsu, you can probably leverage this gaming inertia in a way that makes your child a lot smarter when it comes to money.
Face it, most video games are already conditioning your special boy or girl to better understand the fundamentals of finance. After all, how else can players “upgrade” their character if they don’t accrue enough points to spend at the game’s store?
That’s math. That’s money. It’s still make-believe. But it’s a start.
Now, if only you can use the same techniques found in popular video games to condition your kids about real money…
(Hint: You can. And it’s incredibly natural and easy.)
Dr. Sandra Loughlin is a learning scientist and organization change expert. As Head of the Learning Practice at EPAM EPAM Systems, Sandra is responsible for integrating EPAM’s many internal and external educational activities under one umbrella and ensuring that they reflect the latest advances from the learning sciences.
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Before that, though, Sandra held faculty appointments in colleges of business and education at the University of Maryland and advised several EdTech startups. (She holds a Ph.D. in educational psychology and learning analytics from the University of Maryland and a master’s in education from Harvard University, so you know this is somebody worth listening to on this subject.)
She was kind enough to answer a few questions. These are the kind of questions whose answers can pep up your dinner table/car ride conversations and, at the same time, lay the groundwork for launching your child on the path towards financial success.
Best yet, you’ve already been doing this, ever since you started reading your baby bedtime stories.
Question #1: Dr. Loughlin, we’re all familiar with Aesop’s Fables, short stories parents would read to young children to teach them valuable life lessons. What makes storytelling such an effective teaching and learning tool?
Storytelling is an incredibly effective teaching tool because it replicates facts and concepts we experience in the real world—integrated into a historical and cultural context with personalities, motives, events, decisions and consequences. They’re memorable, especially when interjected with humor, surprise or emotion. In fact, I’d argue that storytelling is the only way to effectively teach big concepts like delayed gratification or the Golden Rule because they unfold via myriad events over time. Stories are perfect for that.
They are also incredibly durable. How many times have you, as a parent, naturally defaulted to explaining big concepts to your children by repeating fables and parables learned in your own childhood? When you think about that, it’s kind of remarkable. Not only do parents remember the stories—most of which they probably haven’t encountered for 30+ years—but they can recognize the teachable moments and leverage the best tool for instruction. This is the power of Aesop’s fables and other stories that have endured for millennia.
Question #2: Break it down for us. What exactly are the key components of storytelling?
If you search for “story elements,” you will see various lists outlining three to ten elements. Aristotle, for instance, said there were seven. Personally, I see three universal elements to stories: the main character, a conflict and a resolution. In other words, a story consists of a character (or two) that faces and overcomes a challenge. That’s a story in a nutshell.
What’s really interesting to me about stories are the different types of conflict. Most people, when they think of stories, go immediately to a bad guy—the Joker or the evil stepmother. But that’s only one type of story. Characters can also be pitted against nature, machines, fate, society and themselves. All of these types of conflict can create gripping, emotional narratives that keep you on the edge of your seat.
Question #3: What you describe sounds just like what we experience when reading a good book, watching an exciting movie or even binge-playing an infatuating video game. In fact, some of the most popular video games are now produced just like movies. They are heavily immersed in the art of storytelling. Can you explain why there is this link between storytelling and gaming?
Video game designers are no dummies when it comes to human psychology. In fact, top-tier video game companies put psychologists and neuroscientists on development teams to maximize the enjoyment and persuasive power of games. So, it’s no surprise that some of the most successful video games on the market use story to drive engagement. But there’s a big difference between a story you read or watch and a story-driven video game—now you’re in the driver’s seat. Instead of passively watching the main character respond to challenges, you have to monitor the adversary, make split-second decisions and apply strategy to overcome the adversary. This is what we naturally do when watching or reading a story. How many times have you rolled your eyes at a character who makes the same mistake again and again or yelled at the television, “Are you crazy? Don’t go in there!” A well-designed, story-driven video game lets you make the choices. They allow you to try and fail and try and fail until you get it right. This experience works chemically on the brain, creating surges of adrenaline and floods of dopamine. And that just makes us want to play some more.
Question #4: On to the nitty-gritty: money talk. Many have complained about the lack of financial literacy among the adult population and point to the lack of curriculum at the secondary school level as a reason why. Can story-based video games help?
I love this question because I’m one of the complainers! It’s appalling that, as a society, we don’t teach kids some of the foundational skills they need to be successful, independent adults. Cooking, laundry, gardening, car care, finances… They get overlooked, and young people struggle because of it.
So, yes, financial literacy is a huge problem, and, yes, story-based video games can help. If you think about it, your financial circumstances have all the elements of a story. As the main character, you have to take into account many factors, make uncertain decisions, face expected changes in the market, and deal with the consequences. Real-life has it all: strategy, excitement, surprises, wins and losses. A well-designed, story-driven video game can take all of the real-world excitement of financial decision-making and add a critical, instructional dimension: do-overs.
It takes a long time—and actual financial risk—to learn critical concepts in the real world. But a video game compresses that timeline and gives kids a chance to try out several approaches and see the consequences of each one. And, if you do it right, a financial video game can be incredibly fun.
Question#5: So, are video games enough? What role do parents and teachers play?
Video games are amazing, but they aren’t a magic bullet for financial literacy. This has been borne out by previous research. Several recent studies looked at the impact of financial video games on real-world financial decision-making, and they show minimal effects. Most people would hear this and conclude that financial video games are worthless. But, as a learning scientist, I’m not surprised or disheartened. Very few instructional tactics by themselves transfer into practice. This doesn’t mean that financial video games are worthless; it means they aren’t sufficient. To really teach financial literacy, games should be combined with directed and ongoing conversations with financially literate adults, ideally parents.
Financial literacy is based on several core concepts. This is stuff like not putting your eggs in one basket, letting your money make you money and knowing when and how to take risks. Yes, there is also some degree of math involved to understand finance. But I’d argue that the math part is relatively easy to learn and of secondary importance to the core principles, which are universal and can be understood at an early age.
The best way to teach children these financial concepts is by turning your financial history and current situation into a series of stories. Talk over the dinner table about your financial past, highlighting critical decisions and challenges you’ve faced. During these conversations, be sure to highlight the adversary—this is usually yourself—and the concept the story illustrates.
I want to also acknowledge that this whole idea of talking to kids about money is uncomfortable for some parents. If you’ve made poor financial decisions in the past, it could be hard to acknowledge that. It’s even harder if you’ve experienced a financial setback and have to acknowledge a mistake. Discussing money can also be difficult for well-off parents, especially those who have close friends or family with fewer means. We all want to raise compassionate and humble kids, and some parents avoid talking about money because they want to downplay the inevitable comparisons.
But, in the long run, talking openly about money is the best way for kids to learn how to handle it.
Question #6: Now for a specific example. Assume the child is a teenager who has a job. The parents want to encourage the teen to learn the discipline of working for someone else, so they like the idea of the teen spending those hard-earned bucks on some enticing thing. But the parents, who understand the fantastic power of long-term compounding, also want their teenager to develop a habit of saving. How might storytelling and gamification work hand in hand to achieve this objective?
Ideally, kids would start learning about personal finance as young children by earning money for chores, having them pay for or contribute to purchases of games and toys and having a savings goal. In this situation, the concept of saving has already been introduced.
But let’s say that wasn’t the case, and a teen is learning this lesson for the first time. As a parent, you would start trying to encourage and convince them, which is where storytelling and gamification can help. If you haven’t talked to your teen about savings before, now is the time. Tell the story of your first job and how you handled it. Did you save? Why? How much? What were the consequences of generating (or losing out on) the power of compounding? What did you learn? Be honest about tradeoffs—choosing to save means your teen won’t have as much money to spend on “fun” stuff. Offer advice on handling the emotions of that eventuality.
Gamifying the situation will sweeten the pot. Sit down with your teen and use free savings calculators to show how their money will grow by college or how quickly they’ll be able to save for a big purchase. Further, encourage savings by creating little quests or increasingly challenging savings goals. For instance, the first goal could be opening a savings account, for which they are rewarded with a celebratory ice cream sundae trip. The next goal could be saving their $100, which earns them a $25 matching contribution from you, and so on. You can also signal your appreciation of your teen’s saving efforts by implementing random rewards, like surprising her with the shoes she’s been admiring. The key is to tie the reward to your teen’s saving behavior. These are just a couple of ways to gamify saving, turning it into a lifetime habit.
Question #7: Finally, why is it critical parents take on the role of a “money coach” rather than rely on some textbook or mobile app to teach their children good financial habits?
I love the concept of a “money coach;” that’s a perfect descriptor of the ideal role parents play in their kids’ financial education. Parents are the first and most powerful teachers children will ever have. A textbook is gone after the school year, and mobile apps can be mastered. But a family’s financial story is unfolding in real-time and is constantly being challenged by circumstance. Parents have the opportunity to augment academic knowledge and fun-but-not-real games into stories and concepts that have incredible durability and staying power.
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b2277058cfcc4a86e0088f48f5913d94 | https://www.forbes.com/sites/chriscason/2020/02/19/ja-morant-and-nba-rookies-are-changing-the-memorabilia-market-with-panini/ | Ja Morant And NBA Rookies Are Changing The Memorabilia Market With Panini | Ja Morant And NBA Rookies Are Changing The Memorabilia Market With Panini
MEMPHIS, TN - JANUARY 26: Ja Morant #12 of the Memphis Grizzlies looks on during a game against the ... [+] Phoenix Suns at FedExForum on January 26, 2020 in Memphis, Tennessee. The Grizzlies defeated the Suns 114-109. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Joe Robbins/Getty Images) Getty Images
When Panini America signed Ja Morant to an exclusive autograph card and memorabilia deal last May, they knew they were getting a point guard with jaw-dropping athleticism whose style of play would resonate with NBA fans and transcend in any market he would be drafted to.
They just had no idea it would happen this fast.
“You usually don’t see (rookies) really get a good feel for things until it’s towards the end of the season,” said Jason Howarth, Panini’s Vice President of Marketing. “We just loved his personality and his game. We thought what he did in college was phenomenal and that is why we wanted him as an exclusive athlete.”
By signing the deal, Morant joined some elite company other Panini-exclusive NBA players include Kobe Bryant, Kevin Durant, Damian Lillard, and Kyrie Irving to name a few.
Morant has averages of 17.6 points and 7.1 assists, a shooting percentage of 49 from the field, 35.8 percent from 3-point range, and is helping push the Memphis Grizzlies into playoff contention — when many picked them to finish with one of the league’s worst records — Morant has led the Rookie of the Year conversation all season long.
“I’m very confident in myself,” Morant said. “I know I’m good enough to play on this level but also humble enough to know I have room for improvement.”
The trading card market has seen tremendous growth over the last two and a half years and according to Howarth, this current NBA rookie class has “blown sales out of the water” at retailers Walmart and Target, where Panini’s cards are sold. The overall trading card sales have gone up exponentially because of basketball and it’s never been as high as it has this season.
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“One of our biggest products is our NBA Prizm product,” Howarth says. “There were literally people following the (delivery) trucks as they were delivering them to Walmart so that they could go and buy them. The second they went on the shelves, they were gone. The boxes would sell from anywhere from $100 a box, but if you got your hands on one of them, you could probably sell it on eBay for $250 or $300.”
With Morant being a fixture on nightly highlights and ushering in a new culture of basketball in Memphis, his popularity will only continue to rise, which only helps Panini's efforts in expanding in new markets.
Last August, the company launched its social platforms in China and plan on launching their online store this Spring. Morant will be a big part of that push and that will only help increase his exposure in a market where over 600 million people consume NBA content per year and where many of the top players make summer pilgrimages to help promote themselves and their signature shoes.
Morant's off-the-court brand is something that he has thought some about during his acclimation to the pro lifestyle. During his time in Chicago for All-Star weekend, he got the opportunity to speak with Steve Nash and he peppered the Hall of Fame point guard with questions on how he prepared himself to be ready for life after basketball. Nash’s advice was to start early and take advantage of the opportunities presented to him. When Morant spoke of the exchange, he perked up from his usual stoic demeanor.
For now, his focus shifts back to finishing up the season strong and make some noise while doing so.
“Our main goal is just to stay focused and locked in. I feel like we’ve been playing good but we can be better in some areas,” he continued. “I feel like we’re good enough to run with the top teams in this league. It’s just all about going out and playing hard each and every night.”
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2059d3ca932ce55dc563e3feef91beb0 | https://www.forbes.com/sites/chriscason/2020/07/17/rick-foxs-latest-venture-offers-gamers-a-platform-to-be-recognized-for-their-feats/ | Rick Fox’s Latest Venture Offers Gamers A Platform To Be Recognized For Their Feats | Rick Fox’s Latest Venture Offers Gamers A Platform To Be Recognized For Their Feats
NEW YORK, NY - JULY 28: Rick Fox attends Overwatch League Grand Finals - Day 2 at Barclays Center ... [+] on July 28, 2018 in New York City. (Photo by Matthew Eisman/Getty Images for Blizzard Entertainment ) Getty Images for Blizzard Entertainment
Three-time NBA champ Rick Fox FOXA is looking forward to the league’s restart and hoping the season will be able to be completed.
While under less severe circumstances than COVID-19, Fox recalled the 1998-99 lockout that lasted from July 1 until January 20. Fox, 29, at the time, believes that period helped enhance his game. He used the off time to research and learn more about his health and nutrition, even picking up long distance running to help with his endurance. He’s not worried that guys will be too out of shape when games resume later this month.
“You can’t teach professionalism,” Fox said. “You either have it or you don’t. This is your career. I’m sure guys have remained dedicated and stayed on top of what they needed to the last three months.”
With no traditional sports to watch, Fox has spent the last few months watching esports tournaments and competitions. As a child in Nassau, he would spend hours and countless quarters at the neighborhood arcade. His latest venture in the gaming world, as co-owner of Twin Galaxies, has him just as passionate about the future of gaming as he was during his 13-year professional basketball career.
Twin Galaxies was originally founded in 1981 and is dedicated to the recognition, promotion, support and elevation of all video game players throughout the world. They provide a comprehensive system that can evaluate any player's video game performance, verify legitimacy and also offer competitive leaderboards, built-in tournament systems for performances to be measured against, recognized and appreciated. The organization was acquired by Fox’s friend, Jace Hall, in 2014.
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Solidifying the organization as a leader in this space is their partnership with Dacast, a live streaming and video hosting platform that allows users from all around the world to upload their videos. Those videos are then verified, archived and made searchable to all.
The current gaming realm is nothing like the one Fox grew up in. When he spent hours shoving quarters into arcade cabinets, the goal was to be the best and set a mark for others to try and topple. While that certainly remains apart of the current landscape, so much of gaming today is about the social interactions with fellow gamers across the world.
“I grew up in an era where a love and passion for video games was not easily digested by a parent. I think the gap has closed and you have to parents who understand that technology has shifted the landscape,” Fox said. “They understand that community building and social interaction is really being hosted online. There’s so much interaction on our phones, games, consoles and platforms. Now, you’re connecting globally but you’re competing and you’re socially growing as young adults from these experiences.”
Fox’s introduction to esports came by way of his son Kyle, who mentioned an interest in video game developing as a career paths before he was set to attend Loyola Marymount at the time. The two of them would eventually be invited to a League of Legends circuit final at Madison Square Garden. This was Fox’s first real glimpse into the world of esports and the atmosphere he observed was very familiar to him.
“I saw exactly what I would experience at an NCAA Tournament or NBA Finals,” he said. “It was a showcase of competition with the best of the best. There was a fanbase showing their loyalties to a particular team. I saw it being streamed and broadcasted to the world and in that moment, in a sold-out MSG — an arena I had played in for many years — I just knew it was on its way to being the wave of the future for a generation that is growing up playing video games, loving them and is pursuing their social interactions through the technology that is today.”
That experience led to Fox purchasing an esports League of Legends team that was rebranded to Echo Fox. He left the organization last year after lawsuits from him and the company’s business partners were settled out of court.
While many industries have suffered due to COVID-19 in the form of layoffs, financial losses and an uncertain future , the gaming industry has thrived. Sales have increased by close to 20% so far this year compared to last, according to industry-tracking firm the NPD Group. This can be attributed to more people being confined in their homes and seeking a constructive activity that also allows them to interact safely with others.
“With the environment now, more people are gathering online,” Fox said. “Twin Galaxies represents a world that affords an individual who wants a social community, a platform where they can be recognized and authenticated for their competitive genius and their gaming. They can come to this location and be recognized and also be amongst their peers.”
Fox is excited to see the continued ascension of gaming and esports. He's excited to bring new experiences with Dacast to gamers all over the world to help connect them, allow them to receive the recognition for their performances to help add value to their gaming hours. With the continued progression of technology and the money that continues to be poured into gaming, Fox says that there will be several new career paths that are created.
“In the last six months, we’re being indoctrinated to living through our devices and we’re online, connecting and communicating more everyday,” he said. “I think you’ll see more careers built around the connective tissue of the gaming world. If you’re in esports, you can be org. owner, player, coach or an agent. All the career paths you see in traditional sports, you will see around esports. With that, a young man or woman can go to college to learn a craft and fill in the spine of the industry and be a contributing factor to the growth.”
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6289304e84120166b6e685868c4f67c6 | https://www.forbes.com/sites/chriscason/2021/04/26/trevor-lawrence-makes-first-investment-move-with-first-of-its-kind-partnership-with-blockfolio/ | Trevor Lawrence Signs Endorsement Deal With Blockfolio That Will Pay Him In Cryptocurrency | Trevor Lawrence Signs Endorsement Deal With Blockfolio That Will Pay Him In Cryptocurrency
ORANGE COUNTY, CA - JANUARY 25: Quarterback Trevor Lawrence throws a pass during Jordan Palmer's QB ... [+] Summit NFL Draft Prep in a park on January 25, 2021 in Orange County, CA. (Photo by Aubrey Lao/Getty Images) Getty Images
Just days away from being the first pick in this year’s NFL Draft, Trevor Lawrence has already made his first big move into investing, signing a first-of-its-kind multi-year deal with the global cryptocurrency investment app Blockfolio.
The deal with Lawrence is the first endorsement deal in which a significant amount of the signing bonus will be paid in cryptocurrency, which will be deposited directly into the quarterback’s Blockfolio account.
Register for the Free Forbes Webinar “How to Profit from Bitcoin and Other Crypto Assets Without Owning Them” being held on April 29
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“We believe that Trevor is the future of football, and we think that crypto is the future of finance,” said Blockfolio’s COO Sina Nader. “Trevor represents a lot of the promise and potential of football at the highest level, and we think that crypto represents the same thing at the highest level of finance.”
The bonus will consist of a variety of crypto coins such as Bitcoin, Ethereum and Solana. The company did not disclose the exact number.
After a heralded collegiate career at Clemson and being considered the consensus first overall NFL draft pick, Lawrence had his pick of partners in the financial space with more traditional avenues of investments, such as stocks and banking. His interest in cryptocurrency and the uniqueness of the partnership led to him selecting Blockfolio. There’s also a focus on charitable interests between the two outside of the commercial aspect of the partnership that will be developed down the line.
“I’m really excited to be joining the Blockfolio team,” said Lawrence. “When it comes to my crypto portfolio, I wanted a long-term partner in the space that I could trust.”
Blockfolio will utilize Trevor Lawrence to help educate about crypto currency. Blockfolio
Blockfolio is hoping the partnership with Lawrence will help educate those interested in crypto to become more familiar and comfortable. He will also utilize the app to showcase how users can buy, sell and trade cryptocurrency with no fees.
While the awareness of cryptocurrency is at a high, Nader says that it still hasn’t reached mass adoption. Some reports estimate that less than 10% of people in the United States own cryptocurrencies, with lack of knowledge about the space playing a large part in the hesitancy of many to invest.
The relationship with Lawrence is part of a strategic initiative for the company. FTX, the cryptocurrency exchange that powers the Blockfolio app, closed the naming rights to the Miami Heat’s arena in late March. The 19-year deal will bring the venue’s first name change since it opened in 1999. FTX arena will be one of the pillars in the sports space where Blockfolio will look to engage with fans and provide further information on the blockchain economy.
“We have a long way to go before we get anywhere near any real traction with people having and using crypto in their wallets,” Nader said. “Crypto is here to stay. FTX Arena gives us a physical presence, and Trevor is someone people can have a personal and human connection with for us and to the crypto space. We’re really excited about the arena, Trevor and other things we’ll be doing to get ourselves a little more vocal and out there in the space.”
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c0957750809656a382536ca01a7b36b6 | https://www.forbes.com/sites/chrisconover/2012/08/10/how-the-affordable-care-act-reduces-our-liberty/ | How the Affordable Care Act Reduces Our Liberty | How the Affordable Care Act Reduces Our Liberty
With one to two weeks left before most schools begin their fall semester, there’s still time left to squeeze in a bit more summer reading. So if healthcare policy is your idea of a beach read, grab a copy of Why Obamacare is Wrong for America.
Authored by former OMB associate director Jim Capretta, American Enterprise Institute resident fellow Tom Miller, Heritage Foundation senior fellow Bob Moffit, and Galen Institute president Grace-Marie Turner, the book makes nuances of the debate over the Affordable Care Act (ACA) palatable to a lay audience by breaking down the law into eight pillars. This book nicely elaborates on the government takeover concerns I voiced in my earlier column.
The first two pillars are mandates on individuals (to obtain) and employers (to provide) health coverage. These are unprecedented. Most people can go without healthcare longer than they can make it without food. Yet, even for a necessity such as food, lawmakers do not impose any remotely equivalent restrictions on freedom of choice.
Even recognizing that free people sometimes may make very misguided choices about what they eat, with adverse consequences to both their health and to society, America has historically respected the rights of individuals to choose what, when and how they eat. But in the case of health care, ACA revokes those kinds of rights—saying government knows best and penalizing citizens and employers who disagree.
Expanded federal entitlements comprise the third pillar outlined by Capretta et al. These come in the form of Medicaid (which, after the Supreme Court decision in June, now is expected to account for slightly more than one third of the 30 million individuals who will be newly covered under the law) and subsidized coverage available through state-based health exchanges. The Supreme Court fortunately forestalled the law’s efforts to coercively extort states into accepting a massive expansion in Medicaid coverage. Even so, the Congressional Budget Office (CBO) still projects more than a one-third increase in non-elderly Medicaid eligible by the year 2022.
More worrisome still, over the next 75 years the CBO’s latest long-term spending projections show even with ACA (which, remember, was supposed to “bend the cost curve”), the federal government will increase in size by 48 percent relative to the economy. Fully 100 percent of that increase can be attributed to growth in federally funded healthcare entitlements, i.e., Medicare, Medicaid and exchange subsidies.[1] There are very real and legitimate questions about the ability of the federal government to finance these entitlements over the long term.
As more than 100,000 Medicaid recipients who were suddenly tossed off of TennCare discovered a few years ago, things can turn ugly quickly when governments discover they no longer can afford their generous health promises.
The fourth pillar is “squeezing funds out of Medicare and choking off private plan choices.” These funds include a combination of reductions in spending as well as new Medicare-related taxes. As Medicare’s public trustee Charles Blahous has demonstrated, the half trillion in resources diverted from Medicare either can be used to shore up Medicare or they can be used to bankroll the new Medicaid and Exchange entitlements. They cannot be used to do both.
Because these “Medicare funds” instead will have been spent on the new entitlements, the government will have to borrow additional funds to keep Medicare afloat. An estimated $136 billion of those savings will come in the form of cuts to Medicare Advantage plans, resulting in half the seniors who would have joined such plans by 2017 being forced back into the inefficient and fragmented fee-for-service Medicare system. Instead of giving seniors genuine choices that would reward plans that provide coordinated and effective care (and produce sizable savings to Medicare to boot), ACA has stacked the decks in favor of a badly outdated fee-for-service model that decades of research has shown costs more than it should even while producing worse outcomes.
The fifth pillar detailed by the authors is the more than one half trillion in new federal taxes. (For the adverse consequences of these levies, see this earlier post.)
The exchanges make up pillar number six. Exchanges are a sensible idea advocated by free-market analysts, but unfortunately “Obamacare took these market-based ideas and twisted them beyond recognition into a bureaucratic knot. The exchanges are weighed down with rules, regulations, and government restrictions and crushed under a mountain of bureaucracy.” The law gives extraordinary discretion to the Secretary of Health and Human Services to determine which plans are permitted to participate in the exchange. The federal government also will require exchanges to perform at least a dozen “minimum functions” such as checking (every month!) the incomes of people who qualify for subsidies.
The seventh pillar is federal government-sponsored health plans. At least two national plans created by the U.S. Office of Personnel Management must be offered in each state exchange even if the state has no interest in them. These plans will compete on a playing field stacked in their favor, since the OPM has the discretion to use less rigid rules than those faced by private insurers (e.g., how much to spend on administration).
Federal control over private health insurance makes up the eight and last pillar. Plans must take all comers even if they wait until they are sick to buy coverage (given the modest penalties for failing to obtain health insurance, the law actually will create perverse incentives for consumers to buy their coverage later than sooner). ACA imposes restrictions on pricing as well as extensive rules about benefits. As the recent dust-up about contraceptive coverage demonstrated, the government will require you to purchase certain benefits even if you have no interest in them or moral or religious objections to paying for them.
Once again, government experts are displacing the individual judgment of patients about what is best for them. This is unprecedented. The federal government does not do this in automobile, homeowners, or life insurance. But for some reason, in health insurance, the federal experts presume to know best.
Going back to food, which arguably is more of day-to-day “necessity” of life than medical care, the federal government does not tell you what you must purchase or tell grocery stores how to price what they sell (or how fast their prices can rise). The contrast between the extraordinary freedom of choice we allow for food and the greatly restricted choices ACA will impose in medical care could not be more stark.
America’s Founders fought for a limited government that presupposed free citizens capable of making responsible choices. It is unimaginable that they pledged their lives, fortunes and sacred honor to create a government as intrusive on the lives of ordinary citizens as the vision embodied in ACA.
Footnotes
[1] This is based on official CBO projections using the alternative fiscal scenario, which provides the most realistic projection of ACA revenues and expenditures. It only includes non-interest federal spending, which will rise from 22.0 percent of GDP in 2012 to 32.6 percent by 2087—an increase of 10.6 percentage points. During that same period, gross Medicare spending will grow from 3.7 to 13.3 percent of GDP and spending on Medicaid, CHIP and Exchange subsidies will grow from 1.7 to 5.0 percent of GDP, for a combined increase of 12.9 percentage points for health entitlements.
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7290c40edc8e647a79a3c97367b0d9ae | https://www.forbes.com/sites/chrisconover/2013/01/31/are-republican-bigger-spenders-than-democrats/ | Are Republicans Bigger Spenders Than Democrats? | Are Republicans Bigger Spenders Than Democrats?
Overspending isn’t a problem exclusive to one political party or another. All you need do is observe the differences between the restraint witnessed under the Reagan and Clinton administrations and the excess of those of Bush and Obama to see that the public must keep close watch the government’s purse strings regardless of who’s residing at 1600 Pennsylvania Avenue. However, the political aisle may play a distinguish role in spending when it comes to Capitol Hill.
Let’s begin by examining this phenomenon at the executive level. Reflecting back on the last 12 years under Presidents Bush and Obama, pundits are squabbling over which of these big spenders was the larger of the two.
Washington Post economic columnist Ezra Klein has taken up the mantle of Kevin Drum’s claim at Mother Jones that “total government spending didn’t go up much during the Clinton era, and it’s actually declined during under President Obama.” Call me a dunderhead, but after examining those charts and doing my own analysis, I don’t see how anyone can avoid the obvious conclusion that Obama’s a huge spender.
I’ll start by offering an improved version of Ezra’s second chart that focuses on federal spending (since that, after all, is what the president controls) and adjusts for both inflation and population growth.
This chart does support the Drum/Klein claim that government spending increased more under George W. Bush than under Bill Clinton. Especially in light of the recession-caused spike in spending in the last quarter of the Bush administration (people often forget that TARP was signed into law by President Bush in October 2008), it is more meaningful to compare annual average spending amounts across administrations rather than the dollar increase from the start to the finish. Compared to the Clinton era, inflation-adjusted average federal spending per capita rose only $700 under the Bush administration. In contrast, this average rose by an additional nearly $1,900 per person under President Obama.
Admittedly, the annualized level of spending per quarter has declined since its peak years in 2009-2010, but even Klein concedes that “if Obama had his way, we would’ve spent even more.”[1] But it’s worth focusing on a dimension entirely ignored by both Drum and Klein, which is the role of Republicans in Congress in explaining these spending trends.
If we dice up these same data a different way, we can easily see that regardless of administration, expenditures tended to be lower when Republicans controlled all or part of Congress than when the Democrats were in charge.[2]
This structuring of the data still shows a secular rise in the amount of inflation-adjusted per capita federal spending. But in the Clinton administration, the average level of such spending was 1.7 percent higher when Democrats controlled Congress than after the Republican takeover in 1994. This pattern repeated with a vengeance under the Bush administration: average annual spending was 7.9 percent higher during the last two years that Democrats controlled Congress compared to the six preceding years in which Republicans had voting majorities in both chambers.[3] Under President Obama, average spending in his first two years was 3.3 percent higher than when Republicans took over the House following the election sweep of 2010.
Thus, since Mr. Klein has been willing to concede that Obama would have spent more had Congress given the freedom to do so, I would hope he would similarly concede that with a more cooperative Congress, President Bush would have spent less. The point is that the “natural” spending proclivity of President Bush has been biased upwards by the Democrats in Congress he faced, while that of President Obama has been biased downwards by the Republican House, thereby distorting comparisons between the two presidents in Mr. Obama’s favor.
It’s not really worth rehashing the past to figure out how much Obama spending can be attributed to the recession and/or how much of his first-year spending “really” was the responsibility of George W. Bush. The reality is that President Obama inherited a high level of federal spending that was without historical precedent. And even though we can likewise quibble about how much of the subsequent drop in spending can be credited to President Obama as opposed to a Republican House, the fact is that absent pushback from Congress, the President wants to increase inflation-adjusted federal spending by at least $1,500 per person between 2012 and 2017![4]
So let’s review the bidding:
George W. Bush, pushed in part by a Congress controlled by Democrats, allowed federal spending to increase $700 per person over Clinton-era levels. Even if we completely ignore the first two years of the Obama administration (remember the recession officially ended in June 2009), average spending has risen more than $2,100 per person above the levels of Bush’s last two years. Yet, despite having achieved the highest levels of federal spending in history (in spite of a massive reduction in our military commitments/spending in Iraq/Afghanistan), President Obama plans, by 2017, to increase spending by another $1,500 per person. In short, by the time Obama has completed his first six years in office, he will have increased inflation-adjusted federal spending by five times as much as President Bush increased spending relative to President Clinton. (Just imagine how much worse things might be had Democrats retained full control over Congress after 2010.)
Ezra, if this doesn’t make Obama a huge spender, how much more evidence do you need? (Seriously.) And could you please explain whatever happened to the guy who in 2009 pledged: “I refuse to leave our children with a debt that they cannot repay, and that means taking responsibility right now, in this administration, for getting our spending under control”?
Footnotes
[1] Klein’s counter is that if Obama had had his way, there would have been more deficit reduction, since Obama was far more willing than Congress was to raise taxes to close the gap. But this line of argument simply drives home the point that Obama is comfortable with a far higher level of spending (and attendant taxes) than either of his predecessors were: in short, he is a huge spender!
[2] Democrats controlled both the House and Senate from 1993-1994 and 2007-2008; they controlled the Senate only from 2011-2012.
[3] Strictly speaking “the Democratic Party controlled the 107th Congress from January 3 to January 20, 2001 (50/50 tie with Vice President Gore as the deciding vote) and from May 24, 2001 to January 3, 2003 (after Senator Jim Jeffords left the Republican Party to become an Independent and caucus with the Democrats).” For simplicity, the chart labels the period 2001-2006 as a Republican-controlled Congress even though technically Democrats controlled the Senate for 20 of the 60 months during this period. This does not undercut my central point that so long as Republicans control at least one chamber in Congress, federal spending tends to be lower.
[4] See USgovernmentspending.com. The projections through 2017 are based on President Obama’s FY2013 budget, but the methodology for converting these into inflation-adjusted per capita estimates is not detailed. Thus, I cannot vouch for the accuracy of the figures reported at this site, but presume they have been assembled in a responsible way. My own calculations are here.
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39fd6d369c6f9e60e10d5b6c2314c74a | https://www.forbes.com/sites/chrisconover/2013/02/28/5-take-aways-from-steven-brills-time-tome-on-health-costs/ | 5 Take-Aways from Steven Brill's Time Tome on Health Costs | 5 Take-Aways from Steven Brill's Time Tome on Health Costs
English: Great Western Hospital, Swindon. Taken by Rod Ward 26th Oct 2006 (Photo credit: Wikipedia)
I will address the myths in a later post, but today want to focus on the five most important take-aways from Mr. Brill’s otherwise excellent reporting.
Healthcare is a Cesspool of Crony Capitalism
As Mr. Brill succinctly summarizes: “the health-care-industrial complex spends more than three times what the military-industrial complex spends in Washington.” In my view, that is one of the strongest arguments against expanding the role of Washington in our health industry. Government already was paying half of the tab for health care before President Obama was sworn into office; Obamacare will push this to two-thirds within a decade. Does anyone seriously imagine that giving the federal government taxing and regulatory authority over hundreds of billions of dollars a year more in health spending will somehow reduce the power and influence of the health-care-industrial complex? Of course not: with that much more at stake, their capacity and incentive to lobby will be strengthened, not diminished. The results will not be pretty for those expected to pick up the tab.
Private Insurers Are Losing Leverage as Hospitals Consolidate
Mr. Brill also astutely observes that “insurers are increasingly losing leverage because hospitals are consolidating by buying doctors’ practices and even rival hospitals.” Unfortunately, Obamacare is going to make this situation much worse, by explicitly encouraging the development of Accountable Care Organizations that are likely to morph into local monopolies that ironically will therefore become less accountable to patients. As fellow Forbes contributor Scott Gottlieb has patiently tried to explain, this will reduce innovation, reduce patient choice, and give these local monopolies great bargaining power vis-à-vis the government. The result may well be lower quality without necessarily reducing costs.
The literature on hospital competition shows that hospital competition improves quality and lowers costs and lowers patient waiting times. In more concrete terms, hospital competition is welfare-enhancing up to five facilities in a local area. That is, prices (meaning actual payments made to hospitals, not the “list prices” on the hospital’s chargemaster) are lower if five hospitals compete than if four compete and much lower than if only one or two compete. Indeed, one study of hospitals concluded that “monopoly power substantially increases a patient's risk of death.” On a related point, the literature on physician-hospital consolidation “does not suggest that such consolidation (absent true integration) will lead to cost reductions or clinical improvement, and may lead to enhanced market power for providers.” In short, hospital competition works quite effectively when allowed to do so.
Interestingly—especially in light of how much insurance companies were vilified during the health care debate—insurance company consolidation appears to benefit consumers. That is, the merger of two insurance companies when four are competing results in a decrease in hospital prices of 6.7 percent, whereas the equivalent merger in the hospital industry would produce a 1.5 percent price increase. Evidently, insurer consolidation helps provide some countervailing market power on behalf of consumers to offset hospital consolidation.
Tragically, despite this mountain of empirical evidence about the benefits of hospital competition, Obamacare moves us away from competition in the direction of greater hospital and physician consolidation. This is not likely to be good news for patients as the law unfolds.
Defensive Medicine Drives up Health Spending
Mr. Brill shows that legal incentives help fuel the extensive overuse he has documented, and quotes one hospital CEO as saying “we can’t be sued for doing too much.” While he doesn’t quantify the overall magnitude of the problem, the consensus from numerous studies is that defensive medicine adds at least 2 percent to health spending and more likely something between 3-4 percent.[1]
Three to four percent may sound small, but it adds up to serious dollars in a system that will cost $2.9 trillion this year. It's roughly equivalent to the net cost of expanding coverage to all of the nation’s uninsured. Which is to say that we could have achieved the same expansion of coverage under Obamacare without raising taxes one dime. Instead, the CBO projects that U.S. taxpayers will pay net added taxes of about $1 trillion over the next decade.
So why didn’t we reform the medical tort system? Mr. Brill’s explanation is pithy: “When Obamacare was being debated, Republicans pushed this kind of commonsense malpractice-tort reform. But the stranglehold that plaintiffs’ lawyers have traditionally had on Democrats prevailed, and neither a safe-harbor provision nor any other malpractice reform was included.” ‘Nuf said.
Nonprofits Make Profits
Mr. Brill reports that the nation’s 2,900 nonprofit hospitals have a higher average operating profit margin than their 1,000 for-profit counterparts. That should not be that surprising given that for-profit facilities have to hand over taxes to federal, state and local governments before calculating what’s left over as profits. Almost half of all revenues in the health services industry are generated by tax-exempt organizations.[2] There is an ample body of literature comparing the performance of nonprofit and for-profit enterprises in health care, assessing their relative efficiency, quality, access to care and other metrics. This evidence is mixed, with neither ownership form having a clear performance advantage.
But if there’s no obvious advantage in their performance, it certainly raises a question of whether it’s fair that non-profit hospitals are made exempt from taxes. Moreover, despite the strong evidence that nonprofit organizations are every bit as much responsible for the excesses documented in Mr. Brill’s article, Obamacare in several ways bends over backwards to tilt the playing field further in the direction of nonprofit organizations:
For example, the law authorized $6 billion for the Consumer Operated and Oriented Plan (COOP) program designed to set up nonprofit member-run health insurance companies in all fifty states.[3] The law further required the establishment of two new nationwide health insurance plans, one of which had to be nonprofit. In contrast to health plans, where more than half of plan members belong to for-profit plans, only about 15 percent of hospital beds are in for-profit facilities. Yet Accountable Care Organizations have been deliberately designed so that they are most likely to be hospital-run, intended to displace traditional health insurers.
The Biggest Problem: Cost-Unconscious Consumers
Mr. Brill catalogs the myriad ways in which the health system lacks price transparency and further illustrates just how insulated many consumers are from caring about excess prices or utilization. He then shows how one Medicare patient, Alan A., runs up a bill of $57,408 a year, of which Alans pays only about $400 out of pocket. This may seem extraordinary, but it’s actually quite ordinary. Nearly 9 of every 10 Medicare beneficiaries has some form of supplemental coverage, be it Medicaid (15%), an employer-sponsored plan (34%), or a privately-paid plan (39%). Most supplemental plans fill in the gaps in Medicare coverage, including deductibles and other forms of cost-sharing. Thus, it is not at all unusual for Medicare patients to end up paying only a tiny fraction of their bills.
We could create cost-unconscious consumers in virtually any industry in the country if we introduced third party coverage. Imagine what food prices would be if the government or private insurance covered 89 cents of every dollar, the way we do in health care. With someone else paying the bill, you can be sure shoppers would buy a lot more sirloin instead of hamburger and wouldn't be particularly picky about the prices they paid for whatever they put into their shopping carts. Even before Obamacare was enacted, the U.S. already had the 4th lowest out-of-pocket share of health spending on the planet (in sharp contrast to Switzerland, where out-of-pocket payments make up 31 cents of every health care dollar). Yet instead of fixing this problem, Obamacare is moving us further in the direction of third party payment, with the out-of-pocket share of health spending steadily dropping between now and 2021 (the last year for which such official government projections are available).
Mr. Brill has nicely codified much of what is wrong with American health care. What ought to be clear is the sharp disconnect between the actual problems with the health system and the prescription forced down our throats by Obamacare’s designers. There’s no good reason to suppose that this misguided prescription will do much in the way of curing our ills. Quite the opposite. We should all be concerned that the Obamacare cure will end up being worse than the disease.
Update 1
For those interested in further discussion of the hospital consolidation problem, Avik Roy has written several in-depth pieces on hospital monopolies, the adverse effects of hospital mergers on hospital costs, and why accountable care organizations will lead to higher costs and lower quality.
Footnotes
[1] This is shown in Fig. 19.8a in my book on The American Health Economy Illustrated. Defensive medicine includes all the extra tests and procedures performed to deter lawsuits and is separate and apart from spending on malpractice premiums, which add another 1 percent to health spending.
[2] This is shown in Fig. 7.1 in my book. Note that the health services industry consists of hospitals, nursing homes, home health agencies, medical and dental laboratories and offices of health professionals, such as doctors, dentists and psychologists. It does not include the pharmaceutical industry, medical device manufacturers or the health insurance industry, all of which are much more dominated by for-profit enterprises.
[3] The $6 billion was later trimmed to $3.8 billion and further cut by $1.4 billion under the “fiscal cliff” bill passed by Congress on January 1. That COOP has proved to be yet another failed Obamacare boondoggle does not obviate the clear intention of the law’s designers to favor nonprofit organizations over the for-profit insurers that had become favorite whipping boys of health reform advocates (including President Obama) in the run-up to the bill’s passage.
[4] This provision may be less obviously stacked in favor of nonprofits, but a neutral approach would have simply allowed the two most qualified organizations to create such plans without regard to ownership type. Moreover, the rationale for this provision was a concern that health insurance markets were too concentrated, i.e., lacked competition. Yet in nearly three-quarters of markets deemed to be “highly concentrated” nonprofit Blue Cross/Blue Shield plans already are the largest or second largest competitor. Thus adding one more nonprofit player simply expands the domination of nonprofit plans in such markets.
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87b52a81b2ed46e4144c3478bfc94a6e | https://www.forbes.com/sites/chrisconover/2013/05/07/does-the-oregon-health-study-show-that-people-are-better-off-with-only-catastrophic-coverage/ | Does The Oregon Health Study Show That People Are Better Off With Only Catastrophic Coverage? | Does The Oregon Health Study Show That People Are Better Off With Only Catastrophic Coverage?
Last night, The New York Times posted an interesting debate on the question: Do the mixed results of an Oregon health care study show that government medical insurance should provide only catastrophic coverage? The Oregon Health Study (OHS) showed that compared to being uninsured, “Medicaid coverage generated no significant improvements in measured physical health outcomes.” Specifically, no clinical differences were found in blood pressure, blood sugar and cholesterol levels.
English: Medicare and Medicaid as % GDP Explanation: Eventually, Medicare and Medicaid spending... [+] absorbs all federal tax revenue, which has averaged around 19% of GDP for the past 30 years. Category:Health economics (Photo credit: Wikipedia)
Astonishingly, one debater, Austin Frakt, argued that there’s a simple explanation for this dismal result: “the sample was far too small for it to be able to do so.” Seriously? The RAND Health Insurance Experiment—the gold standard of evidence regarding the impact of cost sharing on utilization, spending and health status—had a sample size of 5,809 spread across 5 major categories of plans (e.g., the free care plan enrolled 1,893, the 25% cost-sharing plan enrolled 1, 137, the 95% cost-sharing plan (essentially a high-deductible plan) enrolled 1,120 etc.).[1] There were actually 14 different plans studied, so the sample sizes for each were even smaller than these figures might imply. Moreover, the RAND HIE included a random sample of people across a wide range of incomes and all ages below age 62,[2] whereas the Oregon Health Study was restricted to 6,387 low income, non-elderly, non-disabled adults who were randomly selected to be able to apply for Medicaid coverage and 5,842 of their counterparts who were not selected.
Admittedly, the RAND scientists used person-years as their unit of analysis and person-years ranged from a high of 6,822 in the free care plan to 1,401 in the 50 percent plan. But using that standard, the two-year follow-up used in the OHS study implies a sample size that is double that reported etc. Now admittedly, only 1,903 (26%) of those eligible for Medicaid in the OHS sample actually ended up enrolling in the program.[3] But remember, every single one was a poor, non-elderly adult age 19-64, whereas in the RAND HIE, 36% of participants were children and most were not poor.[4] RAND defined low income as being in the lower one fifth of the income distribution, so on an apples-to-apples basis, the HIE had approximately 750 non-elderly poor adults spread across a variety of plans, roughly one-third of which would have ended up in the free care plan comparable to Medicaid. Even if you inflate the roughly 250 such individuals into person-years, the HIE sample would be about 850[5] versus 1,903 in the OHS.
You might think this is much ado about nothing, but consider what the RAND HIE was able to demonstrate despite its substantially smaller sample size of low income adults:[6]
For those who began the experiment with high blood pressure (the 20% having the highest diastolic blood pressure), free care plan participants had a clinically significant decline in blood pressure compared to their counterparts in cost-sharing plans. Epidemiologic data imply that a reduction of this magnitude would lower mortality about 10% a year in the free care group (the sample size was too small to actually measure this mortality reduction among HIE participants).
Yet Austin Frakt solemnly assures us that the OHS was “far too small” for it to be able to show any statistically significant effects of Medicaid on physical health. As proof of this claim, he points us to a blog post by Kevin Drum at Mother Jones who boldly asserts “that the study couldn't have found statistically significant improvements. It was impossible from the beginning.”
Not content with that sweeping (empirically unsupportable) generalization, Mr. Drum goes on the berate the Harvard researchers for how they conducted their study, reaching this breath-taking conclusion:
they probably shouldn't even have reported results. They should have simply reported that their test design was too underpowered to demonstrate statistically significant results under any plausible conditions. But they didn't do that. Instead, they reported their point estimates with some really big confidence intervals and left it at that, opening up a Pandora's Box of bad interpretations in the press.
Health services researchers will quickly recognize that Mr. Drum does not know what he’s talking about. But the lay public may not. For Mr. Drum to lecture the highly distinguished health economists who conducted the OHS on how to do their work is comical (“The first thing the researchers should have done, before the study was even conducted, was estimate what a clinically significant result would be.”[7]). The OHS investigators included not only Dr. Joseph Newhouse (the study director for the RAND HIE and one of the nation’s leading health economists), but Amy Finkelstein, the 2012 recipient of the John Bates Clark medal, one of the two most prestigious honors in the field of economics.[8] Anyone who has read the OHS study or the 62-page supplemental appendix that accompanied it should recognize that it is cutting edge research using the best available measures and methods. If Medicaid had a beneficial impact on physical health, these researchers assuredly would have found it.
It's worth noting the OHS results were not all bad.
Medicaid coverage significantly increased the probability of a diagnosis of diabetes and the use of diabetes medication. However, researchers found no significant effect on average glycated hemoglobin levels or on the percentage of participants with levels of 6.5% or higher (which is the standard diagnostic criterion for diabetes). Medicaid coverage almost completely eliminated catastrophic out-of-pocket medical expenditures: 5.5% of the control group had spending that exceeded 30% of family income vs. only 1.1% for those on Medicaid. But the average difference in out-of-pocket spending—albeit statistically significant—was astonishingly modest. Those in the uninsured control group spent $553 annually out-of-pocket, while the Medicaid group spent only $215 less. Medicaid coverage decreased the probability of a positive screening for depression from 30% in the uninsured group down to 21%; at least one third of this apparently was due to being less likely to be first diagnosed for depression after the lottery (4.8% in the uninsured group compared to 1.0% in the Medicaid group). Medicaid coverage led to an increase in the proportion of people who reported that their health was the same or better as compared with their health 1 year previously (80.4% for uninsured vs. 88.2% for Medicaid). Medicaid coverage led to a very slight increase—one-fifth of a standard deviation, for statistically-minded readers—in self-assessed mental health. Medicaid coverage led to improvements in perceived access to and quality of care (having a usual place of care, received all needed care within past year, care received was of high quality). Medicaid coverage led to greater use of preventive services including cholesterol-level screening, Pap smears in women, mammography in women 50 years or older, and PSA (prostate exam) tests in men 50 years or older.
These modest gains in health status and financial peace of mind came at a cost. Annual spending was $1,172 (35%) higher for those on Medicaid. Worth noting as well is that these modest improvements in access, use, quality, mental health and financial protection produced no significant difference in self-reported happiness. Despite being uninsured for at least six months, 74.9% of the control group reported being very happy or pretty happy compared to 76.1% of those on Medicaid.
So it all comes down to value for money. Are these gains worth spending roughly $1,200 apiece to give uninsured adults below poverty Medicaid coverage? Every reader will have their own opinion on this matter. But most would agree it’s not worth spending an average of $1,172 if all Medicaid achieves is a reduction in average out-of-pocket spending by only $215. In that case, it would be far cheaper to simply reimburse individuals for expenditures above some agreed-upon catastrophic threshold. The OHS also explodes the myth that giving the uninsured Medicaid coverage somehow would magically eradicate over-use of the emergency room. Despite a 50% increase in the average number of physician visits, those on Medicaid had slightly more (albeit statistically insignificant) ER visits than those who were uninsured. So one cannot use the OHS results to claim that added Medicaid spending pays for itself in the form of savings from more efficient use of the health system.
So leaving financial protection aside, the question is whether the remaining $950 or so in spending is worth Medicaid’s incremental benefits, especially given that at a big picture level, these apparently did not appreciably affect levels of happiness. If the goal is to improve the lot of the poor, can we imagine alternative ways of spending such large sums that would produce far greater gains in their welfare? I have to concur with Ross Douthat that there probably are.
The OHS demonstrates that--while by no means perfect--the status quo provides $3,350 in care to uninsured adults without spending a single extra dime on Medicaid. It further proves that low income uninsured adults apparently are smart enough and well-informed enough to navigate that system to find and secure the most important treatments, resulting in approximately the same physical-health outcomes as their counterparts on Medicaid. This suggests that states ought to be encouraged to experiment with innovative approaches to providing health care to low income families. The Healthy Indiana Plan, for example,
requires each participant to make a modest financial contribution, and it provides incentives for participants to stay healthy, be value and cost-conscious, and to utilize services in a cost-efficient manner. This plan covers essential health services and is similar to commercial plans. In contrast, Medicaid has unlimited benefits and services, and recipients have no incentive to be responsible for their health status, to be mindful of costs, or to utilize health care services efficiently.
Obamacare has two important design flaws related to Medicaid. First, it seeks to vastly expand a poorly functioning program—a program that the OHS shows barely works much better than the patchwork safety net for the uninsured the many people have insisted for decades is unacceptable. Second, it further centralizes control of the program in Washington, D.C. Indeed, had the Supreme Court not stepped in, the law would have forced states to swallow a massive expansion whether they wanted to or not. What we've discovered now that states have the freedom to choose is that about half the states are opposed to expansion (and that was before the OHS results were reported!). Americans would be far better served if federal bureaucrats stopped trying to micromanage Medicaid and instead gave states block grants that both encouraged far more fiscal discipline, but also created the incentive to unleash dozens of different experiments similar to OHS from which states could learn from each other what works best. If current Medicaid is the best we can do for the poor, we (and they) are in deep trouble.
Footnotes
[1] See Table 2.2.
[2] Technically, the RAND study excluded families in the top 3% of income, Medicare disability beneficiaries, those in jails or institutionalized for indefinite periods, those in the military and their dependents, and veterans with service-connected disabilities. But the point is that the OHS focused on a much narrower segment of the population than did the HIE, yet had a far larger sample.
[3] For logistical reasons, the OHS sample was limited to the Portland area. Statewide, only 60% of those eligible to enroll in Medicaid mailed back the enrollment paperwork within the 45-day window given to them. Of these, half turned out not to qualify--mostly because their income was not below poverty or because they had assets exceeding $2,000. Overall, 30% of lottery winners successfully enrolled in Medicaid.
[4] Table 3.4.
[5] These are purely arithmetic calculations that assume that the sample was exactly balanced. Thus, 5,809 x .64% = 3,717 (the approximate number of adults) x 1/5 = 744 (the approximate number of low income adults) x (1,893/5,809) = 242 (the approximate number of low income adults in the free care plan) x (20,190/5,809) = 842 (the approximate number of low income adult person-years in the free care plan.
[6] There were other improvements in physical health among low income adults in the free care plan: a) For those who began the experiment with vision problems correctable with eyeglasses, there was a modest improvement in corrected vision; b) For those between ages 12 and 35 there was some improvement in oral health: decayed teeth were more likely to be filled and there was modest improvement in the health of the gums. However, the Medicaid plan studied in the OHS (Oregon Health Plan Standard) does not cover either vision care or nonemergency dental services, so it would not have been feasible for Medicaid to have influenced these outcomes in Oregon.
[7] As the researchers themselves report:
“Virtually all the analyses reported here were prespecified and publicly archived (see the protocol). Prespecification was designed to minimize issues of data and specification mining and to provide a record of the full set of planned analyses.” “Hypertension, high cholesterol levels, diabetes, and depression are only a subgroup of the set of health outcomes potentially affected by Medicaid coverage. We chose these conditions because they are important contributors to morbidity and mortality, feasible to measure, prevalent in the low-income population in our study, and plausibly modifiable by effective treatment within a 2-year time frame.” “Anticipating limitations in statistical power, we prespecified analyses of subgroups in which effects might be stronger, including the near-elderly and persons who reported having received a diagnosis of diabetes, hypertension, a high cholesterol level, a heart attack, or congestive heart failure before the lottery. We did not find significant changes in any of these subgroups.”
In short, while Mr. Drum’s account implies otherwise, the researchers actually did a lot of advance thinking about what to measure and how to measure it in light of their anticipated sample size, bending over backwards to focus on physiological measures that made sense and to carefully examine the subgroups for which Medicaid should have made the most difference.
[8] The John Bates Clark Medal is awarded by the American Economic Association to "that American economist under the age of forty who is adjudged to have made a significant contribution to economic
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f1c22256c7321b9dc94062deea552455 | https://www.forbes.com/sites/chrisdorsey/2020/06/25/one-familys-quest-to-save-a-speciesthrough-hunting/ | One Family’s Quest To Save A Species…Through Hunting | One Family’s Quest To Save A Species…Through Hunting
The comeback story of one of the most unique antelope in the world
The cloud forest of southern Ethiopia is home to one of the world’s rarest antelope, the mountain ... [+] nyala. John Macgillivray, Dorsey Pictures
Mention Ethiopia to a westerner and images of drought and famine come to mind, an impoverished land wrapped in tragedy and sadness where pity is a leading export. Thus, imagine my surprise as I land in Addis Ababa to a bustling metropolis where the streets are full of vendors selling all manner of fruits, vegetables and knock-off Chinese goods. Thanks to sustained and massive United Nations investments in Ethiopia—including locating the headquarters of the UN’s Economic Commission for Africa in Addis—the country is turning the corner to a new reality if not prosperity.
As surprisingly impressive as Addis strikes me, I did not travel across the globe to spend time in an African city. Instead, my destination is the 9,000-foot highland cloud forest south of the city and one of the rarest and most singularly spectacular animals in the world—the 500-pound mountain nyala with its blue-gray spotted coat and white chevron markings. I’m here researching a book about sustainable conservation models being employed across the globe, and the tale of the mountain nyala is an especially intriguing one.
They occupy a very limited range and these forests with their tentacled hardwoods and abundance of game are prized for their food and fiber by an ever-expanding human population that is continually encroaching, making mountain nyala conservation an ongoing tug of war between human and animal interests. It is the money paid by mountain nyala hunters—a single hunt surpasses the cost of many Americans’ first homes—that provides the leverage to fend off development in this stretch of the country. The Ethiopian government allows hunters to take fewer than 20 of the animals each year as part of what is a highly regulated conservation plan. Without the revenue generated by the sale of these hunts, however, there would be little economic reason to protect the habitat the mountain nyala—and scores of other species—depend on for their very survival.
The stunningly beautiful mountain nyala and its habitat have been protected thanks in large part to ... [+] the efforts of the Roussos family with support from hunters across the globe. Courtesy of Jason Roussos
No one understands the universal conservation axiom, “wildlife that pays, stays,” better than the Roussos family. Nassos Roussos, a 74-year-old son of Greek immigrants, founded a hunting company called Ethiopian Rift Valley Safaris in 1981 and became an unofficial ambassador of sorts for the mountain nyala and its specialized habitat. He is the nyala’s Lorax, the Dr. Seuss character who speaks for the trees. In this case, he talks for both the trees and nyala.
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“Wildlife in Africa is viewed by locals the same way a rancher sees a steer,” says Roussos. “Once the last nyala, forest hog and bushbuck is snared from the forest, the land will be surrendered to the ax and plow, never to exist as wildlife habitat again.”
After decades of fighting to protect nyala habitat, the elder Roussos passed the conservation torch to his son, Jason. He’s a 40-year-old Colorado State University trained biologist—class of 2000—who is a kind of bush baby who grew up in the wilds of Ethiopia learning the ways of the forest like a modern Tarzan. Hear him mimic the sounds of the colobus monkey or leopard and you quickly know he’s a product of his wild environment.
As both a hunter and biologist, he possesses a unique understanding of the interconnected relationships of plant and animal species and provides a sense of place at a level unmatched in my 40-plus forays into the African wilds producing television documentaries. I had known about Jason’s unique background having spoken to him in advance of my journey to Ethiopia in our mutual home state of Colorado—he being a seasonal resident and me full time.
As my charter plane lands on a crop duster strip surrounded by a mosaic of waist-high wheat fields interspersed between small villages, Jason and his Land Cruiser are waiting. It is a journey into the pages of National Geographic as scenes of horse-drawn carts, herders tending cattle, sheep and goats in and around villages of mud huts with thatched roofs surround us. The thorn-lined fields seem to have gone unchanged for centuries, as if the industrial revolution is a mere rumor here. As pieces of the planet go, the Highland Cloud Forest of Ethiopia’s Bale Mountains is as inviting as they come—a stunningly beautiful rain forest jungle. Driving from the lowland agricultural fields into the highlands and exchanging crops for hardwood forests is akin to leaving the Clovis while entering the Neolithic.
A colobus monkey leaps from branch to branch as the film crew arrives at Roussos’ highland camp. John Macgillivray, Dorsey Pictures
As we enter the forest there are herders emerging from the trees with goats and mules, some loaded with fallen branches collected as a concession to the nearby village, a way to provide them needed fuel without cutting more trees. Deeper into the forest, we arrive at Jason’s camp, our base of operations from where we’ll launch forays farther into the forest to film the reclusive nyala.
We start early the next morning, loading up a Land Cruiser with several scouts armed with radios. About 20 minutes into our drive down a dirt track cut into the forest, Jason drops off a couple of the scouts who walk to an overlook where they’ll sit this morning. Meanwhile, we continue to our own perch on the edge of a sweeping valley. The idea is to wait with binoculars and cameras for the gray form of a mountain nyala to emerge from the green sea of the forest.
Cinematographer John MacGillivray (foreground) and Jason Roussos await the arrival of a mountain ... [+] nyala amid the lush forest vegetation of Ethiopia’s Bale Mountains. John Macgillivray, Dorsey Pictures
About two hours into our sit, Jason receives a faint radio call informing him that the scouts the next valley over have spotted an old bull. What ensues is a scramble to get there before the nyala disappears as they so often do like a puff of smoke. Heart pounding and legs burning from the mountain sprint, we crest the hill above the valley where the nyala had been spotted to witness the magnificent beast browsing amid the bushes some 200 yards away. Its unique hourglass horns and massive body make it seem as though it’s a relative of the unicorn, one of the rarest antelope in the world.
Witnessing one of the great beasts is nothing short of mesmerizing, an affirmation of the years spent by the Roussos family protecting these enchanted forests. With an ever-growing human population, however, Jason knows the fight is never over.
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33e14ec21e91d37a5953c26b3fdac14f | https://www.forbes.com/sites/chrisdorsey/2020/07/16/meet-the-tarzan-who-can-paint/ | Meet The Tarzan Who Can Paint | Meet The Tarzan Who Can Paint
For internationally acclaimed wildlife artist John Banovich, it’s about saving the planet one portrait at a time
Banovich puts the finishing touches on a life-size elephant painting commissioned by NASCAR legend ... [+] Richard Childress. "I've collected John's work for years," says Childress. "He's a brilliant artist and the fact that he uses his art to make the world a better place makes you feel good about owning his pieces." Courtesy of John Banovich
It’s a good bet that wherever you find wildlife painter John Banovich, there will be a captivating view nearby. The globe-trotting artist is a study of a man in motion, forever combining his love of all things wild with an obsession to preserve natural habitats and the creatures that inhabit them. Meet him and hear the passion in his voice as he talks about Siberian tigers or mountain gorillas and you quickly tweak that his art—brilliant though it may be—is a means to an end. Banovich is forever in a race to save species and habitats whose days on Earth are numbered without intervention. He uses a paintbrush the way Ansel Adams did a camera, empowering the visual to transform the spiritual—ultimately inspiring people to make a difference.
For the Montana-born artist, what started as a traditional track to produce stunning portraits of some of the planet’s most charismatic creatures has evolved into a redefinition of what it means to wear the label of wildlife artist. While he lives in Seattle with his wife and two daughters, he’d rather be with the family in a tent somewhere in Africa or on the side of a mountain in British Columbia…or perhaps following the track of a tiger in the wilds of Siberia.
Banovich with his wife Amy and their two daughters. The family travels extensively to better ... [+] understand the natural world represented in John's art and conservation philanthropy. Courtesy of John Banovich
The fifty-something former bodybuilder-turned artist with shoulder length hair looks as if he’s out of central casting for the next Edgar Rice Burroughs’ Tarzan film. The first time I met him at an art show in Las Vegas, I was drawn by the enormous crowd around his booth, people absorbing a mix of his new works and the tales of his conservation adventures across the globe.
Then his wife, Amy, entered the booth. With her supermodel beauty, suddenly fewer eyes were studying the art. As a television producer, I tend to type-cast and if anyone is looking to remake Greystoke, I submit the new Tarzan and Jane. Their Christmas card photo looks like the image that comes with a frame when you purchase it. Clearly, Banovich likes to surround himself with all forms of natural beauty.
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Despite moving from Montana to Washington, Banovich maintains a gallery south of Livingston, Montana, which is an easy detour for the 4.5 million people who visit Yellowstone National Park annually. Inside are many of his indelible portraits of lions, tigers and bears…and scores of other species as well as a litany of the most magical places our world offers. Hang one of his paintings and it’s as if you just installed a window into another continent…or perhaps another time. If his brand had a slogan, it might be every room needs a view.
The Banovich Art Center is located near Livingston, Montana, and is a short detour for the millions ... [+] of people who visit Yellowstone National Park each summer. Courtesy of John Banovich
Watching people’s intense reactions to a life-size portrait of an elephant or a lion on the final approach of a charge sparked an idea for Banovich to broaden the application of his artwork and create a lifestyle brand with scores of products featuring his paintings from luxury leather pillows to marble coasters to wine stoppers. “It’s about blending wild habitats,” says Banovich, “with interiors for people who cannot live without the natural world.”
Banovich's PRIDE initiative has supported lion conservation efforts across Africa. Here, the artist ... [+] participates in a collaring program in Tanzania, a nation where his Wildscapes Foundation also has underwritten Lion recovery programs. Courtesy of John Banovich
These days, much of his work is commissioned and collected by people ranging from Presidents to captains of industry to Wall Street barons. Portions of the sale of his art and products fund his non-profit Wildscapes Foundation, a venture that has supported efforts across Africa to help both people and wildlife. Witnessing the increase in human and animal conflict throughout sub-Saharan Africa also led Banovich to produce documentaries about the struggle that has been devastating to African wildlife and to explore ways forward for both people and animals.
WildscapesfoundationLion P.R.I.D.E Initiative
“Conservation won’t be achieved unless it works for the people who live with the animals,” he says. “A person who resides in a mud and dung boma and whose cattle are eaten by lions has a very different view of the big cats than someone in London or New York. If we don’t come to terms with that divide, the great predators will only continue to exist in remnant populations in parks.”
Bringing the natural world indoors with large format paintings transforms interiors into inviting ... [+] habitats. Here, the Banovich elephant in the room keeps an eye on visitors to the exclusive Serengeti House, one of the private safari destinations that are part of Banovich's Wildscapes Travel experience. The artist has extended his brand to include a series of home products that further reinforce the desire by many to surround themselves with the natural world. Courtesy of John Banovich
While Banovich hails from the West Coast, he is most alive in Africa, clearly his spiritual home and the continent from which he draws, well, the lion’s share of his artistic muse. His art reflects his love of the bush, a place where he has spent countless days studying his subjects and coming to learn of their struggles for survival. Through his own extensive travels, Banovich came to realize that tourism itself could be one of the most effective ways to light that proverbial candle. His desire to share his passion for Africa led to the creation of Banovich Wildscapes Travel, where by bringing people to the places he loves and sharing projects that protect these places, people and wildlife he cares about, he hopes to kindle the same flame in others – and generate support for the great work that is being done in these important conservation landscapes.
As Banovich puts it, “When one experiences Africa, its ancient rhythms and extreme beasts, it seizes your soul… and a part of you remains there forever. Within today’s modern safari, we have the privilege to experience the wild, cloaked in extreme luxury and be profoundly moved by it. And there’s a feeling of peace knowing that your presence helps preserve that way of life and the landscape as you depart.”
Banovich goes to extreme lengths to study his subjects before transferring a vision to canvas. Here ... [+] he's shoulder deep in Botswana's Okavango Delta communing with the region's elephant herd. Courtesy of John Banovich
JohnbanovichStudios
Between gallery showings, speaking engagements, creating new paintings and forever advocating for conservation, Banovich managed to publish a coffee-table book earlier this year that is a collection of his work on African lions. If his art is any indication, the lion might be his spirit animal. Through his lion initiative, Banovich has worked tirelessly to advance conservation efforts for the cat’s and his ability to paint them might be unmatched. Then again, the same could be said about mountain gorillas…and there is that whole Lord of the apes thing.
Banovich's recently released King of Beasts coffee table book is a study of the African lion ... [+] featuring many of the artist's paintings of the animals and the stories of his time exploring challenges facing this iconic species. Dorsey Pictures
Banovich at work on a dramatic mountain gorilla scene. Some of the proceeds from this painting will ... [+] be used to support Rwanda gorilla conservation programs, one of the most remarkable comeback stories of any of the world's endangered species. Courtesy of John Banovich
For a man who seemingly never sleeps, Banovich also decided to create the Academy Awards of the conservation world, a star-studded affair that brought together actors, captains of industry, musicians, sports stars, politicians, astronauts and other luminaries to recognize many of the world’s unsung conservation heroes. The event, dubbed the Award for Conservation Excellence (ACE) was held in Charleston, South Carolina, as part of the annual Southeastern Wildlife Exposition, an event that draws more than 40,000 visitors each year. Banovich managed to bring together major donors to award $100,000 to the efforts of the winning conservation cause.
One of those in attendance was long time Banovich friend and legendary television naturalist, Jack Hanna. “John’s artwork is incredible but he is so much more than his art,” says Hanna. “When you meet him you realize he is a force of nature.”
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4e9094c273d7f2998335867cd7d5eb71 | https://www.forbes.com/sites/chrisfurnari/2019/11/01/molson-coors-will-eliminate-up-to-500-jobs-but-could-more-layoffs-hit-the-beer-industry/?sh=3658e9f557e8 | Molson Coors Will Eliminate Up To 500 Jobs, But Could More Layoffs Hit The Beer Industry? | Molson Coors Will Eliminate Up To 500 Jobs, But Could More Layoffs Hit The Beer Industry?
Molson Coors CEO Gavin Hattersley (Photo credit: Molson Coors) Molson Coors
On Wednesday, Molson Coors (NYSE: TAP) CEO Gavin Hattersley announced a comprehensive turnaround effort that will include the consolidation of four global business units into two, the closing of a Denver office, hundreds of layoffs, several key leadership changes, and a timely name change that reflects the company’s growing interest in competing outside of beer.
Those moves are expected to yield an estimated $150 million in annual cost savings, which Hattersley and other key personnel have promised will be reinvested back into important areas of the business, such as new product innovation. In the short-term, however, the restructuring could cost Molson Coors as much as $180 million in employee severance and relocation costs.
The so-called “revitalization plan” includes many moving pieces, but the job cuts grabbed the majority of the headlines over the last two days, and for good reason: Once approximately 500 salaried employees are laid off over the next two months, Molson Coors will have slashed more than 800 full-time positions since last September, when the company eliminated 350 jobs in an attempt to cut costs in the face of declining sales.
All-in, Molson Coors has reduced the size of its global workforce by about 5 percent over the last 15 months. But Molson Coors isn’t the only beer company that’s made significant cuts in recent years.
Rival Anheuser-Busch has eliminated approximately 400 positions since late 2017, while Heineken USA cut 15 percent of its workforce earlier this year.
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Meanwhile, Constellation Brands, Pabst Brewing Company, Lagunitas Brewing, as well as independent craft beer companies like New Belgium and Deschutes, among others, have all made significant cuts to their respective workforces over the last 24 months.
Speaking to Forbes, Adam Collins, Molson Coors’ chief communications and corporate affairs officer, said the beer industry has been under pressure as more drinkers have shifted to wine and spirits, or moderated their alcohol intake.
“The industry overall — and our business in particular — has been challenged for the last few years,” he said, stressing that the company’s cuts were not merely a cost savings effort.
“This is about streamlining, reducing duplication, speeding up decision-making and unlocking resources to improve the effectiveness of the organization,” Collins added.
For his part, Pete Marino – who will now serve as the president of a newly formed emerging growth division but previously lead the company’s public affairs and craft beer divisions – said the restructuring was necessary if Molson Coors wanted to remain competitive.
“Unfortunately, our business required it,” he said. “We are resourcing the company in a way that we think will help it win in the future.”
As part of the restructuring, certain divisions within the company will be eliminated, while others will shrink so the company can invest in marketing and data analytics.
“This is about making sure we have our resources in the right places,” Marino told Forbes.
In addition to shuttering it’s a corporate office in Denver and designating its Chicago location as the North American headquarters, the company is changing its name to Molson Coors Beverage Company in a move that underscores its thirst for competing in non-beer segments such as cannabis, non-alcoholic beverages, wine and spirits.
“Consumers are promiscuous and there are more choices in front of them than ever before,” Marino said. “If you are not staying ahead of the curve from an innovation standpoint, it is going to be a challenge.”
The sweeping restructuring program outlined by Hattersley was delivered one month after he officially took over as the CEO of Molson Coors. Hattersley, along with other company officials, have described it as a transformational effort that differs from previous cost-cutting attempts.
Cowen managing director and senior research analyst Viven Azer isn’t sold, however.
In a note to investors, Azer said Molson Coors “remains a ‘show-me’ story,” and pointed to the company’s attempts to stabilize its core beer business while expanding into adjacent categories as a continued work in progress.
“Freeing up resources will help, but considering that TAP has been steadily delivering cost savings for years, this turnaround will seemingly require much more investment on top of that,” she wrote, noting that competitors like Anheuser-Busch InBev, Constellation Brands and Boston Beer Company are also pursuing premiumization and diversification strategies.
“The cost of competition continues to climb,” she added.
Indeed, brewing companies have been challenged in recent years as the industry has lost market share to wine and spirits, and as more states have legalized recreational cannabis.
As a result, companies large and small have adjusted strategies and moved into the “beyond beer” space with products like hard seltzer, canned wine and cocktails or alcoholic coffee.
Simultaneously, many companies that had invested in human capital when craft beer sales were growing double-digits have been forced to scale back, or shut their doors entirely.
Brewing companies have blamed changing consumer taste preferences and sluggish sales (off-premise volume sales were up 1.7% year-to-date through September 8, according to research firm IRI) for the layoffs, while industry trade groups have pointed to steel and aluminum tariffs as another culprit.
However, one important issue not getting enough attention are federal excise tax cuts that are set to expire at the end of this year.
In December 2017, President Donald Trump signed the Tax Cuts and Jobs Act, which included two years of lower excise taxes for beer makers.
Under the new law, breweries that produced fewer than 2 million barrels of beer annually saw their excise tax rate reduced from $7 to $3.50 per barrel on the first 60,000 barrels. Federal excise taxes for all other brewers were reduced from $18 to $16 per barrel on the first 6 million barrels.
If the 2019 version of the Craft Beverage Modernization and Tax Reform Act (CBMTRA) isn’t extended or made permanent, however, the industry could face additional job losses.
According to figures from the Brewers Association, roughly 2,000 craft breweries will have opened their doors in 2018 and 2019. Those companies have never paid the $7 federal excise tax rate, and if those brewery owners didn’t budget for a possible hike, they could be forced to terminate employees.
Speaking to Forbes, Beer Institute CEO Jim McGreevy said there is “tremendous bipartisan and bicameral support” for maintaining the current tax structure, but “there isn’t a vehicle right now to pass it.”
Currently, 315 members of the House of Representatives and 73 members of the U.S Senate support CBMTRA, but the odds of it passing are uncertain.
“I think it is very hard to estimate or put a percentage on it,” McGreevy said. “Things around here can happen very quickly. Things that seem dead, all of a sudden have new life. Things that seem ready to pass, wind up not passing.”
Nevertheless, McGreevy said his organization has been stressing to lawmakers just how many new brewing companies have launched over the past two years, and how those businesses would be impacted if tax rates were to increase.
“It is a statistic that legislators find surprising and persuasive,” he said.
The uncertainty surrounding aluminum tariffs and the future federal excise tax rate, coupled with the continued trend of layoffs, brewery closures and sluggish sales, is a troublesome combination that U.S. brewery owners should be strategizing for – after all, Molson Coors is.
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40e2ffe97391faa7bb3bb1c058aa5374 | https://www.forbes.com/sites/chrisfurnari/2019/11/27/molson-coors-sees-future-growth-opportunities-in-non-alcoholic-beverages/?sh=74e8af5664ac | Molson Coors Sees Future Growth Opportunities In Non-Alcoholic Beverages | Molson Coors Sees Future Growth Opportunities In Non-Alcoholic Beverages
L.A. Libations and Molson Coors have agreed to a multi-year deal. Credit: Molson Coors
At the end of October, Molson Coors Brewing Company announced a “revitalization plan” that, among other significant changes, included a name change to underscore its growing interest in competing outside of beer.
It wasn’t the type of name change that would turn many heads – Molson simply replaced the word “brewing” with “beverage.”
But one month later, Molson Coors demonstrated just how serious it was about its new moniker by acquiring a minority stake in L.A. Libations, an incubator that specializes in emerging non-alcoholic beverages.
During a presentation at the Beer Marketer’s Insights conference held in New York City last week, Molson Coors CEO Gavin Hattersley formally announced the investment, saying it would enable to company to “pursue opportunities in non-alcohol without needing an extensive non-alcohol specific infrastructure.”
Indeed, the investment gives Molson access to some of the brightest minds in the non-alcoholic beverage industry, including L.A. Libations co-founder and CEO Danny Stepper.
Prior to launching L.A. Libations in 2009, Stepper worked with Coca-Cola, where he was responsible for building the beverage giant’s business in Costco.
Speaking to Forbes, Pete Marino, the president of emerging growth for Molson Coors, expressed admiration for Stepper’s track record of success within the non-alcoholic space and said his “feel for what is next” was a driving factor in the decision to strike a partnership.
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“He is very passionate about non-alcoholic beverage, especially in the premium space, which is where need to play,” Marino said.
As part of the deal, Molson Coors and L.A. Libations will work together to develop new brands that Marino hopes will appeal to the “next generation” of drinkers.
“You can expect us to focus on premium, ‘better-for-you’ non-alcoholic brands,” he told Forbes.
According to a press release, Molson Coors’ equity investment gives the company a stake in new products launched by L.A. Libations, as well as access to brand building and consulting insights and services.
“We know we need to expand beyond beer, and we know we need to participate in the spaces where consumers are gravitating,” Marino said. “Much like how we have worked with our craft partners, we will provide resources and tools to help L.A. Libations scale up brands when we think we have a hit on our hands.”
According to Marino, consumers drink an average of seven beverages per day, and Molson wants to compete for those opportunities even when alcohol isn’t included in the final product.
That’s ones of the reasons why Molson made its investment into L.A. Libations, a move that was preceded by last year’s acquisition of California’s Clearly Kombucha, as well as an investment into Bhakti Inc., a Boulder, Colorado-based ready-to-drink chai tea company.
Through these investments, Molson is banking on its ability to provide a nationwide distribution network with non-beer beverages that can generate new revenue and compete for different drinking occasions.
“From a distribution standpoint, expansion into non-alcoholic beverages makes sense, as the categories have meaningful retail overlap,” Cowen analyst Vivien Azer wrote to Forbes. “However, there may be nuances around specific non-alcohol category pricing dynamics that may not align with a beer model, where regular price increases are a key driver of profit growth.”
Nevertheless, Azer believes Molson’s pivot toward alternative beverages was necessary as a growing number of U.S. consumers are moderating or reducing their alcohol consumption.
“Alcohol companies need to shift with the change in consumer preferences,” she wrote. “While alcohol remains popular with adults in the U.S., younger adult consumers are drinking less alcohol generally, and drinking less frequently.”
According to Nielsen, 66% of millennials claim to be “making efforts” to reduce their alcohol consumption, while 54% of drinkers abstained from alcohol altogether at some during 2018.
Molson isn’t the only brewery to recognize the consumer shift away from beer, however. Companies like Craft Brew Alliance (with pH Experiment) and Maui Brewing Company, among many others, have begun innovating outside of beer with products like hard seltzer, ready-to-drink cocktails, wine spritzers and CBD-infused waters.
“If any of these other liquids — if you will — meet criteria for us, and we can actually get behind them, then why not make them?” posited Maui Brewing founder Garrett Marrero during a recent Brew Talks panel discussion on the beyond beer space.
My take? It’s likely that we’ll continue to see more brewing companies bolster their portfolio with non-beer products, especially as the odds of federal cannabis legalization increases and more consumers look to substitute beer drinking occasions with, well, something else.
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9c82cd062aca98cda48eedc419bdd964 | https://www.forbes.com/sites/chrisfurnari/2019/11/30/us-beer-shipments-could-reach-decade-low-in-2019/ | US Beer Shipments Could Reach Decade-Low In 2019 | US Beer Shipments Could Reach Decade-Low In 2019
A bartender pours a Blue Moon beer Getty Images for NYCWFF
The number of U.S. brewing companies is at an all-time high, but domestic beer production will likely hit a decade-low before the calendar flips to 2020.
According to the Beer Institute (BI), a national trade association representing the American brewing industry, U.S. brewers have shipped an estimated 2.6 million fewer barrels of beer year-to-date (YTD) through October compared to 2018.
The softer shipments represent a 1.8% decline versus last year, when U.S. beer companies combined to sell roughly 142.3 million barrels of beer through the first 10 months of 2018.
If that rate of decline holds through the remainder of the year, more than 11,000 permitted U.S. breweries would ship about 163.6 million barrels in 2019.
However, based on an analysis of domestic tax paid shipment figures from the Alcohol and Tobacco Tax and Trade Bureau (TTB) from the last nine years, U.S. brewing companies have traditionally shipped between 24 and 26 million barrels during the final two months of the year.
If beer sales were to rebound in November and December, it’s possible the industry could ship about 165.6 million barrels in 2019, which would still represent a roughly one-million-barrel decline versus last year.
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Nevertheless, at the start of the decade, 2,343 permitted breweries combined to ship 181.1 million barrels.
So, how did the industry lose more than 15 million barrels of domestically-made beer since 2010?
In a note to Forbes, National Beer Wholesalers Association chief economist Lester Jones, who has researched the beer industry for nearly 20 years, suggested there could be discrepancies in the data as more breweries producing a wider variety of beverages has created “confusion and delay” with reporting.
“The industry has changed dramatically in just 10 years,” he wrote. “Larger legacy brands have lost significant share to countless alcohol beverage innovations.”
Indeed the country’s two largest companies – Anheuser-Busch InBev and Molson Coors – have shed a combined 26 million barrels since 2010. During that time, craft brewers have added about 15 million barrels of beer to the category, according to the Brewers Association.
Meanwhile, sales of White Claw, a flavored hard seltzer that makes up about 60% of the sub-segment, are projected to top $1.5 billion in 2019.
“These innovations are slowly blurring the lines of the standard industry accounting for beer, wine and spirits,” Jones wrote. “All this makes for a tough job of accurately and reliably reporting industry trends.”
While that may be true, it’s well-documented that beer has slowly ceded market share to wine and spirits over the last two decades. According to Cowen, which cited figures from the Distilled Spirits Council, beer accounted for 54% of total beverage alcohol dollar sales in 2003. By 2018, that figure had fallen to 46%.
As consumers have shifted more of their spending to spirits, beer’s share of total alcohol servings has also fallen below 50%, Beer Institute chief economist Michael Uhrich reported earlier this year.
While traditional beer production will likely continue to decline over the near-term, category sales have been helped by the emergence of hard seltzers such as White Claw and Truly.
There are now upwards of 100 different hard seltzer brands, and most are classified and taxed as beer. Those products, which have brought consumers back to the beer category, have also helped breathe life into retail beer sales.
According to market research firm IRI, which tracks sales at large off-premise retailers, volume sales of beer were up about 2% through November 3, driven in part by a 40% increase in flavored malt beverage and hard seltzer sales.
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62771163d3c5aa6c69614f815cb3573d | https://www.forbes.com/sites/chrisfurnari/2019/12/10/is-hard-seltzer-a-fad-new-data-suggests-otherwise/ | Is Hard Seltzer A Fad? New Data Suggests Otherwise | Is Hard Seltzer A Fad? New Data Suggests Otherwise
Cases of White Claw on display in New York AFP via Getty Images
Is hard seltzer here to stay or will sales of the fizzy alcoholic water eventually go flat? That’s the question beer industry observers have been asking for much of 2019.
Similar to conversations about where hard soda was headed a few years ago, there are opinionated stakeholders—some armed with data to strengthen their arguments—on both sides of the debate.
If you ask Sanjiv Gajiwala, the vice president of marketing at Mark Anthony Brands, makers of White Claw, he’ll tell you how bullish he is on the future of the segment and he’ll back it up with some compelling statistics.
“I think that if hard seltzer was like hard soda, you would have seen a splat earlier this year,” he told me in September, noting that sales have grown 300% in each of the last four years.
According to Gajiwala, a key indicator of the long-term potential for hard seltzer are repeat purchase rates.
“Less than one out of ten consumers that bought a hard root beer, bought it again a second time,” he explained. “Over 30% of consumers who buy White Claw once, buy it again. That doesn’t sound like a splat to me.”
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Another reason for hard seltzer makers to be optimistic? Less than 9% of American households have purchased one, compared to about 70% of U.S. households that buy beer.
“As you start to think about that opportunity, I think we feel pretty bullish about the future of the brand,” he told CNN last month.
Of course, there are those who believe today’s hard seltzer drinkers will eventually tire of the product and return to other beverages. Longtime beer writer Jeff Alworth has called the hard seltzer boom a “fad,” and he believes soaring sales will eventually level off.
“They’re fundamentally uninteresting, and when the novelty wears thin, so does the trend as a national force,” he wrote earlier this month.
That’s a far more subjective spin on the current level of consumer interest in these products, but his argument is that hard seltzer is simply a small niche within the broader beer category.
That might be true—for now. More than 82 million nine-liter cases of hard seltzer will be sold in 2019, according to IWSR, a data firm that provides insights on the alcoholic beverage market. By 2023, however, sales of hard seltzer are expected to more than triple to over 281 million cases, IWSR predicts.
“Hard seltzers are far from a fad, they’re growing at a spectacular rate, and increasingly, hard seltzer producers are pulling consumers from other beverage alcohol categories, not just beer,” IWSR chief operating officer Brandy Rand said via a press release.
IWSR recently compiled a comprehensive report on the state of the hard seltzer market, which it claims is now larger (by volume) than the leading spirits category—vodka.
Hard seltzer products, including those made from a wine or spirits base, now control about 2.5% of the entire U.S. alcohol market, according to IWSR, and Rand believes is becoming its own category.
“Consumers don’t look at White Claw or Truly as being a part of the beer category,” she told me.
White Claw and Truly (owned by Boston Beer Company) control approximately 85% of the hard seltzer market, according to investment firm Guggenheim Partners, but dozens of smaller players have introduced their own offerings this year.
“You’re going to see all of these brands that are in cans—some malt-based, some wine-based and some spirit-based—all stacked together,” she added. “To a consumer, they’re all canned refreshment with flavors.”
IWSR sized up the U.S. alcohol category and found that hard seltzers would make up 2.6% of volume in ... [+] 2019 Credit: IWSR
Rand makes an important point about refreshment: Hard seltzer appeals to male and female consumers who normally drink wine, beer and spirits offerings.
Earlier this year, Gajiwala told me that 55% of White Claw’s volume was coming from beer, while 20% was coming from wine and 17% from spirits. The remaining 8% is being sourced from other cider and flavored malt beverage products, he said.
According to Brewers Association chief economist Bart Watson, who analyzed sales data from research firm IRI earlier this year, only 27% of hard seltzer volume is being sourced from beer.
“The rest is either coming from getting new drinkers into beverage alcohol, or from increased purchases that are incremental to existing off-premise sales,” he wrote in October.
However, Watson noted that per capita alcohol consumption historically hasn’t changed much over time. Legal drinking age Americans consume about 2.5 gallons of pure ethanol each year, according to National Beer Wholesalers Association chief economist Lester Jones, so hard seltzer sales are not purely incremental.
Nevertheless, hard seltzer drinkers spend an average of $219 more on adult beverages annually compared to the average alcohol-buying household, according to Nielsen, and 40% of hard seltzer buyers are repeat customers.
Meanwhile, numerous beer industry executives I’ve spoken to in recent months have expressed concerns that hard seltzer sales could accelerate light lager declines; sales of Bud Light and Coors Light, the largest individual U.S. beer brands, are both down 5.8% and 2.9%, respectively, according to IRI.
One regional brewery owner in the Southeast recently told me that large chain retailers are planning to reduce shelf space for craft beer in order to make room for hard seltzer SKUs. If that’s true, those outlets would be wise to consider that craft beer drinkers are two times more likely to purchase hard seltzer than the average drinker, according to Nielsen.
So, just how big is the hard seltzer category today?
According to Nielsen, hard seltzer sales at off-premise retail stores reached $1.3 billion over the 52-week period ending November 2, 2019. During that span, drinkers spent more on hard seltzer than they did on sauvignon blanc ($980 million) or craft beer 12-packs ($1.2 billion), the firm reported.
Interestingly, sales of hard seltzer are also sneaking up on the craft beer’s largest individual style: IPA. According to Nielsen, off-premise sales of craft IPAs reached $1.5 billion during the above-mentioned 52-week period. However, Gajiwala told CNN last month that sales of White Claw would surpass $1.5 billion in 2019, and that category-wide sales would approach $2.5 billion.
Maybe boozy water is going to be a bit of a bogeyman for beer after all.
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624678e2767ef1818f56a27d686bb8cc | https://www.forbes.com/sites/chrisfurnari/2020/01/22/molson-coors-to-acquire-detroit-craft-brewery-atwater/?sh=64b515130a74 | Molson Coors To Acquire Detroit Craft Brewery Atwater | Molson Coors To Acquire Detroit Craft Brewery Atwater
Molson Coors Beverage Company will acquire Detroit's Atwater Brewery Atwater Brewery Facebook Page
Tenth and Blake Beer Company, the U.S. craft beer division of multinational beer maker Molson Coors Beverage Company, will acquire Detroit’s Atwater Brewery for an undisclosed sum.
Terms of the deal were not disclosed and the transaction is expected to close “within the next couple of months,” according to a press release.
Atwater is the first U.S. craft brewery that Tenth and Blake has purchased since mid-2016, when it went on a buying spree and acquired three small producers — Georgia’s Terrapin Brewing, Texas’ Revolver Brewing and Oregon’s Hop Valley Brewing — in the span of three weeks.
Tenth and Blake’s portfolio also includes the Saint Archer Brewing, AC Golden Brewing and Jacob Leinenkugel Brewing brands.
Reached by phone, Atwater owner and CEO Mark Rieth said the deal would enable the 23-year-old craft brewery to expand its presence throughout Michigan and the Midwest.
“There is still a lot of run room in our home market,” he said. “Having a strategic partner like Molson Coors will help us get to the next level.”
Rieth, who first invested in Atwater in 2002 and acquired full ownership of the brewery in 2005, said the company grew by single digits last year and produced “just over” 23,000 barrels of beer.
“As a regional brewery competing with 8,000 other breweries, we were very happy to grow,” he said.
Atwater Brewery's 'Spiked Sparkling Water' Atwater Brewery
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Atwater is known for its Dirty Blonde and Vanilla Java Porter offerings, but it also jumped into the crowded hard seltzer category last August. Rieth said the company sold about 15,000 cases of hard seltzer across just two states in 2019, and he believes sales could grow to 50,000 cases this year.
“I believe you will see maybe four or five national players and a couple of local options in each market,” he said. “That is where we are planting our feet down. We are making sure that we are resonating with chain store buyers here regionally, and that has worked out pretty well so far in Michigan.”
Atwater was ranked by the Brewers Association as the fifth-largest craft beer maker in Michigan in 2018, trailing Grand Rapids-based Founders Brewing (563,179 barrels), Kalamazoo-based Bell’s Brewery (472,168 barrels), Bellaire-based Short’s Brewing (45,485 barrels) and Holland-based New Holland Brewing (41,750 barrels).
Three of those aforementioned brands – Founders, Short’s and New Holland – have all sold stakes or struck partnerships with larger players. Founders is 90% owned by Spain’s Mahou San Miguel, and Heineken-backed Lagunitas purchased a 20% stake in Short’s back in 2017. New Holland also has a marketing and distribution arrangement with Pabst Brewing.
“Atwater has been a staple and a leader in the Michigan craft community for more than two decades, and we’re thrilled to have them join Tenth and Blake,” Paul Verdu, the vice president of Tenth and Blake said via the press release. “Our priority is to make sure their beer is enjoyed by consumers throughout their core markets and eventually across the Great Lakes region.”
Atwater’s beers are currently distributed in about 12 states, Rieth said, noting that he pulled the brand out of multiple markets midway through the last decade as competition within the craft beer segment began heating up.
“We had spread ourselves too thin,” he said. “So we made the decision to focus on ROI versus top-line growth, and took it on the chin in order to become more profitable and sell our beer closer to home.”
Moving forward, Rieth said the partnership with Molson Coors will help Atwater get its beers into the hands of more consumers.
“Our mantra is ‘Born in Detroit, Raised Everywhere,’” he said. “We are all about making the best beer in the world, and we want to bring it to the masses. Molson Coors is going to help us catapult that.”
Rieth, along with his management team, will continue to lead day-to-day operations, a press release noted. Molson Coors is also expected to maintain Atwater’s 95 employees, according to Crain’s Detroit.
Prior to running the brewery, Rieth worked in the automotive industry and “put everything on red” when he purchased Atwater in 2005.
“I poured everything I had into it,” he said. “I took out a bunch of business loans, divested from my automotive business and came on full-time because I knew that was the only way it was going to work.”
Fast-forward 15 years, and Rieth is now selling his business to the second-largest beer maker in the country.
“It really feels like 2020 is the right time for us to do this,” Rieth said, adding that he began exploring a sale of the business “a couple of years ago” and spoke to other strategic buyers as well as private equity firms.
“We looked at everything,” he said. “But having a strategic partner was much more important to us than just raising capital.”
This is the fourth significant announcement Molson Coors has made in the last three months.
At the end of October, CEO Gavin Hattersley announced a robust restructuring plan that included the consolidation of business units, the closing of its Denver office, hundreds of layoffs, several key leadership changes and a formal name change to reflect the company’s growing interest in competing outside of the beer category.
In November, Molson Coors acquired a minority stake in L.A. Libations, a California-based beverage incubator that specializes in non-alcoholic startups.
And earlier this month, the brewing giant said it would cease production at its Irwindale, California facility by September in order to “optimize” its brewery footprint.
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54ed272bb7fd55bed03d8f0ee23c73f8 | https://www.forbes.com/sites/chrisfurnari/2020/09/15/yuengling-americas-oldest-brewery-forms-jv-with-molson-coors-to-reach-western-consumers/?sh=2c3c0e4d2101 | Yuengling, America’s Oldest Brewery, Forms JV With Molson Coors To Reach Western Consumers | Yuengling, America’s Oldest Brewery, Forms JV With Molson Coors To Reach Western Consumers
D.G. Yuengling & Son has formed a joint venture with Molson Coors D.G. Yuengling & Son, Inc.
For the first time in more than 190 years, beers from D.G. Yuengling & Son will soon be available (legally) in the western half of the United States.
The iconic Pennsylvania brewery has formed a 50-50 joint venture with the country’s second-largest beer maker, Molson Coors Beverage Company, in a move that will eventually bring its beers to 25 additional states.
Announced Tuesday, the jointly-held entity — called The Yuengling Company — is aimed at expanding production and distribution of Yuengling offerings like Traditional Lager, Black & Tan and Flight to major beer markets like Texas and California.
In an interview, Yuengling vice president of operations and sixth generation family member Jennifer Yuengling stressed that the company would remain “fiercely independent, family-owned and operated,” and that the JV with Molson Coors is designed to give thirsty consumers in the western half of the country an opportunity to purchase Yuengling products without having to “smuggle it across state lines.”
Her sister, Wendy Yuengling, who serves as the company’s chief administrative officer, added that wholesaler relationships in the 22 states where the brand is currently sold would not be affected.
“This does not change anything for our existing business, our existing breweries and our employees,” she said. “We are picking up a world-class partner to help us continue to grow and build our brands for the long term.”
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For his part, Molson Coors CEO Gavin Hattersley said Yuengling beer would initially be produced at just one of his company’s breweries and that additional facilities would begin making product down the road. He did not specify which locations would be tasked with making Yuengling beers, however.
In addition to capturing 50% of the profits from the sale of Yuengling offerings across 25 states, the partnership enables Molson Coors to better utilize capacity at its breweries while simultaneously providing its wholesalers with a coveted brand that can win shelf placements and take meaningful market share.
According to Harry Schuhmacher, the publisher of industry trade publication Beer Business Daily, Yuengling often captures two or three share points immediately upon entering a new market.
“That is a big boon for a Molson Coors beer distributor in the Midwest who might not have as much share as an Anheuser-Busch wholesaler,” Schuhmacher said.
Hattersley wouldn’t comment on which western markets would be the first to receive Yuengling beer, however those decisions will be made jointly under the guidance of an evenly split six-person board of directors.
Yuengling family members and Molson Coors executives will make up the board, and new market entries will begin midway through 2021.
Tie-ups like this are not uncommon in the beer industry. Oregon-based Craft Brew Alliance (CBA BREW ) — which makes the Kona, Widmer, and Redhook beers, among others — has for years accessed brewing capacity and distributor relationships as part of a commercial partnership with Anheuser-Busch InBev.
Under that arrangement, however, A-B owns a minority stake in CBA. The world’s largest beer company is currently in the process of acquiring the remaining portion of CBA that it doesn’t already own.
In the case of Yuengling and Molson Coors, it’s unclear if the two companies would ever look to merge.
When asked, Wendy Yuengling said remaining independent was “incredibly important” and that a future sale to Molson is not something that’s been discussed.
Schumacher, who said he’s heard rumors of a possible partnership between the two companies for several years, believes that Molson could eventually look to buy the Yuengling brand.
“I would be surprised if they didn’t have some sort of option — you know a right of first refusal sort of thing,” he said. “And the same goes for Yuengling. To have an option to get out of the partnership, if they are displeased with how it turns out.”
Tuesday’s announcement comes just four months after Molson Coors said it had agreed to sell its brewery in Irwindale, California to Pabst Brewing Company for $150 million. Pabst itself has a contract brewing agreement with Molson Coors that is set to expire in 2024.
Yuengling was ranked by trade group the Brewers Association as the largest craft beer producer in the U.S. in 2019 after it produced more than 2.6 million barrels of beer.
Through August 9, off-premise volume sales of Yuengling beer were up 3.1% year-to-date, according to market research firm IRI.
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c7dfe4ce73149dcfc86b6b1d5c31cca7 | https://www.forbes.com/sites/chrisfurnari/2020/09/29/coca-cola-taps-molson-coors-to-produce-and-distribute-topo-chico-hard-seltzer/?sh=18e56edc6210 | Coca-Cola Taps Molson Coors To Produce And Distribute Topo Chico Hard Seltzer | Coca-Cola Taps Molson Coors To Produce And Distribute Topo Chico Hard Seltzer
Coca-Cola and Molson Coors will bring Topo Chico Hard Seltzer to the U.S. in 2021 Molson Coors
In July, when Coca-Cola KO teased plans to launch a spiked version of its popular Topo Chico sparkling mineral water in the U.S., the big question was how the company would bring it to market.
Now, we have the answer.
The soda giant has signed an exclusive agreement with Molson Coors TAP to “manufacture, market and distribute” Topo Chico Hard Seltzer in the U.S. beginning in early 2021.
According to a news release, Molson Coors will bring its “marketing, sales and distribution expertise” to the table for a scaled national launch, and initial production runs will be outsourced to a third-party manufacturer to minimize supply chain disruptions.
According to a Molson Coors spokesman, the beer company will eventually move production to one of its facilities.
The boozy version of Topo Chico will initially come in four flavors — Tangy Lemon Lime, Exotic Pineapple, Strawberry Guava and Tropical Mango. And, like nearly every other hard seltzer on the market, it will be packaged in slim cans and sold in a variety 12-packs.
An image of the new product indicates that it will be gluten-free, check in at 4.7% ABV and contain just two grams of sugar.
In an email, a Coca-Cola representative said that “Topo Chico Hard Seltzer will not be carried on Coca-Cola trucks.”
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“The U.S. alcoholic beverage industry is highly regulated, with thousands of laws governing the manufacturing, distribution, responsible marketing and sale of alcoholic beverages,” the spokesperson wrote. “The relationship allows the Topo Chico Hard Seltzer product to move forward with a scaled launch with a company that has generations of experience in the alcoholic beverage industry to responsibly reach consumers in the market.”
On the surface, the partnership between the two companies appears to be a mutually beneficial one. It solves significant production and distribution challenges for Coca-Cola, while giving Molson Coors yet another new weapon in its growing arsenal of brands.
“This is another significant step in growing our above premium portfolio and becoming a major competitor in the rapidly-growing hard seltzer segment, both key components of our revitalization plan,” Molson Coors CEO Gavin Hattersley said via the release.
Molson Coors already competes in the hard seltzer segment, most notably with its antioxidant-infused offering called Vizzy and the recently introduced Coors Seltzer.
However, the company trails category leaders Mark Anthony Brands (White Claw) and Boston Beer Company SAM (Truly) — which together own nearly 75% of the hard seltzer market — by a wide margin.
Meanwhile, Anheuser-Busch InBev, which makes a variety of hard seltzer offerings, including Bud Light Seltzer, controls about 13% of the category, according to Credit Suisse CS analyst Kaumil Gajrawala.
Nevertheless, both Molson Coors and Coca-Cola believe that Topo Chico Hard Seltzer can chip away at those brands’ dominating positions, and capture a portion of an off-premise market that is currently valued at $3.5 billion, according to industry trade publication Brewbound.
Speaking to Mad Money’s Jim Cramer last week, Coca-Cola CEO James Quincey said the Topo Chico brand “has tremendous relevance and resonance with millennial consumers.”
“I think this is going to be a great opportunity for us,” he said, noting that the company’s goal is to drive consumer-centric brands at scale.
Indeed, Coca-Cola vice president Dan White echoed those sentiments in today’s announcement, saying that the relationship with Molson Coors “allows Topo Chico Hard Seltzer to launch with scale, at an accelerated pace, delivering a product that consumers will love.”
“In bringing Topo Chico Hard Seltzer to market, our focus is speed, quality and efficiency,” he said.
Structurally, Molson Coors’ partnership with Coca-Cola functions more like a licensing arrangement.
“The Coca-Cola Company has authorized Molson Coors to use the Topo Chico trademark to produce and distribute Topo Chico Hard Seltzer in the U.S. under a multiyear agreement,” a Molson Coors spokesman wrote in an email.
Nevertheless, it shows Molson Coors’ willingness to get creative when it comes to finding new growth opportunities.
Earlier this month, the beer maker announced a similar partnership with the oldest brewery in America, D.G. Yuengling & Son. Under that arrangement, a 50/50 joint venture, Molson Coors will produce Yuengling’s beers and distribute them to 25 U.S. states.
At the same time, Molson Coors has begun making inroads into the nonalcoholic beverage segment. It recently unveiled a line of probiotic seltzers called “Huzzah!” as well as a line of plant-based diet sodas called MadVine. It is also planning to introduce a nootropic beverage aimed at improving mental focus and clarity and marketed to gamers and developers.
Molson Coors’ nonalcoholic brands were created in partnership with L.A. Libations, a west coast incubator that specializes in emerging beverages. Molson Coors acquired a minority stake in L.A. Libations at the end of last year.
Taken together, Molson Coors’ moves over the last year underscore its effort to grow sales “during a time of tremendous change in the beverage industry,” Hattersley told his company’s “Beer & Beyond” blog.
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8028f73ed4f50942c71a880298407f22 | https://www.forbes.com/sites/chrisfurnari/2020/10/30/alcohol-alternative-saint-ivy-bets-on-growing-sober-curious-trend/ | Alcohol Alternative Saint Ivy Bets On Growing Sober-Curious Trend | Alcohol Alternative Saint Ivy Bets On Growing Sober-Curious Trend
Saint Ivy's nonalcoholic cocktails launched in January Saint Ivy
Are you in the mood for a Moscow Mule, but want to skip the vodka? Are your friends ordering another Gin & Tonic, but you’ve got an important meeting in the morning?
San Francisco-based startup Saint Ivy, which makes ready-to-drink alcohol-free cocktails, has you covered.
Founded by Jason Stanley, a South African with an unmistakable accent, Saint Ivy bills itself as an “elegant alternative to alcohol” that can help consumers cut back on booze.
Saint Ivey’s two flavors — Moscow Mule and Gin & Tonic — contain no alcohol, sugar or calories and cost about $3 per bottle.
Saint Ivey’s flavor and aroma comes from ingredients like juniper berries, coriander, ginger, and lime, which provide consumers with the experience of drinking the hard stuff.
The company launched its first products earlier this year, which are currently sold directly to consumers online as well as at select retailers in California.
I recently spoke to Stanley, who explained why he wanted to launch an alcohol-free cocktail, his plans for expansion and why he believes there’s growth on the horizon for alcohol alternatives like Saint Ivy.
The following conversation has been condensed and lightly edited for clarity.
Chris Furnari (CF): How did you get into the beverage business?
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Jason Stanley (JS): Years ago, I was working in banking in Boston. I found that the weather was really cold, and I wanted to move back to the sunshine in Cape Town, South Africa. Three weeks before I was booked to leave, there was this massive Nor’easter. You couldn’t leave your home. So, I was on the internet and came across an advertisement saying, “I’m looking for help with my wine business in the Northeast.” I thought, what the heck. I gave this guy a call, and it turns out he was the number one importer of South African wine in the U.S. He made me an offer, and within a few months I was flying all over, meeting with buyers and doing wine dinners. I loved it when I was in my late 20s.
CF: What led you to launch an alcohol-free cocktail?
JS: I found that I was just drinking too much alcohol when I was selling wine. I’d want to see my mates on the weekend but didn’t want to drink because I’d already had a hangover two or three days that week. I wanted to do something with more purpose and meaning. So I returned to South Africa, got my MBA, and got into the world of online learning. I did that for a few years, but I missed the beverage business. So I came back to the U.S. a few years ago with the intent to get back into beverage, and I could see that people were yearning for an elevated alternative in the nonalcoholic space.
CF: Can you explain your R & D process?
JS: I started by running around to natural shops and Whole Foods, trying to get ingredients like star anise, orange peels and lemons, and buying all of the tonics on the market. I tried all of the different flavors and did blind tests just like we did in wine. I tried to come up with the best formula myself, and then I played around with pot stills. Eventually, I connected with some food scientists and came to a partnership with one of the more established flavor houses, which has helped us with our formula.
CF: Do you still drink alcohol?
JS: I probably drink a quarter of what I used to. Where I am from in South Africa is a very heavy drinking culture. Into my early 30s, I was a heavy drinker. I have chilled out a lot, drink a lot less, but I do still enjoy a great bottle of wine.
CF: Who is your core consumer? Is it someone like yourself who is moderating their intake?
JS: There are two different types. One is the abstainer that is not drinking alcohol at all. They may have some addictive tendencies, or just want to stop consuming alcohol entirely. And I think that is most of our initial direct-to-consumer audience. And then we have the person like me who just wants to take a breather or wants to drink a bit less. Our audience is 75% female, and they tell us it is a productivity thing. Among younger people, they want to go hiking and do yoga. Among the older audience, they want to be more productive. We get a lot of working professionals who want to be more productive and don’t want to continue drinking alcohol if it holds them back.
CF: Why do you think so many consumers are reassessing their relationship with alcohol right now?
JS: I think it is a combination of factors. People are more aware of their health, they want to be more productive, and we are living in the age of social media with cameras everywhere. When I was 20 years old, smoking was cool. Now it is not cool because more science has come out. If I misbehaved when I was 20, everybody forgot about it. But now, someone takes a picture or a video, and that gets passed around and it is embarrassing. There’s just more information out there now.
CF: Do you have any plans to raise outside capital?
JS: We’re going to start looking in the next two or three months. With any beverage brand, you are continuously iterating and refining your product. I have a clear vision now, and I think we can articulate that to investors.
CF: Where do you see Saint Ivy going in the future?
JS: We have decided — on purpose — to focus on California right now. We want to be an inch wide but a mile deep. However, by the end of next year, we’d like to be in three or four other major markets like New York, Florida, Illinois, Las Vegas or maybe Arizona. Beyond that, I think there is some international opportunity as well and I quite like the idea of serving a lot of people a great, elevated alternative to alcohol, because it is an underserved market.
CF: What’s been the hardest part of building and launching Saint Ivy?
JS: The unique one for us was launching in the middle of January, and COVID lockdowns happened in the middle of March. When you are in a normal market, you get to do a lot of demos where you can learn a lot about your consumer. You learn if they like a bit more sugar, or a bigger bottle versus a can. They tell you the weirdest stuff that you’d never expect. There has been none of that because of COVID.
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146a1dc61b71c231823edd52a599cec7 | https://www.forbes.com/sites/chrisfurnari/2021/02/09/iwsr-report-noand-low-alcohol-products-gaining-market-share/?sh=6d1e8ba8484b | IWSR Report: No- And Low-Alcohol Products Gaining Market Share | IWSR Report: No- And Low-Alcohol Products Gaining Market Share
Off-premise sales of Athletic Brewing's nonalcoholic beer were up nearly 500% in 2020 Athletic Brewing
Global sales of no- and low-alcohol beverages are surging, according to a new report from market research firm IWSR.
The London-based data and intelligence company, which tracks worldwide alcohol trends, has released a new study examining sales of beer, wine, spirits and ready-to-drink (RTD) products that contain little or no alcohol.
According to the firm, consumption of these products is expected to increase 31% by 2024 across 10 markets: Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the UK and the U.S.
Collectively, those countries make up 75% of the global consumption of no- and low-alcohol beverages, IWSR said.
“What we’re seeing is a moderation trend that’s sweeping across key global markets, and that’s bringing with it increased demand for reduced alcohol, or alcohol-free drinks,” IWSR chief Mark Meek said via a news release.
IWSR defines nonalcoholic beer, cider, wine, spirits, RTDs and alcohol replacements as products that contain less than 0.5% ABV.
Meanwhile, low-alcohol beers and ciders contain between 0.5% ABV and 3.5% ABV, while low-alcohol wines check in under 7.5% ABV, according to the firm.
Germany is the largest and most developed market for no- and low-alcohol beer, IWSR said. Those products make up 11.8% of the total beer category.
However, consumption of the less potent drinks dipped by 5% in 2020 as consumers made fewer visits to bars and restaurants amid the ongoing coronavirus pandemic.
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Spain has the next most developed near beer market, with no- and low-alcohol beers making up 10.6% of the total beer category.
In the U.S. — where NA drinks are still catching on and suppliers have yet to fully penetrate the on-premise channel — sales of all no- and low-alcohol beverages grew more than 30%, IWSR said.
Within the nonalcoholic beer segment specifically, IWSR reports that U.S. volume sales grew 34.8% and reached $1.7 billion in 2020.
That number is much higher than what market research firm IRI, which collects scan data from large off-premise chain retailers, recently reported.
According to IRI, off-premise volume sales of nonalcoholic beer in the U.S. grew 28% and reached $188 million in 2020.
Brandy Rand, the COO of IWSR’s Americas division, said the gap between the two figures is a result of different research methodologies.
IWSR collects and aggregates information from major producers, distributors, importers, retailers and trade groups across 160 countries, she said. It then verifies and cross-checks that data to “gain a far better understanding of the dynamics of a market.”
While exact sales figures for nonalcoholic beer may be hard to pin down, one thing is certain: nonalcoholic beer in the U.S. still lags behind many European countries on a market share basis. Sales of no- and low-alcohol beers made up just 1.9% of the total beer category in America in 2020.
But that’s beginning to change, and IWSR expects sales of nonalcoholic beer to grow at a compound annual growth rate of 9.7% in the U.S. through 2024.
Much of that growth is being driven by millennial consumer, who currently comprise the largest segment (42%) of no- and low-alcohol beer drinkers in America.
“Millennials are maturing into that middle lifestyle phase where they have busy careers and their lives are full,” Rand explained. “They are generally at that age where you get married and have kids, and they are starting to integrate no- and low-alcohol products into their lives versus just abstaining.”
Another reason why sales of nonalcoholic beer are on the rise? More choice.
Brooklyn Brewery's Special Effects IPA is the company's second non-alcoholic beer. Brooklyn Brewery
“Thanks to the investment in the category from the major brewers, consumers are becoming more familiar and accepting of no/low beer as a quality product,” IWSR wrote.
Indeed, several large beer makers — including Anheuser-Busch InBev, Diageo, and Heineken — have made significant investments into growing the nonalcoholic beer market in the U.S.
Heineken famously spent $50 million to launch its 0.0 brand in the U.S. in 2019, and A-B InBev has pledged to make no- and low-alcohol drinks 20% of its worldwide production by 2025.
At the same time, several smaller players have entered the space, including Athletic Brewing, which last year raised $17.5 million from big name backers like Lance Armstrong, J.J. Watt, Darren Rovell and Blake Mycoskie, among others.
According to founder Bill Shufelt, sales of Athletic’s nonalcoholic beer grew 500% in 2020, and revenue could reach $45 million in 2021.
The booming market for alcohol alternatives has attracted dozens of new players since Athletic first arrived on the scene in mid-2018.
Boston Beer Company SAM SAM SAM SAM SAM just launched its “Just the Haze” nonalcoholic IPA, and Heineken-owned Lagunitas Brewing has begun expanding availability of its 80-calorie IPNA to retailers nationwide.
Dogfish Head’s Lemon Quest is also hitting the market, and Brooklyn Brewery just released its second nonalcoholic SKU under the “Special Effects” label.
Beyond beer, there are several nonalcoholic spirits and RTD mocktails hitting the market as well.
“There has always been an unmet demand for alcohol alternatives,” Rand said. “Taste profiles are getting better, the brands are getting cooler, and when you have an explosion of choice and new products, it draws more interest in the category.
According to a 2019 Morning Consult poll, 46% of adults have tried a nonalcoholic beer or cocktail.
IWSR research also found that 58% of consumers are switching between full-strength drinks and no- and low-alcohol beverages during the same occasion.
Meanwhile, only 14% of consumers said they do not drink any alcohol.
According to IWSR, 64% of consumer prefer to drink no- and low-alcohol products “when relaxing at home.”
“Brand owners will have an important role to play in the future development of no- and low alcohol, as increasing the breadth of products available to consumers and their price points will support category growth and broaden its appeal,” Meek added.
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1b53863734d8630f08fe2e4a5b0d3eeb | https://www.forbes.com/sites/chrisfurnari/2021/03/02/canopy-growth-launches-quatreau-cbd-drinks-in-us/?sh=659ee1e44b19 | Canopy Growth Launches ‘Quatreau’ CBD Drinks In U.S. | Canopy Growth Launches ‘Quatreau’ CBD Drinks In U.S.
Canopy Growth's CBD-infused sparkling water Quatreau launches today in the U.S. Canopy Growth Corporation
Canopy Growth Corporation, the Canadian cannabis firm backed by New York-based alcohol company Constellation Brands STZ , has officially launched its CBD-infused sparkling waters in the United States.
Called Quatreau, the new ready-to-drink beverages come in four flavors — Cucumber + Mint, Passion Fruit + Guava, Ginger + Lime, and Blueberry + Acai — and feature 20 milligrams of hemp-derived CBD per 12 oz. serving.
Unlike Quatreau offerings already available in Canada, the U.S. versions do not include any THC, the psychoactive compound found cannabis.
The drinks are sugar free, contain just 25 calories, and will initially be sold via Canopy’s online store for $3.99 per can. However, broader retail distribution could be announced in the coming weeks.
“We have a great strategic partner in Constellation Brands, which has their ‘gold network’ and is particularly strong at leveraging distributors to reach a wide array of consumers,” said Canopy chief product officer Rade Kovacevic. “I don’t think there’s any doubt we will look at distribution beyond e-commerce.”
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Constellation, which makes the Corona, Modelo and Pacifico beer labels, and owns several prominent wine and spirits brands, has already invested more than $4 billion into Canopy Growth. It currently owns 38.6% of the cannabis firm and has the right to acquire another 17.2% of the company, which would bring its total stake to 55.8%.
With the launch of Quatreau, and the forthcoming debut of several THC-infused drinks, Canopy has its sights set on a $200 billion alcohol market and a $20 billion functional beverage market in the U.S., Kovacevic said.
“The opportunity is huge,” he said. “What does it look like if we’re able to disrupt 5% of that? What does it look like if it’s more? It’s an exciting opportunity, especially considering the better-for-you health benefits that these products have compared to their analogues.”
CBD, short for cannabidiol, is the nonintoxicating cannabinoid found in the cannabis family of plants. Proponents of CBD say it reduces inflammation, improves sleep, alleviates stress and helps regulate mood.
However, those claims have not been substantiated by the U.S. Food and Drug Administration (FDA), and the agency has yet to issue final regulatory guidance for products containing CBD.
Nevertheless, several beverage manufacturers have already begun selling their drinks throughout the U.S., pointing to the passage of the 2018 Farm Bill — which removed hemp and its derivatives from the legal definition of marijuana under the Controlled Substances Act — as proof that their products are legal.
“There are no federal laws or regulations prohibiting hemp-derived CBD inclusion in dietary supplements and foods,” Kovacevic said, adding that Canopy is “supporting” Congress and the FDA by sharing its research around safety and proper dosage.
CBD comes in various forms, including edibles, topicals, pills, tinctures, and vapes.
According to Kovacevic, there are over 3,000 CBD brands in the U.S. — including Canopy’s own gummies and pet treats made in collaboration with entrepreneur Martha Stewart.
Market research firm Brightfield Group, which studies the CBD and cannabis sectors, projects the total U.S. CBD market could be worth nearly $17 billion by 2025.
Meanwhile, 86% of U.S. consumers have heard of CBD, according to New Frontier Data, however only 18% have consumed a CBD product.
Quatreau contains 20 miligrams of CBD Canopy Growth Corporation
But as the entire market continues to expand, so too will sales of hemp-infused drinks.
According to cannabis research firm BDSA, sales of hemp-derived CBD beverages are expected to more than double, from about $100 million in 2020 to more than $246 million this year. By 2025, BDSA estimates that U.S. consumers will spend $1.4 billion on CBD drinks at mainstream retail stores.
Hoping to capitalize on that emerging opportunity, major CPG firms like Canopy, Molson Coors TAP , and Ocean Spray OCESP have jumped into the space, joining popular startups like Recess and Weller which have been working to build the category since 2019.
Molson Coors rolled out its Veryvell line of sparkling waters, which contain 20 mg of CBD as well as adaptogens, in Colorado earlier this year.
Ocean Spray also began selling its CarryOn line of CBD sparkling waters, which contain up to 20 mg of CBD, in Colorado last June.
Both companies selected the Centennial State because it has an established regulatory framework that allows for the production, marketing, and sale of CBD-infused products.
But Canopy, like others selling directly to consumers, is confident it can distribute to several other U.S. markets.
“We think there’s a fairly clear regulatory path and way to enter the market, and we’re really comfortable with the future opportunity,” Kovacevic said.
According to Canopy’s website, Quatreau can be shipped to 32 states.
The ability to reach consumers across the U.S. will be key as Canopy tries to establish itself in a category that is becoming increasingly crowded.
Kovacevic, citing internal research, said consumers are looking for CBD products like Quatreau to help them “relax” and relieve stress.
“They want to feel confident that CBD is causing the effects, and that there aren’t other ingredients in the product that they are unsure about,” he said.
That’s why Canopy is using a CBD isolate, which does not contain other plant compounds.
“It lets us be very specific with consumers in terms of what is in the product and what is on the ingredient panel,” Kovacevic said.
In addition to CBD drinks, Canopy is also planning to launch its THC-infused beverages in the U.S. this year through a partnership with New York’s Acreage Holdings.
Labels like Tweed and Houseplant, which contain between 2 mg and 2.5 mg of THC and are currently sold in Canada, could find their way to the U.S. this summer.
Meanwhile, the Quatreau offerings are being made in the U.S., however a spokesperson for Canopy said Constellation and Acreage are not involved in the production process.
Quatreau labels list Canopy’s U.S. headquarters in Evergreen, Colorado — the former offices of cannabinoid research company Ebbu, which Canopy acquired in 2018 in a cash-and-stock transaction valued at $330 million — but do not specify where the drinks were manufactured.
A certificate of analysis (COA) available on Canopy’s e-commerce site shows that Quatreau products were tested by a laboratory in Burbank, California.
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f8fd97e029839f05b564f1bc5af205af | https://www.forbes.com/sites/chrisfurnari/2021/03/08/diageo-acquires-recently-launched-ranch-water-hard-seltzer/?sh=1955fd512d5d | Diageo Acquires Recently Launched ‘Ranch Water’ Hard Seltzer | Diageo Acquires Recently Launched ‘Ranch Water’ Hard Seltzer
International alcohol company Diageo acquired Texas' Lone River Ranch Water for an undisclosed sum. Lone River Ranch Water
International alcohol giant Diageo has acquired Texas-based Far West Spirits LLC, which makes the Lone River Ranch Water hard seltzer brand.
Financial terms of the deal were not disclosed.
A news release issued Monday noted that the purchase was funded with cash and that Lone River founder Katie Beal Brown retained a minority stake.
“We are excited to bring this vibrant young hard seltzer brand into our growing ready-to-drink portfolio,” said Debra Crew, the president of Diageo North America. “Lone River captures the magic of Americans’ love for agave flavored beverages combined with their desire for light, convenient refreshment.”
Brown launched the business in 2019 but only brought her products to market last May.
She will continue to oversee day-to-day operations as CEO and “work closely” with Diageo North America executives to grow the brand, according to the release.
“We found in Diageo a world-class partner who believes in our vision to bring the spirit of Far West Texas to as many as we can,” Brown said via the release.
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Since it launched, off-premise sales of Lone River Ranch Water have eclipsed $5.5 million at grocery, drug, liquor and convenience stores, according to data from NielsenIQ provided by alcohol industry consulting firm 3 Tier Beverages.
The brand — inspired by a West Texas drink made with Topo Chico, lime and tequila — is distributed throughout the Lone Star State, as well as Alabama, Arizona, Florida and Tennessee.
Available in four flavors — Original, Spicy, Rio Red Grapefruit, and Prickly Pear — a 12 oz. can of Lone River’s take on the highball contains just 80 calories, three grams of carbs, and checks in at 4% ABV. It is not made with tequila but does include lime juice and organic agave nectar.
Since its launch, several other ready-to-drink (RTD) ranch waters have entered the fray, including one from Diageo competitor Heineken, which will launch its Dos Equis Ranch Water Hard Seltzer next month.
Other offerings, like a version from Ranch Rider Spirits, are made with tequila, sparkling water and lime.
All of these products compete in a broader RTD segment — which includes hard seltzers and flavored malt beverages, as well as spirit- and wine-based cocktails — that is approaching $10 billion, according to NielsenIQ.
Sales of hard seltzers — which typically contain 100 calories and check-in at 5% ABV — surpassed $4.3 billion over the last 52 weeks, according to NielsenIQ, and new brands continue to hit the market on a weekly basis.
Category leaders Mark Anthony Brands, which makes White Claw, and Boston Beer Company SAM , which makes Truly, own roughly 75% of hard seltzer market share.
Anheuser-Busch InBev boasts 70 different brand and flavor combinations across its growing portfolio of hard seltzers. Molson Coors TAP also has several labels, including the forthcoming Topo Chico Hard Seltzer.
With the purchase of Lone River, Diageo adds a fast-growing brand to its expanding catalog of RTDs. The company’s Smirnoff Spiked Sparkling Seltzer reached $90 million in sales at grocery, drug, liquor and convenience stores over the last 52 weeks, according to NielsenIQ.
Diageo’s RTD portfolio also includes the Ketel One Botanical Vodka Spritz offerings, Tanqueray Crafted Gin Cocktails, and Crown Royal cocktails in a can that also launched today.
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320e5aa7630190b7ef4d99ae460f1f9f | https://www.forbes.com/sites/chrisfurnari/2021/03/17/finding-white-space-amid-waves-of-white-claw/?sh=455fa13a4b6b | Finding White Space Amid Waves Of White Claw | Finding White Space Amid Waves Of White Claw
Spindrift Spiked Sparkling Water will be released in mid-April Spindrift
If there’s any white space left in the remarkably frothy hard seltzer market, Spindrift founder Bill Creelman seems the most likely to locate it.
On Monday, Creelman unveiled his company’s latest fizzy formulation: Spindrift Spiked, a colorful line of 4% ABV hard sparkling waters made with real fruit.
Available in four flavors — Mango, Lime, Pineapple and Half & Half — the new line will hit the market in mid-April, marking Spindrift’s first foray into the alcohol sector.
Creelman, who has spent the last decade convincing drinkers to pay more for nonalcoholic sparkling water made with real fruit, believes he can replicate that success in the $4.3 billion hard seltzer segment while simultaneously ushering in an entirely new set of customers to the category.
“We are 95% accretive to the nonalcoholic category, which is worth about $4 billion today,” he said. “It is our belief that the vast majority of drinkers who will eventually be Spindrift Spiked consumers are not shopping in this category right now.”
According to Creelman, Spindrift reached out to its community of so-called “Drifters” to understand more about their hard seltzer buying habits before diving into a sector that has become littered with hundreds of copycat brands.
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“They really are not enamored with what is on the market today,” he said. “What we see are people shopping indiscriminately across different brands, and they are not looking to make an emotional connection with a brand. We are taking it somewhere very different.”
Indeed, Spindrift will attempt to establish that connection with drinkers, and sell them a more expensive hard seltzer by promoting the fact that its Spiked line is “better-for-you” because it is made with real fruit and has color, unlike top-sellers White Claw (Mark Anthony Brands) and Truly (Boston Beer Company) which are clear and rely on “natural flavors” for taste.
“This is an expensive product to make, and we don’t typically sell on price,” Creelman said, noting that 12-packs of Spindrift Spiked will retail for about $25.
By comparison, 12-packs of Truly and White Claw typically sell for between $14.99 and $16.99.
Spindrift’s premium pricing strategy has worked well in the nonalcoholic beverage aisle, where its 8-packs cost upwards of $6.99, versus roughly $5.49 for 12-packs of LaCroix and similar sparkling water products.
And while higher pricing hasn’t stunted Spindrift’s growth — sales swelled 84% to more than $72 million in 2020 — Creelman said he anticipates some pushback from alcohol retailers.
“We heard it when we entered a $3.99 category with a $5.99 product,” he said. “Our perspective is that if we make a great product, and price it fairly, the consumer will be there.”
According to Goldman Sachs GS , sales of hard seltzer are projected to reach $30 billion by 2025, leaving plenty of opportunity for Spindrift and other producers to cut into White Claw and Truly’s stranglehold on the category. Those two brands have combined for more than $3.2 billion in sales (roughly 75% of the market) over the last 52 weeks, according to Nielsen IQ.
To gain share, emerging players will need to distinguish themselves from a never-ending pile on of brands that do little to differentiate from one another.
A majority of the hard seltzers that have been released in recent years are produced from a sugar base, packaged in 12 oz. slim cans, contain 100 calories, and check-in at 5% ABV.
In terms of taste, mixed berry, black cherry, grapefruit, lime and mango flavors seem to be the most common.
Currently, five of the largest beer and flavored malt beverage suppliers in the U.S. — Anheuser-Busch, Molson Coors TAP , Constellation Brands STZ , Mark Anthony Brands, and Boston Beer Company — combine to sell nearly 200 different hard seltzer brand and flavor combinations.
While those companies will no doubt get the majority of distributor and retailer mindshare, and dominate cooler space, there are a handful of new brands beginning to stand out in a sea of sameness.
Yerbuzz makes hard seltzer with Yerba Mate Yerbuzz
Yerbuzz, a San Diego-based startup, is making a Yerba Mate-infused hard seltzer that founder and CEO Daniel Nierman says is more enjoyable to drink.
According to Nierman, the hard seltzer market has become saturated with products that are too sweet and have “fake aromas.”
“A lot of these brands just don’t sit well in your stomach,” he said. “Yerbuzz is lighter, lower in carbs, and has no sugar.”
By using yerba mate into the production process, Nierman — who previously served as a brewer at hard kombucha maker Boochcraft before launching his own business — was able to create a product that is more balanced and contains less residual sweetness, he said.
“Most hard seltzers on the market mimic American soda, with their high carbonation levels and sweetness,” Nierman said. “I wanted to re-create hard seltzer with yerba mate, which is to seltzer what hops are to beer. It adds depth of flavor and aroma.”
Yerbuzz, which is betting on its unique formulation as a primary point of difference, currently sells its products in the San Diego area.
Lunar Hard Seltzer now ships to 32 states Chris Furnari
Meanwhile, on the other side of the country, New York-based Lunar is trying to excite a demographic of drinkers that founders Kevin Wong and Sean Ro believe are being ignored.
In 2018, Wong and Ro were dining at a Korean fired chicken joint in New York City when they recognized a lack of drink options “celebrating” the flavors they grew up on.
“The reason why some of these major brands — that come in lemon-lime and raspberry flavors — are not on the menu is because they don’t pair well with these authentic dishes being served,” Wong said.
So, Wong and Ro got work testing hundreds of recipes and experimenting with fruits like yuzu and lychee that are more familiar to Asian Americans.
“What we ended up with is a craft seltzer that uses real ingredients sourced directly from farms in Asia,” Wong said, adding that its flavors are “familiar and nostalgic.”
Part of Lunar’s bet is that it can convince Asian Americans — who Wong and Ro believe aren’t consuming much spiked or nonalcoholic sparkling water — to enter the category through its unique flavors.
“I grew up eating lychee jelly as a kid and going on walks with my grandma to street vendors in Taiwan,” Wong said. “That’s the memory of lychee to me. Fresh, succulent, tropical and very sweet. That’s something we want to share with the world.”
Lunar is currently sold throughout New York, and the company recently began shipping directly to customers in 32 states and Washington D.C.
According to Lunar’s website, a variety 12-pack costs $35.99.
Both Lunar and Yerbuzz are not alone in their battles against the behemoths.
California-based craft beer maker Calicraft makes a line of 100-calorie “spritzers” that drink more like a sparkling wine than a traditional hard seltzer, according to founder Blaine Landberg.
“What we’re really leaning on for 2021 is the tagline ‘fruit not fake,’ and explaining to people that we are using real ingredients and not just flavorings,” said Landberg, who added that customers are becoming increasingly interested in finding more premium hard seltzer options.
Decoy makes a line of wine-based hard seltzers Decoy Wines
Other products, like Decoy Wines’ seltzer line — which comes in 8.4 oz. cans and retails for $15 per four-pack — are actually made from a wine base.
“We saw an opportunity to leverage our decades of luxury winemaking experience and provide wine lovers with something genuinely unique and appealing in this popular category,” Decoy winemaker Dana Epperson explained.
And then there’s the forthcoming Game Up hard seltzer, which looks more like a hydration beverage for athletes than a hard seltzer.
“Game Up has real flavor from real fruit that’s missing in pretty much everything else that’s out there,” said co-founder Brian Flatow, a marketer who noted that Game Up was intentionally designed to appeal to “active-lifestyle drinkers.”
The brand’s first two flavors — lemon-lime and orange — check-in at 4.9% and 100 calories, and contain electrolytes from sodium, magnesium and potassium. It will initially be sold in 12-packs across New York, Connecticut, New Jersey and Massachusetts.
“We’ve been building brands for decades and we saw a real opportunity to position a true challenger in the hard seltzer space,” Flatow said. “To us, everything looked the same, the shelves were cluttered and, although there are clear leaders, we only saw parity products and brands that lacked meaning.”
Upstart Game Time Beverages is launching its "Game Up" hard seltzer line with electrolytes this ... [+] spring. Game Time Beverages
Whether these new brands succeed is ultimately up to consumers who will vote with their wallets, as well as distributors and retailers who are inundated with options and need to focus on selling higher velocity SKUs.
Right now, a collection of brands from six of the seven largest U.S. vendors (Anheuser-Busch, Molson Coors, Constellation Brands, Mark Anthony Brands, Boston Beer, and Diageo) make up more than 95% of hard seltzer sales, according to Nielsen IQ data.
However, Landberg believes that over time, smaller brands with unique points of difference could chip away at that market share and mimic the success craft beer companies experienced over the last two decades.
“Anyone coming into the category without the intention of creating a product they believe in will fall short,” he said. “But I do believe you will see a segmentation of the market, and successful brands that capture the attention of the next wave customer.”
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156ec2e3e4a4ffc3c450c1275128d0da | https://www.forbes.com/sites/chrisfurnari/2021/04/22/new-realm-brewing-plans-move-into-canned-cocktails-non-alcoholic-beer/ | New Realm Brewing Plans Move Into Canned Cocktails, Non-Alcoholic Beer | New Realm Brewing Plans Move Into Canned Cocktails, Non-Alcoholic Beer
New Realm Brewing on the Atlanta Beltline. (2019 Photo by John Greim/LightRocket via Getty Images) LightRocket via Getty Images
You won’t find New Realm Brewing on the Brewers Association’s list of the 50 largest craft breweries in America. In fact, you can’t even find the company’s beer outside of Georgia, Virginia, one coastal market in North Carolina and soon, South Carolina.
However, the Atlanta-based beer company – which over the last several months has transformed itself into a “refreshment business” – grew production from 15,000 to 21,000 barrels in 2020 and is poised to crack the top-50 in the coming years.
Launched in 2018 by beer industry veterans Carey Falcone, Mitch Steele, and Bob Powers, New Realm has expanded its physical presence to four locations across the Southeast in a relatively short period of time.
Within months of opening its original 20,000 sq. ft. brewery and restaurant along the Beltline in Atlanta, New Realm took over a 58,000 sq. ft. production facility in Virginia Beach, Virginia from a debt-saddled Green Flash Brewing Company that had to unload the location in April of 2018.
New Realm also just opened a 12,000 sq. ft. distillery and restaurant in Savannah, Georgia, and is preparing to open an 11,000 brewpub in Charleston, South Carolina next month.
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Backed by DNS Capital — the investment office of Jean (Gigi) Pritzker, one of the wealthiest women in America – New Realm has steadily expanded both its brewery footprint and its portfolio of offerings over the last three years.
The company recently rolled out a hard seltzer line called AlphaWater, and it is also preparing to release a nonalcoholic IPA and nonalcoholic lager in the coming months.
Other forthcoming New Realm innovations include a line of ready-to-drink cocktails made with spirits, and possibly CBD or THC-infused beverages when legally permissible.
I recently caught up with New Realm CEO Carey Falcone to learn more about how the company has navigated challenges caused by the COVID-19 pandemic, and what’s on the horizon.
The following conversation has been condensed and lightly edited for clarity.
Chris Furnari: Can you walk me through 2020 and how things went compared to previous years?
Carey Falcone: 2020 was both challenging and rewarding. On the challenging side, watching our on-site business get virtually shut down during the busiest period of the entire year was very challenging. Watching volume shift from on-premise to off-premise, from a margin perspective, was also very challenging. However, on the rewarding side, we're a very core values-driven company. We talk everyday about core values and our core behaviors. It's always been important to us to not just “talk the talk” but also to “walk the walk.” COVID gave us that opportunity in a big way, and New Realm is a stronger company now than we were a year ago. We kept every single employee in this company fully employed. Even our servers. We took their average hours and their average pay — inclusive of tips — and made them whole. Only the executive team took pay cuts. And we were able to grow volume in 2020, going from roughly 15,000 barrels to about 21,000 barrels. So, we are excited that we behaved in line with our core values, and excited that we were able to grow volume during difficult times, but it was very challenging from a financial perspective because selling beer directly to consumers funds a lot of the business.
Furnari: How about revenue and profitability?
Falcone: We saw a lot of revenue growth off-premise, but a decline in on-site and on-premise revenue. And that impacts the overall profitability of the organization when it is such a massive margin shift. We had less EBITDA in 2020 than we did in 2019, despite the volume growth.
Furnari: Looking ahead to the rest of this year — there are millions of vaccines being administered every day, daily COVID cases have dropped considerably, and things seem to be moving in the right direct. So how will that impact New Realm and the beer business as a whole?
Falcone: We absolutely see that as well. We’ve put in place some incredibly stringent protocols around COVID, and our goal is to set a global example of how to operate a brewpub during a pandemic. We’ve focused on things like sanitation, spacing out tables, and wearing masks gloves. We COVID test every one of our employees, every single week. So, the cost associated with that over the long-term won’t be sustainable, but we believe it's imperative to think like that right now because we want to create a safe working environment for our employees, our vendors, and our community. It’s been expensive and challenging. However, right now we're running at about 85% of 2019. And we are benchmarking against 2019 because 2020 was such a strange year with the shutdowns. And we could be well above that, but we're not willing to dial back our COVID protocols at this point. We're very optimistic about this year and we can see things starting to rebound. We’re very fortunate that our Virginia Beach location has a very large beer garden, and in Atlanta we have 400 of our 650 seats outside. I think the combination of strict protocols and a consumer’s desire to eat outside has allowed us to make the most of this situation.
Furnari: It seems like you’re faring better than other operators, for a couple of different reasons. You have the outdoor dining capabilities, and you’ve got strong growth in the off-premise. Has that fueled your confidence a bit and enabled you to consider these more recent expansion projects?
Falcone: It has always been a part of our strategy to expand our localness. New Realm is very focused on being attached to the communities in which we live, work and brew. So, we don’t want to ship beer to state where we don’t have breweries. The way for us to expand our geography is to expand our localness. Savannah has a really cool beer scene and a cool food scene, so there’s great exposure for the brand. Virginia was the same way. Through all of this, we wanted to make sure that we did everything we could to strengthen our organization.
Furnari: Why are you getting into the distilling business and do you have any plans to release RTDs?
Falcone: To us, we’re in the refreshment business. While that might have meant just beer a long time ago, I don’t think it does anymore. We really learned a lot when we opened in Atlanta. We had a lot of guests asking us for spirits, and we operated under the assumption that if one person in a party of 10 didn’t drink beer, they were all going somewhere else. So, we developed a long-term strategy around distilling and spirits. Phase one started in Atlanta where we just served a vodka, bourbon, and gin, which we produced on-site and did not distribute. And we ended up selling more beer because we were offering spirits. Spirits also became a large portion of our overall mix. So, now that we have the distillery in Savannah, we will be going into distribution with our spirits, and we will expand our offerings. But we'll take a very slow and disciplined approach to this. We’ll also be rolling out RTDs with vodka, tequila, and rum in slim cans in the second quarter of this year.
Furnari: And how about some of your other innovations?
Falcone: From an innovation standpoint, we’re obviously very passionate about craft beer. But when you think about the fact that we’re in the refreshment business, you know, we’ve watched a seltzer category rapidly develop. We didn’t jump into it immediately, but we’re now rolling out hard seltzers. We’re also getting ready to roll out a line of nonalcoholic beers. One thing that we do love about the nonalcoholic category is that it’s growing and there is a high barrier to entry. Not everyone can produce a high-quality, good-tasting nonalcoholic beer. And we have the ability to do that. So, there’s a lot of R&D, but we’re also looking down the road and thinking about the total refreshment business. We see CBD coming, and we don’t know what the laws are going to be, but we don’t want to wait. We’re pretty aggressive from an R&D standpoint, and some of the stuff we’re starting to roll out now demonstrates that.
Furnari: Are THC-infused drinks also a part of your beverage philosophy?
Falcone: They are. We believe that it will be highly regulated, and we will not be at all surprised if those drinks go through a three-tier system like beer. From an R&D perspective, this is the stuff we’re working on. We know that changes to the law are coming, and we want to be prepared. We don’t believe that you’ll be able to have an alcoholic drink with CBD or THC, but this is another reason why we’ve made sure to be able to create nonalcoholic beer, so that we are prepared to make these types of products.
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5d239a52f3026b536b97035e3d0d68af | https://www.forbes.com/sites/chrisfurnari/2021/04/30/iri-off-premise-beer-sales-up-71-in-2021/ | IRI: Off-Premise Beer Sales Up 7.1% In 2021 | IRI: Off-Premise Beer Sales Up 7.1% In 2021
Shoppers in Vermont stock up on beer in 2020. (Photo by Robert Nickelsberg/Getty Images) Getty Images
Surging sales of hard seltzer, imports and craft offerings have helped the beer category grow 7.1% year-to-date, according to market research firm IRI.
The Chicago-based firm — which tracks sales at major off-premise retail chains, grocery outlets, and convenience stores — reports that hard seltzer dollar sales were up 56.6% during the year-to-date period ending April 18, 2021.
Meanwhile, sales of imported and craft beer grew 11.9% and 6.4%, respectively.
According to IRI, off-premise beer dollar sales have eclipsed $12.3 billion on the year, which includes more than $1.1 billion from hard seltzer products.
Over the last four weeks, however, category-wide dollar growth has slowed to less than 1%, and sales of craft beer are actually down 4.5%.
Some of the recent off-premise sluggishness could be a result of consumers returning to on-premise venues, where sales are beginning to bounce back.
According to BeerBoard, a technology firm tracking sales in bar and restaurants, beer volumes have grown in four of the last five weeks.
The company, which looks at sales during the hospitality industry’s busiest days (Thursday through Sunday), said national on-premise beer volumes grew 2.6% last between April 22 — 25 compared to April 8 — 11.
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BeerBoard also noted that 92% of the on-premise establishments are open and pouring beer.
Among the Top 25 vendors, Boston Beer Company SAM is growing the fastest on the year, with dollar sales up 49.9%.
Much of that growth is coming from its Truly hard seltzer brand family, dollar sales for which were up 97.5% to more than $316 million through April 18. The company’s Twisted Tea brand is also up 48.8% on the year.
Earlier this month, Boston Beer reported a 64.9% increase in first quarter net revenue, and a 60.1% increase in shipments.
Other fast-growing brands off-premise include Bud Light Seltzer (+71.1%), New Belgium (+30%), and White Claw (+19.4%).
Additional highlights from IRI:
Mark Anthony Brands (Mike’s Hard Lemonade, White Claw) is up 20.8% year-to-date. Constellation Brands STZ (Corona, Modelo and others) is up 15.1% on the year. Firestone Walker is up 13.7% in 2021. Canarchy Craft Brewery Collective is up 11.8% year-to-date. The IPA category is up 10.9% and accounts for more than 45% of total craft beer dollar sales. Dollar sales of nonalcoholic beer are up 31.5%.
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62e445a51fe3c764c7252c48f9f2a3b7 | https://www.forbes.com/sites/chrisgrenham/2020/01/15/how-enes-kanter-naturally-evolved-into-one-of-the-nbas-best-offensive-rebounders/ | How Enes Kanter Naturally Evolved Into One Of The NBA’s Best Offensive Rebounders | How Enes Kanter Naturally Evolved Into One Of The NBA’s Best Offensive Rebounders
BOSTON, MA - JANUARY 13: Enes Kanter #11 of the Boston Celtics drives to the basket while guards by ... [+] Daniel Gafford #12 of the Chicago Bulls during a game at TD Garden on January 13, 2019 in Boston, Massachusetts. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Adam Glanzman/Getty Images) Getty Images
Roughly 30 minutes after Wednesday morning’s shootaround had ended, Enes Kanter remained on the Auerbach Center floor. He and Boston Celtics assistant coach Jay Larranaga went through a variety of things, focusing on footwork, positioning and pick-and-roll movement. He put in the work Wednesday less than 12 hours before tip-off against the Detroit Pistons, but much of his game comes naturally.
Kanter was drafted 3rd overall in the 2011 NBA Draft, and it always was clear he had the potential to become an above-average big man. But his game has continuously evolved over the past eight years, quietly allowing him to become a stalwart on the offensive glass.
Since 2014, Kanter has averaged under three offensive rebounds just once, while grabbing 3.8 per game in his last two seasons. Through 31 games with the Celtics, Kanter is averaging 18.5 minutes off the bench, the lowest he’s seen since the 2012-13 season. He’s embraced the role to an impressive degree, however, and somehow hasn’t managed to see a major drop in his rebounding numbers. Entering Wednesday, Kanter is posting 9.3 points and 8.3 rebounds per game (3.1 offensive).
So how’d he get to this point? Does he have a secret to his rebounding prowess? Is there one thing in particular that he focuses on? Well, like most things, a lot of it begins with Steven Adams.
Kanter and Adams were teammates in Oklahoma City for three seasons. Yes, they were known to Thunder fans as the “Stache Brothers”, but Kanter’s time with the Big Kiwi helped him develop into the rebounder he is today. Adams has averaged over nine boards for three consecutive seasons, and currently grabs 10.2 per game for OKC.
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“When me and him went against each other in practice, it was like a wrestling match,” Kanter told Forbes. “For me, whenever I go out there against other big men, the game becomes so easy because I used to go against a guy like that. He does the same thing — get position early, boxing the guy out and then he has all those kinds of tricks. So it helped for sure.”
The experience of working with Adams helped develop Kanter’s technique on the glass. Off-ball positioning, footwork, reading the ball off the rim — it was all improved by experience. But according to Kanter, those improvements were added on top of his natural ability.
“I mean you learn, you get a lot of experience, how to box the guy out or what to do when you’re playing in the dunker spot and stuff. But to me, it’s always come naturally,” Kanter said. “I would say if you want to become like that, watch a lot of clips of the really good rebounders. I’m talking about Moses Malone — I don’t know if you can watch a clip of him — or like Dennis Rodman, some of the good rebounders. They get the positioning really early. Even on the offensive end, they’re boxing the guys out.”
It’s quite evident Kanter is true to his word. While his general box-out numbers aren’t among the top rebounders in the league, his offensive box-outs are currently tied for fifth at 1.2 per game, according to the NBA’s tracking data (right next to Adams, among others).
While it’s clear Kanter prioritizes box-outs on the offensive end, he’s well aware they aren’t prioritized by many players on the other side of the ball.
“Whenever a shot goes up, you look at all the big men and they watch the ball,” he noted. “They don’t come and find a body. There’s a couple players in the league that do that. Nene does it. He actually comes and finds a body to box the guy out. There’s a couple players in the league that actually come and box me out and I’m like ‘Ok I have to work for it today,’ but other big men, they just want to go get rebounds. They just watch the ball.”
Getting early positioning, box-out or not, is a key component of Kanter’s game, and his footwork allows him to better maneuver around opponents when a shot goes up. Combine this with his ability to effectively read the ball mid-arch, and he’s got an advantage on most matchups.
Watch here as he beats Alec Burks before he can even drop into a full box-out:
He reads the ball immediately from the jump, knows it’s going to be short and shifts around Burks to move front-rim.
When he doesn’t beat opponents to the spot or the ball takes an odd bounce, Kanter has the luxury of being able to rely on his hands. At 6-foot-10, the 27-year-old has better mitts than most guys his size. When a ball rifles off the rim toward the perimeter, most centers watch it go by without a fighting chance. Kanter, on the other hand, has the ability to snatch it on its way by.
He ranks 7th in the NBA with 2.7 contested rebounds per game, and much of that is thanks to his hands and touch around the rim.
Take a look here as he gets the tip-in with three Sacramento Kings draped all over him:
And here, using his impressive hands to grab a contested rebound as the only Celtic in the paint against three Los Angeles Clippers:
After collecting 19 rebounds against the New Orleans Pelicans (seven offensive), head coach Brad Stevens joked about Kanter padding his stats by missing shots on purpose. Shortly thereafter, he made sure to deny his coach’s jab.
“They all think that I do that on purpose to pad my stats, but it’s not true,” Kanter said with a laugh.
So while some complain about his defensive deficiencies, they often fail to realize what he really brings on the boards, particularly on the offensive end. That really shouldn’t be the case because after all, it’s a gift from God.
“I'll just say it's God's gift,” Kanter told reporters Monday. “I kind of know where the ball is going to go. I just go there and the ball just kind of comes to me.”
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1f5253730a4b7419a49d4ce8a404921a | https://www.forbes.com/sites/chrisgrenham/2020/09/07/the-boston-celtics-need-to-give-robert-williams-more-minutes/ | The Boston Celtics Need To Give Robert Williams More Minutes | The Boston Celtics Need To Give Robert Williams More Minutes
Boston Celtics' Robert Williams III (44) fouls Toronto Raptors' OG Anunoby during the first half of ... [+] an NBA basketball conference semifinal playoff game Sunday, Aug. 30, 2020, in Lake Buena Vista, Fla. (AP Photo/Ashley Landis) ASSOCIATED PRESS
Robert Williams was productive in the first half of the Celtics’ Game 4 loss to the Toronto Raptors. In 13 minutes, the second-year forward gave Boston six points, four rebounds, one assist and one steal on 3-of-4 shooting. He served as a helpful burst of energy off the bench, but then Williams barely touched the floor in the second half.
When asked Sunday about the decision to play Williams in just two of the game’s final 24 minutes, Brad Stevens highlighted Boston’s trouble defending Serge Ibaka in the pick-and-roll.
“The Ibaka pick-and-rolls were obviously giving us fits, so we went to a smaller, switching lineup there during his normal stint,” Stevens said.
Ibaka went 7-of-9 (4-of-4 3PT) in 22 minutes en route to an 18-point outing, but Williams wasn’t necessarily the root cause of that success. Three of Ibaka’s four 3’s came with Daniel Theis on the floor. The fourth make was on Williams, however, after he stayed with the ball-handler (Kyle Lowry) for too long, creating a wide gap between himself and Ibaka, who took full advantage.
Let’s weigh some pros and cons of giving Williams more minutes in Game 5.
Williams struggles to defend in space, meaning the Raptors will likely continue to throw high pick-and-rolls at him while he’s on the floor. But should the Celtics be willing to sacrifice a bit on the defensive end for what Williams can provide elsewhere? After Boston’s dismal effort in Game 5, it’s certainly worth considering.
First and foremost, Williams has provided consistent energy off the bench, something Boston lacked from top to bottom in Game 4. If Brad Stevens needs a spark-plug, Williams is his guy. He effectively crashes the boards and has proven to be a useful offensive big against the Raptors.
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The Celtics have had major issues on the offensive glass against Toronto, averaging just 5.5 offensive rebounds per game, the least out of the eight teams left in the bubble. When Boston struggles from deep as it did in Game 4, a boost on the glass is much needed. Without those second-chance points, you’ll end up with the same result as Saturday night. The Raptors are great in transition, which suggests the Celtics likely aren’t crashing so they can get back on defense. A few offensive rebounds will break up some of Toronto’s transition opportunities, however, which would be valuable in a tight game. If Boston’s rebounding is flat again in Game 5, Williams is someone who will undoubtedly help that issue.
Elsewhere offensively, Williams is a solid vertical threat and has been a good roll-man through four games vs. the Raptors. When he’s on the floor this series, the Celtics have an offensive rating of 115.6, the best of any player on the roster. In turn, Boston’s defensive rating is a team-worst 109.2 with Williams on the court.
What Williams provides on the glass and as a vertical threat off the bench is likely worth the defensive sacrifice for longer stints than he’s currently playing. His positive net rating of 6.4 suggests just that. The Celtics were in desperate need of an offensive spark for portions of Saturday’s second half, and inserting Williams could have helped put a stop to those skids.
In lineups with ball-handlers like Kemba Walker or Marcus Smart, Williams is beyond useful on the offensive end in this series. No, he’s not Theis on defense, but that trade-off is worth it in a Game 5 where Boston needs a scoring and energy burst following a brutal showing one game prior.
Williams played a key role in Games 1 and 2, but since then both his minutes and usage have decreased. Stevens needs to make an effort to bump those back up in Game 5.
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bbe1fa09061e58eed07007fc6c5213a5 | https://www.forbes.com/sites/chrisgrenham/2021/04/12/potential-2021-nba-draft-targets-for-the-boston-celtics/ | Potential 2021 NBA Draft Targets For The Boston Celtics | Potential 2021 NBA Draft Targets For The Boston Celtics
BOSTON - OCTOBER 5: Boston Celtics general manager Danny Ainge watches during an open practice at TD ... [+] Garden in Boston on Oct. 5, 2019. (Photo by John Tlumacki/The Boston Globe via Getty Images) Boston Globe via Getty Images
The Celtics are attempting to climb up the Eastern Conference standings with roughly five weeks remaining in the regular season, but the NBA Draft suddenly is just three months away.
As it stands right now, Boston’s first-round pick would sit in the mid-to-late teens, just outside of the lottery. Depending on how the rest of the season goes, Danny Ainge and the Celtics front office could very well shop this pick as part of a larger offseason deal, but if Boston stays put, there will be some interesting options on the board.
Let’s take an early look at some names that could be on the Celtics’ radar.
Josh Giddey, Adelaide 36ers (Australia), Guard: At 6-foot-8, Giddey is an intriguing backcourt option who has come on strong over the last month in Australia. His athleticism won’t blow you away by any means, but his feel for the game is promising. Giddey sees the floor well and has showcased his passing skill against good competition in the NBL. Yes, Boston has a plethora of guards at the moment, but they also don’t have many roster spots. At 18 years old, Giddey could be a smart project with a lot of upside. His shooting and defense need some work, but he wouldn’t be thrust into a plug-and-play role in Boston. The Celtics are in a spot where they can be patient with his development, a luxury many of their counterparts don’t have.
Franz Wagner, Michigan, Forward: The Celtics brought in Moritz Wagner at the trade deadline, but his younger brother could be an interesting option for Boston on draft night. His Elite Eight performance against UCLA was not pretty, but Wagner fits the 3-and-D forward mold that so many NBA lineups consistently benefit from.
Wagner was a major part of Michigan’s success this season. His defense, shot-making and all-around game helped the Wolverines nab a No. 1 seed in the NCAA Tournament, and it’s those same skills that will help him at the NBA level. Wagner’s basketball IQ and versatility on both ends should make him a seamlessly fit no matter the landing spot.
Josh Christopher, Arizona State, Wing/Guard: Christopher was rather streaky in his lone college season, but he could provide a nice scoring burst off the bench at the next level. His impressive creation ability could see further improvement with NBA spacing, but it’s what he will do without the ball that raises some concerns. Christopher is a great shot-maker who possesses the skill set of a good pro slasher, something scouts really liked even during some of Arizona State’s low points.
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He showed promising playmaking flashes with the Sun Devils this season, highlighting some potential in that area to go along with his pure scoring ability. For teams in need of depth points, Christopher should be a good option deep(ish) into the first round. Does he know what to do without the ball? That remains to be seen.
Greg Brown, Texas, Forward: His pre-draft stock is lower than it was a few months ago, but Brown’s athleticism is undeniable. If the Celtics make a push up the Eastern Conference standings and end up with a later first-round pick, Brown could be an interesting prospect on their radar. With little playing time up for grabs, taking a flier on Brown makes a lot of sense. Boston has had success with its G League system, and allowing Brown to patiently develop in Maine would be mutually beneficial. His lone season at Texas did not live up to expectations, but he is still worth a late first-round choice in this year’s class.
Corey Kispert, Gonzaga, Wing: Kispert won’t last until the Celtics’ selection, although he did struggle a bit over the last month of his college career. Those issues were highlighted in Gonzaga’s National Championship loss to the Baylor Bears, where he had just 12 points and often looked overmatched on the defensive end. It’s unlikely that the previous month will really hurt his stock, although it could draw some newfound pause from lottery teams. If that’s the case, he could fall closer to the high-end of Boston’s range.
Kispert simply is a solid rotation piece and plug-and-play pick if all goes well for the 22-year-old. He is the best shooter in the class, posting a 44% clip from beyond the arc on high volume in 32 games this season. His offense has more to it, however, as Kispert consistently showed good pace and body control on drives in transition. His strength and good positioning helped him display some good work in hand-offs this season as well.
Again, he likely falls out of the Celtics range, but Kispert will bring lights-out shooting, good team defense and smart decision-making wherever he lands.
Davion Mitchell, Baylor, Guard: Mitchell’s stock has skyrocketed over the last month or so as he helped lead Baylor to a National Championship, which is why it’s nearly impossible to avoid writing about him right now. Like Kispert, Mitchell is a stretch for the Celtics, as he’ll likely be a lottery pick. His defense and 3-point shooting are an extremely promising combination, while the 2021 season consistently showed his athleticism and impressive instincts. Using a top-10 pick on Mitchell seems like a slight stretch, but his skill set outweighs any concerns about him being an older prospect.
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73b4ecb0d64f105682fb3a995528eeb4 | https://www.forbes.com/sites/chrisgrenham/2021/04/16/the-boston-celtics-are-peaking-when-it-matters-most/ | The Boston Celtics Are Peaking When It Matters Most | The Boston Celtics Are Peaking When It Matters Most
Boston Celtics forward Jayson Tatum rects as the buzzer sounds and the Celtics defeat the Portland ... [+] Trail Blazers in an NBA basketball game in Portland, Ore., Tuesday, April 13, 2021. The Celtics won 116-115. (AP Photo/Steve Dykes) ASSOCIATED PRESS
The Celtics were 8-3 in their first 11 games this season. It was a promising start to what was set to be an unconventional campaign, but things quickly went south. After beating the Washington Wizards to improve to 7-3, Boston was hit with a slew of health and safety protocol absences, which forced the postponement of its next three games. The following two-and-a-half months were anything but smooth.
Boston’s rocky stretch left questions about this team’s resolve, effort and overall on-court engagement. I’ll be the first to admit that I was as low on this group as anyone. The trade deadline saw the Celtics ship off their starting center, Daniel Theis, in a move done solely to get them below the luxury tax. On the bright side of things, they brought in Evan Fournier, who provided a sure-fire boost to Boston’s offensive ceiling. But with the underwhelming on-court performance and limited salary cap flexibility over the next few years, it was difficult to be positive. The latter concern certainly still looms, however in the short-term, the Celtics seem to have righted the on-court ship.
Winners of seven of its last eight games, Boston is playing with what feels like new life. Their energy is almost incomparable to where it was roughly one month ago, while the increased engagement on the defensive end has significantly raised this team’s floor. On offense, Boston is moving the ball — something it did not do for long, stagnant stretches of this season — which has noticeably helped the top of the roster find some rhythm on that end of the floor. With about four weeks left in the season, the Celtics are hitting their stride at just the right time.
Boston has a relatively favorable chance to carve out some space as the Eastern Conference’s No. 4 seed over the next few weeks. The Celtics moved into a tie with the Atlanta Hawks for that No. 4 spot with their win over the Lakers on Thursday night. The Charlotte Hornets, once a threat in the middle of the conference, have lost three straight after a series of injuries decimated any offensive firepower they once had. As they continue to inevitably slide, it appears the three most likely suitors for the No. 4 and 5 seeds are the Celtics, Hawks and Miami Heat.
The rest of the Celtics’ schedule should put them in a good position as they push toward the postseason. Just six of their remaining 16 games come against teams with records above .500. No, that doesn’t mean they’ll make a run at a top-three seed, but that’s not the point. The takeaway here is that this team bounced back and now has a shot to sit in a much better postseason position than it once seemed. They’ve responded — something that felt like an impossibility at various points this season. The signs of life we’re seeing from Boston are a positive in a year where it looked like a play-in team for extended stretches of games. The aforementioned resolve should serve as a win in itself.
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With all of that in mind, however, the Celtics remain on the outside looking in at the Eastern Conference’s elite teams. The Brooklyn Nets, Milwaukee Bucks and Philadelphia 76ers are in a league of their own right now, and that likely won’t change this season. This isn’t to completely damper the Celtics’ recent turnaround, but it should temper expectations a bit. As much as I was probably too low on this team two months ago, we shouldn’t get too high as they trend in the opposite direction, especially when you take a big-picture look at things.
This team does have room for further improvement, as Fournier will ideally return at some point in the next week. Romeo Langford continues to find his rhythm and should serve as a valuable rotation piece with his defensive versatility, especially when you consider Boston’s lack of wing depth before his return and the addition of Fournier. Despite the positive swing, their margin of error remains small. A return of the injury bug could quickly throw this team off the rails. It’s an unfortunate thought, but one that is relevant amid this injury-plagued season.
Again, if all goes well, this team still isn’t on the same level as the Nets, Bucks and 76ers. Yes, the Celtics have held the postseason advantage against Philadelphia in the past, and that psychological element undoubtedly is relevant. But the 76ers’ defense has been extremely impressive this season, and with a healthy lineup, they should be able to take a potential seven-game series against Boston. Can the Celtics make some noise? Of course they can. Jayson Tatum is playing at an All-NBA level right now and Jaylen Brown has looked great over his last five games. With those two playing well, the Celtics will be a tough out for any opponent, and that gets amplified when Kemba Walker is on his game.
So yes, the Celtics’ ceiling may be capped, but with increased health, among other things, there appear to be plenty more bright spots than we may have assumed. I was wrong about this team, and it feels good to be incorrect because this version of the Celtics is significantly more fun to follow. Time will tell what this rejuvenated group does with its limited time.
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922992c34eadd45526a2b50c3042283a | https://www.forbes.com/sites/chrisgrenham/2021/04/23/jabari-parker-is-stepping-up-nicely-for-the-boston-celtics/ | Jabari Parker Is Stepping Up Nicely For The Boston Celtics | Jabari Parker Is Stepping Up Nicely For The Boston Celtics
BOSTON, MA - APRIL 22: Jabari Parker #20 of the Boston Celtics looks to pass during a game against ... [+] the Phoenix Suns at TD Garden on April 22, 2021 in Boston, Massachusetts. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Adam Glanzman/Getty Images) Getty Images
The Celtics have won seven of their last eight games and seem to be hitting their stride when it matters most. Despite a lack of consistent health that continues to plague its lineup, Boston has settled into a very nice groove over the last few weeks amid a crowded pack in the middle of the Eastern Conference.
While the Celtics were on a five-game winning streak last week, they made an unexpected Friday-night transaction, signing former No. 2 overall pick Jabari Parker and waiving trade-deadline acquisition Moritz Wagner to free up a roster spot. At the surface, it seemed like an end-of-the-bench move, but Parker has wasted no time making his presence felt during his first week in Boston.
On February 6, 2020, Parker was traded from the Atlanta Hawks to the Sacramento Kings. He played just six games for Sacramento over the remainder of the 2020 season and saw even less time this year. Before being waived by the Kings on March 25, 2021, Parker played in three games, totaling just 27 minutes. He never even sniffed the Sacramento rotation, so it was no surprise that he was ultimately waived. Parker’s injury-filled history has hindered his ability to find consistency at the pro level, but Boston could be the place to rejuvenate his play.
Parker signed his two-year deal with the Celtics last Friday and was in uniform against the Golden State Warriors less than 24 hours later. With the quick turnaround behind him, Parker didn’t skip a beat stepping onto the floor in his new uniform, scoring 11 points on 5-of-6 FG. In his first two games in Boston, Parker played a total of 32 minutes (five more than he played during his entire stay in Sacramento), scoring a combined 19 points on 9-of-13 FG. It was a glimpse into what the former Duke star could provide for Brad Stevens and Co. in a mutually beneficial relationship. Boston is an ideal scenario for Parker to “find his groove” again, as Stevens put it, while the Celtics can benefit from using him as a small-ball big.
“It’s always good to be on the court and, most importantly, just blessed to have good health,” Parker said Monday. “So, hopefully I can use this as a good learning experience and just keep on the good habits that I look forward to keeping.”
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On top of the opportunistic mindset, Parker has always had his eye on Boston.
“I’ve just been a fan of the Boston Celtics,” he added. “They just do things the right way, as far as like the teamwork, the hard work and preparation. And hopefully I can be integrated and rub off on those guys as far as their work ethic and their habits.”
Parker’s two-year contract involves two guarantee dates next season, according to The Athletic’s Jared Weiss and Jay King. The first date is set for July 31, where Parker will receive $100,000, followed by $1,041,517 on the first day of the regular season. The first guarantee date is subject to change with the fluid league schedule, per Weiss. This guaranteed money comes out to roughly half of Parker’s full salary with Boston.
Parker was quietly productive once again in Thursday’s win over the Phoenix Suns. The 26-year-old had six points, four rebounds, four assists and one steal on 3-of-5 shooting in 15 minutes. It is nights like these where Parker’s addition becomes increasingly important. Missing Jaylen Brown, Robert Williams and Evan Fournier, the Celtics needed depth pieces to step up, especially on the offensive side of the ball. Parker did just that, using his offensive versatility to his advantage, something Boston’s bench desperately needed earlier this season.
He may not move as well as he used to following two torn ACLs, but Boston has the ability to utilize him more effectively than his last few stops. Parker’s stat-line won’t jump out at you, however he should serve as a productive player toward the back-end of Boston’s healthy rotation. That will go a long way for the Celtics as they continue to push toward the postseason.
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02b2e6f851a16682a3ebdaabb2e2f3e1 | https://www.forbes.com/sites/chrisladd/2016/09/02/testing-the-blue-wall/ | Testing The Democrats' 'Blue Wall' In The Electoral College | Testing The Democrats' 'Blue Wall' In The Electoral College
NBC employees change Nebraska to red in the electoral map of the United State at the NBC News... [+] "Election Plaza" in Rockefeller Center Tuesday, Nov. 4, 2008 in New York. (AP Photo/Mary Altaffer)
Is the Blue Wall real? Nate Silver denies it exists. George Will warns that it is not only real, but it threatens Republican survival and could soon encompass Texas. Analysts at the Cook Report and RealClearPolitics have wrestled the question to a rhetorical draw. There is even a Reddit thread on the subject.
Decades of ever-concentrating focus on aging whites has clearly narrowed the Republican Party’s appeal. With few exceptions, Republicans have locked themselves out of contention in the country’s most prosperous and heavily populated areas. The GOP’s long demographic decline seems to have created a Democratic “Blue Wall” in presidential elections. States behind that wall may now hold enough Electoral College votes that, until the GOP is fundamentally reorganized to include urban and minority voters, every subsequent race for the White House will be decided in the Democratic primaries.
Election results this November could have offered some clarity, but Donald Trump’s bizarre campaign clouds the data. Thanks to Trump, results in the race for the White House will not offer much insight on the Blue Wall. It may be possible, though, to get clues from down-ballot races. These less prominent contests stand out for the insights they might offer.
U.S. Senate, New Hampshire
Across the 20th century few states could claim a stronger Republican pedigree than New Hampshire. Hoover won there twice. Roosevelt barely carried the state even during World War II. From the Civil War until the 21st century, New Hampshire elected just four Democratic senators. Those days of Republican dominance are over.
No Republican presidential candidate has hit 51% in New Hampshire since the 80s. Despite a massive Republican wave elsewhere in the country, the state’s Democratic senator won re-election comfortably in 2014. If Republican Senator Kelly Ayotte loses her race to Maggie Hassan New Hampshire will send two Democrats to the Senate for only the second time the birth of the Republican Party.
Declining Republican power in New Hampshire is interesting because the state is the nearest thing to a demographic time capsule that you’ll find in America. In demographic terms this is the same electorate that enthusiastically backed Hoover, Nixon and Reagan. They are now about 30% more likely to back a Democrat than they were in the 70s.
Colorado State Senate, District 19
Having conceded America’s cities to the Democrats, Republicans have retreated to their suburban strongholds to ride out the storm. Now even these havens are weakening.
Once solidly Republican, Denver’s suburban Jefferson County has turned purple. First-term Republican state senator Laura Woods faces a tough challenge from Democrat, Rachel Zenzinger for Senate District 19. This seat has been switching hands based on the relative strength of each party in midterm versus Presidential elections.
Barring some misstep, national dynamics should tip this seat to Zenzinger. What matters in District 19 is the margin. As the county and the state drift leftward, this seat is due for a Democratic win beyond the gap between midterm and Presidential seasons.
North Carolina Governor
In North Carolina the power of the GOP in Presidential election years seems to have peaked. Like New Hampshire, no Republican Presidential nominee has squeaked past 50% there since the 80’s.
Republican Pat McCrory won his 2012 race for Governor by taking a muted stance on “culture war” issues and keeping the Tea Party at arm’s length. However, after winning he has led campaigns to slash school budgets, weaken the state’s venerated university system, shut down abortion clinics, limit minority voting, and block public access to police “body cams.” His crowning legislative achievement is a ridiculous “bathroom bill” aimed at transgendered residents.
What has McCrory gained with his rightward tack? Latest polls show him trailing by almost ten points in his race for re-election. A Republican loss here could represent a further shrinking of the party’s competitive map.
Georgia State House, District 80
In a 2015 special election, Democrat Taylor Bennett won a legislative seat in an affluent Atlanta district that Romney carried by a double-digit margin. This fall he’ll be defending that seat. A win by Bennett would point to wider GOP weakness in Georgia.
The fastest growing political force in Georgia is its urban population, and modern Republicans do not perform well in cities. Metro Atlanta already accounts for half of the state’s electorate. Republican power is concentrated in Atlanta’s suburbs, but it appears to have peaked over a decade ago. The rock-solid Republican enclave of Forsyth County gave a stunning 79% of its vote to Republican Senate candidate David Perdue in 2014. That sounds great, but it masks a slow, steady erosion from the 85% that Bush won there in 2004.
As Atlanta’s suburban counties grow, their Republican character is eroding. Combined with steeper GOP declines nearer the city’s more populous center, it becomes clear that Republican failure to reach urban and minority voters is taking a toll. If Bennett can hold his seat it what otherwise should be a Republican stronghold, then the Blue Wall may not only be real, it may be growing.
Thanks to Donald Trump’s gonzo campaign, we may not get a straightforward test of the Blue Wall in this year’s Presidential results. However, trends that created the Blue Wall started long before Trump was a candidate and will continue after he limps back to his gilded lair. These down-ballot races cast a shadow, helping to gauge the strength of this phenomenon and hinting at what it means for the future relevance of the Republican Party.
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205ac81ae4b3f0eaec741fbd0c60fe01 | https://www.forbes.com/sites/chrisladd/2017/08/04/how-a-sub-party-captured-the-gop/ | How A Sub-Party Captured the GOP | How A Sub-Party Captured the GOP
Dr. Steven Hotze, president of Conservative Republicans of Texas, speaks at a Restrain the Judges... [+] news conference, while Janet Porter of Faith2Action listens at right, in front of the Supreme Court in Washington, Monday, April 27, 2015. The opponents of same-sex marriage are urging the court to resist embracing what they see as a radical change in society's view of what constitutes marriage. (AP Photo/Cliff Owen)
Texas’ 1990 Republican convention marked the end of an era for Republicans in the South. Party leaders were taken off-guard by a new grassroots movement that heckled gay conservative activists and bitterly resisted a measured platform on abortion rights. A campaign to flood the mostly empty structure of the Republican Party in the South with conservative former Democrats was reaching critical mass. Their power was felt on the convention floor.
Late in the Reagan Era, local Republican organizations across much of the country, including Texas, were relatively tolerant on gay rights, friendly to racial minorities, and indifferent to anti-abortion activists. Southern Conservatives were still mostly active in the Democratic Party. They sat in an uncomfortable position, confined by lifelong investments in local Democratic activism while in the secrecy of the voting booth they often gave their votes to Republican candidates in federal elections.
The story of how extreme right-wing activists seized control of the Republican Party offers some valuable contemporary lessons. Our two parties are ripe for disruption. Third parties seldom succeed in our system, but across most of the country today, as in the South before the 90’s, local politics lacks a viable second party. A sub-party strategy, outlined in a previous post, offers a template for fostering local competition beneath the umbrellas of the two major parties. This strategy has been executed successfully before.
Southern Conservatives were restive after Democrats began embracing civil rights measures in the late 1940’s. Passage of the Civil Rights Acts in 1964-65 was a breaking point in the voting booth, as southerners began casting ballots for national Republicans. But locally, across much of the South, Republican candidates and officeholders were almost unheard of. Southern states had never in their history supported a competitive, two-party political culture. All politics was conducted through the Democratic Party.
Outside of major cities, the GOP had little if any precinct-level organization. After desegregation, Southern conservatives frustrated with the Democratic Party faced the dilemma of the herd at the riverbank – who would be the first to jump in and swim across. Sitting officials like Senators, Congressmen, and a few state legislators, figures with established fundraising organizations and name recognition, occasionally made a formal party switch. But at the local level this was a much more difficult proposition. What broke the deadlock was a sub-party strategy. It was an effort to flood near-empty Republican precinct organizations with Southern Conservatives. They would build a beachhead inside the GOP to support and legitimize party-switchers at a higher level. Like an invasive species introduced on some isolated island, this influx of Southern Conservatives killed off the Republican Party as it had existed since Lincoln, converting it into a vehicle for Neo-Confederate priorities.
When Southern Conservatives were still Democrats, the Republican Party in the South was almost entirely an urban organization. Dallas had a quietly Republican mayor as early as the 1960’s. Houston’s last Republican mayor, Jim McConn, won a hard-fought race against the city’s conservative bloc in 1977 with heavy support from the minority community. It is hard to believe now, but Republicans in the South used to win local races by leveraging minority support. During this period, Republicans in Texas tended to be businesspeople, born elsewhere, who brought the party’s commercial and professional focus with them. Cities were the only places that this ethic could take hold in the South.
One of the obstacles facing the former segregationists in the Democratic Party in the years after the Civil Rights Acts was the loss of a galvanizing issue. Changing conditions made explicit race-baiting impractical, leaving a majority of the voting public adrift without a language for their fears. Religious activists invented a fresh language through which frightened bigots would once again organize and regain their dominant place in public life.
Opportunity arrived through an effort by the Carter Administration to desegregate private religious schools. Spurred to action by this threat and armed with rhetoric portraying this as a matter of “religious liberty” rather than white supremacy, Southern pastors and religious activists, like Jerry Falwell, built a new political language. However, they still needed a political party in which to organize. With the ranks of the Democratic Party filling with freshly registered minorities and newly energized women voters, Southern Conservatives faced serious resistance to their message.
Southern religious activists built a strategy to exploit the weakness of Republican grassroots organizations, filling their empty ranks with former Democrats or previously disengaged voters. In more lightly populated areas, this strategy played out in an almost silent manner. There were so few Republicans in rural or small-town counties that almost anyone who showed up could become a precinct committeeman, or even the county chairman. By the mid-80’s, Republicans at the state level had started to notice an influx of strange characters. Over previous decades, Texas Republicans had weathered a wave of activists from the John Birch Society and an early Ron Paul-inspired tin hat brigade. Republican leaders were good at dealing with this fringe, but they had never confronted them in such large numbers, or with such powerful backing.
By 1990, “establishment Republicans,” often derided as “County Club Republicans,” were being overwhelmed by right-wing activists flooding into local precincts and GOP clubs. That year’s convention marked one of the last times the state party made a serious attempt to create a sane platform. All over the South, Republican organizations were being swamped by the party’s new lunatic fringe. In Texas in 1990, the state’s largest and most influential local GOP organization was in Houston’s Harris County. Over the next few years, the Harris County GOP became the Republican Party’s Alamo.
Conservative activists were stunned by the failure of a gay-baiting campaign against Houston’s mayor in 1985. In the wake of that failure, Steven Hotze helped to organize area pastors and congregations in a campaign to finally seize the state’s best-organized, most powerful local Republican organization. Hotze is a Houston-area doctor with a practice focused on “unique” cures, a lucrative business which has left him consistently at odds with Texas’ medical establishment. Hotze appears to have a creepy fascination with homosexuality, railing for decades against the “Homofascists” in Texas who encourage kids to “practice sodomy in kindergarten.” He became the architect of a successful sub-party strategy that dismantled Houston’s relatively moderate, business-oriented Republican establishment.
Almost any pop song can be repurposed as a Christian radio hit by replacing “baby” with “Jesus” in the song’s lyrics. By the same token, a group of people who can no longer use the “N-word” in political rhetoric can continue their campaign by replacing it with “gays” or “baby-killers” or Muslims. Activists like Hotze found a way to translate “segregation forever” into “culture war.” Same song, different lyrics.
Central to this effort was a video Hotze helped produce which was circulated through area churches. It contained detailed instructions on how to win control of local Republican precinct chairmanships. You can still watch the video here.
By 1992, Houston religious activists had placed their partisans in enough GOP precinct chairmanships to stage a coup against local party leadership. Though their clumsy effort failed to cleanly oust the sitting pro-choice county chairman, Betsy Lake, they managed to take control of a key party facility. Over the next few years, Lake and other traditional figures were pressed into creating a parallel Republican organization for the county. Across much of the mid-90’s there were two separate institutions that each held some claim to being the county GOP. Thanks to tacit support from partisans close to the new Governor, George W. Bush, and fundraising support from Senator Phil Gramm, Hotze’s faction took control of the re-unified local party in 1996 under new County Chairman Gary Polland.
Houston’s older, “business Republicans” were gradually cordoned off onto a sort of political reservation. Their money was still welcome, but their influence was steadily curtailed. They retained their own local institution, United Republicans, as a relic of the split in the 90’s. From the safety of this quiet preserve they can pretend that the Republican Party they joined and once led still exists and none of these unseemly events ever occurred. We have always been at war with Eastasia.
With Houston’s traditional Republican organization effectively neutralized, the Republican Party in Texas became a Neo-Confederate nightmare. A few existing Republicans retired from public life or switched parties, but the bulk of the Republican establishment stampeded toward the right, competing to demonstrate their loyalty to local religious fundamentalists.
There was no force left capable of restraining the wildest elements set loose by this process. Efforts to impose some minimal sanity on the state party’s platform-writing process were simply abandoned. Texas Republican Party platforms since the 90’s read like something you’d expect to find scrawled in blood on the basement walls of a serial killer. For years after every state convention, the first place you could find a copy of the state GOP platform was on the Harris County Democratic Party’s homepage. These Republican platforms tackled hard-hitting issues like the threat of mandatory pet ID’s. They expressed the party’s support for vaccine deniers, encouraged corporal punishment of foster kids, demanded the formation of a state militia commanded by sheriffs, and opposed “one-world government.” Of course, they urged the repeal of the Voting Rights Act. Every subject you’ve seen in one of your batty aunt’s Facebook posts has had a turn in the state party’s platform. There is simply not enough power left in the GOP either at the state or the national level to hold back the tide of lunacy.
What played out in Texas was repeated all over the formerly Democratic South. As the new Southern-state Republicans lurched their party organizations to the right, they unbalanced the GOP nationally. Their influence energized extremists all over the country, fueling the rise of a strange, previously unimaginable white nationalist fringe in the Party of Lincoln. Relatively moderate Republicans everywhere felt pressure, as they recognized that the party organization would offer them no cover from white nationalist attacks.
A sub-party strategy in the South was enough to take America’s second party in a direction wholly at odds with its history and character. What once was a party of mostly urban and Northern business and professional interests has become a rural party of aging, white nationalists, with its most passionate support in the old slave states.
All politics is local. Though the results have been tragic, lessons from the tactics of these far-right activists could restore some balance to our political system. A sub-party strategy leveraged by a small core of Southern religious fanatics to transform the GOP thirty years ago could still work today in many parts of the country, inside either major parties. Local Democratic or Republican sub-parties centered around a distinct, local power-base could create space in which more authentic political diversity could flower.
We are not trapped within our two political parties. If we have the will and imagination to apply leverage locally, we can transform the two existing parties or build new ones. A sub-party strategy that turned the GOP into a Neo-Confederate basket case could be run in reverse. With a plan and a modest cohort of motivated voters, a new influx of activists into both parties could foster local competition, providing support for a healthier, saner political climate.
This post is part of a series focused on practical alternatives to a two-party duopoly. You can find links to all of the pieces here.
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b546423c01477e6bc032ebc3595373f8 | https://www.forbes.com/sites/chrislambert/2019/08/07/what-happened-to-brothers-the-kanye-west-song-that-vanished/ | What Happened To ‘Brothers,’ The Kanye West Song That Vanished? | What Happened To ‘Brothers,’ The Kanye West Song That Vanished?
CHATTANOOGA, TN - JANUARY 2019: An early draft of the painting done by Genesis the Greykid, inspired ... [+] by the Kanye West song, "Brothers." (Photo by Genesis the Greykid) Genesis the Greykid
Have you ever heard the song 'Brothers'?
If you're reading this in August of 2019, your answer is probably, "I heard the first verse!" Only a month ago, on July 2nd, "Brothers" made a much-hyped debut as part of the season 2 premier of Tales. It was the first Kanye West song of the year, a welcomed relief for fans who had been on an impatient vigil for West's long-delayed 9th solo album, Yandhi. While "Brothers" wasn't an album, it was something.
The song arrived in the Tales episode's final moments, as part of a wedding scene. The best man gives a toast that includes reading a poem (the lines of which come straight from "Brothers"). Then the DJ calls everyone to the dance floor and announces, "I got this new Kanye West." "Brothers" plays for 1 minute and 30 seconds, as we see a montage of everyone dancing and having fun.
The fan response, to what was essentially half of the full work, was strong. The sentiment could be summed up as: "Brothers" was, for Kanye, an unexpected and appreciated return to a sound many thought forever in the past after the increasingly avant-garde path West has walked since 808s & Heartbreak came out in 2008.
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It seemed like "Brothers" was poised to make a splash and enter the pantheon of non-album tracks that Kanye fans fawn over, songs like "All Day," "White Dress," "Christian Dior Denim Flow," and "Only One."
But a funny thing happened. "Brothers" never officially released. The closest we came was an Instagram post that was up for less than 24-hours before it was copyrighted into extinction.
So if you're reading this further in the future, chances are you may have never heard Kanye West's version of "Brothers." And, sadly, may never will.
That leaves us with a question.
What happened?
In order to provide an answer, I spent over 6 hours interviewing people who worked on or were part of facilitating the 3-year journey of creating "Brothers." What follows is a mix of reporting and oral history that's a deep-dive into the process, humanity, and politics of the music industry...and...ultimately, a long-form eulogy for a song whose doom was—you'll be surprised to find out—almost two-decades in the making.
2016: Music that heals
We're in Agoura Hills, California. At the home of Judge Herb Dodell. It's here that producer 7 Aurelius has retreated.
7: My mother had passed away. I had to go to Kentucky for a few years. At the same time I ran into tax trouble. At the same time I was going through some girlfriend troubles. At the same time I fell out with my uncle who was like my first brother. We grew up together in my grandmother's house. I got into an old Mercedes Benz and drove across country from Kentucky to California. I was very heartbroken. I felt very isolated. Here I was famous for all these big records and I'm going through such a difficult time. I asked my friend if I could stay with him until I could get my things together.
Herb: My wife and I invited him to stay with us because we're very close friends. I told him, "It'd be silly for you pay for a hotel room when you don't know how long it'll be. Just stay with us. Bring your studio equipment and you can work out here in the country."
7—otherwise known as Channel 7, recently B7LLY, originally Marcus Vest—was one of the dominant producers of 2000-2010. What Kanye had been to Roc-A-Fella, 7 was to Murder Inc., creating a run of hit songs for Ja Rule and Ashanti. He'd even collaborate with Eve ("Gangsta Lovin'"), LL Cool J ("Hush"), and Jennifer Lopez ("Ain't It Funny"). And win a 2003 Grammy for Best Contemporary R&B Album for Ashanti's self-titled debut.
But as the decade turned over, 7's name in the credits all but vanished. What followed was an extended period out of the limelight after the bittersweetness of a decade's-worth of fame. You could imagine how this might be a blessing and a curse. You have time, again. Control, again. Space to breathe and create and try new things. But the cost of that is a reduction in money, attention, and even opportunity. When the negative of that trade-off starts to outweigh the positive, there's dissonance. You're famous for all these big records, but your life doesn't seem to reflect that. It can leave you feeling some kind of way.
7: I stayed with [Herb] throughout that whole summer. I was basically woodshedding every single day for four months. Piano, piano, piano. It's all I had to do. This piano was enchanted. It's like my fingers were falling into grooves they had never really fallen into.
Herb: I was blessed to have been the lawyer for Johnny Mercer. He was one of the legendary composers. He won eight or nine academy awards. I used to go to [the Mercer's house]. He had a piano in the living room and I admired it. When he died, I went back to the house to work on the estate. I convinced Ginger, his widow, to let me have the piano. The song "Moon River" was written on it, among many others. Over the years, it had a real nice energy to it, when you consider what Johnny had put into it. There are things we have in our lives that have a specific importance. They have a certain energy about them. Like going into a place, you may have never been there before but you like it. Other places, you go and you say, "Yuck, I don't want to be here." This piano has whatever Johnny put into it. In fact, he wrote "Seven Brides For Seven Brothers" on it, which is kind of interesting since we're talking about 7. 7 was using the Mercer piano.
7: I had gotten to the point in my career.... There were so many new production teams, and faces, and styles, and budgets. The music industry had changed so much I started to feel like, "Damn, what am I going to do?" And a voice kept telling me, "Just work. Just work. Work, work, work." And work I did. Every day I was writing and getting better. Until one day, in mid-July—I wrote "Brothers." It stopped me in my tracks. I knew it was going to be incredible when it happened.
In 2011, 7 had a record label called The Aurelius Group. Fallout with label signee's The Rej3cts over the viral song "Cat Daddy" led to a lawsuit. This was when crisis manager Melanie Bonvicino, at the request of a mutual friend, entered 7's life. The two have worked together ever since, with Melanie serving as a manager-slash-public-relations figure.
7: Melanie is my ace forever. Melanie and Kevin are the executors of my will, of my estate. That's how close we are. I'm thankful and I'm blessed to have people like that.
Melanie: The piano for him goes back to his roots when he was a young boy going to a record store. 7 used to play the keyboard there. That's home for him—the keyboard. It's always a safe place for him to go and create and process where he is in his life and where he's going. 7 [in the summer of 2016] had relocated back to Los Angeles. He talked about creating some more theatrical types of music. So the music at that time was more cinematic in nature and message-driven. He's had 14 number-one hits. If you watch him work in the studio he creates a character for the artists. He gives them an identity. For him, performance is really, really vital. He truly is a director.
Herb: He played for weeks—I know because I kept hearing it. One day I came home from court, and he was playing something, and I said, "Well, that's interesting." And 7 said, "You know what? I think this song is perfect for Kanye West." I'm not into a lot of modern music, I'm more of a traditionalist. I said, "Okay, that's great, he's popular." I didn't take it too seriously. But he played it for me and it was really well structured and really well done, and I like the lyrics. Johnny was a great lyricist.
7: I thought the record was for Kanye. I had met him a long time ago when I was really on top in the first part of my career and he had just had the accident. I was being managed at the time by Todd Moscowitz who was with Violator. That was the first time I met Kanye, and I was like, "Man, I'm happy everything worked out for you man. Welcome back." Fast forward back to Agoura Hills on the day I wrote this. I was like, "Man, I really feel like Kanye's going to performance this...but I don't have any connections to him right now."
After leaving Murder Inc., 7, for a time, joined Bad Boy's famed Hitmen production team. There he met, Kevin Thomson, a native Torontonian who had come to New York to work for Bad Boy Entertainment. The two became friends, and Kevin, now a music lawyer, has worked with 7 ever since.
7: Kevin is like the white version of Clarence Avant, he's like the dealmaker. He used to work with Bad Boy and he was helping me when he was just an intern at Bad Boy. He just kept moving up. And then he was out of there. We always knew he was going to be out of there. He's super, super smart and everyone loved him. Puff loved him. Mario Winans loved him. And then he just became this phenomenal dealmaker. Constantly like, "Have you met this person? Have you met this person?"
Kevin: It must have been 2016 when 7 first sent me "Brothers." He had a crib and he was basically composing on a piano. 7 definitely channels his energy from somewhere. When he gets behind a piano he writes these incredible songs. He sent me this record. It had a Bossa nova feel to it. If I'm not mistaken, it was eleven or twelve minutes long. It was wild. But the lyrics were so powerful. I was like, "Bro, this is incredible." I was blown away, I loved it to death. Even the Bossa nova vibe was sick. It had a bit of Dilla feel to it.
He was working a few kind of different styles and projects, figuring out what to do next with himself. And it went to the side. It was sitting there.
In April of 2016, Billboard runs an exclusive: "BET and Irv Gotti Partner To Tell 'Tales'". The show's first seasons is "slated for second or third quarter 2017..." They quote Irv as saying, "This isn't no reality show shit and not a video. I'm going to tell a story like only I can tell a story and involve the hip-hop culture, which is colorless. Visionary Ideas [his studio] is DreamWorks times 100, which is a crazy statement as big as Dreamworks is. But that's my goal."
2017: Music that connects
Tales premiers June 27th, 2017. The premise is every episode is inspired by a rap song. For example, the season's sixth episode was called "99 Problems."
The original Jay-Z track, "99 Problems," is popularly known for its hook ("If you're havin' girl problems, I feel bad for you, son/I got 99 problems, but a bitch ain't one") and second verse that's a dramatized showdown between Jay-Z and a police officer who has pulled Jay over and wants to search his car for drugs.
From the synopsis of the Tales episode, you can see how Gotti and his team borrow from the song but bring originality to the concept: "When the Black Lives Matter movement is declared an enemy of the state, two college lovers and BLM activists go on the run to escape the clutches of the police."
On November 19th, 2017, a week before the Tales' season finale, Irv Gotti posts a picture on Instagram of him and Kanye West.
Irv's caption: When 2 people like me and Kanye get together. Hip Hop is about to get something enormous. Like enormous. 2 crazy. Out of the box thinkers. That only thinks about serving the world!! Hahah. Stay Tuned. Great great great meeting of the minds. Like i told him. We have to take a pic of this.
7: A year later, November 2017, I get a text from Irv. At the time Irv and I, who has been my production partner for two decades, were on the outs. He and I are historically on the ins and outs. He's like my big brother in the industry because he's the one who really gave me my shot.
Irving "Irv Gotti" Lorenzo, like many other prominent hip-hop figures, grew up in one of the five New York City burrows—Queens. One of the first songs he produced was the 1995 track "Time to Build," for Mic Geronimo. It featured Geronimo and then-unknown rappers Ja Rule, DMX, and Jay-Z. Two years later, in 1997, Def Jam would not only partner with Roc-A-Fella Records but also provide Gotti the funds to launch Murder Inc. Records. As the label-head, he continued to produce, often working in tandem with 7 Aurelius.
7: We used to be roommates, we had a penthouse together on Wall Street. I have so many amazing memories of Irv. It just got to a place where I was always in his shadow. I needed to break out of that. I needed my credit first.
I hadn't heard from him in seven years. We had gotten into a huge fight. I ended up saying some crazy shit to him and I didn't know it was his birthday. November 2017, he texts me. "Yo, I was just with Kanye last night. I swear to God, you got to hit me." So I call him, "What's the deal? First of all, how you doing?" He's like, "I was with Kanye last night. And I swear to God, Sev. I could not think of anything else. I kept hearing God tell me, 'Call, 7. Call 7.' I was not allowed to leave that place until I brought your name up in the conversation. When I brought your name up, it was all love from Ye. I gotta come by your studio." Which elated me, I was like, "Fuck yeah." I was like, "Thank you, Father."
Kevin: 7 called me and said "Yo, I'm going in with Kanye tomorrow. I'm putting tracks together. You got any ideas?" I was like, "Play him 'Brothers.'" He obviously put it in his pocket. Ask him to tell you about the session with Irv, Mike Dean, Kanye, and Kid Cudi, at Kanye's house.
Up to this time in 2017, Kanye West had been avoiding, for the most part, the all-seeing-eye of the media. Tucked away in the aptly named enclave-of-the-financially-successful that is Hidden Hills, California. Recovering from the tumult of 2016 that saw West endure, for the second time of his career, an Icarus-like plummet from the empyreal heights few artists ever obtain.
2016 would be, for West, defined by his 7th studio album, The Life of Pablo. January was the immense pre-release hype, fueled by the wild-card-energy of Kanye's Twitter presence, where you'd never know what he'd tweet or when. February was the official release. Come June, Kanye announced the Saint Pablo tour. August began West's cross-country jaunt atop a floating stage. In total, Kanye performed 41 times in 84 days. But the final 22 performances never happened, after West, on November 19th, waylaid his own Sacramento show (after waylaying his San Jose show two days earlier) to give a nearly 20-minute speech that ranged from airing a mix of personal and industry tensions with Jay-Z, Beyoncé, Dj Khaled, and Drake, to an analysis and critique of politics and society, and validated Donald Trump. Public response was, to put it lightly, not positive.
Days later, Kanye would be hospitalized for what will be, at this point, reported as extreme sleep deprivation—though there were rumors and rampant social media speculation of a bi-polar diagnosis (he'd confirm himself in 2018).
Unbeknownst to the public, in 2017, Kanye and Kid Cudi had been working on a joint album. In May, there was a cryptic news cycle around the report, to quote Fader, "Kanye West Is Recording New Music On A Wyoming Mountain." Then the two flew out to Japan, in August, to meet and discuss cover art with former-Kanye collaborator and world-renowned artist Takashi Murakami. So even if the public didn't know the specifics of what was happening, behind the scenes there were sparks fanning to flames.
Almost a year to the date of Kanye's forced exit from the limelight, he met with Irv Gotti. Soon after, he'd meet with 7 Aurelius.
7: We go to Energy Studios. Which is like Disney World. It is was amazing to see. You gotta take a picture of what you have on and give them your ID before you get in there, so they can see what everybody's fashion is. I actually had to run and get some food and come back—Ye wasn't there when we first got there. When I came back, they was laughing and telling a story about me, I could hear it, but the door was closed. When the door opened, it was Ye, like, "Yo!" It was the first time I'd seen him in years. It was all love.
His energy is through the roof. It was so dope. Kid Cudi was there. Mike Dean. People from the Yeezy staff. These gorgeous, gorgeous tall-ass speakers. One room was the music. He took us to another room that's like 200 sewing machines. He took us upstairs and is talking about amusement parks and a ride called "Yeezus." It was phenomenal. It was like, "This guy is amazing. He's really living his dream."
We play him all these records. He's jamming, he's grooving, but nothing is clicking. He's on this low, huge, like Greek-stone table. It's wide and long and just incredible. He was putting together a gold puzzle, a solid gold puzzle. Irv, and I looked at each like, "Now is the time." Irv said, "Yo, Sev's going to play you another record." I played "Brothers." And when I say 'played,' I played it on the piano. It had all black keys. Almost everybody in the room cried. Ye was awe-struck. He still had one of the gold puzzle pieces in his hand as if he was going to put it somewhere and his mouth was wide open like, "Oh shit!"
I'm like [singing], "We'll be brothers forever, what happens to one of us happens to us together." And he's like, "Oh man, we gotta do it again. This time we gotta record it. That's the one." Irv's grinning now, he's so fucking happy—I love to see Irv happy. But the second time, I fucked up twice. And Kanye was so into it he didn't care. But the thing was, he kept playing the version I fucked up. And he played it loud. And then more people were coming in. Sexy girls were coming in. Designers were coming in. The people showing him the new gums for his Yeezys were coming in. They'll all listening to it.
He played it so much. I said, "Listen man. When I get back to my studio, I'll send you a version of 'Brothers' that's so dope. I'll make sure it's clean." He looked at me and said, "Okay, yeah, yeah, cool. Play that again." Even the next day when I came back, he kept playing the one I fucked up, even though I sent him the clean one. He played it so much until it went from discomfort to self-love. Like, "Yeah I fucked up, but imperfection is okay." He even reinforced it with the way he was singing. He'd be out of tune, and he don't care. I love that. And he taught me that.
With Kanye onboard, it's time for Seven to evolve "Brothers" to fit his dream collaborator's taste and style.
In a few months, BET would announce the renewal of Tales for a second season, premiering in 2019.
2018: Music that instigates
Chris Stylez had the formal start to his career in 2008, with the release of his first single, "Fade Away." His R&B singing captured the attention of Bad Boy Hitman Mario Winan—Winan wanted to sign Chris. And so Chris met Kevin Thomson. Both were from Toronto. Both were new to the professional music world. And both had a great reverence for the talented artists they were suddenly surrounded by. The two became friends.
In October 2017, Stylez attended a SOCAN (Society of Composers, Authors and Music Publishers of Canada) songwriting camp in Santorini, Greece. There, he worked with a few other attendees, including the Dutch artist Glen Faria, to create a "'Jesus Walks'-type record." Back in Los Angeles, Chris isn't sure what to do with the record. It had a great response in Greece, but what now?
Just after New Years, at the start of 2018, he decides to call one of Kevin's friends—7 Aurelius.
When 7 answers the phone, he asks Chris, "Did Kevin tell you to call me?" Chris responds with, "I just thought about you." But then 7 follows up: "He didn't tell you I'm working on the new Kanye project? Me and Irv are seeing Ye tomorrow. Got anything for him?"
Irv's Caption [2/21/18]: Me with 7. JJ. Kanye. Juwan. Stay Tuned!! #TS2 #LOL
Chris: I send him the "Love Songs" demo record from Santorini, and by the time I get to the lobby of my studio 7 calls back saying, "I need you to bring this to the studio—this is it!" So that night I pull up at some penthouse in West Hollywood. Pure vibes. Killer view. I make myself some throat coat tea, and we get to work.
Next day, they tell me Ye loves the record, don't play this for anyone. I'm like, "Fuck, my first big placement is a Kanye record?!" I get called a couple days later later, and it's to lay vocals for another song, "Brothers." Cool. Still thinking I'm lit cause this makes song number two. Fast forward to a few weeks later, and I get a call from my big homie Bink at like 7 a.m. "We finally got a record together!" he says. I'm like, "What are you talking about?" He says, "I just did the drums on 'Brothers' for Kanye."
Kevin: Kanye wanted a vibe. He wanted a certain vibe for him to spit on. 7 called me, "I'm messing around with some stuff. I'm not getting there right now. You got any ideas?" I told him, "Call Bink." Bink and 7, have known each other a long time. They're different but they're the same. They're both funny guys. Smart guys. Super accomplished. Low-key. I was rocking with Bink when he did My Beautiful Dark Twisted Fantasy. He has an incredible history with Kanye so it only made sense.
Bink—otherwise known as Bink Dog, recently Bink! the Humble Monsta, originally Roosevelt Harrell III—is also, like 7, a highly-regarded producer in that 2000-2010 period. During that decade, Bink produced for Aaliyah, Diddy, Nate Dogg, Eve, Fat Joe, Beanie Sigel, LL Cool J, J Dilla, Joe Budden, and Rick Ross. As part of Roc-A-Fella, he did tracks for Jay-Z's The Dynasty and Blueprint. Capping it all off was the track "Devil in a New Dress" from My Beautiful Dark Twisted Fantasy, often considered by Kanye fans to be in the running for the best Kanye song of all-time.
Bink: Me and 7 have a relationship. He called me one night and was like he had gotten with Kanye and played him this idea, this "Brothers" idea, this piano part that he had put down. But that's all it was, just pianos and Christ Stylez singing the reference. He said Kanye wanted some intergalatical, some kind of galaxy-trap thing for it. I was like, "I don't know what that is, but I'm going with Graduation on this."
Kanye was one of my early brothers in the game. When he started coming around with Roc-A-Fella, he would ask me my advice on a few things, musically, what he should add, or what musician he could use. Stuff like that. We connected in that way. I only did one record with Kanye, first of all. And to have the impact it had, I've been dying to do another one. To see if we could revisit greatness again.
7 sent me the reference, and I basically treated the reference like a sample and chopped it up. Put the drums on it. Put the bass on it. Structured it. There was another piece in there I took out altogether. Just kept the part with Chris Stylez voice. And it came out dope because it sounded like a loop.
Listening to the idea and knowing who it was, it made me turn the MPC on. I'm normally on Logic. But I wanted to make sure I captured that vibe, that old school vibe. It's actually the new MPC X I did it on. It definitely gave me that bounce I needed to get this out and get this right. The buzz base I put on it makes it feel aggressive, also. Keeps it constantly moving, like a high speed chase.
I turned it over that night. I jumped right on it. If I hear a good sample, I'm gone. The chords 7 had laid down were dope. I told him it'd be dope if we could get Stevie Wonder on it, cause it's some Stevie Wonder type chords. If not Stevie Wonder, then maybe Glenn Lewis. Glenn Lewis is like the best Stevie Wonder tone-texture you can get without getting Stevie. His delivery is almost on the same level. But they ended up getting Charlie Wilson, which was dope. That's Uncle Charlie. Who doesn't want Uncle Charlie on the record? Hearing him was definitely refreshing.
7: I have a few brothers I really reach out to when I'm in the weeds in terms of writer's block. One of them is Bink. Bink and I work well together. I was like, "Yo Bink, I got this song. All the drums I'm doing aren't giving me the vibe. I know you worked with Ye on My Beautiful Dark Twisted Fantasy. I feel like you can really add that vibe to this. He's like say no more. I sent it to him and he sent me back what he did. I did some things. I threw it back to him. He made some changes and it was right where it needed to be. And I loved it. Bink was a very instrumental part of bringing that Graduation vibe. Fans can thank him for that.
Chris is one of the greatest vocalists of our time. He's next. The song he and I have coming out called "No Love" is outta here. It's going to help cement my statement about him and how I feel about him.
Chris: Bink tells me he knew it was my voice when he heard the record, and was like, "We gotta keep my man on the record," so he sampled my voice and they flipped the beat. The plan was to get Stevie Wonder on the record, too. Of course I'm like how the fuck did I end up as the sample on a Kanye West song, featuring Stevie Wonder, produced by 7 Aurelius, Irv Gotti, and Bink!? I'm dead.
I get a few updates here and there. Ye is in Utah. He's going to Africa. Then he's heading to Wyoming to finish the album.
April of 2018, Kanye breaks his self-imposed exile and returns to Twitter. His vibe this time around remains the essence of unexpected, but the tone is often simple, philosophical, existential.
Within 10 days, the chaos returns, overshadowing the hype of the album announcements, as West posts a picture of himself crowned by a red Donald Trump "Make America Great Again" hat. A storm of controversy follows. Only a week later, with many thinking it can't get worse, Kanye appears on TMZ and there's even more fallout after he attempts to talk about slavery in America. It's pretty fair to say that Kanye, at this time, may have been the most talked about person in America. And a majority of it was critical.
The attention is immense enough that West, he'll eventually reveal in an interview with Big Boy, scrapped the album he was going to release on June 1st. Opting to, instead, start from scratch in the short time before the announced date.
Kanye to Big Boy: I completely re-did the album after TMZ.
You know, I feel like, as a son, and as a family member of the world...that's the reason why the world won't let me go because I'm just a family member. They might disagree with me, but I'm family.
[The album] came from me just continually going against mass opinion, and I was able to find my voice—my voice—because, as you know, I started off with my voice. And this is what happens with a lot of artists: They start off with their voice and then they start having to do so many records for so many different people...and is this person going to be happy and is that person going to be happy? I just had to stand in front of that board every morning and ask myself, "Do these songs truly make me happy?"
Chris: Ye's album comes out. Im listening to the last song, "Violent Crimes," and my mouth drops. It's "Brothers," but not.
Kevin: I think it's better I not comment on that.
7: We connected with Kanye again in February. Then I didn't hear from him until May or June. And that's when his album came out and I was like, "I hope 'Brothers' is on this thing." And it wasn't. And I was like, "Shit, what happened?" Then I heard a song similar to "Brothers." I'm thinking, "Not only is that very similar to Brothers...that's me playing? What is going on?"
So they call, "Don't worry about it. It's Violent Crimes, you guys are producers on there. Congratulations and everything." I didn't want people to think Brothers is a copy of that. Then I was thinking to myself, "Seven, remember this. Divine inspiration is not linear. Divine inspiration seeks out the useful vessel. hashtag, be useful. Relax."
So I just step back at this point. Now Irv, who originally made the deal for "Brothers" to be the premier for his new season, he's like, "Yo..." Put it like this, it took so long, Kanye had two babies during the time we were waiting. Bless the whole family! I'm just saying that's how long it took.
Chris: I get a call from Kevin and he's like come meet me at Om'Mas studio in Hollywood—Om'Mas Keith is another brilliant producer I know and respect. I get there and Kev tells me Kanye is sending new verses for "Brothers" and the song is still getting released. We on again! I then find out that "Brothers" is going to be the first original song used in Irv Gotti's scripted television series, Tales, and it's a two-hour premier episode on BET.
It's been almost two years since 7 wrote "Brothers," and seven months since Irv's big bang meeting with Kanye. The long-time duo finally have the lyrics from Kanye and can finish preparing "Brothers" for the Tales premier.
On Instagram, Irv proudly posts his and 7's production credit on "Violent Crimes." It must have been a tongue-in-cheek moment for the pair, as they and only a few others know about their real song with Kanye and its forthcoming world reveal. But there's one small detail in the photo they probably didn't think much of. If they noticed it at all, it was probably as a curiosity. Not the thing that, by all appearances, brought about the demise of "Brothers."
Four simple words: Please Gimme My Publishing.
2019: Music that vanishes
7: Kevin approached me, he's like, "I have an amazing artist. I'm down here at Art Basel with him right now. He loves Brothers. He wants to do a painting on it, what do you think? Let's do it."
Kevin: The piece of art that 7 posted, the cover for "Brothers." That red painting. Another client of mine, and an incredible artist, is Genesis the Greykid. Genesis is a poet. I met him when he was rapping. He started painting. Putting words on canvas. He's been doing that a few years now, and he's had incredible success. The art community picked up on it. He's become a fine artist and it's all rooted in his poetry and his words. I said to 7, "Yo, let me send the old demos."
Genesis: When I first heard "Brothers," it was January of this year. There's this hotel I was staying in when I heard it, the Dwell Hotel. That shit is fly. It just gets the creative juices flowing. I was working on a commission piece for a friend I met in LA. That's when I got the call from Kev about checking that song out. He said, "Hey, let me know what you think of this." He didn't load it down too much. After I heard it, he let me know who it was. "Would you be down to do the artwork for it?" And I'm like, "Yeah, duh, of course!"
Initially, as I was hearing it, it was like some peaches and oranges and deep reds were the colors I saw. It was reminding not of a heart but something internal. Words, language, have an anatomy to it. Brothers is a sturdy word. I don't want to say regal. But it's sturdy. I thought about writing this whole poetic thing. Throwing different metaphors around to construct the word brothers. But I scratched that idea. I wanted "Brothers" to be able to hold its own weight. It doesn't need the other stuff.
I went back 150 maybe 200 years and looked through all these different relationships whether they were blood brothers or brothers in spirit. There were some brothers like Du Bois and Booker T. They weren't brothers. They had a lot of arguments and they disagreed a lot in their political views. But they were kind of brothers in the same fight of equality and freedom, they just had two completely different ideas on how to make it happen. There were other brothers like Quincy Jones and Frank Sinatra. All the way up to Kanye West and Jay-Z. Seven and Gotti. The whole landscape of different types of brothers. That all came out of listening to the song. Going back and forth, back and forth, and having it play while I paint.
If all of those relationships through history, if they failed, then the word "brothers" wouldn't be so sturdy. A brother can check you. I got a brother and he calls me on my shit all the time. Cause sometimes I can fool myself. We all have this blind eye inside of us. No one can see themselves fully. It's very intimate to trust somebody to be in that sanctuary with you. You'll fight. But it's your brother.
It took at least a month. Sometimes you put the clothes on, you look in the mirror, you're like, "Ehhhh." You walk to the store, you walk to the house, you take the clothes off. I actually have pictures of it in different stages. It was a lot lighter. It was like a beige. The names in the back were popping out too much. And I made it darker and darker and darker. It kind of takes time to get the clothes right.
It took me four or five days to get the canvas. But that gave me four or five days to go on some nice walks. And I went on some nice walks. Once I get the bullshit out of the way, through walking, that's when I can find the right place. As artists, a lot of times we can get in our own way. You can really overreach trying to put too much of yourself in something. You'll already be in it by being honest. It'll be the essence of you there but not enough to overshadow anything. I think that's when you can reach people.
Kevin: We didn't have anything with Kanye's lyrics. But the original song had the essence of the composition, cause the theme is very much, "Why don't we call each other just to say hello?" I think the essence of the original is the same as Kanye's verses on the actual song. Genesis does his thing, sends back the cover. Then we were kind of in a holding pattern.
On January 25th, The Hollywood Reporter breaks a story. "Kanye West Sues Over His Song Publishing, Recording Contracts."
THR: Kanye West has filed a pair of lawsuits in what may be an attempt to extradite himself from contracts and reclaim control over his career. One lawsuit is against EMI, the song publisher that has administered the rights to his songs since 2003, shortly before the hip-hop star released his debut album, The College Dropout. The other is against Roc-a-Fella Records, UMG Recordings, Def Jam and Bravado International Group.
It might come as a shock, but Kanye has used the corporation Please Gimme My Publishing since 2004. There's a webpage for the 2005 BMI Urban Awards that lists the credits for award-nominee "Jesus Walks." The involved parties: Miri Ben-Air, Curtis Lundy, Kanye West, Curwan Music Inc., EMI-Blackwood Music Inc., Mirimode Music, Please Gimme My Publishing Inc., Songs of Universal Inc., Kanye West, Roc-A-Fella/Def Jam Records. (Italics for emphasis of the parties involved in the lawsuit)
Kanye often talks about seeing into the future. For example, he said on his 2016 song, "Saint Pablo," I can see a thousand years from now in real life/Skate on the paradigm and shift it when I feel like. Maybe at age 27, at the turn of the century, on the brink of his major breakthrough as a solo artist, West chose the name Please Gimme My Publishing as nothing more than a self-aware joke at just how powerless artists were when it came to release and distribution. But as the years wore on, as the kid from Chicago became one of the most popular and critically acclaimed musicians of all-time, it's easy to imagine the innocent humor draining from the phrase. Especially with the revolution of the independent artist thanks to the boom of easy and prolific digital distribution options. Does an artist of Kanye's stature need a contract with a label?
Prince, one of the artists Kanye admires most, said in a 2015 interview with Rolling Stone, "Record contracts are just like—I'm gonna say the word—slavery. I would tell any young artist...don't sign."
Fans have wondered if the lawsuit has been the thing that's prevented the release of Yandhi. Is Kanye, in his 40s now, refusing to put out music he doesn't own?
While West is in the biggest legal battle of his life—Irv Gotti's ramping up the promotion for Tales season 2. On May 19th, he re-posts to Instagram the 2017 photo with Kanye.
Irv's caption: Tales Season 2!!!!! July 2nd. Only on @bet #tales
We're less than two months away from the premier and it's still mostly unknown that Kanye's involved with Tales. But Irv can barely contain himself. In an interview on The Breakfast Club on June 5th, Irv announces that he can't announce who the huge artist is who did an original song for the season 2 premier. But then he drops hint after hint after hint until Kanye's name is guessed. All while Ja Rule is in complete disbelief.
Note: at one point DJ Envy announces the new song is produced by by Irv Gotti, and Irv is quick to say, "And 7, cause he'll get mad." Brothers know brothers.
Between June 13th and July 2nd, Irv made at least 20 Instagram posts relating to Kanye and Tales and "Brothers." In the month since? Nothing.
It might be easy to chalk that up to marketing, right? "Onto the next thing!" But there's more to the story.
As fans clamored for the official release of "Brothers," Irv said, in a now deleted tweet, he was doing his best to get the single out. He even put the full audio out on Instagram.
Irv's caption: There is a lot of speculation right now on who is Kanye West rapping about on the song brothers. So here is the song. That BET cut off because of there way of airing episodes. But it was always meant for the audience to hear the whole record. Listen. And decide for your self if you think Kanye is rapping about Jay Z or Virgil. Both Ye's Brothers. And also let me know if you liked the episode and song. We did it for y'all. My hip hop culture. -IG
Within a day, the post was gone. And the others promoting it, taking pride in it, and telling everyone "Brothers" would come out? Deleted.
7: We were within weeks of it coming out. BET and Viacom and everybody was super excited. Boom, it comes out. We sign the agreement. I'm noticing Def Jam hasn't signed up. It just has language, "Upon Def Jam's approval. Upon Def Jam's approval. Upon Def Jam's approval." I'm like, uh-oh. You can own the master but it don't matter if it's not available.
I think to myself, "At least it'll be out for the people."
It comes out—sonic booms across the planet. They were so starving for this version of Ye that it was like heaven. It was heaven for me to see people have their vibrations raised so high. I received so many e-mails, texts, direct messages on IG about the song. "It made me reach out to someone and we're cool now." That was a common message I was getting because of this record.
One week goes by and nothing. Two weeks go by and nothing. It's like if Michael Jackson had recorded "We Are the World," shot a video for it, debuted the video, then not made it available for people to get it. It was the most ridiculous thing. It just doesn't make sense.
While Irv is silent, 7 goes full-Kanye, taking to Instagram Live to decry Def Jam for holding the song "captive." He says, "The Universe did not give me this song for it to be tied up in some Corporation like Def Jam. This song was written [to] heal relationships, open dialogue and bring people together!!! join me in supporting this song in all of its forms of release. someone needs this out there!!! I know I do."
A day later, 7 deletes the post and replaces it with a new one, much different in tone. He explained to me:
7: Melanie was like, "What are you doing? You're going to disrupt relationships. They're going to sue you. You better take it down. You said you're going to put out the vocals." And I'm like, "I'm not coming at Ye. Melanie, are you crazy? I would never do that. I didn't say I was going to put out the vocals. I'm listening to it right now. Ah shit...I said I was going to put out the vocals. But I meant the background vocals I did! Not his." So I realized the energy's changing and I needed to get out of that energy. So the post's taken down.
Melanie: The complications only really required people to be communicative. Two very, very talented artists just needed to communicate and the song caused them to communicate. Because the song serves as a bridge to brotherhood. This often doesn't happen.
Kanye is working on his next album. He's in the process of doing that. And 7 is working on a new album as a solo artist himself.
7 owns the masters. He can do whatever he wants with the master. He can re-record the record. He has the song in its original format. He has the ability to put another artist on it, if he so chooses to do so. Kanye's version is absolutely stunning and the response by the fans has been incredible. People are clamoring for it. We've received so many phone calls and people sending e-mails and contacting privately on various forms of messaging to see how they could get the single and Kanye's version of the single.
7: When people hear my version, it's beautiful, gorgeous. I'm thankful that Kanye didn't do two things. I'm happy he kept "Jesus Walks" for himself. And I'm happy he didn't go with "Brothers" as a single. I believe it's going to be one of the hallmarks of my career as an artist. That's Source Energy at work. You don't even know the level of assists the Creator has for you. You just gotta step and get out of the way and trust the process. Even when I came out on my IG and was like the Creator didn't give me the song to be in Def Jam's archives. I meant that, man. I'm here to raise vibrations. When it's all said and done by biggest mission is to give more than I take. If I do that than I know my soul score will be well beyond passing and I can go to the next plane of existence. This is just what I believe.
Melanie: Kanye West and 7 Aurelius are both agents of change and men of tomorrow. They're both Geminis.
7: I get a call from my guy BJ, who is like the buffer between me and Irv. Irv and I have realized we need a buffer so I don't have any passionate artist tweets at him that'll piss him off and vice-versa. So BJ calls me and says Kanye's main manager wants to talk. He gets on the phone. Couldn't have been a nicer guy. First thing he says, "We just want to let you know that me and Ye totally respect you. We understand your passion, we understand everything about what you're saying as far as knowing the song's going to raise vibrations and not wanting to stand in the way. We don't want to stand in the way. But at the same time we don't want to be force to released music. We have a project. We're working on Yandhi right now."
I was like, "Listen, first of all thank you for reaching out. I couldn't love Ye any more. He really inspired me to get back to this. I hope you guys do something with 'Brothers' in the future. I'm going to do something with now. It's going to come out. And the name of the album is B Jeezus. And it's spelled like Yeezus." And he's like, "All good, all good." I took the thing down, he said thank you for taking it down.
So now I've been holed up in my studio with Kevin Elliot, finishing my album. It's really incredible. It's my first album. It's bringing different elements. My instinct as a hitmaker is always there. I know what this needs to be, but I'm also a fan. I understand Kanye's fans, because I'm a fan.
I understand if Prince had come out with anything, bootleg or anything, I was devouring it. If it was an instrumental of something he worked on—anything. I understand what giving everyone something like "Brothers" means. It's like if Prince was doing The Gold Experience album then all the sudden releases something that sounds like it's off of 1999, or Purple Rain, or Sign of the Times, and you're like, "Oh shit he's back! That's the version of him I loved!" Then he doesn't make it available. It's that type of experience for the fan.
I am very, very pro-fan because I am a fan. I know what that means, so I'm going to make sure I deliver this.
This whole thing was kind of like...going back to the genesis of why I wrote "Brothers".... I was going through it with a couple of my brothers. These were people who were very close to me who I hadn't spoken to in a while. That's why the first lyric is [reading]:
"What's it take to call your brother? Just to say you miss them and wish you could spend time. What's so serious you just can't pick up the phone? Tell him that you love him and he's been on your mind. Tell him you need your brother. Ask him how he's doing and say you've been doing fine. If there comes a point where you don't know what to say while you still have him on the line just say we'll be brothers forever. What happens to one of us..."
[There's a long pause]
I'm sorry.
[You can tell there are tears]
"...happens to us together."
[Another pause]
It just takes me back to that time.
Epilogue
As of right now (August 2019), there is no update on the fate of the Kanye version of "Brothers."
7 has teased the first single for his debut album, B Jeezus. The single is "No Love," the earlier-mentioned collaboration with Chris Stylez. The art for the song was done by Genesis. The release date for the album has not been announced.
Bink hosts Beat Sparring events, pitting producer against producer in front of a live crowd.
Fortune reported in June that Kanye and EMI had returned to court following a failure to reach a settlement. In March, EMI had countersued West for breach of contract. The article ends with, "He is also seeking release from his recording contract with Roc-a-Fella Records, UMG Recordings, Def Jam, and Bravado International Group. That case is pending."
Yandhi is still a mystery.
Irv Gotti passed on the opportunity to participate in the story.
Def Jam never responded to a request for comment.
And Kanye West could not be reached.
Correction: The article had previously spelled ‘Big Boy’ as ‘Big Boi.’
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24e1bb3e1443a7f71406605d52b79167 | https://www.forbes.com/sites/chrislambert/2019/09/01/jesus-is-king-a-preview-of-the-track-list-and-potential-meanings-of-the-song-titles/ | 'Jesus Is King': A Preview Of The Track List And Potential Meanings Of The Song Titles | 'Jesus Is King': A Preview Of The Track List And Potential Meanings Of The Song Titles
INDIO, CALIFORNIA - APRIL 21: (EDITORS NOTE: Image has been converted to black and white.) Kanye ... [+] West performs Sunday Service during the 2019 Coachella Valley Music And Arts Festival on April 21, 2019 in Indio, California. (Photo by Rich Fury/Getty Images for Coachella) Getty Images for Coachella
The track list for Kanye West's ninth studio album, Jesus Is King, has been revealed. Here's what we know from the song names and what each might mean to Kanye.
Clade
"Clade" is a taxonomical reference to a group that shares a common ancestor. It's used mostly in the scientific classification of organisms. While that might seem at odds with the poetic nature of an album, when you think about its subtext, there's certainly romantic applications. For example, if we're all the children of God, then we're all part of the same clade. In that way, every living person is family. Brothers and sisters.
With that in mind, it would be easy to make a plea for unity. For love. Which is reminiscent of many of Kanye's 2018 tweets about showing love to others rather than hate and finding ways to connect rather than divide. Visually demonstrated by Kanye when he wore a MAGA hat with a Colin Kaepernick shirt, two opposite ends of the ideological spectrum.
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Garden
This track had been rumored to be part of Kanye's original (and seemingly scrapped) ninth album, Yandhi. While we don't know in what form "Garden" will arrive on Jesus Is King, a version did leak in June. It included these lines: We will weld this world, world back together/Let's make a way, We'll lead the way/Must keep the faith, faith in each other/You are my brother, family.
Those lines could support the aforementioned reading of "Clade." And welding the world back together could get at the idea of turning something broken into something better. Something similar, maybe, to the Garden of Eden, the wondrous place Adam and Eve lived before their Original Sin occurred and God cast them out. The implication being we could make our world into something like the Garden.
Selah
A word commonly found in the biblical psalms, at the end of a verse. As to what it means? Answers vary. Given the musical nature of the psalms, most take it, contextually, as a note to pause between verses, as a kind of reflective silence.
God Is
This being an unfinished phrase rather than word easily defined or a reference to something that has implications and connotations, it's hard to assign any kind of meaning or speculation. This title does reinforce the religious nature of the album and continues to indicate we should view everything through a Christian frame.
Baptized
Speaking of viewing everything through a Christian frame. Baptism is a Christian ritual involving water as a symbol of purification. It serves, popularly, as a rite of admission. Those baptized can range from infants to teenagers to adults who want to re-affirm their faith or who have strayed from the church and seek to more formally confirm their return.
Sierra Canyon
A private school in Los Angeles. Both Jenner sisters, Kendall and Kylie, attended Sierra Canyon. And Kanye was twice photographed at the school (Dec 2017, Feb 2018), attending the high school's basketball games.
If Kanye is mentioning the school, it could be for several reasons. One would be because his daughter North attends. Another would be he liked the name and decided to use it for a fictional location.
Hands On
Like "God Is," the title "Hands On" is very vague. But it does indicate a personal approach. How a CEO might be hands on in the day to day operations of a company. Or a parent might be hands on in their child's education or hobby (like coaching little league, or helping with homework).
If it's personal, Kanye could talk about his hands on approach to something like parenting, music, the world. If it's religious, he could be talking about God's hands on approach. On his 2013 track "I Am a God," Kanye did have the line: I am a god/even though I'm a man of God/My whole life in the hand of God.
Wake The Dead
There's the biblical story of Lazarus, who Jesus brought back from the dead.
Personally, Kanye and Kim both lost a parent. Donda West in 2007, at the age of 58. Robert Kardashian in 2003, at the age of 59.
West, on December 31st, 2014, released the track "Only One," a song from the perspective of his late mother, commenting from heaven on Kanye's life, now that he was married and had a daughter. We could see something similar here. Given that "Clade" refers to our family tree, so to speak, a song about ancestors would make sense.
Another potential is it's about people who have lost touch with what matters and need "woken up" to truly live again.
Water
West played this song as part of his 2019 Sunday Service at Coachella. The lyrics are, of course, religious in nature. The song's outro is illuminating.
I know I might not be as perfect as Christ/But, we're made up of 90 percent water/...Your love's water.
Essentially, Kanye's repeating a common concept in Christianity, that God is perfect and people do the best they can. Whenever the phrase We are water repeats during the song, we know it means we're made up of God's love. While we're make mistake, because we're 90% water, we'll make it through. This is reinforced by the lines The storm may come/But we'll get through it because of your love/Either way, we crash like water. The ocean may become turbulent, but it settles again. The same with people.
Through the Valley
This might be a reference to the "Valley of Death," that comes from Psalm 23:4. "Yea, though I walk through the valley of the shadow of death, I will fear no evil: for thou art with me; thy rod and thy staff they comfort me."
Kanye had previously made references to this back in 2004, on the song "Jesus Walks." I walk through the valley of the Chi where death is, referring to the high murder rate of his home city of Chicago.
Could this be a song about Chicago?
Sunday
According to the Bible, God created the world and everything in it then rested on the seventh day, Sunday. It's the day typically associated with church and faith. It's the day Kanye has held 35 consecutive Sunday Services, directing and creating his versions of gospel music.
Coming as it does at the end of the album, "Sunday" could signify the completion of a mission undertaken over the course of the album and finally having a moment to rest.
Sweet Jesus
On Sundays, at church, praise is given to Jesus. Given that the album is called Jesus Is King, it would make sense to end with a song specifically geared to praising the Son of God.
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19c8a09a691908c14c851582695ebad0 | https://www.forbes.com/sites/chrislambert/2020/02/13/the-hakone-agency-and-the-rising-tide-of-austins-hip-hop-industry/ | The Hakone Agency And The Rising Tide Of Austin’s Hip Hop Industry | The Hakone Agency And The Rising Tide Of Austin’s Hip Hop Industry
Eric Radford and Anthony Lindsey (Rad and Wane). Photo by Taylor Henderson. Taylor Henderson
When you think of the music associated with Austin, Texas you might think of indie rock or country, but never rap. Unlike its easterly neighbor Houston, Austin’s local hip-hop scene has never been in the national spotlight.
-Pitchfork, 2018
Janis Joplin, Daniel Johnston, Bob Schneider— these iconic names are ones that are usually conjured up when pondering on the fruit of the Austin music scene. Known as the ‘Live Music Capital of the World’, it’s perplexing to find that while a great emphasis is placed on the alternative and rock music offerings of Austin, the hip-hop scene is often glossed over.
-Blend, 2019
Is there anywhere showcasing local rap artists? It's insane to me that a city like Austin doesn't seem to have it's own hip hop scene, or a battle rap league when Houston and Dallas both have their own.
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Is anyone in Austin trying to get a local scene going?
-r/Austin
With rap being the most-popular music genre in the U.S. for more than a decade, you’d expect a city with the country’s 11th largest population and the reputation for being the “live music capital of the world” to not lack in a hip hop scene. Yet Austin has underperformed in that arena.
In 2015, the city conducted a “Music Census,” interviewing about 2,000 of Austin’s musicians. The numbers within explain a lot.
The top 50% of artists were Rock, Americana, Alternative, Folk, and Pop Rock (in that order). Hip Hop represented only 3.7% (80 total) of the responders.
From there, we jump to age, where 49.9% of musicians were 25-39 years old. 27.5% are 40-54. And 12.8% are 55-64. Only 6.5% (121 people) were 18-24 .
Racially: 66.3% were White, 10.4% Hispanic, 8.7% Preferred not to say, 5.7% Other, 4.4% Black, 2.9% Native American, 1.2% Asian, and .4% Hawaiian.
In a section on “Needs and Gaps” for industry resources, the biggest complaints were: “a lack of pro level managers,” “lack of pro level publishing companies,” and “lack of access to capital.”
What’s all that mean? The simplest answer for why hip hop lags in representation is momentum. The venues in Austin have been steeped in the aura of singer-songerwriters and rock bands for decades. When that’s what it’s always been, it’s hard to make room for something new. Especially when those genres are still so popular. The establishment maintains its foothold, while emerging genres, no matter how nationally or globally relevant, struggle for real estate, both literal and symbolic.
The census has a section that details two focus group discussions the city conducted. “Each had a unique set of attendees with no overlap between the groups.” Under the header “priority needs and issues” is the line: “Few clubs will book hip hop.”
Given this environment, it’s no wonder hip hop has struggled to shine in Austin. ATX rapper Quin NFN told Pitchfork in 2018: “It’s hard out here. I feel like no one’s ever really made it out of Austin. Hip-hop ain’t got no pull in this city.”
Change has to occur above the level of the artist. It relies on someone, anyone, taking or creating space for the music to flourish. Otherwise, we’re in a catch-22: Austin hip hop needs access to prosper, but it won’t have access until it prospers.
Which brings us to a question posted on the city’s subreddit: “Is there anywhere showcasing local rap artists? Is anyone in Austin trying to get a local scene going?”
Yes.
Anthony Lindsey and Eric Radford—aka Wane and Rad, aka the Hakone Agency—have emerged as two of the key figures galvanizing a city that’s been stuck in its ways.
Meet Rad, Meet Wane
You’ve probably had the experience where a friend shares some dilemma they’re having. They don’t know what to do, so ask you for advice. Because you’re removed from the situation, the solution is clear as day. Your friend thanks you and praises how insightful you are, not knowing you have your own slew of problems you’ve been unable to solve. That’s one of the major ironies of people—we’re often better at helping others than we are at helping ourselves. That’s because third-party distance allows crucial perspective that can clarify and simplify the situation.
This irony is as true for individuals as it is for families, groups, businesses, companies, cities, countries, etc. When things get complicated, an outside POV can be the easiest way to unravel the issue and find a new direction.
It makes sense, then, that neither Wane nor Rad are from Austin. The latter arriving from Washington (the state), the former from Wisconsin. Both in 2014. Together, they operate as the Hakone Agency. Issues stood out to them right away.
Rad: We came down here and it was kinda like...we were so unknowing of the history of music in Austin. The older generations could have been around during, or involved in, the rise of Willie Nelson, the blues movement, or Stevie Ray Vaughan’s emergence. They could have been integral to the rise of W.C. Clark or present at BB King’s performance at The Victory Grill. Iconic places and artists. My generation is looking to create important moments of our own. But within hip hop, R&B, and house.
Today, you have this whole pop culture thing, and hip hop is pop culture. Here it's been such a—I don't even know how to describe it. It's not like people are going out and thinking “We're going to make sure hip hop doesn't make it!” But the framework, the machine of industry here seems that it was built or structured only to successfully service certain genres. It's like you have a MacBook and you can only plug in and run Windows. Are you kidding me? If you want to do anything in iOS, you have to get an adapter. So that’s what we’ve been doing, building an adapter.
Wane: I grew up in a state capitol, and we had a major university. I was throwing parties in college. I knew exactly what people were listening to. When I first came here, it was for South By [Southwest], because I saw on the internet that's where everybody was. A$AP [Rocky] was here. Kid Cudi was here. Lil Wayne was here. Kanye was here.
But then I move here and I'm looking online and I'm realizing there's no rappers from Austin. Why are all these big artists coming here if there's no one here? It’s kind of an illusion: the industry is here twice a year, that’s it.
Rad: It's the industry’s spring break in another city. You come from like New York or L.A. and you're like, “Yo, beer is $6! Oh yeah! And everyone's full of energy. It’s sunny and warm. Look at all these cool venues. It's packed and blah, blah.” You don't realize that there's 300,000 to 500,000 additional people here.
Wane: I recognized that there was opportunity in the fact that there's an audience, but why is it undeveloped? Where's the disconnect?
Rad: Using Atlanta for example: before Outkast, there was some stuff going on, but then Outkast learns from those early artist and does their thing, they do it well—very, very well—and their immediate circle is creative and connected to one another. You have people looking in, saying, “I want to be part of that.”. And then it kind of builds, builds, builds. Then it was known that “The South got somethin’ to say.” That’s how big cultural moments get created.
Our generation, even some older, some younger, wants to go listen to hip hop, but you don't have that infrastructure in Austin where you can. Because of that, artists have to perform in nontraditional spaces. That’s hard. You have to worry about sound, you have to worry about size, accessibility, legitimacy, a business owner/venue willing to give us a hand or support. Because of that, it’s hard to get enough people banded together to make the scene initially cool. One aspect doesn’t go well and the audience thinks, “Oh, this is lame. I don't want to be a part of this.” It makes it awkward. Rather than, “Oh, you know, this is your album release or mixtape or your show, and we're going to come here and support. Artists X, Y, and Z are here. Managers A, B, and C. Engineers 1, 2, and 3. We’re going to go support you because we know going into that room makes it a thing, it creates good energy that's going to then sprawl out to other people.”
When you have that energy, you generate a bell curve. You have the early adopters and they're going to go, “Oh, I want to be in that.” And then you have the next group, and the next, growing each time. That’s what I think happened in New York, L.A., Chicago, Houston, and Atlanta. But here you've never had it reach that second tier where people think “This is cool.” Even though you have some people that were from Austin and the surrounding areas (like Smithville and Bastrop) that were integral pieces in the prospering Houston scene, but that prosperity never made it back to Austin.
Wane: Let's remember we’re in Texas, a cultural hub of America, especially pop culture. Since the 90s, it feels like almost every major artist that has ever popped is from Texas, that every athlete’s from Texas. There were parties happening in Austin in 2014, 2015, 2016 where literal 18 year old kids were coming together to listen to what they wanted to listen to. Kids know what they want. There were the Tumblr kids who found A$AP or who ran with Travis Scott when he was first young and starting. They all knew what was cool, right? They want to celebrate what they know is cool. But you didn't have someone who was from here that they could celebrate. So it was just people coming together to party and listen to rap music. They’ve existed in all these spaces that were non-traditional: warehouses, people's house parties, Airbnb parties, art galleries, just to experience the culture they want to experience that the city’s not providing.
And then it's like, okay, what now?
What's finally happening is these kids are 21 now, they're 22, 23—they’re 27 and have some money now. Now they're going to shows. Now they're going to bars. And so the institutions are starting to understand, “Oh, this genre does have fans.” They weren't the people spending money at the bar 10 years ago, so why would the institutions play rap music? But, today, we’re seeing those physical spaces starting to exist, allowing creatives to come together.
The changing of the tide
The pair cites their 2018 Summer Jam festival as a turning point of sorts. The event featured local hip hop artists Harry Edohoukwa, Deezie Brown, J Soulja, The Teeta, and Kyle Lucas, as well as R&B artists Jake Lloyd and Mélat, and DJ Joaqu.n. It was held in the heart of downtown, within the renowned Red River Cultural District. Not on the periphery, not in a warehouse. It was featured in the local papers and talked about on local radio.
Rad: That first Summer Jam was like a proof of concept. That was the first time you had a whole bunch of local creatives on a big level. “We're not supposed to be here. This platform isn't for us. This real estate isn't for us, isn't for this. The locals don’t support this genre. But we're, we're going to go out and kill it.” And you have over 350 people come to show. Everyone gets paid. Big people get involved. Celebrities come through. And you go, “Huh? Okay. There’s something here.”
You never have a local rap show or a local hip hop and R&B show where you look at the crowd and go, “That's the program director of the local NPR station. Oh, that's one of the head DJs at the NPR station. Oh, she's the person who works with the city to handle venues and all the issues that go into legislation and stuff like that. Oh, that producer over there’s working on a record with Gucci Mane. That person engineered this. Oh, and that's Chris BOSH.
Speaking of radio—Wane and Rad had important partners for Summer Jam: the duo of Confucius Jones and Aaron “Fresh” Knight, the hosts of The Breaks on KUTX 98.9. Their affiliation with Summer Jam elevated it by making it an official KUTX event. It was a perfect blend of visions. You had the outsiders, Wane and Rad, refusing to accept the established order. Then you had the native Austinites, Fresh and Jones, who had been working to change the establishment from within.
A 2017 article in the Austin Chronicle summarizes the origin of The Breaks : “Emphasizing hip-hop being the music of today is how Confucius and Fresh got their show.... Station Manager Matt Reilly remembers their pitch: ‘You're in the middle of campus with 50,000 kids walking around with earbuds on and most of them are listening to hip-hop.’” The pitch provided a clear, succinct picture of obvious demand. Obvious opportunity.
Confucius told Austin Monthly, in 2018, “Being from Austin, we felt like Austin’s hip-hop scene didn’t have an identity to latch on to. We wanted to create a radio show that would help give that scene identity and also to give urban radio an Austin identity.”
Just this month (February 2020), Austin Monthly wrote a new article about The Breaks, saying: “In the three years since Knight and Jones hit the airwaves, their Saturday night spot, The Breaks, has become the No. 1 rap show in the city. An ode to all aspects of the pair’s favorite genre, the three-hour production touches on everything from rapper feuds and music theory to hip hop history and pop culture. But above all else, Jones says, it champions their hometown’s long-overlooked rap and R&B scene.”
Wane: The belief, especially in rap music now, is “Oh, radio doesn't matter. It's the internet.” Well you can still map it. Radio still has an enormous reach, especially with people who may not know how to find these artists easily. So what we've had to do with the help of Fresh and Confucius is take that platform but apply it in a different way. So take what radio represents to institutions or like old white people or bars or the Chronicle, but apply it to the street and throw shows where there's a physical space people can celebrate what they hear.
We're fighting to get rap music on the radio in the daytime ‘cause that exposure is what normalizes it to Greg or Karen or whoever.
Rad: I for sure noticed a change when Confucius and Fresh got their show. For the first time that I know of, you could have artists work on something, make it sound pretty good, and then hear it on radio. Regardless if one person's listening or 10,000, that's a big change. It already feels more professional.
Building an industry
Rad and Wane have been busy. Breaking down some numbers:
7: number of events they’ve produced, featuring only local artists.
$425: the average amount they’ve paid performing artists, nearly 4x the standard rate in Austin.
650: the total attendees at their sold out NYE DJ event.
4: the number of artists they manage.
4 (again): the number of albums they’ve helped their artists release, including two debuts.
2018: sold out a SXSW showcase.
2020: producing two more official SXSW showcases.
$2500: amount from ticket sales they’ve donated to non-profits, like the Boys and Girls Club, Eden Reforestation Project, and Kids in a New Groove.
Rad: We had this meeting with these three city representatives the other day. They work in the economic and cultural division of the city of Austin with music as their emphasis. It was a major event.
Wane: You think they're sitting down with rap managers very often?
If the first step in building a hip hop industry in Austin was creating space, the second has been normalization. Making it feel like it’s a consistent, discoverable, and active scene in the city. That’s been achieved through a myriad of entities, from Rad and Wane, to KUTX investing in Confucius and Fresh, to Confucius and Fresh, to local news outlets (Austin Chronicle, Austin Monthly, the Austin American-Statesman) covering the artists, events, and other galvanizers.
The next step is on the artists themselves. As Quin NFN told Pitchfork: “I want Austin to be the next Atlanta but it’s hard. Down there, everyone fucks with each other. Down here there are a lot of people that’s hating. I hope we can all come together.”
Rapper Deezie Brown told the Chronicle, “...a lot of us didn't know how to work together. We've all been crabs in a bucket – everybody wanting to be the first hip-hop act to blow up in Austin.”
Wane: The Chronicle released an article the week of Summer Jam 2018, celebrating local rap music. On the cover was The Teeta, Kenny Gee, and Quin NFN. It was awesome. There are battles these guys have faced, primarily having a platform and feeling celebrated, right? So that was a celebration for people. Teeta even said it to me, like “Finally, finally, we can all exist here and like have something.”
Rad: Now Teeta being on the cover and [successful indie rock band] Spoon having been on the cover of the Chronicle. Austin rappers are now in the same room, so to speak, part of the same spotlight. And they’ve always been kept out. So it was a celebration and I think that at that point it legitimized the rising energy in the scene.
Wane: An up-and-coming rapper or R&B singer can say, “Oh shit. You know, I can be on any stage! Yeah. I can make the cover!”
Rad: It's not a zero sum game. If you win, that helps me. It isn’t me on this cover, but I could be on the next one. And that's where I think that mindset has changed. Instead of, “I lost,” it’s “This means I can win, too.” It's possible for Jake Lloyd. It's possible for Deezie Brown. For Mélat. For Harry [Edohoukwa].”
Push with the group rather than against the group, then you break down the wall of old guard and something beautiful is going to come up from it.
One of the many ways the pair has tried to transform this “all rappers are an island” mentality has been putting on monthly collaborative studio sessions that also feature time for mental health and connection through group meditation and yoga. Sessions they’ve legitimized through a partnership with Austin’s LINE hotel.
It’s through these partnerships and collisions, by entwining the destinies of rappers with each other and with the city itself, that Wane and Rad have played their part in forging a new fate for hip hop in the capitol of Texas.
Tonight, February 13th, the Hakone Agency and The Breaks present their second annual “Love Lockdown” event, an R&B version of Summer Jam. Featured artists include: Eimaral Sol, Jake Lloyd, Jay Wile, and Arya. Hosted at Stubb’s BBQ.
Contact Rad & Wane on Instagram: @HakoneAgency
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afb72922a9db8bf26e047f8d9c310cfb | https://www.forbes.com/sites/chrislowney/2020/12/01/how-leaders-can-engender-hope-amidst-uncertain-times/?sh=4b3644407320 | How Leaders Can Engender Hope Amidst Uncertain Times | How Leaders Can Engender Hope Amidst Uncertain Times
Only rarely does a mediocre mind get to second-guess a brilliant one.
But let me second-guess the brilliant fifth-century thinker, Augustine of Hippo, who once observed: “For there is hope to attain a journey’s end when there is a path which stretches between the traveler and his goal.” Granted, his assertion rings true within its proper context: life’s spiritual journey.
But let’s explore his observation as a metaphor for organizations navigating today’s uncertain environments. One can only find hope when the path to the long-term goal is evident? Really? If that’s true, most organizations face a hope-less future, for the path to achieving long-term goals is almost never straightforward nowadays: There’s too much complexity, and too much change.
Yet it’s above all at such moments, when the way forward is most uncertain, that leaders must find ways to engender hope and confidence among team members. Here’s a four-step approach to doing so:
Overemphasize the organization’s “true north,” the values and other non-negotiables that remain clear: As organizations suffer financial pressure and whole industries endure convulsive technological change, employees can feel that their organization is adrift. To counter that, good leaders must over-emphasize the organization’s anchoring principles: a sense of mission, for example, and non-negotiable core values, and whatever other certainties will provide reassurance of terra firma on the shifting landscape.
What’s more, these non-negotiables keep the team oriented toward “true north” by providing an overall sense of direction amidst the confusing terrain. Which gets to the leader’s second step toward building hope and confidence amidst uncertainty:
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Level with the team when the GPS isn’t working, that is, frankly acknowledge the unknowns confronting the organization: Remember the queasy childhood feeling in the family car whenever Dad was pretending to know the route, when even we kids could tell how lost we were? Similarly disconcerting are patronizing managers who traffic in false reassurances. We’re not kids in the back seat; we’re adults; we want and appreciate managers who are forthright enough to speak plain truths, even when the news is unpleasant. Indeed, a manager’s vulnerability, his/her willingness to acknowledge the uncertainties ahead, will generate allegiance and trust among the team, provided that a leader can also manage a third guiding step forward:
Get us to the next village, that is, be clear about nearer-term goals: Mature individuals will understand and accept when it’s unrealistic to expect turn-by-turn directions all the way to an organization’s “promised land.” But teams expect and are entitled to managers who are competent enough to get the team to the “next village,” that is, to keep advancing the team incrementally in the right direction.
When the long-term path is unclear, leaders must compensate by galvanizing the team around concrete, well-defined, nearer term goals. When managers cannot even offer this near-term sense of direction, that’s when hope dissipates, teams bog down, paralysis sets in, and fear or cynicism rises. This imperative to keep the team moving forward gets to a fourth step:
Re-orient the team from each new vantage point, that is, become a strategic thinker who continually translates new information into refined tactics: Long gone is the era when a “Long Term Strategic Plan” might remain relevant in its details for three or more years. For sure, an organization’s ultimate strategic aspirations should remain intact over the long-term, but operational plans to attain those aspirations may evolve almost constantly as the external environment keeps changing.
To draw once more upon our “journey to a destination” metaphor: From each successive vantage point, good managers will glimpse obstacles or opportunities that may not have been apparent previously. Those become grist for new tactical insights and course corrections. The new leader is not just a “periodic strategic planner” but a “perennial strategic thinker,” ever attentive for new learnings that will give rise to updated tactics. Easier said than done: Only managers with a mix of humility, resilience and energy will pull it off.
Napoleon once called leaders, “dealers in hope.” So it is. Team members without hope for their organization’s future will never manifest the drive and enthusiasm needed to fuel a successful enterprise. And engendering such hope is more challenging when the path to success is not obvious. But those who master the four-step process outlined above will become dealers in hope, motivating teams successfully through even endemically uncertain environments.
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4ce71a3f26c578fdfb06f028a45ad87e | https://www.forbes.com/sites/chrislowney/2021/01/21/make-better-decisions-slow-down-if-the-lion-isnt-coming/?sh=45163e2610f9 | Make Better Decisions: Slow Down If The Lion Isn’t Coming | Make Better Decisions: Slow Down If The Lion Isn’t Coming
Decisions go badly if one neglects the crucial first question in any decision-making process: Should I speed up, or should I slow down?
The case for speeding up is easier to make. Without the mental agility to make split second decisions, for example, currency and stock traders miss opportunities. And so too for the rest of us: Business and life opportunities are arising and slipping away more quickly nowadays than in decades past.
And, amidst today’s confusing and volatile environments, too many decision-makers are prone to analysis paralysis. They shy away from making tough calls under time pressure, unable to stomach the risk of a misjudgment that makes them look bad. They wait and wait, postponing a decision as strategic options slowly slip away and they’re backed into a corner with only one subpar option remaining.
But dumb decisions also ensue when swaggering managers regard “decisive” and “fast” as synonyms, thus opening the case for slowing down. Some swashbuckling managers of my investment banking days would pride themselves on briskly dispatching even complex choices, like which of two superb job candidates to hire, or how to settle a thorny ethical dilemma.
Decision-making was often infected by what I called “trading floor disease”: the impulse to rush decisions that need serious reflection. We would joke about one such manager, “If he hasn’t made a big decision by lunch time, he doesn’t feel like he’s having a good day.”
Pioneering cognitive psychologists like Amos Tversky and Daniel Kahneman helped us to understand our near-innate propensity toward snap judgments. Imagine, for example, two hunter-gatherers of the Neolithic era. Both hear rustling sounds in the underbrush. One thinks “lion” and immediately flees. The other deliberates, “Hmm…maybe it’s a friendly forager and not a prowling lion; I’ll hang around and see.”
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Which one was more likely to survive and pass genes into the next generation? The one who decided impulsively, of course. The thesis, greatly oversimplified, is that our brains became conditioned over millennia toward drawing snap judgments from the evidence available, however incomplete, even when speed is not of the essence. That impulsive instinct helps the race car driver, but can undermine the myriad personal and organizational deliberations that benefit from deeper reflective thought.
A quarter of hiring managers, for example, make decisions within an interview’s first five minutes, based largely on gut feel. Amidst that rush to judgment, unconscious biases can subtly infiltrate their thinking, whether around a person’s appearance, race, or gender. “Confirmation bias” can also abound: their decision process becomes impaired as they subconsciously cherry pick the evidence to confirm an initial instinct.
Bottom line? Some of us habitually go fast, precisely when we should be slowing down, and vice versa. Good analytical tools and a sound process are vital to any major decision, but equally crucial is a healthy understanding of the kind of decision at hand and of one’s characteristic decision-making weaknesses.
Those prone to “analysis paralysis” need to cultivate the courage to push themselves (and teams) forward when deadlines or market circumstances require timely action.
Others tend toward “trading floor disease”: They feel the lion coming, even amidst complex decisions that require deliberate reflection, like who to hire or promote, whether to accept a new job opportunity, or even whether to launch a takeover of another company. They need to disable the snap-judgment impulse, which is all but hard-wired, exacerbated by the ever-rolling social media cycle, and often reinforced by “macho” corporate cultures that equate “decisive” with “fast.”
Savvy decision-makers therefore foster habits to fight “trading floor disease.” They consult confidants who see the world differently than they themselves do, rather than relying on the “yes” men and women. They check the impulse to lock and load rebuttal arguments even as a colleague is still trying to articulate an opposing viewpoint. They resist a rush toward premature clarity: Initial disagreement and even confusion can be a helpful step on the path to a sound decision.
To riff on the venerable “serenity prayer,” great decision makers need the courage to decide quickly amidst uncertainty when required; the patience to ponder slowly when appropriate; and the wisdom to understand whether any given decision requires speed or the very opposite. They ask themselves, before plunging into any decision process, whether the decision is urgent, how complex are the variables involved, and whether their characteristic decision-making style might undermine the quality of their deliberation.
Those steps won’t guarantee perfect decisions, unfortunately: Everyone who is courageous enough to make the tough calls will sometimes make bad calls. But savvy leaders improve their odds of making great decisions through the patience to slow down when the lion isn’t coming, and the courage to speed up when time is of the essence.
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f6eca43b23f42ca4cbeb0796a0c1ce29 | https://www.forbes.com/sites/chrislowney/2021/04/20/treachery-trust-and-courage-how-to-avoid-organizational-hell/ | Treachery, Trust, And Courage: How To Avoid Organizational Hell | Treachery, Trust, And Courage: How To Avoid Organizational Hell
We’ll become better leaders by visiting hell.
Not literally, of course. But let’s journey there alongside the medieval poet Dante. He’ll remind us how a heavenly virtue can supercharge teams, and how a hellish vice could destroy your organization.
Many of us know just enough about Dante’s Inferno for a cocktail party bluff. Dante descends through nine circles of hell, each ghastly ring housing a particular species of sinner: the gluttons in circle three, for example, and the greedy in circle four.
And who populates hell’s lowest circle? Maybe tyrants who launched slaughter-filled wars of conquest? Nope. The nadir of the hellish heap are the treacherous, those who betrayed their kin, country, or, worst of all, God (Think Judas Iscariot).
Were medieval Dante to return, he would find that we modern corporate animals perpetrate our own sorts of treacheries. Every large organization, for example, suffers at least a few back-stabbers who badmouth or undermine colleagues, or who take credit for others’ ideas, or who play office politics by fomenting tribal rivalries that pit work teams against each other. Such soul-deadening behavior has hellish organizational consequences: productivity erodes, employees become alienated and unhappy, and so on.
In contrast, when leaders can engender high levels of trust and team loyalty, productivity soars, as the research makes clear. Hence, trust building is not a “nice to do” for touchy-feely managers but a key priority for any leader who cares about productivity and results.
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The building blocks of trust are straightforward: be transparent and honest, communicate clearly and often, treat others consistently and equitably. But maintaining a commitment to trust-building takes guts: It’s far easier to babble empty corporate-speak and hide in one’s office than to engage team members frankly about the convulsions that roil most organizations nowadays, like strategy reversals, “rightsizing” initiatives, or the uncertainty caused by disruptive competitors.
And even the leader committed to fostering trust and loyalty soon realizes that not all loyalty is good. As we journey alongside Dante into the very lowest circles of corporate hell, we shudder to find corrupted “loyalty” figuring into the very worst malfeasance: the financial and accounting chicanery that decimated both Enron and its accounting firm, Arthur Andersen, for example, or the fraud and outright thievery that doomed Tyco, or the gross negligence manifested in peddling toxic mortgage derivatives that wrecked the global economy.
All these and many more disasters were enabled by a malevolent form of trust and loyalty. Individuals knew or suspected that something was not quite right yet kept their mouths shut. Once the kingpins of these frauds realized that colleagues wouldn’t blow the whistle, they became emboldened to double down on their villainy.
The colleagues who chose not to “betray” their scoundrel bosses were presumably motivated by a go-along-to-get-ahead loyalty. But by their complicit silence, they betrayed something far more profound: the values and moral principles that undergird every reputable company, values like truth telling, and the commitment to serve stakeholders rather than rip them off. Jamie Dimon, the Chairman & CEO of JPMorgan Chase & Co, once put it this way: “Loyalty should be to the principles for which someone stands and to the institution: Loyalty to an individual frequently is another form of cronyism.”
Medieval Dante knew nothing of accounting shenanigans, but, as it turns out, Dante understood the dilemma facing every employee who becomes aware that fraud or malfeasance may be unfolding within the organization. Dante’s Divine Comedy concerns the struggle between good and evil, and Dante’s journey through hell is a quest for the courage to do good when sorely tempted toward evil.
Courage, deep courage, is exactly what’s needed whenever an anguished colleague faces that horrific choice: “Should I keep my mouth shut and go along with this? Or do I speak up, risking my work relationships and perhaps my career?”
If the ninth circle of corporate hell houses the traitors who engineer corporate malfeasance, then corporate paradise surely includes those who find the courage to speak up when something feels wrong. Managers and boards should do everything they can to find, nurture, and support employees who manifest such heavenly integrity.
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86e8f5a08eee6f758d45a5cb78ed21f2 | https://www.forbes.com/sites/chrismanning/2021/04/14/cleveland-browns-bolster-defensive-line-with-jadeveon-clowney-addition/ | Cleveland Browns Bolster Defensive Line With Jadeveon Clowney Addition | Cleveland Browns Bolster Defensive Line With Jadeveon Clowney Addition
NASHVILLE, TN - NOVEMBER 12: Jadeveon Clowney #99 of the Tennessee Titans talks with teammates ... [+] during a game against the Indianapolis Colts at Nissan Stadium on November 12, 2020 in Nashville, Tennessee. The Colts defeated the Titans 34-17. (Photo by Wesley Hitt/Getty Images) Getty Images
The Cleveland Browns have bolstered their pass rush with a player they tried, but failed to get, last year.
As first reported by Cleveland.com’s Mary Kay Cabot, and already confirmed by the team, Jadeveon Clowney has joined the Browns on a one-year deal worth up to $10 million. The contract includes $8 million in guarantees with the remaining $2 million coming via incentives.
"We're excited to add Jadeveon to our defensive line," Browns coach Kevin Stefanski said in a statement. He's a disruptive force that will help us against the run and the pass. We've been able to make some nice additions to our defense throughout free agency and we are looking forward to getting to work, so we can improve our team."
"We love his relentless style of play," Browns general manager Andrew Berry said in a statement. "He's one of the more disruptive players in the game and we think he's going to add an element of ruggedness along our defensive line and will pair nicely with many of the guys we have on the roster already. The other thing we love about Jadeveon is his versatility, his ability to play all across the front and impact the game regardless of his alignment."
Clowney, the No. 1 overall pick in 2014, signed the deal after passing his physical on Wednesday. The physical was part of his second free agent to Cleveland during this free agency cycle. A year ago, he was on the Browns’ radar and visited the team, but ultimately signed with the Tennessee Titans. By all accounts, the Browns offered Clowney the most money last offseason, as well as a “competitive” multiyear deal.
In adding Clowney, Cleveland now has the 2014 No. 1 overall pick and the 2017 No. 1 pick (Myles Garrett) on its defensive line. Earlier in the offseason, the Browns added ex-Falcon Takk McKinley on a one-year, $4.25 million deal to add to the defensive line.
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The Browns are in a prime position to maximize the 28-year-old Clowney. According to ESPN, Clowney has been the third-most double-teamed edge rusher in the NFL over the last three seasons. With the Browns, there’s no reality where teams decide to double Clowney over Garrett — thus freeing up Clowney to go one-on-one more often. That sounds like a recipe for success for Cleveland’s defense.
Aside from the upcoming NFL Draft, the Browns are likely done making significant moves in free agency. To pay Clowney and preserve some flexibility, there is likely to be a restructuring or an outright release of defensive tackle Sheldon Richardson. Richardson is due $13.1 million next year with Cleveland being able to save $11.5 if he’s cut or traded. The Browns are thin at defensive tackle, so a restructured contract would seem more likely for the 30-year-old Richardson.
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c4e6999bf1f3e7be46ffa3f448c82d02 | https://www.forbes.com/sites/chrismilligan/2012/08/03/down-to-earth-with-caliche-rum/ | Down To Earth With Caliche Rum | Down To Earth With Caliche Rum
Destileria Serralles in Ponce, Puerto Rico has struck liquid gold again! Roberto Serralles joined forces with South Beach Nightlife Promoter Rande Gerber to create an amazing new rum called Caliche. I had a chance to interview Roberto about this bottle of beauty and here’s what he had to say:
Me: Who is Rande Gerber and how did the idea of Caliche Rum come about?
Roberto: As one of the original pioneers of South Beach nightlife, Rande knows the spirit business. As the founder of Midnight Oil and The Gerber Group, Rande has worked closely with some of the best bartenders and mixologists across the globe, learning first-hand about the nuances and preferences of cocktail consumers. I was introduced to Rande by a mutual friend and we quickly realized that we had both been planning for some time to develop a super premium white rum and that it would be great to work together on this project. It really was a natural fit to have him partner with this brand. We bring the experience and authenticity of producing superb rums and he injects a level of excitement, glamour and keen knowledge of high end cocktail consumers.
Me: What exactly is a solera system?
R: One of the rums used in the blend of Caliche is aged using the solera system. Solera is a process for aging by fractional blending, resulting in an end product that is a mixture of ages. There is a 3 layer arrangement of Sherry casks. When using Solera rum for production, you take the maturate from the lower layer casks, which are the oldest. Those casks are then refilled with product from the casks in the middle layer. Maturate from the upper layer is then used to refill the casks in the middle one to replace what was used. The top layer is then refilled with a 4 year old maturate.
Me: I really like the packaging of Caliche. Who designed the bottle and what was the inspiration?
R: Rande worked very closely with a design agency to achieve a functional design that resonated ‘rum’, felt strong, masculine, but stood out on a shelf and on a back bar.
Me: Caliche is an aged rum but it has no color. What is the idea behind the filtration and how is it done?
R: The real skill in making full bodied, aged yet clear rum is in the filtration. You have to be very innovative in how you remove the color without removing any of the wonderful flavor components that aging provides. We have mastered the process of charcoal filtration to achieve that end and feel particularly proud of how Caliche comes through. If you sip it with your eyes closed, you would think it’s a dark rum because it has intact all the rummy, woody notes.
Me: Describe the flavor of Caliche Rum:
R: Unlike most white rums, which are made from products very light in composition, the exceptional blend in Caliche and the special filtration gives the rum an extremely smooth, modern characteristic with a unique, crisp balance of vanilla and citrus flavor and a hint of oak. Upon fist sip, you will experience an immediate rum flavor with a velvety texture that is followed by hints of caramel and vanilla. A citrus flavor lingers slightly providing a crisp note, then cleanly disappears with light tannins and oak flavor. Caliche blends well with standard mixers: coke, soda water, coconut water; classic rum cocktails and artisanal drinks because of its flavor profile.
Me: Caliche has limited distribution right now, when is it expected to go national?
R: Beginning of 2013.
Me: What is your favorite way to drink Caliche? Do you have a favorite drink?
R; I prefer it neat or on the rocks – it’s such a delicious rum.
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05c7566e06c8886cab9159c7cdd57da0 | https://www.forbes.com/sites/chrismyers/2015/07/15/four-tips-for-organizing-and-managing-your-companys-finances/ | Four Tips For Organizing And Managing Your Company's Finances | Four Tips For Organizing And Managing Your Company's Finances
It’s a sad fact that over 90% of small business owners don’t have accurate, dependable, and up-to-date financials. There used to be a lot of excuses for this: organizing your numbers was time consuming, complex, and expensive. Small business owners and entrepreneurs were faced with just two choices: hire an accountant or simply ignore the financial side of your business (until absolutely necessary). Fortunately, this is no longer the case. These four simple tips can help entrepreneurs get organized and manage their business more effectively than ever before.
1. Take advantage of today’s technology
Today, businesses have more than two choices—instead of going full bore with an accountant or heavy-duty software, there are a number of “third path” options that rely on easy-to-use technology. For example, my company, BodeTree simplified the entire process by connecting directly to bank and credit card accounts—providing real-time insights into business financials, like cash flow and valuation. There are other solutions as well, such as InDinero and Bench, which add a human element to the process by connecting you with a virtual personal bookkeeper.
2. Stay organized by setting aside a regular time to review your numbers every week
Too many small business owners think about their finances only when it’s time to pay taxes. The problem is that important decision points occur organically, not just around tax season. One solution is to set aside time each and every week to review your finances. It doesn’t matter if you’re simply checking your current cash flow situation or reviewing your performance relative to a peer group. The important thing is that you’re making financial management part of your routine. While it may seem tedious at first, the behavior will pay off in the long run.
3. Use the FOGS framework when evaluating decisions
Between my work at BodeTree and the various business makeovers I’ve done on MSNBC, I’ve had the opportunity to help thousands of small businesses tackle a variety of challenges. Looking back on my experiences, it’s clear that the vast majority of businesses struggle to make data-driven decisions.
The FOGS framework can help change that. It stands for Finance, Operations, Goals, and Strategy. When making a decision, think about the financial impact, how it will affect your operations, whether it furthers your goals, and if it aligns to your strategy. This framework is at the core of every successful business, whether they know it or not.
4. Finally, never lose sight of the big picture
Every entrepreneur is looking to maximize value. While the definition of value can differ from person to person, more often than not it’s the financial value of the business that entrepreneurs really care about. It’s the culmination of everything that is going on in a business: where it has been in the past, where it stands today, and where it’s going in the future. Keeping an eye on the big picture of your business can help you stay motivated and engaged in managing your finances.
Here’s the thing: while finance and accounting are boring, their applications don’t have to be. Today’s entrepreneurs can leverage technology to handle the grunt work of organizing their data so that they can focus their time on using that information in their business. Organized finances will lead to better decisions, better communication, and better results for startups and small businesses alike.
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22dbf91265a5914cfa1a4bf07b7b40aa | https://www.forbes.com/sites/chrismyers/2015/07/18/the-best-advice-i-ever-received-write-every-single-day/ | The Best Advice I Ever Received: Write Every Single Day | The Best Advice I Ever Received: Write Every Single Day
One of the benefits of starting a company is that you get to meet a lot of interesting people. If you’re smart, you make the most of this benefit by asking them for advice. I’ve found that most people jump at the chance to share their knowledge and wisdom if given the chance. Sometimes, even the most casual exchanges can lead to life-changing realizations. The best advice I ever received came from Ellen McGirt, one of my favorite journalists. I’m almost positive that she doesn’t remember me (or the advice she gave for that matter), but her insight had a tremendous impact on my life.
I met Ellen at a dinner party hosted by Fast Company magazine back in late 2012. I have no idea how I ended up getting an invite, but I jumped at the opportunity to attend. Ellen was incredibly friendly and generous with her time. When I asked her for advice, she didn’t hesitate. She told me to keep a journal about my experiences starting BodeTree and to write every day without fail. It didn’t matter how much I wrote or how good it was; the only thing that mattered was that I put words to paper without fail. I took her advice to heart and soon found that the act of writing every day had a transformative effect on my life and my business.
Writing is therapeutic
Entrepreneurship can be a stressful, terrifying, and lonely journey. Even for individuals with great support networks and co-founders, it can still be difficult to find an outlet to vent. After all, spouses can get concerned about the how your challenges will affect their lives, and fellow entrepreneurs are often too wrapped up in their difficulties to listen to yours. Writing, however, is the perfect outlet for explaining, exploring, and digesting everything that you face as an entrepreneur. I’ve found that after I write, my challenges seem smaller, and the future looks brighter. It’s only when I trap negative thoughts in my mind that they fester into anxiety and depression.
Writing promotes introspection
Far too many people are oblivious to their shortcomings. Perhaps we’re conditioned by society to ignore any negative aspects of ourselves, or maybe people just don’t take time for deep introspection anymore. Regardless, I’ve found that the act of writing forces one to be introspective. I know that my writing, both for this blog and for personal use, has helped me to identify my weaknesses, understand them, and learn how they impact those around me.
The act of articulating and sharing my personal shortcomings in a public forum has become a way for me to gain control over them. For example, I’ve struggled in the past when it came to dealing with uncertainty and the anxiety that goes along with it. It was only after reflecting on these challenges through writing that I realized how to embrace those challenges in order to find the strength to move forward. The resulting shift in my perspective has been life changing. That’s why I encourage every entrepreneur I meet to take time for daily introspective writing. It not only makes you a better leader; it can make you a better person.
Writing trains your mind to think clearly
Writing is a lot like exercise; the more you do it, the easier it becomes. When writing about a topic, you have to wrestle with it in your mind, identifying the key points and arriving at conclusions. This increase in mental clarity has been the most important benefit I’ve taken away from my writing. It has helped me develop the ability to absorb quickly the most important aspects of a given situation, synthesize them into a narrative, and draw a well-supported conclusion. This has become an invaluable skill as a leader because it increases confidence in the decision-making process. It isn’t a skill that can be acquired overnight. Rather, it’s one that must be nurtured over time through disciplined daily writing.
I will be forever grateful to Ellen for the phenomenal advice she gave me. The benefits that I’ve accrued from writing every day are too great to quantify. It has become part of my routine; equal parts therapy, introspection, and mental exercise. That’s why I make an effort to offer the same advice to other entrepreneurs I encounter. Who knows? Perhaps some day I’ll have a similar impact on the life of someone I encounter at a dinner party.
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77d6a67681e37bf65ce6d88a994fef94 | https://www.forbes.com/sites/chrismyers/2015/10/17/in-business-clarity-comes-first/ | In Business, Clarity Comes First | In Business, Clarity Comes First
There are a lot of things that can (and frequently do) go wrong inside of a business. Sales fall through, products don't work, team members get frustrated, and clients get upset. While some of these scenarios play out as a result of outside circumstances, there’s often another culprit to blame: lack of clarity.
In any reasonably complex organization, maintaining clarity in all things is of the utmost importance. Without it, organizations quickly come unglued and little bumps—like an angry client or misinformed employee—turn into mountains. But with busy schedules, seemingly endless task-lists and diverse personnel, creating a smooth flow of communication can be a challenge. Usually no one is to blame but the process itself. But what can a business owner do to remedy a lack of clear communication?
I've certainly been guilty of providing unclear direction to my team at BodeTree in the past, but I've learned that clarity in thought, word, and deed is a skill that can be cultivated over time. Clarity is a habit and like any habit, it takes constant reinforcement.
Remember The Value Of Storytelling
It isn't enough to list out facts and directives for teams. In order for people to understand with clarity, you have to tell a compelling story. Just think back to fairy tales and fables, the reason we remember tales like the Three Little Pigs is because the story was simple and had a clear point. The same tactic can be used inside of organizations.
Not every communication has to be a full length story, but putting your company’s mission, strategy and operational directives into a coherent narrative helps both you, your team and` your customers better comprehend and remember the key points.
One thing I try to do with my team is to explain my decisions and requests in a story format. I tee up the background of the situation at hand, set the stage and introduce the individuals involved. From there, I move on to the challenge at hand and explore their individual role in what we're trying to accomplish. Finally, I try to conclude by painting a clear picture of the desired outcome and their role in getting there. My goal is to help my team understand the context, motivation, and outcome.
Tell, Tell and Re-Tell
It’s not enough just to tell a good story to your team, you have to ensure that everyone is telling the same story. If you are having trouble getting your team motivated or connecting with your clients, that doesn’t mean your story is wrong, you may just need more practice. Clear storytelling is a learned skill.
Early on at BodeTree, my team and I struggled to rally around a consistent version of our company's story. This was due to the fact that our position in the marketplace has always been complex, with a product that serves both small business and the institutions that they work with. My team members tended to focus on one aspect of our business model rather than the whole story, and that caused strife and confusion when it came to making decisions regarding marketing and product development. Eventually, the challenge became so severe that we brought in a consultant to help us develop a message that reflected the whole story of the business. Once we had this consistent story, I made sure to reinforce it with the team at every chance I got. All of this reinforcement and practice paid off, and our storytelling abilities improved dramatically.
Clarity Must Come First
Here's the secret about clarity: it takes work to achieve. There is no magic formula for ensuring that people are aligned and share a common understanding of the mission or task at hand. The only way to succeed is for all team members, regardless of rank or position, to make sure that clarity comes first in all interactions.
It's the job of the leader to foster clarity, but success is still a team effort. If something isn't clear, it is still the responsibility of individual team members to speak up and try to fix the problem. Organizational clarity is a two-way street; everyone has to participate equally. The most important thing is to make the effort. If you manage to foster a culture of clarity inside of your organization, you'll see fewer problems, better execution, and happier, more productive teams.
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5aa5a379732c08dcd829176aa5205e8f | https://www.forbes.com/sites/chrismyers/2015/11/15/three-tips-for-managing-outsourced-employees/?sh=2f3743151aae | Three Tips For Managing Outsourced Employees | Three Tips For Managing Outsourced Employees
Relying on third-party contractors to sell your product or carry your brand message is not a problem unique to large operators like Uber. Small businesses and startups grapple with the challenge of how to work closely with partners and other types of “outsourced employees” more than they may even realize.
At my company, BodeTree, we work very closely with partners who sell and support our system across a number of channels. In a way, these partnership channels become so-called “proxy employees” as they carry our product and brand message to end-users. It can be daunting to manage and support teams like this, but if you’re able to overcome the inherent difficulties, the benefit of such a strategy can be immense. Over the past few years we’ve learned a lot about managing these partnerships the hard way; this experience has helped us develop real expertise in the area. Here are my top three tips for managing an outsourced team.
Fully align your interests. Structuring partnerships and signing contracts is easy for talented business development professionals, but executing on those contracts can be very difficult. In these types of relationships, you’re typically dealing with multiple levels of your partner’s organization. Communicating the value of your new partnership all the way down to the more tactical players is often far easier said than done. As a result, it’s easy for initiatives to get bogged down moving throughout the organization during execution. Making sure everyone who plays a part in enacting the details of your partnership understands how it serves their individual interests is key.
It’s also imperative that your team spends the time to get to know the key players at every level of your partner’s organization who will be involved in implementation. If you learn what makes your counterparts tick, you can begin to cultivate their excitement and understanding of the project overall. Some people merely want to have a seat at the table when it comes to making decisions, and others need to understand how success in your initiative will help further their own goals. Ultimately, it’s incumbent upon your team to make sure everyone’s interests are aligned and moving towards the same end goal.
Focus on support. At BodeTree, we often outsource our partner’s sales teams to serve as the front line in distributing our product. It’s impossible (and often inappropriate) for us to manage these teams directly on a daily basis, making it difficult to ensure the right message gets sent out on our behalf. Instead, we focus our efforts on offering robust support for those teams, providing both educational resources and ample training to make their jobs easier and their efforts more effective.
The old adage that a message has to be heard “seven times by seven ways” grossly understates the effort it takes to get a third-party team on the same page as your organization. In reality, it’s a never-ending process of informing and reinforcing messages. We never shy away from in-person training, making sure we’re always available for questions and coaching. We’ve found the most successful partnerships develop when you can offer a support network the outsourced team can rely on for the long-term.
Vigorously defend your brand. The obvious risk of allowing another company to sell and support your product is the potential damage to your brand in the marketplace. If a partner’s employee has a bad interaction with a customer, it ultimately comes back on you and your brand. After all, the customer rarely distinguishes between the product and the delivery channel. Having responsibility for the outcome without significant control over the process seems like the definition of stress, but there is much you can do to defend your brand image while outsourcing.
The first and most important step is picking the right partner. Successful leaders only work with people they trust, respect and admire. If a partner doesn’t meet those criteria immediately, run in the other direction. If they do pass this initial check and you choose to move forward, the next step is to tie your brands together. If they’re responsible for distributing your product, make sure the entire package is co-branded, so both teams have a stake in how it’s positioned. Having some skin in the game, your partners will always think twice about how they’re positioning the product, ensuring your brand is as well protected as theirs.
Outsourcing — or anything that involves contractors for that matter — certainly isn’t easy. But if you can manage to develop a deep partnership where interests are aligned, teams are supported and your brand is well represented, you’ll find that you’ll be able to punch well above your weight in the marketplace. It’s an approach that has served my startup extremely well over the past few years and one that will serve as the backbone of our strategy for years to come.
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0351a063e166e50f8ff0b098298a8be6 | https://www.forbes.com/sites/chrismyers/2016/03/01/competition/ | If Your Business Doesn't Have Competition, You Have A Problem | If Your Business Doesn't Have Competition, You Have A Problem
Deep down, every entrepreneur fears competition. After all, building a business is a deeply personal endeavour, and the very thought of having someone else try to play in your sandbox can elicit feelings of anxiety and defensiveness. The absence of competition in any given market segment is often viewed as a positive by entrepreneurs, providing them with a clear and straightforward path to success.
This belief, however, is as damaging as it is misguided. Entrepreneurs who don’t have competition should be wary. Rather than being a strength, a lack of competition in your market can be indicative of a serious weakness. I should know: My business lacked competition for years, and it was a major problem. Looking back, I’m embarrassed by how I gleefully proclaimed our lack of competition to potential partners and investors. What I didn’t realize at the time was that there are only a handful of reasons as to why a business might not have competition, and none of them are good.
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Reason #1: You’re being too narrow
The first reason why a business might not see competition is an overly-narrow definition of the target market. When you’re building a product, it can be easy to become so engrossed in the details that you lose sight of the big picture. Put another way, while there might not be another solution in the market that does exactly what you do, there may be other players who are close enough that your prospective clients can’t tell the difference.
I fell victim to this myself during my first year in business. I saw BodeTree as such a unique and targeted product that I convinced myself that we had little to no competition. After all, no other player in the market did exactly the same thing we were doing. I had a very narrow view of what constituted competition, and thus failed to see the forest from the trees. In reality, our potential customers weren’t looking for specifically what we offered. Instead, they were looking for broad solutions for the pain they were experiencing in their business. This meant that we were not only competing against other web applications, but things as diverse as bookkeepers, accounting platforms, and spreadsheets.
It was only after we expanded our view of what constituted competition that we truly began to understand the market we served. This realization helped us better connect with our customers, refine our messaging, and explain why our solution was superior.
Reason #2: You’re ahead of the market
The second reason why your business might not have any competition is that you’re simply ahead of the market. Of all the reasons, this is by far the least problematic. After all, you could simply be solving a major pain point for your customers in a new and innovative way. However, if that is the case, you have to be aware of the challenges that go along with being an innovator.
Contrary to what we would like to believe, many of us don’t embrace change with open arms. As a result, it can be difficult for innovative companies to thrive when carving out an entirely new segment. This was the second issue I encountered at BodeTree. When we first launched our BodeTree Platform product aimed at banks and other financial institutions, we found that we were about 18 months ahead of the market.
Many of the banks and other institutions we were trying to serve simply weren’t prepared for our solution. BodeTree didn’t fit into the standard set of solutions with which they were familiar, and thus the sales process was incredibly challenging. To solve for this, we embarked on a massive campaign to educate our clients about the problem we were solving. In time, the market began to recognize the need for our solution and competition began to appear. We were able to use this educational period to establish ourselves as thought leaders early on, and developed an “awareness advantage” that remains even though we now have increased competition.
Reason #3: You don’t have a product that people want
The third and final reason for a lack of competition is the hardest for entrepreneurs to accept: people simply don’t want your product. This difficult possibility is something that we all have to be open to, as painful as it could be.
Grappling with the possibility that people may not want your product or solution requires a healthy dose of humility and self-awareness. In order to create something from scratch, entrepreneurs have to be both intellectually and emotionally invested. However, this deep, personal investment can often blind people to the facts. I’ll be the first to admit that the first iteration of BodeTree wasn’t a success. At the time, the market we served was so small that it was nearly impossible for us to gain critical mass. Fortunately, we recognized that the people we were selling to didn’t want the product we had, and we were able to pivot quickly and successfully.
Make no mistake: a lack of competition for your product or service is a weakness, not a strength. It means that you’re in for a tough start. The key is to remain open-minded, self-aware, and mindful of the challenges you’re going to encounter. Remember that competition is validation for your product or service, and that should be celebrated rather than dreaded.
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d2c25dcec46c5c2bfb9421698e7a3b85 | https://www.forbes.com/sites/chrismyers/2016/07/06/why-are-millennials-so-hard-to-manage-the-modern-workplace-might-be-to-blame/ | Why Are Millennials So Hard To Manage? The Modern Workplace Might Be To Blame | Why Are Millennials So Hard To Manage? The Modern Workplace Might Be To Blame
I used to think that Millennials got a bad rap. To me, people who complained about young workers were just relics from another time, painfully stuck in their old-fashioned ways.
As a Millennial myself, I found accusations of our sensitivity, narcissism, and sense of entitlement in the workplace to be personally offensive and dismissed them as wholly unfounded. However, after managing a Millennial workforce at BodeTree, I’ve come to realize just how hard it can be.
I’ve spent a lot of time thinking about the underlying causes of this management challenge. I’ve come to the realization that perhaps Millennials themselves aren’t the root of the problem; the modern workplace is to blame.
We don’t know how good we have it
The workplace has evolved dramatically over the past decade or so. Office environments are more relaxed, open, and compassionate than ever before. Twenty years ago, the concept of a “flex schedule” was considered revolutionary. Now, unlimited vacation time isn’t unheard of.
The fact that work environments have evolved is a good thing. However, for young professionals just entering the workforce, this laid-back environment simply represents the status quo. They don’t have any benchmarks to compare it to, and therefore take many of these privileges for granted.
This foundational lack of understanding can create a tension between management and employees. Human nature is to push the limits of what is allowed in almost any situation. When young employees who don’t know better push for even more privileges and perks, management can get frustrated. The employees in return feel unfairly persecuted and don’t recognize the underlying cause of the conflict.
It is a matter of experience, not generation
Let’s take a look at some statistics. According to a recent study performed by Red Brick Research, over 80% of hiring managers claim that their Millennial employees display narcissistic tendencies.
The negative sentiment expressed by the hiring managers surveyed stands in stark contrast to the view that Millennials have of themselves. For example, over two-thirds of those surveyed in the same study see themselves in a management role in the next five years, and 52% of Millennials viewed the concept of employee loyalty as being overrated. I can understand how these sentiments can seem narcissistic, but I suspect that these behaviors aren’t unique to the Millennial generation.
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To me, these are simply the views and beliefs of a young and inexperienced people. It’s only natural to see yourself as infallible, on the move, and incredibly valuable when you’re just starting out.
The key difference, however, is that in the past, corporate structures were more authoritarian and brought these behaviors to a swift end. Today, leadership styles tend to be both more lenient and compassionate, and as a result, these attitudes can take root and thrive far longer than they should.
The solution is balance
So, if the modern workplace is too relaxed and inexperienced employees don’t know anything different, what is the path forward for leadership? The easy answer would be to go back to a more structured environment where people clock in and out each day and have more oversight by traditional managers. However, I don’t believe that is the right path forward.
Instead, I think that leaders need to do a better job of striking the right balance inside of their organization. There is a time to relax things and a time to push yourself and the team out of their comfort zone. The key to making this work is communication.
It happens to the best of us
I dealt with this recently with my team. We’re pretty flexible when it comes to the hours people work. I’ve always believed that it didn’t usually matter what time you arrived at the office, as long as you worked a full day and got things done. If someone wanted to work nine to six, that was no problem. This was a largely unspoken rule, and I expected people to simply do the right thing.
However, over time people had begun to abuse that policy. It was common for people to start showing up around 8:45, but when five o’clock rolled around, they looked like Fred Flintstone sliding down the back of the dinosaur.
Obviously, that behavior needed to change, so I gathered everyone together in the conference room, and we talked it out. I reiterated the need for the entire team, myself included, to push ourselves harder and not abuse the the laid back environment we have. When we do the right thing on our own, the freedoms we enjoy as a team expand. When we abuse what freedoms we have, they get reduced.
It wasn't a particularly fun conversation, but leaders have to have the courage to be firm when problems arise. In the end, a 30 minute conversation and a hefty dose of clarity was all that was needed to right the ship. I hadn't articulated my expectations clearly before, and once I did, the behavior improved.
The lesson I learned is that leaders should think twice before simply complaining about Millennials. Instead, we need to recognize how the workplaces we foster influence people's understandings and make our intentions clear from the onset.
The Forbes eBook To Succeed In A Brutal Job Market Don’t let a rotten economy spoil your goals. Use the career and money advice in The Millennial Game Plan to get and stay ahead for good.
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07efc5aafe0cf57a771b15c184fedb12 | https://www.forbes.com/sites/chrismyers/2016/09/08/how-i-learned-that-employees-need-a-leader-not-a-friend/ | How I Learned That Employees Need A Leader, Not A Friend | How I Learned That Employees Need A Leader, Not A Friend
Early on in my career, I worked for a manager who was barely able to mask his contempt for his employees. No matter what you did, he simply could not be pleased.
As team morale suffered, I devoted more and more time to the task of trying to crack his code. Ultimately, I never managed to understand what drove his behaviors while I worked for him.
The experience left a lasting impression on me. Years later, when I started BodeTree, I promised myself that I would never be that kind of leader. I wanted to foster an environment where people felt empowered, appreciated, and genuinely happy to be part of the team.
However, in trying so hard to avoid creating the toxic environment that I dealt with earlier, I ended up going too far in the other direction. I wanted to be friends with my team members, and that caused me to avoid conflict, set nebulous expectations, and ultimately fail those around me.
Eventually, I came to a stark realization: Employees need a leader, not a friend.
It’s not about you
Leadership is a lot like parenting. When you’re a parent, you love your child so much that you want to give them anything they want. The temptation is that by reveling in the good times and spoiling them with gifts, they will somehow love you more.
The truth, however, is that parenting isn’t about fun and games. It’s about molding your child into a person who can be an upstanding, respectable, and successful adult some day. That requires discipline, dedication, and difficult decisions. If you want what’s best for your child, you act as a parent first and a friend second.
The same logic applies to managing a team. As a leader, it feels good when the team is relaxed, comfortable, and having fun. You’re viewed as a “fun boss,” that people relate to. However, just as with parenting, leadership requires more. You can’t help people grow, mature, and perform without pushing them.
If you don’t lay out expectations for the team, push people out of their comfort zones, and hold people accountable, you’re failing in your most important role as a leader. Trying to be everyone’s best friend is a fundamentally selfish act.
It’s not about you and how well you’re liked. Leadership is about helping people become the best they can be. That means stepping up and doing what is hard, no matter what.
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Avoiding conflict only makes things worse
I usually revel in conflict. There is something about embarking on a righteous crusade that motivates and inspires me. However, I don’t care for intra-office conflict. As a leader, I prefer to give people the benefit of the doubt and hope that they simply do the right thing.
That approach, however, causes more problems than it avoids. The reason is that people rarely want to do the wrong thing. When behaviors disappoint or are misaligned with expectations, it’s usually due to differences in understanding or perception. Conflict avoidance does nothing more than take a bad situation and make it worse.
Instead, leaders must make their expectations clear, even when it is uncomfortable. For example, we have relatively flexible hours here at BodeTree. If a team member wants to work 8:30 to 5:30, that usually isn’t a problem. However, I have some team members who, by the nature of their job, need to be in at 8:00 sharp.
I’ve struggled to articulate that need well in the past, for a few reasons. First, I always hope that people simply do the right thing. Second, I hate setting double standards. As a result, I’ve avoided saying anything. That approach, however, is as cowardly as it is ineffective.
What I needed to do was simply level with those team members, explain the situation, and set expectations. The ambiguity created by my conflict avoidance only led to confusion and frustration.
Accept that leadership is lonely
People still subscribe to the pyramid model of leadership, where the king sits at the top and is supported by legions of team members who strive to please. Instead, true leadership is like an inverted pyramid, with the entire organization relying on a single leader to support their efforts.
There is no escaping the fact that the role of the CEO is a fundamentally lonely one. You have no peers and end up doing the team a disservice when to try to be everyone’s best friend. Leadership means putting others ahead of yourself, and the team ahead of everyone. That requires discipline, sacrifice, and courage.
If you do the right thing for individuals and the team as a whole, you won’t always be liked. That simply goes with the territory, because employees need leaders, not friends.
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27b382268facb8d6354259bdeb99bde3 | https://www.forbes.com/sites/chrismyers/2016/10/03/fintechs-third-wave-is-coming-and-it-will-change-everything/ | Fintech's 'Third Wave' Is Coming, And It Will Change Everything | Fintech's 'Third Wave' Is Coming, And It Will Change Everything
Earlier this year, I wrote that “Fintech Is Hot, But The Demise Of Traditional Banking Has Been Greatly Exaggerated.” In that piece, I argued that the fintech startups that managed to eventually partner with traditional banking, rather than try to disrupt it, would be the ones to emerge victorious in the long-term.
I received a fair amount of pushback at the time, particularly from fellow fintech startups who felt that their work would displace traditional banks and fundamentally shake up the status quo. Now, however, major players in the space are starting to come around to my point of view.
Jeff Gido, Goldman Sachs's Global Head of Fintech, recently spoke about the evolution of fintech and why he believes the coming “third wave” of innovation will drive the long-term change that people have been predicting.
The “First Wave”: Responding to an industry in crisis
Fintech first started to come of age in the aftermath of the 2008 financial crisis. New regulations and changing consumer demands began to emerge as the world tried to pick up the pieces of the “great recession.”
As a result, many of these changes made certain lines of business significantly less profitable for banks and other financial institutions, creating an opening for tech-enabled startups to step in and fill the void. This development, coupled with the changing demands of consumers and the democratization of big data, led to a fintech renaissance of sorts.
The “Second Wave”: The big players take notice
Gido believes that we’re currently in the “second wave” of fintech innovation, where incumbent players in the market are trying to leverage their considerable resources to remain competitive amongst startups. Everyone from American Express to Bank of America now have “innovation centers,” where they try to foster the startup mentality while leveraging their established brands and infrastructure.
The challenge, of course, is that no matter how hard they try, incumbents can never match the agility and risk appetite of startups. Corporate politics, changing strategies, and an overwhelming desire to protect the brand serve as hindrances to innovation. Perhaps that’s why we’ve yet to see an established player do anything more than simply react to what startups have developed.
The “Third Wave”: Working together for a better tomorrow
Almost every fintech startup wants to disrupt the big banks, but the problem is that it isn’t a fair fight. The U.S. banking sector is so entrenched and protected that challenging it from the outside is an exercise in futility. It’s highly unlikely that a startup will come around and pose a real threat to the likes of Bank of America or Chase anytime soon.
If you’re gambling on fintech, either as an entrepreneur or an investor, you’d be wise to remember that the bank is the house. You might have a few wins here or there, but in the end, the house always comes out ahead.
The smart startups know this and will use it to their advantage. In this coming “third wave”, fintech startups will partner with established players in the industry.
According to Gido, "In a tougher fundraising environment, the go-it-alone strategy is difficult for many startups, and it can be costly for traditional financial services to build the technologies on their own," he said. "That's why we're starting to see more of a two-way dialogue in this space."
This sort of partnership has been at the center of BodeTree’s strategy for years now. We’ve found that partnering with banks, insurance companies, and everyone in between provides a “best of both worlds” advantage. Our partners can leverage our data, technology, and nimble development, while we’re able to leverage their brand and reach in the market.
This partnership model has enabled us to punch well above our weight in the market and turn would-be competitors into trusted allies. More importantly, however, it has enabled us to make a significant mark in a difficult industry.
Fintech is maturing, and investors and entrepreneurs alike are realizing that banks aren’t going away anytime soon. Wise companies don’t bet against the house in the long run. Instead, they learn how to take advantage of opportunities and work alongside the house. The best fintech companies will be the ones that figure out how to make banks better, not destroy them. The coming “third wave” will be the one that drives lasting change.
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7f0b8e8d5b5c4e32183aa68874c9f846 | https://www.forbes.com/sites/chrismyers/2016/10/22/what-the-latest-global-ddos-attack-means-for-entrepreneurs/ | What The Latest Global DDoS Attack Means For Entrepreneurs | What The Latest Global DDoS Attack Means For Entrepreneurs
It’s funny how easy it is to take things, such as the ability to quickly and easily access the internet, for granted. Many of us were reminded of that on Friday when a massive DDoS (distributed denial of service) attack took down major swaths of the internet, including Twitter, Paypal, Github, and many others.
At this point, it appears as though the DDoS attack focused on a single point of failure; the DNS provider Dyn. In short, Dyn provides the service that points a web URL (such as www.forbes.com) to the appropriate IP address and content. Dyn was flooded with traffic that was designed to tax their services (such as their API) to their limits.
Traffic from several million IP addresses was sent in at least three massive waves, overwhelming Dyn’s system and causing it to go down. When that happened, web browsers were no longer able to connect web addresses to their respective websites, thus prohibiting users from accessing their desired services.
The implications of this attack extend far beyond the domain of hackers and developers. In fact, this should be a major wakeup call for web entrepreneurs of all sizes. We’re living in a brave new world where these types of events are becoming more and more common.
It’s vitally important that entrepreneurs understand what just happened and what it means for their clients and companies in general. Here are some of the big takeaways.
This wasn’t a hack; it was an attack
As the CEO of a fintech company, not a day goes by that I don’t think about data security. Our very existence is predicated on our ability to keep our client’s data safe and secure. When I hear of any kind of web attack, my mind immediately goes to the topic of security.
The good news, in this case, is that nothing appears to have been stolen. This wasn’t necessarily a matter of a hacker trying to break into a database to steal sensitive information. Instead, it was an attack designed to disrupt access to the web.
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Fortunately, our service provider has not been impacted by the attack as of yet, so our product has remained online. If we were to be impacted, I would immediately reach out to our customers and reassure them of the fact that their data was safe. The public doesn’t generally understand the difference between a hack and a DDoS attack, so it’s up to leaders of organizations to explain the situation.
Eventually, you will be impacted
It is easier than ever to build a new product online because there are so many distributed, cloud-based solutions upon which you can build. For example, at BodeTree we utilize third party hosting providers, third party DNS providers, and many other solutions designed to make running and maintaining a web service easy and economical.
The problem inherent in this, of course, is the fact that with increasing interconnectedness comes increasing risk. Depending on third parties saves us time and money, but it also tethers us to their fates in a sense. If we had been using Dyn for our DNS services, for example, our application would have gone down with the rest.
It’s a trade-off that we all must make. In today’s day and age, it simply doesn’t make economic sense to try and keep all of your services in-house. You simply have to rely on these third-party providers to remain competitive, and no matter how secure they may be, they’ll always be vulnerable to the determined attacker.
Realize that there is a real cost to these attacks
Attacks like what we just saw are far more than an annoyance; they’re a massive threat to business. In fact, a number of industry professionals estimate that such an attack can cost a targeted business over $40,000 per hour in lost revenue and additional expense.
I’m afraid that it’s safe to assume that these attacks will continue in the future, becoming a “new normal” for entrepreneurs. We will not revert to the dark ages of hosting applications in giant, personal data centers. The very interconnectedness that makes the web so powerful also makes it dangerous. The two are inextricably intertwined.
It will be up to web entrepreneurs to take it upon themselves to understand and do their best to protect their businesses against such attacks. However, when they inevitably do occur, it’s the job of the entrepreneur to explain the situation to his or her customers. Demystifying a scary situation is the first step towards restoring faith in your product and the web as a whole.
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adb8cca19adbbdd84d83c9aceea41998 | https://www.forbes.com/sites/chrismyers/2016/11/23/why-small-business-saturday-matters-now-more-than-ever/ | Why Small Business Saturday Matters Now More Than Ever | Why Small Business Saturday Matters Now More Than Ever
NEW YORK, NY - NOVEMBER 29: A general view of atmosphere at Small Business Saturday Night on... [+] November 29, 2014 in New York City. (Photo by Craig Barritt/Getty Images for Small Business Saturday Night)
Small Business Saturday is upon us once again, and as usual it has its fair share of critics. One such detractor is small business expert Gene Marks, who last year shared the unconventional argument that Small Business Saturday is unimportant at best, and insulting at worst (Gene Marks also writes for Forbes.com).
I respect his position and can certainly understand the underlying argument he was trying to make. Unfortunately, I believe his approach is overly cynical and fundamentally missed the mark.
As the CEO of a company whose sole mission is to educate, encourage, and support small businesses, I believe that Small Business Saturday matters now more than ever.
Argument 1: Small Businesses Demand Attention On Small Business Saturday
This point is valid. It is also the point of marketing to attract the attention of potential customers. Admittedly, Small Business Saturday was not created by small businesses.
In truth, it was created by American Express for a number of PR and marketing reasons. But since its inception in 2009, Small Business Saturday has outgrown its AMEX roots and the “local-first” movement it helped propel has been adopted by a growing number of small businesses across the country.
AMEX’s initial motivations aside, this shopping holiday directs focus onto small businesses and the local communities they serve during the busy holiday shopping season. If a small business seeks to take advantage of the rare opportunity for free advertising bankrolled by a major corporation, who are we to stop them? As a company who provides small businesses with access to financial resources, I have to get behind a “holiday” (artificial though it may be) that brings attention to small businesses.
Perhaps small businesses truly are demanding attention on this one day of the year devoted to the value they bring to their communities. But is it really so troubling that small businesses make a momentary appeal for support amidst the suffocating din of holiday advertisements from their larger, more resourced counterparts? Why not make the most of the opportunity?
Argument 2: Small Business Saturday Is Just Another PR Ploy For American Express
PR gets a bad rap, especially during the holidays, but PR isn’t all bad. PR can be (and often is) a vehicle for good, bringing attention to worthy charities, nonprofits and social issues.
As a very prominent SMB expert who makes the most of PR exposure, Mr. Marks knows this better than most. In the case of Small Business Saturday, I would have to agree—the PR man or woman who came up with the idea is a “friggin’ genius”.
Small Business Saturday is a phenomenal PR move, not just for American Express, but for all small businesses who choose to participate (and even those who don’t). PR is an expense that is often difficult to justify for small businesses. It requires a large amount of time and effort for sometimes fleeting returns.
When it is done properly, however, it provides a huge boost for business. A mention in a major publication or television program has been known to increase sales by huge percentages. Consider the incredible impact that Guy Fieri’s “Diner’s Drive-Ins and Dives” has had on small restaurants nationwide.
By offering to do the PR legwork and effectively bring the unique value of small businesses to the attention of the masses, American Express is doing the right thing in my book.
Argument 3: Small Business Saturday Is Insulting To Business Owners
This is where I have the biggest issue with Mr. Marks’ argument. Small Business Saturday is not about showing pity towards poor, ignorant small business owners struggling to survive. Most small business owners aren’t so naive to think that a single day’s sales will make or break their business.
Small Business Saturday is more about building long-term awareness than trying to salvage holidays sales numbers. Sure, the idea of a manufactured holiday may seem trite, but as with most things in life, awareness is half the battle. Small business owners are smart enough to know this, and that’s why most embrace Small Business Saturday with open arms.
At BodeTree, my team and I have worked to develop a financial management system that helps small businesses organize their financials, connect with partners and build a financial strategy for success. Our business model is built around the idea that success is a journey, one that we choose to take alongside our clients.
We know how savvy small businesses can be when they have the right tools in front of them. Small Business Saturday is just another one of those tools that smart business owners use to their advantage.
There is no question that Mr. Marks knows small business better than most. I’ve met him personally on a number of occasions and have always been impressed by his knowledge and sincere devotion to helping fellow entrepreneurs.
Still, I believe that he missed the mark with this particular article. The path of the cynic is an easy one to take. Sure, there are elements of Small Business Saturday that come across as cheesy.
However, I know for a fact that small business owners are a smart and battle-hardened bunch. They’re bright enough to take advantage of every opportunity that comes their way, and Small Business Saturday is no exception. It’s about awareness, free marketing, and opportunism, not pity, insult, or manipulation.
No matter how you slice it, it’s a good thing for our entrepreneurs and the communities they serve. So don’t be a cynic. Get out there this Saturday and support your local small businesses. You won’t be sorry you did.
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96694d97d9cd32e338245ac3874199cb | https://www.forbes.com/sites/chrismyers/2017/02/24/3-things-business-owners-can-learn-from-ubers-scandal/ | 3 Things Business Owners Can Learn From Uber's Scandal | 3 Things Business Owners Can Learn From Uber's Scandal
SAN FRANCISCO, CA - AUGUST 26: The logo of the ride sharing service Uber is seen in front of its... [+] headquarters on August 26, 2016 in San Francisco, California. (Photo credit: Justin Sullivan/Getty Images)
Uber has, to put it lightly, had a rough couple of weeks. First, hundreds of thousands of people deleted their Uber accounts after the company eliminated surge pricing around JFK airport when taxi drivers went on strike to protest President Trump’s travel ban.
Then, the company began facing allegations of pervasive sexual harassment from a number of female engineers. These allegations were outlined in a blog posted by a former Uber engineer by the name of Susan Fowler, entitled “Reflecting on One Very, Very Strange Year at Uber.”
In the post, Ms. Fowler, a bestselling author, and widely-respected software engineer details the abuse she received and the systematic and deliberate inaction she met on the part of Uber’s HR and leadership teams.
Upon reading Ms. Fowler’s blog post, I couldn’t help but wonder how such behavior could exist inside of a progressive organization like Uber. After all, they’re a bleeding edge tech unicorn based in San Francisco, the bastion of political correctness and tolerance.
Unfortunately, the cultural breakdown that leads to harassment and poor decision making seems to transcend industry, geography, and sophistication. After observing similar trends in other firms throughout my career, I’ve come to the conclusion that no organization is immune.
While I don’t have the silver bullet for solving this pervasive problem, I have learned three things that can help fellow business leaders avoid the pitfalls that are currently plaguing Uber.
Don’t let yourself be blinded by growth
My mentor and co-founder once told me that “growth masks all things” in companies. While this insight was offered in reference to strategic flaws inside of rapidly growing businesses, I believe it also applies to culture.
When a company is in hyper-growth mode, as Uber has been for several years, the excitement and irrational exuberance that takes hold often blind leaders to the problems buried deep inside of the organization.
One example that comes to mind is that of my former employer, Apollo Education Group. As the parent company of The University of Phoenix, Apollo went through a period of staggering growth in the earlier part of this century.
As student counts grew and money flowed in, leadership lost sight of some of the more unsavory practices that were taking hold in the enrollment and sales functions of the business.
I suspect a similar situation has unfolded at Uber over the past few years. As their business has taken off, it must have been easy to turn a blind eye to the “frat” culture that dominates certain tech-based companies. The problems existed, but again, times were good, and it was easier to ignore those problems than taking decisive action.
Successful leaders, however, can fight the intoxicating effects of success and hyper-growth and summon the courage to address underlying problems, no matter how unsavory they may be.
Don’t allow high performers to hold you hostage
One of the most interesting aspects of Ms. Fowler’s blog post was the recurring theme of Uber defending so-called “high performers” who were exhibiting clearly unprofessional and morally reprehensible behavior.
Again, I think this is far more common than anyone would care to admit. Building a business is hard, and once things start to click, the last thing any leader wants to do is rock the boat. As a result, leaders (including myself) tend to turn a blind eye to the bad behavior of top performers.
The ultimate test of a leader’s character occurs when they are faced with choosing between the value added by their top performing team members and the fundamental moral and ethical issues that transcend business.
As difficult as it may be, leaders must put their people and ethical non-negotiables ahead of everything, including performance, profits, and even shareholder interests.
Make culture your number one priority
The only way to ensure that people and ethics remain sacrosanct is to make culture your number one priority. While this sounds nice, I’ll be the first to admit that it is extremely difficult to do.
Greed is, whether we care to admit it or not, one of the fundamental drivers of business. While most entrepreneurs will readily admit that they want to change the world and make a dent in the universe, the truth is that they also want to get rich.
Investors too are focused on profits and wealth creation. This is, of course, by no means a bad thing. However, the focus on profits is occasionally at odds with the cultural needs of the organization.
The temptation to focus on culture only when it’s convenient can be strong. However, the best leaders are the ones that can maintain balance inside of an organization,
The most effective way to do this is to reinforce the importance of ethical absolutes inside of your organization. Demonstrating that no one is “above the law” when it comes to matters of equality and respect is key in this scenario.
According to Ms. Fuller’s account, Uber systematically ignored these ethical absolutes and willingly turned a blind eye to the suffering of its team members. Ostensibly, this was all done in the pursuit of growth and the desire to maintain the company’s hockey stick trajectory.
If that was indeed their motivation, their efforts have backfired. The company is in full-on crisis mode, going so far as to call in former Attorney General Eric Holder to lead the investigation into the allegations. How this turns out, and what the ultimate impact on the company will be is anyone’s guess.
One thing, however, is for certain. Business owners and leaders of all types can learn from this scandal and take decisive steps to avoid similar situations inside of their organizations.
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db00fecac45d311faf853cd96932948b | https://www.forbes.com/sites/chrismyers/2017/08/08/how-one-entrepreneur-is-bringing-about-global-change-by-solving-a-local-problem/ | How One Entrepreneur Is Bringing About Global Change By Solving A Local Problem | How One Entrepreneur Is Bringing About Global Change By Solving A Local Problem
Start local, scale global. Photo by Aidan Meyer on Unsplash
There’s no escaping the fact that there is a certain underlying degree of elitism in entrepreneurship.
After all, most entrepreneurs want to solve big problems, disrupt age-old processes, and as Steve Jobs put it, put a dent in the universe.
We tend to think globally and then try to apply our ideas locally. While this makes for a catchy slogan, it’s often easier said than done.
In fact, I’ve found that the opposite is often true. Organic ideas that solve a local problem often are the most impactful when applied at scale.
By thinking locally and then scaling globally, entrepreneurs can create a thriving business and still make a splash on the global stage.
No one I’ve met embodies this more than a Colorado-based entrepreneur Lani Dolifka. You might not have heard of her, but chances are you’ve come across her business.
Lani is the co-founder and CEO of Watermill Express, the largest drive-up pure drinking water and ice provider in the nation. While the economics of the business are impressive, Lani has also been able to make a splash (no pun intended) on the global stage through her advocacy work.
Entrepreneur, heal thyself
If I’ve learned anything during my time as an entrepreneur, it’s that trying to solve a problem you haven’t experienced first hand is far more difficult than solving a problem you do know.
For example, when I first launched BodeTree, I was attempting to make it easier for small business owners to analyze their finances. It was a problem that I thought others experienced, but to be honest, I had never struggled with it firsthand.
Lani, on the other hand, developed the concept for Watermill Express as a direct response to problems she faced in her own backyard.
She lived in Colorado, near the Rocky Mountain Arsenal, where 600 documented chemicals were discovered in the local groundwater.
The Watermill story began in the mid-80’s when she and her husband were young newlyweds. Money was tight, and Lani developed a habit of carefully reviewing every bill that came through her hands.
One day, while reviewing her city water bill, she noticed a warning printed on the back of the invoice. It stated that pregnant women or children under six years of age should not drink city water.
It was a mind-bending moment for the young newlywed. Here she was, paying a bill for water that was of questionable quality and safety.
Rather than complain or take on the local government, Lani, her husband, a family member and a close friend decided to solve the problem themselves. Through research, trial and error, and pure determination, they developed a revolutionary water purification unit that could provide clean drinking water at an affordable rate.
According to Lani, “If you see something that needs to be fixed, fix it yourself. Don’t wait for others to take action.”
A pragmatic approach to scale
Shortly after the first units were developed and installed, the Dolifkas heard from a family friend in South Texas that their community was also experiencing water quality problems.
In response, they built another unit, loaded it onto a trailer, and drove it down to Texas. The community embraced the concept wholeheartedly, leading Lani to realize that the need for safe, affordable drinking water was an issue throughout the country.
As young entrepreneurs, Lani and her husband didn’t have the capital or resources to continue expanding the business on their own. The sought out partners, investors, and joint ventures to start expanding into different markets.
The real breakthrough, however, came when they decided to franchise the concept.
The franchise model was a natural fit for Watermill, as it enabled local entrepreneurs to drive change in their communities, much like Lani had done in the early days.
Today, there are over 1,300 Watermill Express units located throughout the United States.
Going global
The underlying philosophy behind Watermill Express is that access to clean drinking water is a basic human right.
Watermill’s success here in the U.S. has enabled Lani and her team to make an impact on a global scale. Last year, for example, Watermill partnered with World Vision to donate 100 million gallons of clean water to the developing world.
However, Lani’s vision has allowed her to play a more active role in changing the way people think about access to clean water.
In 2015, she established Clean Water Here, an advocacy platform which promotes the need for safe drinking water in the U.S. and abroad by raising awareness, supporting research & solutions, and advocating for underserved communities.
Earlier in 2017, Clean Water Here launched a social media campaign in support of UN World Water Day that reached over 790 million people and gained support from celebrities and other high-profile individuals.
Lani’s journey should serve as an example for any entrepreneur looking to make their mark in the world. Grand ambitions are admirable, but the truth is that “thinking globally and acting locally” can be difficult to implement.
Instead, entrepreneurs should focus on solving problems that they are personally familiar with.
Whether you’re providing financial resources for small businesses like BodeTree, or clean, affordable drinking water like Watermill Express, the key is to start with problems in your backyard.
If you’re successful in solving a local problem, it’s only a matter of time before you’ll be able to scale it globally.
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fc76936f6f593fde367585baffdf1fe0 | https://www.forbes.com/sites/chrismyers/2018/09/07/how-to-be-a-gentleman-in-your-personal-and-professional-life/?sh=74df576e8c3c | How To Be A Gentleman In Your Personal And Professional Life | How To Be A Gentleman In Your Personal And Professional Life
Make civility stylish again. Clem Onojeghuo, Unsplash
We live in uncivil times. From our relationships to politics and business, it seems as though the longstanding expectation of decorum has given way to our more impetuous, brutish, and petty inclinations.
I suppose it only makes sense. As a society, we accepted and celebrated this behavior in our chosen forms of entertainment. It was just a matter of time until that acceptance bled into our daily lives.
The political implications of this boorishness are plain to see, and I don’t feel the need to explore them any further. Instead, I’d like to focus on business and the breakdown of civility that I’ve witnessed over the past few years.
The problem is difficult to articulate, but I’ll do my best. Professionals seem to be increasingly on edge. It’s as though our society has passed the point of no return and the underlying trust upon which it was built has evaporated.
I’ve witnessed this firsthand, with clients, vendors, and external partners always poised to see the worst in a situation, distrustful and disingenuous with nearly everyone they encounter. Tempers are shorter, expectations are higher, and compassion is in increasingly short supply.
Put another way; it seems to me that we’ve dropped even the pretense of collaboration, long-term thinking, and partnership. Instead, we’ve given into our base desires, seeking only what benefits us in the shortest of terms.
The real tragedy, however, is not the actions of the aggressors themselves; instead, it’s the fact that ordinarily decent professionals feel that they must respond in kind to survive. The result is a downward spiral of bad behavior, weakened trust, and short-sighted thinking.
This is the crux of the matter. You cannot control the response or behavior of those around you, but you can control how you choose to react. Fighting aggression with aggression is an exercise in futility. Instead, you must learn to rise above the fray and carve out a new path.
In short, we need more gentlemen in business.
Of course, I use the term gentleman here in a broad, non-gender-specific sense of the term. When I say gentleman, I’m referring not to a man specifically but rather an individual who holds themselves to a higher standard and refuses to perpetuate the increasingly-accepted norms of poor taste.
Perhaps the best definition of a modern gentleman comes from Haruki Murakami’s novel “Norwegian Wood.”
“A gentleman is someone who does not what he wants to do, but what he should do.”
If there’s a better term out there, I’m not sure what it is. Therefore, I’m going to continue referring to this persona as that of a gentleman and use the masculine pronoun for the sake of convenience and concise writing. Please realize that these sentiments apply equally to men and women.
Semantics aside, it’s time that we as business professionals begin acting in accordance with a higher standard rather than our base desires.
I don’t have all the answers. I do, however, have seven principles of gentlemanly conduct that I strive to put into practice. I share them here in the hope is that by doing so we can begin to elevate the level of discourse in business and bring civility back into style.
#1 A gentleman is civil in uncivil times.
Whenever money, pride, or ego are at stake, tensions are sure to flare. People will react with vitriol, personal attacks, and other forms of aggression. Gentlemen do not respond in kind. Instead, they fall back on a higher set of principles and remain civil, even when attacked.
This civility is not a sign of weakness; instead, it is a sign of strength. We must all do our part to raise the bar concerning our conduct.
#2 A gentleman is empathetic but unafraid to stand his ground.
Gentlemen are empathetic, willing to engage with those around them. They work to understand where others are coming from, even when their perspective is at odds with their own. They engage, but do not attack.
Of course, there are certain moral absolutes that we should insist upon as professionals. All too often in business we stick to a set of principles so long as it is both beneficial and convenient for our goals. While a gentleman is empathetic, he is also unafraid to stand his ground when it comes to matters of moral and ethical absolutes.
#3 A gentleman is honest, even when it’s uncomfortable.
Honesty is often uncomfortable. Whether we lie to avoid offending others or to save our skin, the fact of the matter is that we do so to avoid the discomfort of truth. A gentleman, however, is willing to endure this discomfort. This level of honesty, while not always appreciated, is a powerful sign of respect.
#4 A gentleman is quietly confident, never arrogant.
In this hyper-competitive, hyper-connected day and age, we often feel the need to advertise our greatness to anyone who will listen. This results in a pervasive arrogance that instantly puts people on a defensive footing.
A modern gentleman lets his results speak for themselves, and engages everyone with a humility that instills confidence in others, rather than skepticism.
#5 A gentleman reads extensively and takes care to expand his point of view.
A gentleman is unafraid of opposing viewpoints. In fact, he seeks them out to challenge his own beliefs. This is best accomplished through reading, though there are other ways out there.
A gentleman avoids the intellectual laziness of embracing only confirming evidence. They read, engage, and challenge beliefs to be the best they can be.
Most importantly, they’re unafraid to admit that they were wrong or change direction on a topic. He's progressive in the most literal sense of the word, continually growing in both knowledge and innate understanding of the world in which he lives.
#6 A gentleman demonstrates grace under fire.
A modern gentleman does not crumble in the face of adversity. He is honest and forthright when it comes to the fears, stresses, and anxieties of business that plague him. In doing so, he finds the strength to embrace challenges wholeheartedly, and draw on friends, colleagues, and experience for support.
In accepting the reality of the challenges he faces, he is able to keep his cool, demonstrate grace under fire, and serve as a pillar of strength for those around him.
#7 A gentleman is the same person in public and private.
This is the most critical point in this list. Above all else, a gentleman conducts himself the same way in private as he does in public. There is no duplicity, double-dealing, or deception. A true gentleman has the courage to have one set of values, no matter the audience.
This does not mean that they never make mistakes. Everyone fails to live up to their own standards from time to time. However, gentlemen own up to these failures and learn from them.
Striving for a higher standard
These seven principles apply as much to business as they do to private life. As Murakami said, a gentleman is “someone who does not what he wants to do, but what he should do.”
I believe that by embracing these principles, we can change the way business is conducted, elevating the conversation and returning to a more civil time. As with most things in life, it beings with how we choose to conduct ourselves.
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4f0ace87f3ed3ec61134011fcdfff1b9 | https://www.forbes.com/sites/chrisobrien/2020/06/29/green-wave-in-frances-local-elections-scrambles-macrons-2022-reelection/ | France Elections: Green Wave Scrambles Macron’s 2022 Reelection Bid | France Elections: Green Wave Scrambles Macron’s 2022 Reelection Bid
French EELV (Europe Ecologie Les Verts) green party candidate for Lyon metropole Bruno Bernard ... [+] speaks on June 28, 2020 in Lyon, following his victory after the second round of the election. (Photo by JEFF PACHOUD / AFP) (Photo by JEFF PACHOUD/AFP via Getty Images) AFP via Getty Images
A Green Wave washed over France this weekend as environmental candidates swept to victory in local elections reflecting a groundswell of support for stronger climate policies that threatened to complicate President Emmanuel Macron’s reelection bid for 2022.
Candidates with connections to the Europe Ecologie Les Verts (EELV) party won city hall and mayoral elections in Lyon, Bordeaux, Strasbourg, Poitiers, Tour, Grenoble, Besançon, and Annecy. And they played a key role in helping Paris Mayor Anne Hidalgo, a Party Socialist candidate, win re-election.
As expected, Macron’s La République En Marche party failed to make much notable progress at the local level. It’s a disappointing reminder for Macron that three years after turning French politics upside down, his insurgent party has failed to make deeper inroads across the country.
The results are also a stinging rebuke to Macron’s environmental credentials. Macron is often seen as a green champion on the international stage thanks to his defense of the Paris Climate Agreement and his campaign to Make The Planet Great Again. But at home, he has been widely criticized for a lack of concrete environmental measures, a disappointment that led his environmental minister Nicolas Hulot to resign in 2018 during a live interview on the radio.
Macron has recognized the threat he faces from his left and is reportedly planning to announce a shake-up of his cabinet to give it a green makeover. But three years into his mandate, he will likely have a tough time convincing skeptics. This morning on a French news program, an EELV representative said his party would not consider joining Macron’s government.
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“The center of political gravity of the current majority is not the environment, it is not social,” said David Cormand, an EELV deputy in the European Parliament. “It would not make sense to enter into this government.”
The Vague Verte
The big story remained the stunning surge of a party that only has a handful of full-time paid staffers and not much of a national organization. Nevertheless, French voters awoke to headlines such as the one in Le Monde proclaiming a “historic green wave” (vague verte) in the second round of France’s municipal elections on Sunday.
“It is a historic shift,” Le Monde declared. “Europe Ecologie-Les Verts (EELV) is no longer the same party after the second round of municipal elections on June 28.” It added EELV is “becoming a major force of the opposition to the President of the Republic Emmanuel Macron.”
The conventional wisdom until recently has been that Macron’s chief threat lay to his right in the form of Marine Le Pen, the candidate he soundly defeated in 2017, and her Le Rassemblement National. But instead, it’s the Greens who have the wind at their back after Sunday’s vote.
Yet those same results also show the complicated task that lies ahead for the Greens if they want to truly transform their movement into a national party. At the local level, candidates typically run as part of a coalition of political groups that can vary from city to city.
In Paris, for instance, Mayor Hidalgo allied herself with the EELV and easily won reelection. Although Hidalgo is a member of the left-leaning Socialist Party that was eviscerated by Macron in 2017, she has aggressively developed a profile as an environmental progressive thanks to her support for reducing cars in the city and more green spaces.
Current Mayor of Paris Anne Hidalgo ( white coat) thanks the electors after the convincing victory ... [+] of his party in the municipal elections on June 29, 2020, in Paris, France. (Photo by Daniel Pier/NurPhoto via Getty Images) NurPhoto via Getty Images
Macron’s LREM had targeted Paris as a potential symbolic victory but collapsed amid internal squabbling and controversy. Even before the first round, the party’s official candidate Benjamin Griveaux faced a challenge from a dissident LREM candidate Cédric Villani, the quirky mathematician who defied his party to run.
Griveaux later had to drop out amid a sex video scandal and was replaced by health minister Agnes Buzyn who then faced criticism for jumping into the race as the coronavirus was exploding across the country. Buzyn finished a dismal third.
In contrast to Paris, the incumbent mayor, Gérard Collomb was formerly with the Socialist Party but had joined LREM. He lost to EELV candidate Grégory Doucet, who had created a coalition of Greens, Social Party Members, and the far-left France Isoumise party that was created by the progressive Jean-Luc Mélenchon.
A similar mix of groups known as Archipel Citoyen failed to carry the day in Toulouse, the nation’s fourth-largest city. The group’s candidate, Antoine Maurice, lost to incumbent Jean-Luc Moudenc, a member of the conservative Les Republicans who had allied with Macron’s LREM. Moudenc had trailed in most polls, and his victory was a mild surprise.
In part, the Green’s program to transform transportation was a tougher sell in Toulouse, where aeronautics giant Airbus has its international headquarters. But the campaign was also marked by Moudenc’s support for local shopkeepers, whose businesses had taken a big hit from months of Yellow Vest protests and the coronavirus lockdown.
Antoine Maurice speaks after he lost the election to be mayor of Toulouse. Antoine Maurice, leader ... [+] of the 'Archipel Citoyen' list, was a serious contender of actual mayor of Toulouse Jean-Luc Moudenc. During the count, the difference of ballots between the two candidates grew. Finally Antoine Maurice lost the election against Jean-Claude Moudenc, mayor of Toulouse, who is supported by the Macron's party, LREM, and by the rightwing party LR. Moudenc won with 51.87% of tne vote with an abstention at 44.86%. On June 28th 2020, in Toulouse, France.(Photo by Alain Pitton/NurPhoto via Getty Images) NurPhoto via Getty Images
The Greens narrowly missed another chance in Lille where their candidate lost to incumbent Social Party mayor Martine Aubrey by around 200 votes. In Marseille, the Green candidate came in first, but with only 40% of the vote, they won’t have an absolute majority.
Still, the momentum was unmistakable. Whether the Greens can capitalize on it will be one of France’s major political stories going forward.
“The political landscape has been rearranged around the exciting project of ecology,” tweeted the EELV’s Yannick Jado, a European Parliament deputy. “It is an opportunity for our country.”
One of the chief challenges ahead for the Greens will be the ability to build bridges to France’s rural areas. In recent years, as small towns have suffered economically, there has been growing resentment that attempts to ban pesticides and reduce carbon emissions have fallen harder on people living in the countryside. Indeed, it was Macron’s move to raise the gasoline tax to fight climate change that initially sparked the Yellow Vest protests.
The other question facing the Greens, and France more generally, was the historically low turnout on Sunday. The government reported a participation rate of 40%, down from 52.4%. With election centers embracing a range of sanitary measures to limit contact and potential coronavirus transmission, the low voting rate was seen as a big disappointment.
Macron also was elected in 2017 amid record abstention, and had declared that he wanted to renew citizens’ faith in government. But despite moments of solidarity during the country’s coronavirus lockdowns, it’s clear that widespread divisions remain as France tries to revive its economy.
BAYONNE, FRANCE - JUNE 28: Electoral officers wearing protective face mask count the votes in a ... [+] polling station, set up ahead of the second round of French mayoral elections on June 28, 2020 in Bayonne, France. The first round of the municipal elections was held on March 15, two days before President Emmanuel Macron decreed the confinement of the population by Covid-19. The second round, which was due to be held on 22 March, was suspended by the pandemic. For the second round of the mayoral elections Pollingstations have been adapted for coronavirus times to limit voter contacts and the circulation of the virus to the maximum. Voters need to wear their own pen to sign the registration and must wear a mask in a mandatory manner. (Photo by Gari Garaialde/Getty Images) Getty Images
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73344f31b775805f9c6cb87a76eb11af | https://www.forbes.com/sites/chrisobrien/2020/08/19/travel-to-france-country-wants-foreign-workers-help-rebuild-economy/ | Travel To France? Country Wants Foreign Workers To Come And Help Rebuild Economy | Travel To France? Country Wants Foreign Workers To Come And Help Rebuild Economy
French Junior Minister of Foreign Trade Franck Riester speaks during a session of questions to the ... [+] Government at the French National Assembly on July 16, 2020, in Paris. (Photo by FRANCOIS GUILLOT / AFP) (Photo by FRANCOIS GUILLOT/AFP via Getty Images) AFP via Getty Images
With France’s economy reeling from the coronavirus and headed into a severe recession, government officials are promoting a special visa program to attract foreign workers to give the country a boost.
In a series of tweets today, Franck Riester, minister for foreign trade and economic attractiveness, called on “talents” from around the world to apply for France’s Talent Passport program.
Established in 2015, the program offers a 4-year work visa to people who can demonstrate they have particular skills or have a strong reputation in their field. One of the most attractive elements is that the visa is not tied to a specific job or employer. If granted, the person can enter France and then look for work or set up their own business.
The Talent Passport has been of the key tools created by the French government to attract talent to its technology startups. But the Passport Talent program is open to people in a wide range of fields.
“To revive our country, we will need talents from all over the world,” Riester tweeted. “I am delighted that all holders of a long-stay visa #PasseportTalent can come to France again without restriction. The talent passport is the possibility for investors, entrepreneurs, and foreign executives to settle and work in France with their families. It is to encourage talents from all over the world to choose our country to develop growth & employment.”
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So far, France has reported that its economy has shrunk by 13% this year, despite extraordinary financial measures put in place by the government to support individuals and businesses.
Riester’s call for workers comes as the country is experiencing a surge in new coronavirus cases. Across France, officials are imposing new mask requirements in the hopes of avoiding a second wave of cases just as people are returning to work after summer holidays and schools are set to reopen early next month.
Despite some signs of normalcy in recent weeks with bars, restaurants, and movie theaters open again, the economy is far from recovered. The French government has rolled out additional financial packages to support farmers and the wine industry, and there are still calls for more help.
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a1d4d3f9ab38948dfda38ccf42e509b1 | https://www.forbes.com/sites/chrisobrien/2020/12/10/mystery-monolith-appears-in-toulouse-france---then-disappears/ | Mystery Monolith Appears In Toulouse, France—Then Disappears | Mystery Monolith Appears In Toulouse, France—Then Disappears
A metal structure sticks from the ground on the Batca Doamnei hill, outside Piatra Neamt, northern ... [+] Romania, on Nov. 27, 2020. The structure, similar in shape and size to the monolith that was placed in the Utah desert, has since disappeared.(Robert Iosub/ziarpiatraneamt.ro via AP) ASSOCIATED PRESS
The mystery monolith that has been popping up around the globe made an appearance in the Southwest of France. And true to its ephemeral nature, the curious object was gone the next day.
On Wednesday, Toulouse locals spotted the metal monolith on the Pech-David hill in the southern corner of the city, overlooking the Rangueil Hospital. In recent weeks, the object has been spotted in Utah, Romania, and the Netherlands before vanishing.
According to Actu Toulouse, the monolith had an engraved inscription that read: 12 - 13/06 43 ° 34'22.7 ″ N 1 ° 22'46.3 ″ E.
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This is the third monolith sighting in France. On December 5, one was found in Deux-Sèvres. In this case, an artisan welder named Ludovic Liaigre, revealed himself to be the creator, acccording to France Info.
Liaigre told France Info that he was inspired by the other monoliths: “In 2020, it's a special year, it's hard. The world of culture is there, alive. For me it is above all a cultural symbol.”
Another monolith was discovered in the northern city of Le Havre.
In this case, local resident Mathieu Le Corre told France 3 that he and some friends had built this one to take advantage of the fascination with the other monoliths.
“We decided with colleagues to laugh a little and to manufacture ours,” he said. “It didn't take long. We started at 11 am and at 3 pm the object was installed.”
So far, no one has come forward to claim the Toulouse Monolith.
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7393665ba20143f7d152d3df250d7e41 | https://www.forbes.com/sites/chrisobrien/2020/12/20/miss-france-2021-runner-up-targeted-by-anti-semitic-tweets/?sh=2597a7307e3d | Miss France 2021 Runner-Up Targeted By Anti-Semitic Tweets | Miss France 2021 Runner-Up Targeted By Anti-Semitic Tweets
Miss Provence April Benayoum competes on stage during the Miss France 2021 beauty contest at the ... [+] Puy-du-Fou, in Les Epesses, western France, on December 20, 2020. - Miss Normandie Amandine Petit had been elected Miss France 2021, and April Benayoum is her first runner-up. (Photo by LOIC VENANCE / AFP) / RESTRICTED TO EDITORIAL USE - NO MARKETING - NO ADVERTISING CAMPAIGNS (Photo by LOIC VENANCE/AFP via Getty Images) AFP via Getty Images
Beauty pageants receive a surprisingly large amount of attention in France. But the latest Miss France contest is getting even more scrutiny than usual due to a flurry of anti-semitic tweets targeting one of the contestants.
On Saturday evening, Miss Normandy Amandine Petit won the Miss France crown in a nail-biter thanks to a tie-breaker over Miss Provence April Benayoum. During an interview at the ceremony, Benayoum noted that her father had roots in Israel.
Following her remarks, Benayoum found herself the subject of anti-semitic statements on Twitter. In recent years, France has been struggling with rising anti-semitism even as politicians denounce remarks and acts of violence aimed at its Jewish population, the third largest in the world after Israel and the United States.
The latest flurry of anti-semitic tweets drew widespread condemnation and threats of legal action in France.
France’s Interior Minister Gerald Darmanin said he was “profoundly shocked” and was “embarrassed for the authors” of the tweets. He also said the nation’s police “are mobilized” to find the people behind the tweets.
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Minister of Citizenship Marlene Schiappa also tweeted that the beauty competition is “not a contest of anti-semitism. All my support to April Benayoum, target of anti-semitic remarks and an incredible violence all evening after evoking her origins.”
The production company Endemol and TF1, which broadcast the event, also offered harsh words for the tweets, saying they “condemn the hateful and anti-semitic remarks made yesterday evening on social networks” that attacked Benayoum.
Jewish groups also reacted, with Ariel Goldmann, president of the Unified Jewish Social Fund (FSJU) and the Judaism Foundation, noting that “the vaccine against anti-Semitism [is] not on the eve of being available ”
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82660599b4311b29ba6c72ded512566a | https://www.forbes.com/sites/chrisobrien/2021/01/11/salto-enters-streaming-wars-to-reinvent-and-save-french-television/ | Salto Enters Streaming Wars To Reinvent (And Save) French Television | Salto Enters Streaming Wars To Reinvent (And Save) French Television
French TV stations banded to together to create Salto, their own streaming service to battle ... [+] Netflix. ©Julien KNAUB / SALTO
Six years after Netflix invaded France, the nation’s major television stations have banded together to launch their streaming service dubbed Salto. In a country that can be slow to embrace new technologies, Salto is a belated recognition that France’s traditional television industry must adapt to survive.
More than 2.5 years in the works, Salto is co-owned equally by the private channels TF1 and M6, as well as the public broadcaster France Televisions. The three-way joint venture had to clear several hurdles, including negotiating a complex partnership agreement, getting anti-trust approval, and delays resulting from the pandemic.
Since its launch last October 20, Salto General Manager Thomas Follin has been buoyed by the reception. He also recognizes the enormous challenges that lay ahead and the risks for Salto as it tries to carve out a future for its television partners.
“With new international competition and with new technologies that make it possible to address a customer in a specific way, the world of broadcasting in France needs to transform,” Follin said. “It was important to join forces to have a national content offer that adapts to the new modes of consumption of the public and that meets these new expectations. Salto wants to participate in the transformation of an entire broadcast environment.”
Thomas Follin, General Manager for Salto Julien KNAUB / SALTO
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More Than A French Affair
The creation of Salto is also emblematic of the larger competition that local producers and broadcasters around the globe face as Netflix has grown to become the world’s largest creator of original content over the past several years.
In addition, France manages a carefully calibrated system that raises money from movie ticket sales and cable subscriptions to fund movie and TV productions. The shift to streaming and cord-cutting has been seen as a potential threat to that machine.
That’s why when Netflix first launched in France in September 2014, it was greeted with fear and loathing. It was another example of an American tech giant arriving to threaten France’s sovereignty and culture.
Six years later, French consumers have enthusiastically embraced Netflix. And so have producers who are attracted not only by Netflix’s deep pockets but also the ability to instantly give their productions a global audience.
Last year, Netflix opened a new Paris office to increase content investment in France. The plan for 20 French productions in 2020 would have made it one of the largest producers of French content.
More recently, Netflix and other streaming services have agreed to participate in the nation’s content funding scheme, a move that could raise between €150 million to €200 million annually from just Netflix. As part of the deal, France will grudgingly relax a rule that prohibited movies that play in theaters from appearing on streaming platforms from a 3-year window to 1 year.
Streaming has gone from being a rebellious player to becoming part of the establishment. The need for France’s television broadcasters to develop a streaming platform became inevitable.
Building A Streaming Service
That doesn’t mean creating such a service would be easy. Having announced the creation of Salto in 2018, the partners had to work out the details of what content could be shared, and how. Currently, even these channels’ video on-demand services only make a handful of episodes available to view for cable subscribers, and only rarely all seasons of a series.
Once those details were hammered out, Salto had to win the approval of France’s Competition Authority, which finally came in August 2019. As work accelerated, the pandemic hit and pushed back the launch by several months.
Of course, during that time, the so-called streaming wars entered a new phase. Apple TV+ and Disney+ both launched in late November in the U.S., with both now available in France. Throw in Amazon Prime, and the competition is already fierce.
Follin is not daunted. He thoroughly believes in the mission, but his faith is not blind. In more mature markets like the U.S., analysts have noted that people typically subscribe to several services. Netflix often serves as a gateway to adding more subscriptions.
“In France, there are on average 1.4 subscriptions per household,” Follin said. “There is an expectation for new services by these consumers. And this is why when we arrived on the market, we wanted an offer that was unique and that was close to the French public.”
That starts with making all seasons of popular current series available, such as the runaway hit Capitaine Marleau as well as back catalog shows like Un Village Français that otherwise would have to be purchased as DVDs or digitally from iTunes.
In addition, subscribers can watch live the 21 channels that are part of the partnership. And in some cases, Salto will offer the entire run of a season for binging before it is broadcast on television. It recently began streaming the highly-anticipated La Promesse before it premiered on TF1.
Among Salto's promotions, the new French streaming service will make some series and movies ... [+] available to subscribers before they are broadcast by its television partners. ©Julien KNAUB / SALTO
Salto also will make episodes of France’s wildly popular soap operas available for viewing 48 hours before their broadcast, what Follin calls “television before television.” So far, three of these soap operas are in Salto’s Top 10 shows.
“Until today, if you want to watch French television channels, there are a lot of somersaults,” he said. “We wanted to remove the constraints of appointments and television programming. We have arrived with a new service for consumers who will now be able to consume their television programs when they want and also consume linear channels when they want.”
In addition, Salto has struck deals to offer some big international classics, including most notably The Office and Desperate Housewives. So far about 50% of the content viewed on Salto is French, but the company is actively seeking deals for overseas content that hasn’t been seen in France. That’s part of the first step toward creating its original slate of programming, similar to what Netflix has done in many cases by co-financing productions with local producers.
Salto has bigger ambitions in that realm. It’s currently co-financing a production of the Émile Zola classic Germinal which will be shown on Salto before broadcast television.
Fast-Forward To The Future
Salto’s monthly fee of €6.99 is roughly in line with Disney+, and cheaper than Netflix. French media have reported that Salto had 100,000 subscribers after its first 3 weeks. While Salto has not shared subscriber data yet, Follin noted that the average household that subscribes connects to Salto 10 times per week, and watches an average of 2 hours daily during the week and 2.5 hours during the weekend.
Also encouraging is the diversity of viewership. While wanting to target the younger generation, 25% of Salto subscribers are over 50 years old. And 80% live outside the Paris region suggesting word about the service, which is being relentlessly promoted on TV, is spreading. Of course, the ongoing pandemic makes Salto’s timing fortuitous as well.
While Follin is happy with these numbers, skeptics persist.
Last month during a hearing, Hauts-de-Seine Senator Roger Karoutchi criticized the spending of France Televisions on the project. France Televisions recently disclosed that it broke even for 2020, but that also excluded its internal painful transformation that cost €4.8 million and saw it cut 900 jobs in 2019 (including 2,000 traditional jobs axed and 1,100 digital posts created).
For 2021, Salto is projected to run a deficit of €93 million, split three-ways between partners. In Silicon Valley, such losses are typical for startups, but they still manage to raise eyebrows in France. France Televisions officials have insisted that Salto investments are being paid directly by money raised through advertising rather than through any public monies.
Still, Karoutchi said Salto seemed doomed to fail in the fight against Netflix and Amazon. He insisted the money would be better spent on more educational and cultural programming.
“There is a strong fear that the investment by a public group will be synonymous with failure,” the senator said, according to Les Echos. “For now, it only has a modest target of 40,000 subscribers by the end of 2021. This allows us to wonder once again about the strategic choices of France Televisions.”
The partners in the joint venture have remained firm that Salto is part of their broader digital transformation plans that are essential for keeping them relevant in the coming years, as well as ensuring that French entities retain some control over French-language content. The projection at the moment is for Salto to break even by 2021.
To that end, Follin is focused on ensuring viewers are pleased with their experience, as well as continuing to ramp up publicity. Salto also wants to expand its presence on other platforms. It’s already available on Apple TV, for instance, and it’s hoping to strike deals with manufacturers to be pre-installed on smart TVs. Eventually, that will extend to video game consoles and partnerships with telecom providers and smartphone brands, following in the footsteps of other streaming competitors
“We have the whole of France to convince,” he said. “We're not there yet, but when we make ourselves known, the public responds. But it will take time and we have to promote it as much as possible everywhere in France.”
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6b32a2f16a3dc4284bd4c14208cb3841 | https://www.forbes.com/sites/chrisobrien/2021/02/01/why-frances-struggling-comic-book-authors-may-boycott-2021-angoulme-festival/ | Why France’s Struggling Comic Book Authors May Boycott 2021 Angoulême Festival | Why France’s Struggling Comic Book Authors May Boycott 2021 Angoulême Festival
Comics authors hide their faces with sheets of paper to denounce the precariousness of their ... [+] profession during the award ceremony of the 47th Angouleme International Comics Festival (Festival International de la Bande Dessinee d'Angouleme) in Angouleme, western France on February 1, 2020. (Photo by Yohan BONNET / AFP) (Photo by YOHAN BONNET/AFP via Getty Images) AFP via Getty Images
The Festival international de la bande dessinée d’Angoulême, one of the world’s most important comic book gatherings, handed out its annual awards at a ceremony last weekend. But French comic book authors are threatening to boycott the main festival this June to protest their dwindling incomes.
In a letter published last week by the comic book creators association known as the Auteurs et Autrices en Action (AAA), the group is asking for a larger share of the revenue from comic book sales, known in France as bande dessinée. If not, they will refuse to participate in the 3-day festival that was moved from its traditional January dates to late June.
The AAA is asking the government to play a stronger role in redistributing income from comic sales because only the authors of the very biggest selling titles can make a living. The vast majority of authors receive only a small percentage from sales, leaving them in a financial situation the group describes as “precarious.”
“The authors and signatories of this call will boycott the public side of the Angoulême Festival next June if no real and concrete action is taken by then, in terms of our professional status, our representation, and a fair rebalancing of the publishing system, of which the State and your government cannot remain mere observers,” they wrote.
So far, the letter has attracted 760 signatures, including some of the biggest names in French comic books.
Comic books and their authors are held in high regard in France from a cultural perspective. These comic books are more akin to what would be called graphic novels in the U.S., novel-length books typically published with hardcovers. In the loose classification of major forms of art in France (including sculpture, film, music, and literature) comics are considered the 9th art.
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Despite this cultural recognition, the financial status of comic authors has continued to deteriorate amid changes in the publishing industry. A 2017 report about the state of France’s comic book industry revealed that about half of comic book authors and illustrators earn less than minimum wage, and one-third live below the poverty line, according to France 24.
At the 2020 edition of the Angoulême Festival, President Emmanuel Macron promised to unveil stronger measures to support authors. During that same festival, Bruno Racine, former president of the Center Pompidou and the National Library of France, published the results of a report that France’s Cultural Ministry had asked him to compile about financial and economic challenges facing artistic creators of all stripes.
Called, "The author and the act of creation", the report noted that comic book authors generally received only 8% of the revenue earned by their books. Among its proposals, the report called for such steps as paying comic book authors for their participation in public festivals such as Angoulême, perhaps with government aid.
But then came the pandemic, and few measures were taken as the government confronted this bigger health crisis.
Making the financial situation all the more problematic is that comic book sales are strong. The industry reported selling 53.1 million books in 2020, up 9% from 2019, according to Le Monde. Indeed, 1 of almost every 5 books purchased in France last year was a comic book. Among the best-sellers was the fifth volume of "The Arab of the Future" by Riad Sattouf, one of the bigger names in France’s BD industry.
The problem, according to the GfK institute, is that these bestsellers are getting even bigger as the publishers push them even harder. Meanwhile, sales of secondary or smaller titles are shrinking, hitting lesser-known names and creating a bigger gap, according to France 24.
So, not only are the members of AAA frustrated that organizers of the Angoulême festival have not proposed a way to compensate them, but they’re disappointed that the government has not taken steps to address changes in these market dynamics even as officials continue to express public support for comic book authors.
“Love and sincerity have never paid authors any rent or made things better,” reads the AAA letter. “One-off aid, given to a few, according to often obscure criteria and procedures, can in no way take the place of long-term public book policy.”
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be02a73b1fd5777d2a879eb308639592 | https://www.forbes.com/sites/chrisobrien/2021/02/27/france-exports-of-wines-and-spirits-fell-139-in-2020/?sh=5f2d75b2b4cd&utm_source=Afternoon+Brief&utm_campaign=21275acd55-EMAIL_CAMPAIGN_2021_03_01_10_33&utm_medium=email&utm_term=0_778166e558-21275acd55- | France: Exports Of Wines And Spirits Fell 13.9% In 2020 | France: Exports Of Wines And Spirits Fell 13.9% In 2020
The cellar master checks the quality of an aged Armagnac at the Chateau Laubade, in Sorbets, near ... [+] Eauze, in the department of the Gers, south western France, on February 9, 2021. - The American surtax of 25% on Armagnac is difficult to accept for the exporters of this French liquor. Since January 12, 2021, the United States, under Donald Trump's administration, has imposed this new tax which, for example, makes the price of a bottle of Armagnac jump from 100 to 125 dollars, a tax that already affects wines since October 2019, but not Champagne. (Photo by GEORGES GOBET / AFP) (Photo by GEORGES GOBET/AFP via Getty Images) AFP via Getty Images
The global pandemic and a trade war with the U.S. delivered a one-two punch to France’s wine and spirits industry in 2020. According to the Federation of Wine and Spirits Exporters (FEVS), exports fell 13.9% last year as the industry hopes a new presidential administration will deliver some relief.
The industry reported €12.1 billion in exports in 2020, dropping to levels last seen in 2016. Champagne continued to be one of the hardest-hit sectors as sales dropped 18% by volume.
Under the Trump administration, an ongoing trade dispute involving aeronautics giants Boeing and Airbus escalated as additional tariffs were imposed on unrelated sectors such as wine and spirits. That included an 25% in tariffs added to spirits and wine at the end of December.
Unfortunately for French producers, the new Biden administration has opted to leave the tariffs in place — for now.
European leaders have proposed a 6-month suspension of tariffs related to the aeronautics dispute in an attempt to find some kind of settlement. But the Biden administration is still waiting for the U.S. Congress to confirm his nominee to be the United States Trade Representative.
In the meantime, the U.S. won’t be revising the tariffs, according to USTR spokesperson Adam Hodge who was quoted by The Drinks Business industry news site:
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“We know there is great interest in resolving the Boeing-Airbus dispute on both sides of the Atlantic and USTR looks forward to working with our European allies to find an outcome that levels the playing field once Ambassador Tai is confirmed.”
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66c99fae85aaa70ae88629ebaba0c785 | https://www.forbes.com/sites/chrisobrien/2021/03/31/french-cops-hunt-international-gang-of-lego-thieves/?utm_source=TWITTER&utm_medium=social&utm_content=4684206145&utm_campaign=sprinklrForbesEuropeTwitter&sh=5da4d12a16fe | French Cops Hunt International Gang Of Lego Thieves | French Cops Hunt International Gang Of Lego Thieves
PARIS, FRANCE - DECEMBER 21: A child looks at a replica of the "Notre Dame de Paris" cathedral made ... [+] from LEGO pieces during the exhibition '"Building Paris from brick to brick" at the Paris city Hall on December 21, 2016 in Paris, France. The exhibition, which opened on December 2nd, has been extended until Saturday, January 14, 2017 due of its success. (Photo by Chesnot/Getty Images) Getty Images
French police are tracking a ring of Polish Lego thieves who have been striking toy stores in the Paris region over the past couple of years.
According to Le Parisien newspaper, the coppers made a breakthrough when the gang hit a toy store last summer west of Paris in the town of Orgeval. Apparently, this is part of a European-wide crime spree.
In recent years, Legos have become a hotter-than-ever collector’s item as special kits have seen their resale value soar. Particularly for rare sets, the prices can be eye-gouging.
Last June, according to police, a trio of Polish thieves struck at the Picwitoys store where they attempted to nab several Lego kits off the shelves. A security guard alerted police who stopped a 47-year-old thief who was taken into custody and spilled the beans.
According to this stool pigeon, she was part of a team that specialized in stealing and reselling Legos. Thanks to the growing community of adult Lego collectors, the team realized they could make some series moola by selling stolen sets to these marks.
After ratting on her 2 fellow Polish accomplices, the fuzz are now hot on their trail. The gang is known to cruise around in their Audi A6 getaway car as they scope out stores and potential targets.
The same gang was previously linked to a Lego heist at the Grande Récré in L'Ile-Adam, another in Beauvais, and another at the Maxi Toys store in Fresnes.
“The gang was raiding. They arrived in France, settled in a hotel in the Paris region and scoured the toy stores in the area before returning to Poland to sell their merchandise,” explains a confidential source close to the case who spoke to Le Parisien.
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f9981fc0f209fc5d5258c674740ec87b | https://www.forbes.com/sites/chrisroberts/2020/06/16/science-reveals-the-cannabis-industrys-greatest-lie-youre-buying-weed-wrong-and-so-is-everyone-else/?utm_source=New+Frontier+Newsletter&utm_campaign=64a3e3943b-EMAIL_CAMPAIGN_2017_11_01_COPY_01&utm_medium=email&utm_term=0_e61e943a42-64a3e3943b-120391045&mc_cid=64a3e3943b&mc_eid=e924138f92 | Science Reveals The Cannabis Industry’s Greatest Lie: You’re Buying Weed Wrong (And So Is Everyone Else) | Science Reveals The Cannabis Industry’s Greatest Lie: You’re Buying Weed Wrong (And So Is Everyone Else)
There’s much more to cannabis than THC—for solid proof, look no further than the CBD boom—but when it comes to moving product on the legal recreational market, only two numbers matter: the list price, and the THC content.
Super-potent cannabis flower, with THC percentages of 25 percent and up, dominate dispensary shelves. High-THC cannabis will sell out very quickly while lower-percentage weed gathers dust.
When cannabis tests at more than 25 percent THC, dispensaries can justify charging $75 or more for a store-bought eighth—because there’s a very good chance people will pay it, confident that they’re taking home the best and most potent weed available. If the weed’s in the teens, well, it had better be cheap.
The problem is that this is all wrong. All of it.
Dried flower buds of legal cannabis in Switzerland. CBD cannabis like this may be an excellent ... [+] smoke, but that's how American consumers shop for pot. Meaning they're doing it wrong! AFP via Getty Images
THC shopping is almost as bad and dumb as buying wine based on how cool the label looks (which is also how some people buy weed).
Not only does THC content have nothing to do with how “good” the weed is, as recent research conducted by the University of Colorado and published in JAMA Psychiatry found, THC content is also a poor indicator of potency.
High-THC weed doesn’t even get you “more high”!
Researchers at the University of Colorado at Boulder’s Institute of Cognitive Science documented the experiences of 121 cannabis users. Half the study participants were users of cannabis concentrates—very-high THC cannabis extracts—and the other half preferred cannabis flower.
Both groups received cannabis at varying “strengths”: flower users tried cannabis flower at either 16 percent or 24 percent THC, and extract users received oil at either 70 percent or 90 percent THC. Researchers checked study participants’ blood and monitored their mood, cognitive function, and intoxication level before, immediately after, and one hour after use.
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As the researchers expected, the concentrate users had very high levels of THC in their bodies after use. But they weren’t “more high.”
In fact, every participants’ self-reported “highness” was about the same—“as were their measures of balance and cognitive impairment,” as CU noted in a news release. Medium THC flower, high-THC flower—all the same high! This was not what the researchers were expecting.
“People in the high concentration group were much less compromised than we thought they would be,” said coauthor Kent Hutchinson, a professor of psychology who studies addiction, in a CU news release. “If we gave people that high a concentration of alcohol it would have been a different story.”
Consider the cannabis flower users. Sixteen percent THC compared to 24 percent THC is a big difference—50 percent “stronger.” How can users of such differnet “strength” products report such similar psychoactive effects?
The short answer is a theory that cannabis connoisseurs and cannabis scientists have been saying for years: There are many more factors at play than THC. Put slightly longer: Judging a cannabis strain on its THC content is not unlike judging a film based on the lead actor. The THC number isn’t going to be an indicator of the performance.
(One very large exception to this: edibles. If one edible says it has 100 milligrams of THC, and another says it has 10 milligrams, and you eat the 100, you will absolutely be higher, longer, than if you ate the 10.)
There are a host of cannabinoids, including CBD as well as more than 100 others—most of which aren’t even tested for. (Even if they were, would the average buyer know what to do?)
There are also aromatic compounds called terpenes that dictate how cannabis affects the mind and body. All of these work in concert, a phenomenon known as “the entourage effect.” This is why synthetic THC simply didn’t have the same medical effects as smoking weed.
A good way—maybe the best way—to determine if cannabis will be good, or at least good for you, is to smell it. But in legal markets like California, that’s now impossible. Pot is sold in prepackaged containers. And the coronavirus pandemic eliminated what limited opportunities there were to smell cannabis. Some shops let you wave under your nose a designated “smell jar”—a few buds in a container with a perforated lid. No longer.
But back to THC numbers. Cannabis researchers know it’s not an indicator. Cannabis growers and sellers know it’s bogus. And yet, here we are. The market simply hasn’t caught on—and merchants, by putting high-THC cannabis out on the shelves to satisfy the misdirected market demand, are ensuring that the misunderstanding continues.
“It’s a shame,” said Neil Dellacava, the co-founder of Gold Seal, a San Francisco-based cannabis brand that specializes in high-end flower. “I find stuff that’s absolutely amazing that I have to throw in the trash because it tests at 18 or 19 percent.”
At that level, despite “an amazing terpene profile, the best smoke I’ve ever had” simply will not sell, he said.
“People just don’t understand,” he added. “When people go shopping, they look for two things: they’re looking for price, and they’re looking for THC percentage.”
The THC fallacy persists despite everyone’s best efforts. Both Instagram influencers as well as cannabis entrepreneurs and advocates have tried to explain that the THC number is, at best, a rough estimate (and a number that, depending on the lab that came up with it, might be inflated or suspect).
With this much momentum, it’s unlikely science will change anything. It will take a long time for buyers to adjust their habits and realize THC content isn’t like alcohol by volume on a beer label after all. Until they do, connoisseurs can take advantage of the market inefficiency, and take home superior pot with lower THC levels at a reduced price. It will just require a little more work on the consumer’s end.
But it will also require cultivators of lower THC, higher-high weed to have demand high enough to keep them in business, and that’s far from guaranteed.
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9e3af426e44d057045c3a836c00360a9 | https://www.forbes.com/sites/chrisroberts/2020/07/15/dan-bilzerian-exits-rented-la-mansion-neighbors-celebrate/ | Dan Bilzerian Exits Rented LA Mansion, Neighbors Celebrate | Dan Bilzerian Exits Rented LA Mansion, Neighbors Celebrate
Is it fair to describe 10979 Chalon Road — a 31,000-square foot, 12-bedroom, 21-bathroom, and five bar edifice in the exclusive Los Angeles enclave of Bel Air — as a "home"?
Maybe. Just because your footprint (and your parking lot) is bigger than most museums’ doesn’t mean you can’t have lived-in charm!
But this particular statement estate is not “home” if you are Instagram celebrity Dan Bilzerian, the now former tenant of 10979 Chalon Road.
10979 Chalon Road in Los Angeles, the now-former home of internet celebrity Dan Bilzerian. Courtesy/Don Bolin
Up until recently, Bilzerian at least occasionally occupied the ridgetop complex, which his company, Ignite International Brands, had been renting for $200,000 a month.
But sometime over the past week or so, Bilzerian and Ignite quietly exited the property and relinquished control to owner Don Bolin, as Bolin confirmed via phone and text message on Tuesday evening.
“I told him we are getting a lot of calls from people that are interested so this is the time to put it up for sale,” said Bolin, who indicated he hopes to list the property for about $75 million. “The market is exceptionally hot right now, especially for self-contained compounds.”
Bilzerian’s departure from the Los Angeles hills was cause for celebration among his well-heeled neighbors. The Bel Air Association was so fed up with the commotion and pyrotechnics from the mansion that they were considering legal action, according to executive director Shawn Bayliss.
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And the exact nature of the exit isn’t entirely clear. According to Ignite’s annual report and a lawsuit filed by a former Ignite executive, the company was a couple months behind on rent, and an even bigger option payment was coming due.
LOS ANGELES, CALIFORNIA - OCTOBER 24: Guests attend Dan Bilzerian's Halloween Party sponsored by ... [+] Ignite International, Ltd., Alister, and BlitzBet on October 24, 2019 in Los Angeles, California. (Photo by Randall Michelson/Getty Images for Ignite International, Ltd., Alister, and BlitzBet) Getty Images for Ignite International, Ltd., Alister, and BlitzBet
A big deal when your company lost $50 million in 2019 alone and needs to cut costs!
And according to a lawsuit filed by former Ignite president Curtis Heffernan, who says he was fired after he tried to convince Bilzerian to let go of the mansion to cut costs, Bilzerian wanted to hang onto the home for summer “pool parties,” even if it meant burning through even more cash.
Linda Menzel, Ignite’s chief counsel listed as the contact on company press releases, did not immediately return a message seeking comment.
But as per Bolin, Bilzerian and Ignite were caught up on rent (though Bolin did say he gave his tenant a break “because of Covid.”)
BEL AIR, CA - FEBRUARY 13: Dan Bilzerian at "home," attending Ignite's Angels and Devils ... [+] Pre-Valentine's Day Party on February 13, 2019 in Bel Air, California. (Photo by Randall Michelson/Getty Images for Ignite) Getty Images for Ignite
Bilzerian’s full-time residence is in Las Vegas, and since the COVID-19 pandemic means no gatherings, there’s not much point in hanging onto a structure with a sixty-car parking lot.
“There’s not a lot for him to do here,” Bolin said. “You can’t go off-roading here, you can’t shoot your guns, and you don’t have a lake close to wake surf.”
So now the house, “in perfect condition,” Bolin said, is back on the market. And, bonus: Though Bilzerian took down a goat’s-head chandelier in the entryway along with some other signature accents, he did leave behind a new security system, a “super cool” virtual reality room, and the property's fully apportioned rooftop gym.
The rooftop infinity pool and 12-foot waterfall at 10978 Chalon Road, Los Angeles, the California ... [+] estate once rented by Dan Bilzerian. Courtesy/Don Bolin
“Very pleased about that, because you cannot buy gym equipment anymore,” Bolin said.
(No word on Bilzerian’s custom room-sized bed, which apparently cost at least $50,000.)
Bilzerian’s company apparently leased the home right around the time his vaguely cannabis-adjacent brand, Ignite, launched in 2018. Company investors picked up the tab for the lease, as well as at least some of the improvements and furnishings, according to the company’s annual report.
(For some reason, these details didn’t make it into a CNBC report.)
BELAIR, CALIFORNIA - FEBRUARY 13: Dan Bilzerian attends Ignite International Brands, Ltd. Introduces ... [+] Ignite Vodka With it's Annual Valentine's Party on February 13, 2020 in Belair, California. (Photo by Jerod Harris/Getty Images for Ignite International Brands, Ltd.) Getty Images for Ignite International Brands, Ltd.
But buyer beware. In addition to a 12-foot waterfall, infinity pool, tennis courts, and a parking lot big enough to park several dozen vehicles and still have room for a shuttle bus to make a drop-off and then a turn, 10979 Chalon Road also has neighbors who aren’t too keen on internet celebrities living nearby, particularly if they run the risk of burning down the neighborhood.
Last Halloween, Ignite threw a party that involved pyrotechnics, including a parachutist dropping with sparklers, according to the Bel Air Association’s Bayliss. October in Los Angeles is hot and dry—which means in addition to being loud, brash, and a pain in the ass, Dan Bilzerian was a legitimate wildfire risk, Bayliss said.
“We are very sad to see our community’s fifth-most famous renter go,” Bayliss said, without a shred of irony or sarcasm.
Who the other four are may depend on your definition of “celebrity,” just as 10979 Chalon Road challenges the meaning of domicile.
But what a, ah, “house” it is!
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f441774128a305aa4350ec450dae56e9 | https://www.forbes.com/sites/chrisroberts/2020/09/03/another-great-marijuana-lie-dabs-are-bad-and-most-cannabis-consumers-prefer-less-thc-study-finds/?sh=749850e8ce70 | Another Great Marijuana Lie: “Dabs” Are Bad And Most Cannabis Consumers Prefer Less THC, Study Finds | Another Great Marijuana Lie: “Dabs” Are Bad And Most Cannabis Consumers Prefer Less THC, Study Finds
Most markets are not rational. That is, the “price” of a good is not related to its intrinsic “value.”
And that certainly seems to be the case with legal recreational marijuana. The cannabis industry seems convinced that consumers want products with higher and higher THC.
The thing is, as yet another study shows, they do not.
While some marijuana consumers are wooed by the high THC content in cannabis concentrates—the oils, waxes, and other potent extracts that go into vape-oil cartridges and into “dab” rigs—that’s not the case with most consumers, a recent study found.
In fact, most people—as in 77.5 percent of people surveyed—who use cannabis actually want products with less THC, somewhere between 9 and 20 percent THC, as an article published in the journal Drug and Alcohol Dependence reports.
PORTLAND, ME - SEPTEMBER 6: A store employee holds some "dabs", which are concentrated doses of ... [+] cannabis, at Ganja Candy Factory in Portland on Thursday. (Staff photo by Derek Davis/Portland Portland Press Herald via Getty Images) Portland Press Herald via Getty Images
They want lower THC because they prefer the effects of less THC. Cannabis flower and low-THC products tended to “produce greater positive effects than concentrates,” the researchers found.
“Findings showing that marijuana produces greater positive effects than concentrates are consistent with cannabis administration studies documenting that moderate THC doses are preferred to high doses,” the authors wrote.
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And while it was rare for cannabis of any kind to be associated with negative effects, when it was, it was mostly associated with concentrates.
On top of a less beneficial and desirable high, dabs were also more associated with nasty side-effects like weed hangovers, paranoia, memory problems, and blackouts.
While these negative effects are more pronounced among novice users than experienced users—a category into which most “dabbers” absolutely fall—there’s also a dearth of “positive” effects related to dabbing at all, according to 574 marijuana users surveyed by researchers from Arizona State University.
For most surveyed, dabs aren’t even more effective for pain relief.
All that sounds awful (and, reader, you best believe: it is). So why are dabs “popular” at all—and why do they still enjoy a small if vocal and loyal following willing to pony up $70 for a gram of pine-smelling goo?
Here is the good stuff. Denver Post via Getty Images
Lead researcher Madeline Meier is a professor of psychology at ASU. She and research assistant Sarah Okney surveyed 574 cannabis users recruited online via social media. The users were real stoners, reporting using cannabis about five to six times per week, and using concentrates at least once a month, though some respondents reported dabbing multiple times a day. (Another 275 study respondents dropped out for a very telling reason: they had never used concentrates.)
Demographics of study respondents painted a familiar picture: 55.4 percent male, 74.6 percent white, with an average age of about 32. They reported living in a wide range of states: about 39 percent in states with legal recreational cannabis, 37 percent in medical-only states, and the rest in prohibition country.
And flower cannabis was selected as the “producing the best high” by 61 percent of respondents and the “preferred type” by 77.5 percent. Concentrates were viewed by 70.2 percent of respondents as “most likely to get you paranoid,” and “most likely to cause you to black out” by 84.5 percent of respondents.
Ever have a weed hangover, the feeling that your brain’s wrapped in cotton, and moving through the day feels like trying to run a sprint in a swimming pool? Seventy-five percent of survey respondents felt that concentrates were mostly likely to do that.
“Findings contribute new knowledge by showing that marijuana produces greater positive effects (positive affect and enhanced cognition) than concentrates,” the authors wrote. “In addition, analyses of each person’s comparative appraisals of marijuana vs. concentrates showed that marijuana was selected over concentrates for producing the best high and being the preferred type of cannabis.”
Remarkably, this was the very first study to ask American cannabis users about the subjective effects of their cannabis use, but given how legalization continues to gain traction, it will surely not be the last. A few findings were surprising or inconsistent: While flower cannabis was rated preferable overall, it was also considered “slightly worse than concentrates” in creating “psychotic-like experiences” and “cognitive impairment.”
“One possibility,” the authors guessed, “is that the negative effects of both marijuana and concentrates in our sample are so uncommon and mild that differences between marijuana and concentrates only come apparent when participants are forced to pick which one is worse.”
So why is it that dispensary shelves contain more and more products promising to send you skyward—which in turn has prompted crackdowns from regulators, who are limiting THC in edibles, as well as alarmist warnings from anti-legalization advocates? Part of it is because there are some users who feel they need more THC, either to counterbalance a deficient endocannabinoid system, or because their endocannabinoid systems are overwhelmed with too much weed. In this way, it could be self-fulfilling: the cannabis industry pushes high-THC products, whose users need more THC, who then pursue high-THC products.
As it is, the study didn’t surprise many legalization advocates. “The conclusion that most marijuana consumers prefer low-to-moderate potency options over high potency options is hardly surprising,” as Paul Armentano, deputy director of NORML, said in a release. “Just as the majority of those who consume alcohol prefer relatively low potency beer or wine over hard liquor, most adult-use cannabis consumers gravitate toward herbal cannabis preparations and away from the comparatively stronger alternatives.”
Like all studies, the study was not without its flaws, one of which was treating all concentrates as equal—when there are vast differences in product quality across legal and illegal markets.
“What are we talking about here: big globs of BHO wax or poop soup vape carts?” asked California-based cannabis consultant Sean Donahoe, referring to poor quality extracts containing residual chemicals left over the extraction process. “Any cannabis consumer, or anyone who has consumed anything ever, understands that assessing subjective experiences should look at product type, product quality, product documentation and packaging as well as marketing rather than just wide categories, akin to ‘wine’ vs. ‘spirits.’”
In other words: this study resolves nothing in terms of what’s “better” or “why.” But it does add to the growing pile of evidence that, for most of us, when it comes to THC, less is more.
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654a19932a04171626ac79330ac3980b | https://www.forbes.com/sites/chrisroberts/2020/09/10/joe-bidens-mandatory-rehab-for-drug-users-are-rebranded-jails-that-dont-work-and-cause-overdoses/?sh=18a19a3b6f9d | Joe Biden’s “Mandatory Rehab” For Drug Users Are Rebranded Jails That Don’t Work And Cause Overdoses | Joe Biden’s “Mandatory Rehab” For Drug Users Are Rebranded Jails That Don’t Work And Cause Overdoses
The delicate balancing act that Joe Biden and the Democratic Party are attempting in order to unseat President Donald Trump—variations on a theme of “we’re different from now, yet sort of the same as before, while also better”—leads the presidential hopeful to sometime triangulate his way into incoherence.
Or plain old bad policy choices. A good example of this is whenever Joe Biden talks about drugs. “Credited” as an architect of the country’s mass-incarceration crisis, Biden opposes marijuana legalization, resistance he’s held onto despite overwhelming public support for legal recreational cannabis.
And while Biden insists he’s opposed to incarcerating drug users, last week he repeated earlier calls to sentence nonviolent, low-level drug users to mandatory rehabilitation instead. Biden’s held onto this position for more than a year, despite the fact that in reality, mandatory rehab looks and feels just like prison, and mandatory rehab centers—often privately owned for-profit operations— can be so rife with abuse that even conservative anti-drug groups don’t like the concept.
Add to this mix findings that mandatory addiction treatment simply does not work, as researchers in Russia found in 2016—and even worse, they raise the chance of a fatal overdose once the program ends by as much as 50 percent, research in Massachusetts found—and you have a very questionable policy choice that Biden is nonetheless very committed to.
“With mandatory or coerced treatment, you actually have something that’s neither ethical nor effective,” said Leo Beletsky, professor of Law and Health Sciences at Northeastern University School of Law. “The evidence certainly does not support replacing incarceration with quote unquote mandatory rehab, which in many corners of this country looks pretty much like incarceration, just under a different name.”
On Sept. 3, Joe Biden voiced support for sentencing nonviolent drug offenders to mandatory rehab--a ... [+] concept that in reality looks just like jail and doesn't really work, according to research. Getty Images
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The candidate most recently brought up mandatory rehab during a campaign stop in Wisconsin on Sept. 3.
“Anyone who gets convicted of a drug crime, not one that is in terms of massive selling but consumption, they shouldn’t go to prison. They should go to mandatory rehabilitation,” Biden said. “Mandatory. They’ve got to go. Mandatory rehab.”
(Anyone selling drugs, on the other hand, should still go to jail or prison, as the case may be.)
The Biden campaign did not immediately respond to messages seeking comment. But in this, Biden has at least been consistent.
As OnTheIssues.org noted, he said something similar on August 23, not long after naming Sen. Kamala Harris, the former California attorney general and San Francisco district attorney, as his vice-presidential nominee.
Mandatory rehab also came up a few times during the debates in 2019, when Biden said much the same thing he’s saying now, in response to charges from Sen. Cory Booker—and Kamala Harris—that his old-school approach to drug reform just wasn’t good enough.
“Nobody should be in jail for a drug problem. They should be going directly to a rehabilitation. We build more rehabilitation centers, not prisons,” he said in September 2019 at a debate in Houston.
A patient looks out of the window of a rehabilitation center for heroin addiction. AFP via Getty Images
It’s worth pointing out that as a ticket, Biden-Harris isn’t entirely consistent on drugs. Biden opposes legalization, while Kamala Harris is the Senate sponsor of the MORE Act, which would allow for a nationwide cannabis industry. Suggesting sales or possession should be a misdemeanor and not a violation also puts Biden at odds with most of his own party.
How he would actually govern is an open question, but in the meantime, Biden is pushing what Beletsky and other experts say is a dangerous, punitive, and ineffective “jail lite.” We know this because at least with regard to court-mandated rehab, the future Biden is promising is already a reality across much of the country.
As Healthline noted, 37 states currently allow families and medical professionals to ask a court to order someone into treatment. Some jurisdictions are also trying this out on the local level when a drug offender is arrested and appears before a judge.
Some advocates have claimed that forcing their loved one into rehab was the only thing that saved them—a contention supported by some research in the literature, which has found that “coercive” models actually succeed in keeping participants in rehab. (Maybe because they have no choice; what happens after is another matter.) And, in many areas where rehab centers are difficult or impossible to access, mandatory rehab may be preferable to no rehab at all.
But as Beletsky and Denise Tomasini-Joshi, a division director at the Open Society Foundation’s Public Health Program pointed out in a New York Times op-ed last year, involuntary treatment is by definition a suspension of civil rights and a punitive measure—two of the central features of the drug war.
In one program in Massachusetts, participants live in cells “under lock and key.” They wear orange jumpsuits, with ID badges that say they are “inmates.” They’re supervised by correctional officers. They are, in deed if not word, in jail.
Most rehab programs in the United States can trace their origins to Synanon, a style of ... [+] rehabilitation that is still punitive as well as paternalistic. LMPC via Getty Images
In other states, there are rehab centers that do not have bars, locks, and guards. (There are also rehab centers that force the “patients” into unpaid labor for for-profit companies, as Reveal News reported this year.)
But let’s say the individual sentenced to rehab leaves, or refuses to go—both “logical choices,” Beletsky said, as many of these programs are abusive as well as ineffective.
Their reward for this logical choice is a violation of a court order—which then sends the drug users to jail anyway. In most states, rehab is only an option for a first-time offender. Second time, or sales involved, or a gun involved? Jail. What’s more, nearly all drug crimes are punished on the state level, rather than the federal level. No president can unilaterally convince a state to change its drug laws—and there is good reason to believe that deep-red states would resist if the trick was tried. There’s a good chance that Joe Biden couldn’t even mandate rehab if he tried.
So then why not build more well-funded, attractive, and effective voluntary rehabilitation centers? Funding for this, through the Affordable Care Act, would be something tangible that might actually work. (Even Donald Trump could do this if he wanted to.)
This would be better, as a key predictor for whether rehab is successful is whether the individual undergoing treatment wants to be there.
In saying that he wants to build rehab centers instead of prisons, Joe Biden is dancing close to a solution that science and experts say would work. But in mandating treatment, and not specifying what the treatment centers would look like, he’s settling on a punitive model that is little more than a nicer-looking version of the same old “lock em up” approach.
“The bottom line is a lot of people who want treatment can’t access it, and forcing people into treatment completely misses that target,” Beletsky said.
What Biden is suggesting “uses the coercive arm of the state to force people into programs that make them worse off and put them in harm’s way,” he added.
“It’s little more than a rebranding of punishment, but I guess if there’s a silver lining, he’s signaling that he’s open to talking about more scientific interventions to drug addiction?” Beletsky offered. “It just isn’t coming through yet as an informed opinion.”
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101dfb02aeac3160200063c196a17d51 | https://www.forbes.com/sites/chrisroberts/2020/11/19/can-silicon-valley-help-make-marijuana-less-white-this-trick-for-affordable-capital-might-help/ | Can Silicon Valley Help Make Marijuana Less White? This Trick For Affordable Capital Might Help. | Can Silicon Valley Help Make Marijuana Less White? This Trick For Affordable Capital Might Help.
“Cheap money” can be hard to find in the marijuana industry. Venture capital is never free, but in weed, capitalists have a reputation for being particularly greedy.
A shortage of affordable capital is one reason why the multi-billion-dollar legal cannabis industry is still overwhelmingly white, and why some early efforts at “equity,” or reserving licenses for Black and Brown entrepreneurs, just haven’t worked.
Marijuana legalization was never going to fix the ills of American capitalism. Anyone who told you selling weed in a store would “right the wrongs of the drug war” all by itself was selling you something else.
But cannabis is in the unfortunate position of having to fulfill some very ambitious social-justice promises. For once, a solution for leveling the playing field might be found in Silicon Valley, where a standard practice for raising cheaper capital—vetted and endorsed by a top accelerator—is now available for cannabis companies.
For Black and Brown cannabis entrepreneurs, cheaper capital could be the difference between success ... [+] and failure. A new "safe," developed by software platform Meadow, could help. Courtesy/Meadow
Money is expensive in weed for a few reasons. The few banks who do lend to cannabis businesses charge exorbitant interest rates. Investors are known to demand significant equity in an entrepreneur’s business in exchange for capital.
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And when a cannabis business does score a good investment, as much as 20 percent can be eaten up by “compliance costs,” a nice way to describe “having to pay attorneys to make sure this deal, in a semi-legal industry they aren’t familiar with, isn’t going to land anyone in jail.”
Expensive money, secured at too steep a cost, is one reason why some early equity programs haven’t succeeded in launching a wave of Black and Brown-owned businesses.
“We’ve just seen so many bad deals happen,” said David Hua, the cofounder and CEO of Meadow, a San Francisco-based cannabis software platform. “And we’ve also seen early stage companies get messed up with financing in subsequent rounds.”
Signage for 2700-2800 Sand Hill Road, with flowers, the headqurters of venture capital investment ... [+] firms including Sequoia Capital and Kleiner Perkins Caufield Byers, in the Silicon Valley town of Menlo Park, California, August 25, 2016. In Silicon Valley culture, "Sand Hill Road" is used as a metonym for the venture capital industry, as many prominent venture capital firms have offices along the road. (Photo via Smith Collection/Gado/Getty Images). Getty Images
Meadow was the first marijuana-related company to launch out of Y Combinator, one of the most prestigious accelerators.
At Y Combinator, startups setting out in search of seed money equip themselves with what’s called a “safe,” short for “simple agreement for future equity.”
Nothing more complicated than a standardized and guaranteed-compliant form that any early-stage company can present to a potential investor, a safe leaves only negotiating the company’s valuation cap up to the entrepreneur and the investor.
That’s no small lift, but at least the compliance costs are taken care of—which means an $100,000 investment is just that, and not $80,000 after the lawyers take their share.
“The whole thing requires multiple back and forths, if you’re not using a standard investment document,” Hua said. “The cost of capital becomes super high. You’re spending $20,000 on lawyer, and doing that multiple times.”
Both Hua and his wife, Stephanie, are cannabis entrepreneurs. Stephanie Hua owns an edibles company called Mellows.
After they both raised money for their marijuana start-ups using safes, “we were like, okay, why don’t we open source this to the cannabis community?” David Hua asked.
It wasn’t that easy—there are specific disclosures and other regulatory requirements unique to cannabis—but after four law firms with experience in the cannabis industry took a look, Y Combinator gave the whole affair its blessing.
And so Meadow launched the cannabis industry’s first-ever open-source compliant “safe” launched on Tuesday.
More equity licenses are set to be awarded to small businesses headed by Black and Brown entrepreneurs throughout California. Something like a safe could help them find cheaper money.
That could help these businesses actually compete—and, maybe, fulfill some of marijuana legalization’s lofty promises.
That’s the hope, anyway.
“The challenges these operators have are pretty huge already. I’m not saying it’s going to be the end-all, be-all,” Hua said. “But my personal opinion is that we have an opportunity for the biggest shift of generational wealth.” And if the money is cheaper, so is the opportunity cost.
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9a8a08675df2c694805e2060fd155ccc | https://www.forbes.com/sites/chrisroberts/2020/12/17/after-blockbuster-merger-worlds-largest-cannabis-company-eyes-us-market/?sh=51e891217d65 | After Blockbuster Aphria-Tilray Merger, World’s Largest Cannabis Company Eyes U.S. Market | After Blockbuster Aphria-Tilray Merger, World’s Largest Cannabis Company Eyes U.S. Market
Tilray and Aphria, two of the biggest marijuana companies in Canada, announced plans to merge on Wednesday and create the world’s largest cannabis outfit.
With existing medical and recreational cannabis businesses in Canada and Europe, the new conglomerate is positioning itself to eventually enter the biggest weed market in the world: the U.S.
“The next big prize is the United States,” said Tilray CEO Brendan Kennedy, who will become a board director of the combined company.
Brendan Kennedy, CEO of Canada-based Tilray, which this week announced plans to merge with erstwhile ... [+] competitor Aphria to create the world's largest cannabis company. AFP via Getty Images
Cannabis is still illegal under U.S. federal law, so the company won’t be able to export into the country unless laws change under President-elect Joe Biden. And as of now, the new company, to operate under the Tilray brand, does not have any US-based cannabis cultivation or retail licenses.
But both firms have planned for an American future. Tilray’s Manitoba Harvest, a CBD company, has a U.S. footprint and Aphria bought Georgia-based craft beer company SweetWater Brewing for $300 million last month, which could function as a launchpad for the company’s entrance into the U.S. market.
“There seems to be cross over to bring some of the Canadian [cannabis] brands to the U.S., and some SweetWater brands to Canada,” Kennedy said Thursday.
Pending approval from regulators, the companies will effect an all-stock merger to create a sole firm with an estimated market value of $3.9 billion and combined revenue of $695 million, making the company bigger than U.S.-based giant Curaleaf.
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The new company will operate as "Tilray," which is traded on the NASDAQ.
Aphria shareholders will own 62 percent of the new company, and Aphria CEO Irwin Simon will be the new entity's chief executive and chairman.
A worker checks cannabis plants in a greenhouse of Tilray medical cannabis producer's European ... [+] production site in Cantanhede, on April 24, 2018. AFP via Getty Images
The deal would need to be approved by regulators in both Canada and in the United States, where shares of both Aphria and Tilray are traded on NASDAQ.
2020 has been a great year for American cannabis companies—with demand soaring during the COVID-19 pandemic lockdowns—but a very hard time for their counterparts in Canada, where biblical oversupply has saturated a limited market and crashed prices.
But things would turn around if the U.S. market was open to Canadian competition. And that seems to be the rosy future that Canadian cannabis giants Aphria and Tilray are betting on.
“I think medical cannabis will be legal at the federal level, which means medical cannabis can cross state lines and be imported into the U.S., like we export cannabis from Canada and Portugal to about 15 countries now,” Kennedy said. “Anyone who thinks there’s a state-specific medical market is wrong.”
As for the recreational market, Kennedy says the state-specific markets, with interstate trade banned, “are not going to last long.”
Kennedy believes that cannabis will be distributed like alcohol and tobacco within two years’ time. That would require significant overhaul of US federal drug laws—and would significantly disrupt all US cannabis companies’ existing business models.
Tilray shares surged 32% in light of the merger news, while Aphria shares jumped more than 6% on Wednesday. Aphria slumped 10% on Thursday after its high on Wednesday and Tilray is down 8% from Wednesday.
The deal, first reported by cannabis consultant and Twitter personality @BettingBruiser on Tuesday evening, comes during the same week when other Canadian cannabis companies are laying off workers and reducing production in attempts to stave off catastrophe.
Aurora Cannabis, a direct competitor to Aphria and Tilray, cut 200 jobs and "indefinitely" halted grow operations at the company's enormous greenhouse in Alberta, as Marijuana Business Daily first reported.
Canopy, also a Canadian operator, shuttered grow operations in four cities to cut costs and improve margins.
And Tilray is far from profitable. In its most recent quarterly report filed with the Securities and Exchange Commission in September, the company posted more than $250 million in losses in 2020.
In the two years since Canada legalized recreational marijuana nationwide, investors and entrepreneurs have seen a full boom-and-bust cycle. With opportunity in the United States limited by federal law, excited retail and institutional investors pumped so much cash into Canadian firms that several became unicorns.
10 June 2020, Schleswig-Holstein, Neumünster: The shell of a hall is located in an industrial area. ... [+] From the end of 2020, Aphria Deutschland GmbH intends to harvest the first medical cannabis grown in Germany in Neumünster. The building contains 14000 tons of reinforced concrete, 400 installed cameras, NATO wire and a drone defense concept. (to dpa "Cannabis chief grower wants to get part of the business from underground") Photo: Frank Molter/dpa (Photo by Frank Molter/picture alliance via Getty Images) dpa/picture alliance via Getty Images
Flush with investment, companies built enormous greenhouse operations, producing more cannabis than the population of Canada, a smaller market than the U.S. state of California alone, could consume. Value in some companies has dropped by 50 percent or more from 2018 highs.
Meanwhile, in the United States, several large cannabis companies are continuing to snap up new licenses in new states—and continuing to post record profits, including multi-state operators like Cresco Labs, Green Thumb Industries and Curaleaf.
President-elect Joe Biden has said that he favors decriminalization of cannabis but has made no indication of relaxing federal laws that restrict banking, tax cannabis firms more heavily than other businesses, and prohibit interstate trade.
Laws that would ease these rules and open up the US cannabis industry to more opportunity and investment have been bottled up in the Republican-controlled Senate for years.
Will Yakowicz contributed to reporting for this story.
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b6bf84120df50a5452c653b9f39304f3 | https://www.forbes.com/sites/chrisroberts/2021/02/01/top-senate-democrats-well-legalize-marijuana/?sh=a06009d215eb | Top Senate Democrats: We’ll Legalize Marijuana | Top Senate Democrats: We’ll Legalize Marijuana
Cannabis activists have been lobbying Congress for decades. Will the Biden administration finally ... [+] legalize marijuana? (Photo by Caroline Brehman/CQ-Roll Call, Inc via Getty Images)
In control of the upper house of Congress for mere weeks, top Senate Democrats vowed Monday to user their newfound power to legalize marijuana—and to do so soon.
Despite broad support from the American public and repeated success of marijuana legalization at the state level, major cannabis policy reform at the federal level has proved elusive. Bills that would allow legal cannabis businesses to access banks or claim normal business deductions have passed the House of Representatives. But under the leadership of Sen. Mitch McConnell (R-KY), the former Majority Leader, the Senate has been a reliable roadblock, obstructing even discussion of federal cannabis policy reform.
With the Democrats in control of both the White House as well as both houses of Congress, that now seems poised to end.
In a joint statement, new Senate Majority Leader Chuck Schumer (D-NY) and Sens. Corey Booker (D-NJ) and Ron Wyden (D-OR) said they would pursue and prioritize “comprehensive cannabis reform legislation” in the current session.
Senate Majority Leader Chuck Schumer has put his weight behind legalization. (Photo By Tom Williams/CQ-Roll Call, Inc via Getty Images)
In addition to legalizing cannabis on the federal level, the senators pledged to also pursue measures that would enrich and empower people of color, who continue to be arrested and incarcerated for nonviolent drug offenses at disproportionate rates.
“The War on Drugs has been a war on people—particularly people of color,” the senators said their statement, released Monday afternoon. “Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war andend decades of harm inflicted on communities of color across the country.”
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“But that alone is not enough,” they added. “As states continue to legalize marijuana, we must also enact measures that will lift up people who were unfairly targeted in the War on Drugs.”
“The Senate will make consideration of these reforms a priority.”
No details were immediately available. In the coming weeks, Senate Democrats will publish a legalization proposal that would include “restorative justice” and measures to “protect public health” as well as “responsible taxes and regulations,” they said Monday.
Debates over details like these have stalled statewide legalization measures, most notably in New Jersey and New York. Unlike the sometimes opaque lawmaking process in state capitols, Booker, Wyden, and Schumer promised to involve “stakeholder groups” and welcome their input.
Legalizing marijuana will take significant action by the states as well as Congress. In addition to the federal Controlled Substances Act, which declares cannabis a dangerous and highly addictive drug with no medical value, all 50 states have laws on the books outlawing cannabis to some degree. Even states that have legalized cannabis for adults 21 and over still impose penalties for youth or teen possession.
It’s unclear what impact, if any, federal reform would have on state law. But other advocacy groups and lawmakers involved in federal cannabis legalization welcomed the top Democrats’ declaration to legalize as a significant milestone.
“Last year, we moved heaven and earth to get a bill passed through the House with key criminal justice and restorative justice provisions, but Mitch McConnell blocked consideration,” said U.S. Rep. Earl Blumenauer (D-OR), who chairs the House’s cannabis caucus, in a separate statement issued Monday. “Now, new Senate leadership is prepared to pick up the mantle.”
“The missing ingredient in cannabis reform has been Senate action,” he added. “To finally have the active leadership of the new Senate majority leader, rather than being stuck in McConnell’s legislative graveyard, makes all the difference in the world.”
Legalization is also counting on at least one advocate in the White House. Though President Joe Biden has historically been opposed or at least lukewarm on cannabis legalization, Vice President Kamala Harris, when she was a California senator, sponsored the Senate version of a comprehensive legalization bill.
Many legalization advocates believe Harris will use her position to push Biden and whip votes in the Senate for a legalization push.
“After years of marijuana policy reform being neglected and mocked by Mitch McConnell, it is heartening to see these Senate leaders working together to repeal the senseless and cruel policy of marijuana prohibition,” Justin Strekal, the political director of the National Organization for the Reform of Marijuana Laws, said in a statement. “We look forward to constructively engaging with Congressional leaders, other organizations, and those communities that have historically been most impacted by criminalization in order to ensure that we craft the strongest and most comprehensive bill possible to right the wrongs of the nearly a century of federal cannabis prohibition.”
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554fd5cd41e3863edb6e39efdfe0d339 | https://www.forbes.com/sites/chrisroberts/2021/02/09/tobacco-giant-altria-is-pushing-marijuana-reform-on-congress-and-state-lawmakers/ | How Tobacco Giant Altria Is Becoming A Cannabis Company | How Tobacco Giant Altria Is Becoming A Cannabis Company
Altria, one of the world’s biggest tobacco companies, is well on its way to also being one of the world’s biggest and most influential cannabis companies.
After spending $1.8 billion to buy a stake in a multi-national cannabis company in 2018, Altria is now applying pressure in the halls of Congress and at the state level to push cannabis-friendly laws, recent filings and reporting show.
One of the world's largest cigarette companies has methodically built a strong position in the ... [+] burgeoning cannabis industry. ASSOCIATED PRESS
Whispers of a power play from Big Tobacco to capture the cannabis industry have swirled for years in marijuana legalization and cannabis-industry circles.
And now it appears to be happening, albeit slowly, out in the open, and in form similar to other big-business techniques: acquisition, intellectual property, and lobbying for friendly regulation.
Altria spent $1.8 billion in December 2018 for a 45 percent stake in Cronos Group, one of the first major multinational cannabis firms based in Canada.
Since then, Altria has moved on multiple fronts to protect its investment.
As Forbes first reported, Altria has quietly added cannabis technology to its portfolio, acquiring patented marijuana vaporizers and filing new patent applications for proprietary devices.
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And in a sign of both the maturation of cannabis as a serious business—and in a clear indication of how the cannabis industry is using the same tactics employed by Silicon Valley, alcohol, and other big business sectors to secure favorable regulation—Altria is also covering its bases politically, at both the state and federal levels.
To woo members of Congress, Altria in 2020 hired Denver-based Brownstein Hyatt Farber Shreck, one of the nation’s top cannabis and hemp law firms, on policies related to CBD and “non-tobacco excise taxes,” recent federal disclosure filings show.
Altria paid three lobbyists from the firm a total of $30,000 in the fourth quarter of 2020 to lobby the House on tax issues, according to filings.
In the Senate, Altria shelled out $50,000 to two lobbyists from Akin Gump Strauss Hauer & Feld, another lobbying firm with an active cannabis policy shop, to leverage lawmakers on “issues related to hemp-based cannabidiol (CBD)” as well as a proposal to raise the legal age for tobacco use to 21, filings show.
And as Cannabis Wire first reported on Sunday, Altria is also pushing marijuana legalization at the state level. In comments to Cannabis Wire, the company also officially came out in support of federal legalizaition.
Altria last month registered to lobby for “Equitable Regulation of Cannabis Sales in Virginia,” the web site reported.
And you could argue that Altria is already reaping results.
Both houses of the Virginia General Assembly last week passed bills that would legalize adult-use cannabis use and sales in the state. If the bills are approved by Gov. Ralph Northam, sales in Virginia, where Altria maintains corporate headquarters in the state capital of Richmond, would begin in 2023.
By then, it’s quite possible that federal law will have changed in Altria’s favor.
Last week, Democratic Senate leadership, including Majority Leader Chuck Schumer, said that legalization would be a priority for the current Congress.
And that’s something that Altria also very clearly favors—and may have a direct hand in influencing.
“Altria supports the federal legalization of cannabis under an appropriate regulatory framework,” George Parman, an Altria spokesman, told Cannabis Wire.
“As a stakeholder in this industry we intend to work with policy makers and regulators in support of a transparent, responsible, and equitable operating environment for the sale of cannabis,” he added.
Exactly what that “appropriate framework” looks like in Altria’s eyes remains to be seen.
Several bills that would reschedule cannabis and allow for federal sales have been introduced in both houses of Congress. Only in the House has cannabis reform come up for a vote—and it passed. Efforts in the Senate have been blocked by past Republican leadership.
Under Schumer, it seems likely that the Senate will vote eventually on cannabis reform. And with Altria, Big Tobacco—now also Big Marijuana—is poised to have a seat at the table.
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559d0fe7275b24918cc7b25dbfa51d4c | https://www.forbes.com/sites/chrisroberts/2021/02/24/marijuana-legalization-is-coming-to-pennsylvania-if-republicans-allow-it/?sh=170a387768b6 | Pennsylvania Could Be Next State To Legalize Recreational Cannabis | Pennsylvania Could Be Next State To Legalize Recreational Cannabis
The next state to legalize marijuana for adults may well be Pennsylvania, where two top state lawmakers introduced a bipartisan legalization bill on Wednesday.
Past proposals to legalize in the state have stalled in the Republican-controlled state legislature. This latest proposal, introduced by state senators Shari Street (D-Philadelphia) and Dan Laughlin (R-Erie), is bipartisan.
It would legalize adult-use cannabis for adults 21 and over, decriminalize a yet-to-be-determined amount of marijuana, and could raise as much as $1 billion in tax revenue for the state, the pair said in a statement.
Pennsylvania might be the next state to legalize recreational cannabis if a bipartisan legalization ... [+] proposal passes the state's Senate. (AP Photo/Charles Rex Arbogast) ASSOCIATED PRESS
If passed by the legislature and signed into law by Gov. Tom Wolf—who has repeatedly said that legalizing marijuana is a top priority—the bill would also expunge past non-violent marijuana convictions, set aside business licenses for minorities and victims of the drug war, and allow “limited home grow” for medical-marijuana patients.
Mindful that legalization in other states has created de-facto segregation, with corporate cannabis empires dominated by white people, Pennsylvania’s proposal would make the state’s industry “the most diverse and inclusive in the country while enabling those who have been harmed by prohibition to seal their records and rebuild their lives,” Street said in a statement.
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“As the marijuana movement reaches Pennsylvania, legalization must be done the right way,” Laughlin added. “This bill ensures a legalized market in the Commonwealth is implemented safely and responsibly, with a thoughtful approach that provides opportunities to medical and recreational consumers, farmers, and small, medium and minority-owned businesses.”
Already inevitable, legalization is looking increasingly imminent in the Keystone State, which would instantly become the biggest adult-use market on the East Coast.
And legalization would have consequences in future presidential elections, as Pennsylvania would become the first key swing state to legalize adult-use cannabis.
While New York Gov. Andrew Cuomo is also pushing legalization in his state—something he’s proposed before without success—cannabis may have more political momentum in Pennsylvania than anywhere else.
Polling repeatedly shows that 60 percent or more of likely voters in the state support legalization.
Both Wolf, the governor, and Lt. Gov. John Fetterman support legalization, and have been pushing state lawmakers to take swift and decisive action on legalization since last year.
Fetterman, who is a candidate for US Senate and has become something of a folk hero for his outspoken media interviews and workwear fashion choices, flies a cannabis-leaf flag on the balcony of his office at the state capitol.
UNITED STATES - APRIL 3: U.S. Senate candidate and Braddock, Pa. Mayor John Fetterman shakes hands ... [+] as he arrives for a meet and greet campaign stop at the Interstate Drafthouse in Philadelphia on Sunday, April 3, 2016. Fetterman is running as a Democrat for Sen. Pat Toomey's seat. (Photo By Bill Clark/CQ Roll Call) CQ-Roll Call, Inc via Getty Images
HARRISBURG, PENNSYLVANIA, UNITED STATES - 2021/01/05: Flags are seen hanging from the balcony ... [+] outside of Pennsylvania Lieutenant Governor John Fetterman's office as pro-Trump demonstrators rally below, Supporters of President Donald Trump urged legislators to decertify the election during the "Hear Us Roar" rally at the Pennsylvania State Capitol. (Photo by Paul Weaver/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images
And Wolf has made legalization one of his top priorities for the state legislature for 2021, as he said during a recent press conference.
And Pennsylvania already has a thriving medical cannabis market and a burgeoning hemp industry. Sales of medical marijuana were projected to reach $500 million in 2020, and could double to $1 billion by 2023, according to Marijuana Business Daily.
Past legalization efforts have become repeatedly stalled in the state General Assembly, which is controlled by Republicans. Last fall, Republican leadership in both the state Senate and the House refused to schedule hearings on several proposals. And Republicans still hold a majority in both houses of the state Legislature.
That may change now that neighboring New Jersey has finally approved a framework for a commercial adult-use cannabis industry.
And given marijuana’s popularity in a state narrowly won by President Joe Biden over Donald Trump in the November presidential elections, Republicans may have no choice but to give legalization a vote, or suffer bipartisan consequences.
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ebd8f59309dec6e364e0ce0b2ac6af79 | https://www.forbes.com/sites/chrisroberts/2021/04/20/happy-420-congress-passes-marijuana-banking-reform-but-cannabis-is-still-cash-only-for-now/?sh=16a8615cc219&mc_cid=a273f47586&mc_eid=8d139ada55 | Happy 4/20: House Passes Marijuana Banking Reform, But Cannabis Is Still Cash Only—For Now | Happy 4/20: House Passes Marijuana Banking Reform, But Cannabis Is Still Cash Only—For Now
In a bipartisan vote, the US House of Representatives on Monday approved reform of federal banking rules that would finally allow legal marijuana businesses to access banks.
Now, ending a dangerous and unwieldy cash-only cannabis industry—and encouraging investment that would diversify and make more equal what’s to date been an industry dominated mostly by white men and wealthy capitalists—heads yet again to the US Senate, which is where most cannabis reform bills have gone to die.
Activists from the DC Marijuana Justice (DCJM) wave flags during a rally to demand Congress to pass ... [+] cannabis reform legislation on the East Lawn of the US Capitol in Washington, DC on October 8, 2019 (Photo by Olivier Douliery / AFP) (Photo by OLIVIER DOULIERY/AFP via Getty Images) AFP via Getty Images
For the fourth time, the House voted to approve what’s known as the Secure and Fair Enforcement Banking Act, or SAFE Act.
Monday’s vote was 321 to 101, and included support from a majority of Republicans.
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Though cannabis is legal at some level in 47 states—and adult-use cannabis is a booming billion-dollar industry in more than a dozen, with markets in four more states, including New York and New Jersey, soon to open—nearly every major bank and credit unions refuses to accept business from legal cannabis companies, for fear of federal prosecution or penalty.
This excuse strikes some observers as dishonest—banks for years did banner business with very illegal drug cartels, after all—and there are some banks who quietly accept cannabis customers.
However, the practical effect has been a legal industry, worth billions of dollars, forced to conduct basic transactions all in hard cash, including paying state and federal taxes, an arrangement that critics say is unfair and unsafe.
The SAFE Act clarifies that transactions involving “legitimate cannabis-related businesses” are not subject to anti-money laundering laws and that banks won’t run afoul of asset forfeiture proceedings for handling legal cannabis business’s accounts.
Sponsors say banking reform will make running marijuana businesses easier and safer. But we’ve been here before.
Banking reform was approved in the House already: once as a stand-alone bill, and two more times as part of COVID-19 relief packages.
Now the action moves to the US Senate, where, despite the promise of Majority Leader Chuck Schumer (D-NY) that cannabis legalization will happen—and soon—cannabis banking still faces an uphill climb.
It seems highly likely that the Senate version of the SAFE Banking Act will at least get a hearing, which is more than the bill could expect when Sen. Mitch McConnell was Majority Leader.
The chairman of the Senate Banking Committee is Sen. Sherrod Brown, an Ohio Democrat whose state has a medical-marijuana industry. And the ranking member, Sen. Patrick Toomey, is a Republican from Pennsylvania—which is poised to be one of the next states to legalize adult-use cannabis.
The Senate version is sponsored by Sen. Jeff Merkley (D-OR). Merkley has 32 cosponsors, including seven Republicans. But owing to the Senate’s arcane rules, sixty votes are required to pass meaningful legislation absent parliamentary maneuvering.
And so, even though allowing cannabis firms to pay taxes to the federal government that outlaws them is considered the most conservative marijuana policy reform Congress could pursue, it’s by no means guaranteed.
Still, cannabis reform advocates and industry lobbyists have something meaningful to celebrate.
“From the lack of startup capital for the exhaustive application process to managing the extraordinary operational costs, minority business owners often face the painful decision to give up or sell their interests to predatory investors who use management agreements that deprive minority operators of meaningful rights of ownership," said Amber Littlejohn, executive director of the Minority Cannabis Business Association.
SAFE Banking could fix that—if the Senate abides.
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989fa5bb90f8ba735136432312311216 | https://www.forbes.com/sites/chrisroberts/2021/04/20/you-can-smoke-marijuana-outside-in-new-york-but-should-you/ | You Can Smoke Marijuana Outside In New York. But Should You? | You Can Smoke Marijuana Outside In New York. But Should You?
New York is the most recent state to legalize marijuana for adults. By at least one metric, New York is also the best state to legalize adult-use cannabis.
Unlike in Colorado or California, it’s legal to smoke marijuana outside in New York. While western states have banned public consumption, New York’s legalization law permits cannabis to be consumed almost everywhere it’s legal to consume tobacco.
There are a few exceptions—you can’t smoke weed in a car, for example, even if it’s not moving—but the general rule in New York State is: if cigarettes are allowed, so is weed.
“As far as right now, the law passing today, if you can smoke tobacco there, you could smoke marijuana there,” as state Sen. Liz Krueger, one of the Marijuana Regulation and Taxation Act’s sponsors, told the New York Times shortly after the bill passed on March 31.
But should you? That’s a different question, and the answer varies depending on the setting.
Eliana Miss Illi, General Manager of Weed World poses as she smokes a joint on 7th Avenue in Midtown ... [+] New York City, March 31, 2021. - New York Governor Andrew Cuomo signed legislation legalizing recreational marijuana on March 31. 2021, with a large chunk of tax revenues from sales set to go to minority communities. New York joins 14 other US states and the District of Columbia in permitting cannabis after lawmakers in both state chambers, where Cuomo's Democratic Party holds strong majorities, backed the bill on March 30. (Photo by Kena Betancur / AFP) (Photo by KENA BETANCUR/AFP via Getty Images) AFP via Getty Images
“There are countless things that are technically legal to do in public, but just because something is legal doesn't mean you should be overtly obnoxious about it simply because you can,” said Erik Altieri, the executive director of National Organization for the Reform of Marijuana Laws (NORML).
This raises questions less of the law than of etiquette, a sort of ongoing public-relations campaign in which cannabis consumers have an opportunity to model social responsibility.
Cannabis is absolutely healthier than tobacco, but just since Baby Boomers proudly grew up eating breakfast while their parents worked through a second pack of Chesterfields—and look how they turned out!—doesn’t mean you should you pass out blunts at your next baby shower, explained cannabis journalist and culture expert Lindsay MaHarry.
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Keep in mind that anti-smoking laws ban cigarette use at bus stops, in parks, in schools, and workplaces. Anyone caught smoking weed in these places in New York risks a $25 fine, community service—and, worst of all, making a scene.
“Shoving it down people’s throats is not the move,” MaHarry said, laying out the general ethos. “You need to have decorum when you do it. Have respect for the people around you.”
Okay, what about the bar?
Bars and restaurants have outdoor patios. Smoking cigarettes is banned here, but before and during the COVID-19 pandemic, it’s extremely common to encounter someone smoking a cigarette in one of these places.
As Spectrum News reported, it’s not allowed to smoke cannabis at your local’s smoking patio or after you finish another fine outdoor dining experience… but here, the letter of the law matters less than the spirit of the occasion.
Does it seem okay? Try it out. Are you bothering anyone? Cut it out.
“It’s about disrupting the space,” MaHarry explained. “If you’re eating a meal, you don’t want someone smoking something next to you. It doesn’t matter what you’re smoking, if the smell is overpowering. It’s like blasting music at your dinner table. You’re taking over the space with what you’re doing, which is never really cool.”
Okay, what about the kids?
If marijuana legalization has a third rail, it’s the children. Unfounded fears of teens zonked out on the pot have been weaponized by law-enforcement lobbies, prohibition-minded lawmakers, and unscrupulous grifters as reason why cannabis must remain cause to imprison and impoverish freedom-loving Americans.
Even legal marijuana has been used as a pretext to use the state to punish parents for using cannabis.
Luckily, cannabis-consenting adults have plenty of discreet options to choose from if they want to smoke weed at a kids’ birthday party or at their kids’ soccer game. You can vape—and in some circles, a PAX is more acceptable than a JUUL—you can nibble an edible, you can quaff a tincture.
You can also politely excuse yourself to a quiet corner of the backyard or park for your joint break, sort of like you would with a cigarette. Or, again, you can just take stock of the moment. Don’t hotbox a car with kids in the back, don’t rip bowls in a kids’ face, and don’t have them out blunts, but otherwise: if you’re a respectful adult, be a respectful stoned adult.
LOS ANGELES, CALIFORNIA - APRIL 20: El Motas, creator of Red Rabbit Liquor attends Welcome to ... [+] Cannacity - 'She's Smokin' Event on April 20, 2019 in Los Angeles, California. (Photo by Michael Bezjian/Getty Images for The Artists Project) Getty Images for The Artists Project
“It’s a tricky one… but I don’t think there’s anything wrong with smoking at the beach when there’s kids nearby,” MaHarry said. “It’s a cultural thing. I wouldn’t do it on a beach outside of Boston, but if I’m Malibu, it’s probably going to be okay.”
“It’s less about the kid, than are you going to offend the family, or disrupt what peace you’re in? You can feel the vibe and know when it’s okay and when it’s not okay.”
Okay, I’m too high.
Here’s where libertarians and “personal responsibility” enters the equation. Alcohol is legal, but it’s not socially acceptable to stagger around drunk, leaning into peoples’ faces, belching great hops-flavored clouds. Likewise, it’s a bad look to be so stoned you can’t unlock your own phone to Google (again) the name of the place you think you’re going.
You have got to figure out your limits and then abide by them.
“Think about how annoying drunk people are. Drunk people suck,” MaHarry said. “Don’t disrupt people’s days. Don’t be destructive.”
Okay, but people are complaining about the smell!
Okay, and so what? They were going to do that anyway. But again, ask yourself: Are you making yourself or your weed use the center of attention? That’s selfish, oafish behavior. Are you responsibly exercising your newfound right, enjoying yourself and your surroundings? That’s what’s up.
Cannabis is smelly, but so are cigarettes. Be polite and exercise your rights with a clear conscience.
“Legalization can protect you from arrest, but it can't protect you from people thinking you're an asshole,” said NORML’s Altieri. “Consume responsibly.”
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aaef3a648a467a40484f212f3a0d1f5b | https://www.forbes.com/sites/chrisroberts/2021/04/30/chuck-schumers-marijuana-legalization-plan-has-a-joe-biden-problem/?sh=3ae403b342a9 | Chuck Schumer’s Marijuana Legalization Plan Has A Joe Biden Problem | Chuck Schumer’s Marijuana Legalization Plan Has A Joe Biden Problem
President Joe Biden marked his first 100 days in the White House this week with a pair of grandiloquent speeches packed with ambitious promises.
The sparse crowd of socially distanced lawmakers in Congress on Wednesday and the motorists at Thursday’s car rally in Georgia heard the same message: America is back, and so is an activist government. Channeling Franklin Roosevelt more than Barack Obama, Biden vowed to raise taxes, provide guaranteed jobs, and restore a social safety net to a level not seen since New Dealers were in office.
As NBC News noted on Friday, that’s pleasantly surprised progressive lawmakers, many of whom backed Sen. Bernie Sanders over the president in last year’s primary.
But one very popular reform that Biden is not pushing is any review of the Controlled Substances Act, the Nixon-era federal law that outlaws marijuana and other drugs.
So far, the Biden Administration’s signature “accomplishment” on marijuana has been to fire White House staffers for admitting they used cannabis, even in states where the drug is legal. Prominent Democratic senators are in turn saying they aren’t on board with legalization.
"We continue to see leadership on the issue of ending our nation's failed and racist prohibition on marijuana from just about everyone except the White House,” said Erik Altieri, the executive director of the National Organization For the Reform of Marijuana Laws, the nation’s oldest dedicated legalization lobby.
All this may have foiled Majority Leader Chuck Schumer’s attempt to push legalization in the Senate before it even has a chance to begin, kicking federal reform to after the mid-term elections, or to Biden’s second term (if there is one).
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WASHINGTON, DC - APRIL 28: U.S. President Joe Biden addresses a joint session of Congress in the ... [+] House chamber of the U.S. Capitol April 28, 2021 in Washington, DC. On the eve of his 100th day in office, Biden spoke about his plan to revive America’s economy and health as it continues to recover from a devastating pandemic. He delivered his speech before 200 invited lawmakers and other government officials instead of the normal 1600 guests because of the ongoing COVID-19 pandemic. (Photo by Melina Mara-Pool/Getty Images) Getty Images
In February, Schumer announced that his Senate would do what no other Senate has done, and introduce and pass legislation reforming federal marijuana policy. Even passing banking reform, as the House has done several times, most recently on the eve of 4/20, would be significant, but Schumer has set the bar at outright legalization.
“Hopefully, the next time this unofficial holiday, 4/20, rolls around, our country will have made progress in addressing the massive overcriminalization of marijuana in a meaningful and comprehensive way,” said Schumer, who also tweeted out a “Happy 420” message.
Whether this is smart politics or naked pandering (Schumer represents New York state, where just-legalized cannabis is expected to be a $4.2 billion industry in just a few years’ time) may not matter, since with Biden in office, Schumer appears to be whistling in the dark.
When asked by the San Francisco Chronicle about Biden’s plans for drug-policy reform, Vice President Kamala Harris replied that the president is simply too busy, with coronavirus relief, dismantling Trump-era policies, and all that.
No president is too busy to set a clear policy agenda that is then amplified (or at least supported) by lawmakers in the Senate. Very tellingly, Biden has not done this, either. As Politico reported on 4/20, Democratic senators from New Hampshire, Montana, and elsewhere have already said they won’t support a federal legalization plan.
“I don’t support legalizing marijuana,” said New Hampshire’s Sen. Jeanne Shaheen—whose state is surrounded on all sides by places with legal cannabis: Maine, Massachusetts, Vermont, and Canada. For justification, Shaheen reached very deep into the drug-war bag and pulled out a version of gateway theory, suggesting that legal pot would turn more people onto deadly opiates.
WASHINGTON, DC - MAY 07: Sen. Jeanne Shaheen, D-NH, questions witnesses during a Senate Armed ... [+] Services hearing on Capitol Hill in Washington, DC on Thursday, May 7, 2020. The hearing is being held to examine the nominations of Kenneth J. Braithwaite to be Secretary of the Navy, James H. Anderson to be a Deputy Under Secretary, and General Charles Q. Brown, Jr. to be Chief of Staff, United States Air Force. (Photo by Kevin Dietsch-Pool/Getty Images) Getty Images
Other lawmakers who said Schumer’s plan isn’t for them include Sen. Jon Tester of Montana and Sen. Joe Manchin of West Virginia.
Such open defiance means that Schumer is either not very good at whipping votes, or he’s being undermined by the leader of his own party in the White House.
It could be both, but either way, the practical effect is that whatever cannabis bill he finally introduces has no chance of passage.
Since 60 votes are needed to pass Senate legislation, and since there are only 50 Democrats in the Senate, Schumer needs every single Democrat as well as some Republicans. He has neither, which means marijuana legalization still isn’t happening at the federal level under President Joe Biden.
This has upset and irritated cannabis advocates who hoped for more, and who remember all too well being bitterly disappointed by Obama’s first-term drug policies more than a decade ago, but maybe they shouldn’t have misled themselves.
Biden never said he’d legalize marijuana federally, even though that’s what almost 70 percent of Americans want. Yes, adult-use cannabis is now legal in all of the country’s biggest cities—New York, Chicago, Los Angeles. Biden can keep that status quo intact without angering law-enforcement lobbies or social conservatives of the kind that Democratic strategists still believe are necessary to win votes in places like Georgia, Texas, and South Florida. On drugs, Biden came just as advertised.
“By failing to express any support for ending a war on marijuana that leads to the arrest of over 500,000 mostly black and brown Americans per year, Joe Biden certainly isn't helping whip the votes in Congress or doing himself any favors with the general public,” NORML’s Altieri added. “Our elected officials in the House and Senate can and should move forward without him, but Biden's old school mentality on marijuana isn't making the path to civil liberties and racial justice any easier.”
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8ec64aee3fe3e6c2351cad82c6914e5e | https://www.forbes.com/sites/chrissamcfarlane/2019/02/07/why-the-next-evolution-of-global-health-care-will-be-blockchain-based/ | Why The Next Evolution Of Global Health Care Will Be Blockchain-Based | Why The Next Evolution Of Global Health Care Will Be Blockchain-Based
Blockchain technology can improve how researchers access medical data. Pixabay.
This distributed ledger technology can improve security, efficiency, and the coordination of health care systems as an answer to aging legacy infrastructures.
Health care systems are cornerstones of all modern societies since they provide vital services. As they grow, however, many become less efficient and secure, which can make health care services more expensive and less accessible to the general public. Beyond being the buzzword of 2017, blockchain opens the door to solutions in an increasing global healthcare expenditure that is expected to increase to USD $10.059 trillion by 2022.
Healthcare Today
While the digitization of healthcare has paved the way for modern infrastructure, current privacy laws, software, and databases have slowly taken the power from the patient. Our existing software faces a few key problems that have both short-term and long-term implications—affecting both healthcare providers and their patients. Inefficiency, disjunction between databases, the disempowerment of patients, high expenses, and security concerns are just some of the many problems the healthcare industry faces.
With a move towards ease of access to data and decentralization in a world where security continues to pose a serious risk, blockchain is becoming the answer to many industry-wide obstacles. Here is how blockchain is applied to many of industry’s burgeoning issues:
Security
Healthcare systems are being targeted by cyber attacks because their legacy infrastructures make data vulnerable. In 2017, the ransomware “WannaCry” crippled the National Health Service (NHS) in the United Kingdom and affected over 150 countries. In 2018 and 2019 respectively, hackers broke into Singapore’s government health database and most recently the HIV status of over 14,000 people leaked online, Singapore authorities say.
Given that blockchain is a distributed ledger technology and does not require third-party interventions, it allows institutions to decentralize their databases. Hence, by using blockchain, health care systems can significantly reduce their risk of being subject to cyber threats. It would take too much time and energy for hackers to access all of the nodes within the network and to infect the system.
It is highly important to create an environment where clinicians, administrators, and patients (also known as consumers of healthcare) know that their privacy and data are protected. Such an ecosystem can be enabled by blockchain, either by allowing users to own their information by joining the chain or by helping hospitals to secure their servers and distribute the data on a network.
Physicians and administrators can significantly benefit from blockchain as the technology would... [+] allow them to share a common platform. Pixabay
Efficiency & Coordination
Health care systems are remarkably inefficient. Since they operate with many independent databases, especially in large centralized systems, there is a lack of cohesive communication between these distinct silos. By creating a unified ecosystem of data, distributed ledger software encourages cooperation between networks, improving payment processing, patient tracking, and enterprise workflow.
Sectors like the food industry are already seeing wins with blockchain that healthcare can emulate in regards to supply chain management. Companies like Walmart implemented IBM's blockchain for food traceability, impacting pharmaceutical stakeholders to participate in the non-profit Center For Supply Chain Studies DSCSA and Blockchain Phase 2 Study. The FDA who is behind this initiative, as declared by current FDA Commissioner Gottleib requires all entities governed under FDA “full implementation of the Drug Supply Chain Security Act, [and] to make sure that every link in the U.S. Drug Supply must be secure."
Other emerging use cases such as clinical trials involve the management of numerous locations, sources, and stakeholders, along with supervision of substantial amounts of sensitive data. Since blockchain may facilitate data storage, the technology can fuel innovation, as researchers will have greater access to medical record information.
The Future of Healthcare
Blockchain technology is expected to transform the way key players in health care systems interact with each other. Nonetheless, this technological revolution can only succeed with consortium thinking, which implies collaboration between all stakeholders in the sector. In the United States, Synaptic Health Alliance, a diverse consortium of healthcare organizations and other emerging startup consortia are working to identify and monetize shared opportunities in the blockchain space.
Blockchain is not without its problems.
Right now the initial costs can be high, and the integrations need to happen. Currently, most blockchain networks are designed so transactions are publicly accessible. While blockchain systems can be made private and permissible, making it so only certain parties can access boils down to aligned incentives. But it’s clear that the technology is there and can change healthcare for good.
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60cd47624e6648455612726e2577cfc7 | https://www.forbes.com/sites/chrissheridan/2019/10/20/nba-season-predictions-for-2019-2020/ | NBA Season Predictions For 2019-2020 | NBA Season Predictions For 2019-2020
LOS ANGELES, CALIFORNIA - OCTOBER 10: Kawhi Leonard #2 of the LA Clippers during warm up before a ... [+] preseason game against the Denver Nuggets at Staples Center on October 10, 2019 in Los Angeles, California. (Photo by Harry How/Getty Images) Getty Images
Making season predictions is not a guessing game. It is an exercise in using all the information at your disposal, figuring out which players will gel with their new teammates, looking at which teams stayed intact and which made major changes ... and going from there.
The NBA season tips off Tuesday night, and contrary to what folks in El Lay will tell you, there are actually 30 teams in the NBA ... probably 10 of which have legitimate championship aspirations.
Almost nobody predicted the Toronto Raptors would win the NBA championship last season, but we learned just how valuable of a player Kawhi Leonard is ... which is why the Los Angeles Clippers are the current favorites to win the NBA championship.
The NBA regular season is an 82-game slog, and what teams look like in October vs. what they look like on March 1 (when playoff eligibility is determined) are two entirely different things.
If history is any guide, there will be somebody who wants out of a particular place in early February (which is what happened with Anthony Davis in New Orleans last season), and there will be fallout that stretches throughout the league. Who will that be? Heck, you won’t get a prediction on that in this column.
But you will get other predictions, so here we go ...
NBA Champion: Philadelphia 76ers. This has been a long time coming, and the addition of Al Horford and Jason Richardson gives coach Brett Brown a roster he can expect to remain static for an entire season ... something he has never enjoyed. Joel Embiid and Ben Simmons still have major maturity issues, and J.J. Redick will be sorely missed, but Elton Brand will tinker with the roster in February to add whatever is missing, and Philly’s big man combo will be the deciding factor in Game 7 of the Eastern Conference finals against Milwaukee.
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PHILADELPHIA, PA - OCTOBER 18: Joel Embiid #21 of the Philadelphia 76ers reacts against the ... [+] Washington Wizards in the second quarter of the preseason game at the Wells Fargo Center on October 18, 2019 in Philadelphia, Pennsylvania. The Wizards defeated the 76ers 112-93. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.(Photo by Mitchell Leff/Getty Images) Getty Images
Most Valuable Player: Stephen Curry, Golden State Warriors. Remember when Steph was breaking all kinds of 3-point records and winning MVPs? That was back before Klay Thompson had matured into a superstar and before Kevin Durant came aboard. Pairing Curry with D’Angelo Russell in the backcourt will create huge matchup problems for opposing defenses, and the shots that used to go to Durant and Thompson will now go to Curry. Extra prediction: His record of 402 3-pointers will be broken.
LOS ANGELES, CALIFORNIA - OCTOBER 16: Stephen Curry #30 of the Golden State Warriors looks on ... [+] during a timeout during the second half of a game against the Los Angeles Lakers at Staples Center on October 16, 2019 in Los Angeles, California. (Photo by Sean M. Haffey/Getty Images) Getty Images
Rookie of the Year: Rui Hachimura, Washington Wizards. With Zion Williamson on the shelf to start the season and out indefinitely, there is a void in a category where the No. 1 pick in the draft was supposed to be a mortal lock. The rookie out of Gonzaga will be starting and logging heavy minutes for Scott Brooks in D.C., and won/loss records matter very little to voters when it comes to this award. Dark horse candidate: Kendrick Nunn of the Miami Heat.
WASHINGTON, DC - OCTOBER 09: Rui Hachimura #8 of the Washington Wizards celebrates with teammates ... [+] after a play against the Guangzhou Long-Lions during the first half at Capital One Arena on October 9, 2019 in Washington, DC. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Will Newton/Getty Images) Getty Images
Coach of the Year: Mike Malone, Denver Nuggets. If not for a late-season slide, the Nuggets would have been the No. 1 seed in the West last season, and they are returning the most unguardable player in the NBA, Nikola Jokic, surrounded by pretty much the same cast of characters who finished 54-28 last season. They are two deep at every position, and Michael Porter Jr. will likely work his way into the rotation if he stays healthy. I think they will be the No. 1 seed in the West (El Lay fans may now gasp.)
SANTA MONICA, CALIFORNIA - JUNE 24: Mike Malone attends the 2019 NBA Awards presented by Kia on TNT ... [+] at Barker Hangar on June 24, 2019 in Santa Monica, California. (Photo by Joe Scarnici/Getty Images for Turner Sports) Getty Images for Turner Sports
Most Improved Player: Bam Adebayo, Miami Heat: He was stuck behind the now exiled Hassan Whiteside last season, and Pat Riley has rebuffed every team’s efforts to pry him away. The third-year player out of Kentucky will average a double-double and make the All-Star game, I predict, and Riley will have an “I told you so” news conference sometime in early February. Fantasy players are advised to draft him every single night.
MIAMI, FLORIDA - OCTOBER 14: Bam Adebayo #13 of the Miami Heat looks on against the Atlanta Hawks ... [+] during the first half of the preseason game at American Airlines Arena on October 14, 2019 in Miami, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Michael Reaves/Getty Images) Getty Images
Executive of the Year: David Griffin, New Orleans Pelicans. He got a boatload for Anthony Davis, he won the lottery, he brought in J.J. Redick, and he has assembled a roster that will compete for a playoff spot just one season after everything fell apart once Davis’ trade demand became public. The guy is down to earth and not too caught up on analytics, and the only thing holding this team back from making it into the second round is depth issues. Those can be addressed in February free agency.
NEW ORLEANS, LOUISIANA - OCTOBER 11: Executive Vice President of Basketball Operations David Griffin ... [+] of the New Orleans Pelicans reacts during a preseason game against the Utah Jazz at the Smoothie King Center on October 11, 2019 in New Orleans, Louisiana. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Jonathan Bachman/Getty Images) Getty Images
Sixth Man Award: Lou Williams, Los Angeles Clippers. There is a part of me that says “go with Ersan Ilyasova,” but Williams has been doing his thing so well for so long that it is impossible to go with anyone else as a better preseason candidate. Spencer Dinwiddie of Brooklyn will be in the mix, as will P.J. Tucker of the Rockets. Dark horse candidate: Dwight Howard of the Lakers.
LOS ANGELES, CALIFORNIA - OCTOBER 10: Lou Williams #23 of the LA Clippers brings the ball up court ... [+] during a 111-91 Denver Nuggets preseason win at Staples Center on October 10, 2019 in Los Angeles, California. (Photo by Harry How/Getty Images) Getty Images
Defensive Player of the Year: Paul George, Los Angeles Clippers. A year after everyone expected him to land in L.A., he got out of Oklahoma City as Kawhi Leonard played his hand perfectly and got the superstar teammate to play alongside him that he wanted. George always defends the best player on the opposing team, and he has another exceptional defender, Patrick Beverley, playing alongside him. This award usually goes to the player who leads the league in blocked shots, because many voters see that as the statistic that best defines a good defender. But on-the-ball defense is just as important, if not more, and George is exceptional at stopping opponents’ superstars.
LOS ANGELES, CALIFORNIA - JULY 24: Paul George and Kawhi Leonard of the Los Angeles Clippers are ... [+] introduced at Green Meadows Recreation Center on July 24, 2019 in Los Angeles, California. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kevork Djansezian/Getty Images) Getty Images
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bc63def1f5db9247182620c245d575ac | https://www.forbes.com/sites/chrissheridan/2020/05/01/bam-adebayo-says-miami-heat-will-take-bucks-to-a-game-7/ | Bam Adebayo Says Miami Heat Would Take Bucks To A Game 7 | Bam Adebayo Says Miami Heat Would Take Bucks To A Game 7
NEW ORLEANS, LOUISIANA - MARCH 06: Bam Adebayo #13 of the Miami Heat reacts against the New Orleans ... [+] Pelicans during a game at the Smoothie King Center on March 06, 2020 in New Orleans, Louisiana. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Jonathan Bachman/Getty Images) Getty Images
If the NBA season resumes, the Miami Heat and the Milwaukee Bucks will play a Game 7 in a playoff series. Who will win it?
“I am taking my team.”
Those were the words of Miami Heat All-Star forward Bam Adebayo on Friday as he sat locked down in his Miami condominium, awaiting word like the rest of the sporting world on whether the NBA will be able to resume its season.
Back before the coronavirus shut down all professional sports in the United States, the Heat were the only team with an unbeaten record against Giannis Antetokounmpo and the 53-12 Bucks.
Miami defeated Milwaukee 131-126 in the second game of the season, then defeated them 105-87 on March 2, holding the Greek Freak to a season-low 13 points while outshooting the Bucks from the 3-point line 18-7.
MIAMI, FLORIDA - MARCH 02: Bam Adebayo #13 of the Miami Heat is defended by Khris Middleton #22 of ... [+] the Milwaukee Bucks during the second half at American Airlines Arena on March 02, 2020 in Miami, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Michael Reaves/Getty Images) Getty Images
The Heat have been holding team team meetings via zoom since the NBA was shut down, but Adebayo has not had access to a court to get up his daily dose of shots.
“It’s difficult, but I would rather be safe than sorry,” he told Forbes.com.
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When the NBA season was suspended, the Heat were sitting in fourth place in the East, 2 1/2 games behind Boston and 2 games ahead of Indiana.
Nobody knows for certain whether the NBA will be able to squeeze in a complete 82-game season if they are able to start playing again, but different “bubble” scenarios have been discussed in which the entire league would operate out of a centralized location, perhaps Orlando, perhaps Las Vegas.
Commissioner Adam Silver has been steadfast in his statements that he will try to find a way to finish the season and crown a champion, not matter how challenging the task may be.
“They are going to have to give us time to get back in a groove, but it’s like riding a bike: You have to get back on it and get in that groove again,” Adebayo said. “The thing is, how do you get 450 players to agree to being kept away from their families for an extended period of time?”
MIAMI, FLORIDA - MARCH 02: Giannis Antetokounmpo #34 of the Milwaukee Bucks drives to the basket ... [+] against Bam Adebayo #13 of the Miami Heat during the second half at American Airlines Arena on March 02, 2020 in Miami, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Michael Reaves/Getty Images) Getty Images
In regards to the Bucks, Adebayo made the argument that Miami was the only Eastern team that had an unbeaten record against them, “and that gives us more confidence going into that boxing match.
“I’m not saying they can’t beat us, but we like our chances.”
Miami-Dade Mayor Carlos Gimenez said Friday the Miami Heat have clearance to return to AmericanAirlines Arena for workouts on the NBA's May 8 timetable, going as far as saying county rules already would allow the entire team to be together in the gym.
During his downtime, Adebayo has gotten involved with an initiative to help Tech 4 COVID, a two-day virtual telethon to benefit HBCU (Historically Black Colleges and Universities) student-athletes nationwide and K-12 schools to enable minority students to successfully complete distance-learning.
Celebrities participating include Offset, Jeezy, DL Hughley, Cedric the Entertainer, Eddie Griffin, Bill Bellamy, Blair Underwood, Malik Yoba, Desi Banks, Dionne Warwick, Dean Crawford, The Hamiltones, Mr. Serv-On and more.
The event will be live-streamed May 2-3 from 12 PM - 12 AM EST both days, on Twitch, Kevin Hart’s LOL Network, NFL Alumni’s ESTV, Codeblack Life, Instagram Live, YouTube, Facebook Live, ESPN Syracuse Radio, HBCU go TV, Black College Sports Radio, Axis Replay and more. The digital fundraiser is expected to reach over 30 million people and raise over $3 million.
MIAMI BEACH, FLORIDA - FEBRUARY 01: Kevin Hart poses onstage with a Kobe Bryant jersey during ... [+] Michael Rubin's Fanatics Super Bowl Party at Loews Miami Beach Hotel on February 01, 2020 in Miami Beach, Florida. (Photo by Kevin Mazur/Getty Images for Fanatics ) Getty Images for Fanatics
The NFL Alumni Foundation is lending a hand to raise funding for this vital cause. NFL players/veterans involved in #Tech4COVID include: Michael Strahan, Xavier McKinney, Kenyan Drake, Takeo Spikes, Champ Bailey, Mel Blount, Everson Walls, Ahman Green, John Stallworth, Nicholas Leverett, Tyrone Poole, Harold Carmichael, Hugh Douglas, Alge Crumpler, Vonnie Holliday, Rickey Dudley, Akbar Gbajabiamila (currently American Ninja Warrior’s co-host) and more.
Other NBA players/veterans joining the cause include: Robert Covington,, Kevin Ware Jr., Etan Thomas, Charles Oakley, Antonio Harvey, George Lynch, and Sheryl Swoopes, WNBA veteran.
Media personalities onboard include: Rashan Ali, Areva Martin, Kwame Jackson, Chris Broussard and Larry Ridley, who is also doubling as a host for the telethon.
“We’re pulling out all the stops for this virtual telethon. HBCU student-athletes and K-12 minority students need this movement to galvanize help. I’ve witnessed dozens of student-athletes scramble during this pandemic to get laptops,” said George Lynch, former NBA player and former head coach of Clark Atlanta University’s men’s basketball team. “Many of them were using school computer labs or the library and now they have to find their own technology resources. Something has to be done.”
RELATED: Ex-Tar Heel George Lynch Trying To Raise Money For HBCU Student-Athletes
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586cd5f528317d1723419b06d3312d46 | https://www.forbes.com/sites/chrissheridan/2020/08/27/nba-boycott-is-unprecedented-but-one-almost-happened-in-1964-and-one-did-happen-in-1961/ | NBA Players’ Boycott Is Unprecedented, But 1961 And 1964 Offered Previews | NBA Players’ Boycott Is Unprecedented, But 1961 And 1964 Offered Previews
LAKE BUENA VISTA, FLORIDA - AUGUST 26: The game clock sits at 0.0 after the scheduled start time of ... [+] Game Five of the Eastern Conference First Round between the Milwaukee Bucks and the Orlando Magic during the 2020 NBA Playoffs at AdventHealth Arena at ESPN Wide World Of Sports Complex on August 26, 2020 in Lake Buena Vista, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kevin C. Cox/Getty Images) Getty Images
What we witnessed yesterday in the NBA was unprecedented. What began with the Milwaukee Bucks deciding to boycott their playoff game against the Orlando Magic quickly morphed into a postponement of all three scheduled NBA playoff games Wednesday.
Today brings more uncertainty, and where this goes from here is a huge unknown. The NBA Board of Governors will meet virtually this morning to discuss the situation, and another all-hands-on-deck players meeting is expected, too, in Florida.
What is known is that there is precedent for players using a boycott to get a message across, although when it happened in 1964, it was not political and did not explicitly involve race and/or police brutality. It involved issues regarding pensions, and the players won.
Also, in 1961, Bill Russell, along with several of his Black teammates, boycotted an exhibition game in Lexington, Kentucky, during the preseason after the Celtics' Black players were denied admission to several establishments during the road trip.
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The issues the players are rallying against in 2020 are extraordinarily more significant, and the outrage concerns a pattern of systematic violence against people of color by law enforcement authorities that has been happening in America for centuries.
But never before have so many Americans and people around the world been able to witness these events unfold in something approximating real time. And whether the players should continue to compete in the playoffs is the question of the day after all teams except the Clippers and Lakers reportedly voted to keep playing during a Wednesday night meeting inside the bubble.
LAKE BUENA VISTA, FLORIDA - AUGUST 26: A reporter sits beside an empty court after a postponed NBA ... [+] basketball first round playoff game between the Milwaukee Bucks and the Orlando Magic at AdventHealth Arena at ESPN Wide World Of Sports Complex on August 26, 2020 in Lake Buena Vista, Florida. According to reports, the Milwaukee Bucks have boycotted their game 5 playoff game against the Orlando Magic to protest the shooting of Jacob Blake by Kenosha, Wisconsin police. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Ashley Landis-Pool/Getty Images) Getty Images
So this is very, very different. And the story figures to evolve by the hour Thursday.
But that being said, a history lesson is in order because NBA boycotts have happened before.
At the 1964 NBA All-Star game in Boston, which was the first televised All-Star games in league history, the best players in the league huddled in the locker room and decided to take a stand as a blizzard raged outside.
They refused to play.
At issue was their efforts to receive pensions, not have to play Sunday afternoon games after Saturday night games, and to have trainers at every game — items they had been promised by commissioner Walter Kennedy but which they felt the league was reneging on.
Superstars of that era including Oscar Robertson, Jerry West and Elgin Baylor barricaded themselves in the locker room and refused to come out, and a standoff ensued.
National Basketball Association President Walter Kennedy is shown during hurriedly assembled news ... [+] conference as the NBA All-Star game was held up as players threatened to walk out on the league’s 14th annual classic at the Boston Garden in a dispute over player pensions. (Photo by Bettmann Archive/Getty Images) Bettmann Archive
Longtime Lakers beat writer Mike Bresnahan recounted some of the details in an article for the Los Angeles Times:
Lakers owner Bob Short approached the locker room in a fury. “He said to an Irish cop that guarded the door, ‘Tell Elgin Baylor if he doesn’t get out there, he’s through,’ ” said Tommy Heinsohn, who at the times was president of the players’ association. Baylor’s response: Sorry, Bob.
Lakers star Jerry West, then 25 and in his fourth season, stood his ground with Baylor.
“I was young and just trying to feel my way along and build a career for myself,” West said. "[Short] said to us very threateningly, ‘If you don’t play in this game, you’re probably never going to play again.’ I then said, ‘I’m never going to play a game.’ I am pretty defiant.”
“The players were controlled by the owners,” West said. “All of us felt like we were slaves in the sense we had no rights. No one made anything then. You had to work in the summer. It was the stone ages of basketball.”
Shortly before tipoff, Kennedy met with the players and yielded to their demands. The All-Star game was played.
This history lesson bears repeating because it demonstrates that when players take a stand, they have the ability to win.
But what was happening in 1964 and what is currently happening in 2020 are entirely different things, and the outrage being felt by players at the latest incident of a Black man being shot by police, this time in Kenosha, Wisc., is sparking extraordinary outrage in the country at large, not just in the sports world.
KENOSHA, WI - AUGUST 25: Demonstrators protest the police shooting of Jacob Blake outside the ... [+] Kenosha County Courthouse on Tuesday, August 25, 2020 in Kenosha, Wisconsin. Blake, who was shot in the back multiple times by police officers who were responding to a domestic dispute call Sunday remains in the hospital as he recovers. Photo by Joshua Lott for The Washington Post via Getty Images The Washington Post via Getty Images
NBA players agreed to resume their season in a bubble in part because they believed their platform to push for social change could best be achieved through having their message seen and heard on every game telecast. “Black Lives Matter” is emblazoned across all the court being used at the ESPN Wide World of Sports complex in Florida, and many players are wearing slogans calling for racial justice and equality across the backs of their jerseys.
Coaches are wearing pins that say "Coaches Against Racial Inequality," and both the players and coaches have spoken during their time with the media about issues apart from basketball.
Yet in this politically polarized country, the message they are trying to send is falling on deaf ears with a significant portion of the population.
Wednesday’s boycott raised the stakes, and how commissioner Adam Silver responds today will be a huge part of the equation in terms of whether the postseason resumes, or the NBA closes up shop for the summer.
And so the outrage continues, as does the violence ... the latest being the police shooting in Kenosha last Sunday of Jacob Blake, which was followed by three nights of violence and the subsequent fatal shooting of two protesters , allegedly by a 17-year-old Illinois man who was arrested Wednesday.
It took four days for authorities in Wisconsin to release the name of the police officer who fired seven shots at Blake. His name is Rusten Sheskey, and he has neither been arrested nor charged with a crime. If that remains the status quo, it will not sit well with the NBA players.
Video of the Blake shooting went viral, much like what happened after the police killing of George Floyd in Minneapolis, and protests have been taking place throughout the United States.
LAKE BUENA VISTA, FLORIDA - AUGUST 26: Workers remove items from the Milwaukee Bucks empty bench ... [+] after the Bucks sit out Game Five of the Eastern Conference First Round in protest during the 2020 NBA Playoffs against the Orlando Magic at AdventHealth Arena at ESPN Wide World Of Sports Complex on August 26, 2020 in Lake Buena Vista, Florida. The Milwaukee Buck have boycotted game 5 reportedly to protest the shooting of Jacob Blake in Kenosha, Wisconsin. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kevin C. Cox/Getty Images) Getty Images
Now, we have NBA players taking a stronger stand than they perhaps ever have, and where this goes next is a mystery. Basketball playoffs had been providing diversion and entertainment to the millions of Americans working from home and suffering from cabin fever because of the COVID-19 pandemic, and there is a very real possibility that it gets shut down.
The players’ anger is very, very real. And sports fans need to consider the possibility that the rest of the NBA playoffs may not happen.
This tweet is pinned atop the Twitter feed of the National Basketball Players Union:
Stay tuned.
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58f01fd5c7ca0fe6d880e2b9881cf32d | https://www.forbes.com/sites/chrissmith/2012/01/25/the-most-and-least-profitable-nba-teams/ | The Most And Least Profitable NBA Teams | The Most And Least Profitable NBA Teams
Gallery: The Most And Least Profitable NBA Teams 11 images View gallery
The NBA is in the midst of a shortened season, thanks to a lockout that pushed opening day back to Christmas. The result of that lockout is a new collective bargaining agreement that shifted the league's revenue split more in favor of the team owners. This shift is welcome news to the 15 NBA teams that lost money last season.
But for the league's more profitable teams, the new CBA will help pile more riches atop an already large heap. The five most profitable NBA teams made an average $37 million over the last five seasons, and eight teams made over $15 million last year. The league's most profitable team is the Chicago Bulls, who have a five-year average profit of $55 million.
To determine the most and least profitable teams in the NBA, we used a five-year average of team operating incomes in the sense of earnings before interest, taxes, depreciation and amortization. The average NBA team had an annual operating income of $8 million over the last five years.
In Pictures: The Most And Least Profitable NBA Teams
Complete Coverage: The Business of Basketball
A large portion of Chicago's financial success is the result of an active fan base. The team has ranked among the top-three teams in terms of home attendance since 2004, and it has led the league in three of the last five seasons. That fan support highlights part of the value of playing in a major market.
In fact, four of the five most profitable teams are from metro areas that rank among the nation's wealthiest and most populated: Chicago, Houston, Los Angeles and New York.
The odd team out of the biggest winners is the Detroit Pistons. They were one of the top earners several years ago, but their profits have fallen greatly in recent seasons. Detroit opened the current season with a 4-13 record and have the league's worst attendance. The Pistons had an operating income of $10 million last season and are likely to lose money this season barring a massive turnaround.
The biggest exception to the major market rule is the Dallas Mavericks, who have not made money since 2002 despite playing in the fourth-most populous metro area and winning the NBA Finals last season. They rank at No. 26 with a five-year average loss of $8.9 million.
Dallas' profit woes are largely the result of their payroll exceeding the luxury tax limit. The luxury tax is a "soft cap" on team payrolls, and it punishes teams that exceed a preset payroll limit. The Mavericks spent $18.9 million last season just in luxury tax payments, and the team has been among the top luxury tax spenders for years.
12 teams posted five-year averages in the red, and the NBA’s least profitable team is the Charlotte Bobcats. The massive losses are the reason Michael Jordan was able to buy a majority stake in the Bobcats (he previously was a minority owner) in a deal that valued the franchise at the fire-sale price of $175 million in March 2010. Jordan also pledged $100 million to cover the team’s losses which have picked up in recent seasons. The team has lost an average $20 million over the last three seasons, $6 million more than any other team in that period.
In Pictures: The Most And Least Profitable NBA Teams
Complete Coverage: The Business of Basketball
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9ddaf7baaf8f853f2f5b0a338ea7fce4 | https://www.forbes.com/sites/chrissmith/2012/02/01/super-bowl-ad-rates-can-double-within-ten-years/ | Super Bowl Ad Rates Can Double Within Ten Years | Super Bowl Ad Rates Can Double Within Ten Years
Gallery: The Most Valuable Super Bowls 11 images View gallery
Would you bet $3.5 million that a barking dog could make someone want to buy a car? What if it was twelve dogs dressed in Star Wars outfits and barking in unison to Darth Vader's theme song? It might sound crazy, but that's the wager Volkswagen is making with its Super Bowl commercial this year. The German car company paid NBC approximately $3.5 million for the 30-second championship game spot, the highest average ad price a network has ever charged for the Super Bowl.
The high price of Super Bowl advertising is not a new story: the cost of buying a 30-second ad first broke $1 million in 1995. The price has since grown quickly, and it shows no signs of slowing. Last year, News Corporation's Fox charged an average $3 million for a spot in the showdown between the Green Bay Packers and Pittsburgh Steelers. This year's price of $3.5 million is a 17% increase and is double the rate charged for a 30-second spot 14 years ago.
In the last 14 years, the price of a Super Bowl ad has increased by an average 5.7% annually. At that rate, it would take another 13 years for the price to double to $7 million. But Super Bowl ad costs can easily hit the $7 million mark within the next decade thanks to two key factors: the networks' pricing power and a new set of rights agreements that will force networks to widen their revenue streams in the coming years.
The Networks' Pricing Power
Despite NBC's record-high asking price, the network was able to sell out all 70 ad slots for Sunday's game by Thanksgiving. The accomplishment may seem surprising, but it simply highlights that Super Bowl commercials are a great bargain for advertisers.
Laura Martin, a Senior Analyst of Entertainment, Cable and Media at Needham & Co., points to cost per mille (CPM), a metric that advertisers use to determine their spending per every thousand viewers who watch a commercial. For instance, last year's Super Bowl had a record-breaking 111 million viewers, and advertisers paid an average $3 million per 30-second ad spot. That means last year's game averaged a CPM of $27. Martin indicates that a hit TV show generally has a CPM of $35, if not higher.
In Pictures: The Most Valuable Super Bowls
One example is the Academy Awards. The awards show was the only non-football telecast among the ten most-viewed last year. It had 38 million viewers and an average ad price of about $1.4 million, meaning that the show's CPM was roughly $37. Martin says that the Super Bowl's comparatively low CPM gives networks pricing power when selling ad spots for during the game.
"There is room for Super Bowl pricing to increase because the cost [per thousand viewers] is still lower than a top prime-time show," says Martin. More importantly, such a price hike would not hurt demand. Martin adds that it becomes even easier to raise prices if the number of viewers is expected to rise. And networks are not worried about losing viewers. The number of Super Bowl viewers has increased by an average 4.5% annually over the last five years. A similar increase is expected for Sunday's tilt between the New England Patriots and New York Giants. It will make 2012 the third consecutive year in which the Super Bowl has broken the all-time record for most viewers.
If Fox had taken full advantage of its pricing power last year, it could have charged nearly $4 million per commercial. The network would have generated an additional $58 million from Super Bowl commercials. Moreover, if networks raise ad rates to match the CPM of a hit TV show, the cost of a 30-second Super Bowl spot will easily cross the $7 million mark in ten years. And thanks to a new set of rights agreements with the NFL, the networks now have the incentive, if not a need, to flex their pricing power.
The New Rights Agreements
The NFL has three concurrent TV rights contracts with CBS, Fox and NBC. Under NBC's agreement, the network is granted the season-opening Thursday night game and all 17 Sunday Night Football games. CBS and Fox split the Sunday afternoon games according to their conference affiliations; CBS with the AFC and Fox with the NFC. The three networks also share the rights to the Super Bowl on a rotating three-year cycle.
NBC will pay the league $603 million in rights fees this year. The $245 million that NBC will bring in from Super Bowl commercials (70 spots at $3.5 million a pop) will cover 41% of that payment. NBC's Super Bowl advertising revenue also comprises 14% of the $1.81 billion it has to pay the NFL over a three-year period. Fox and CBS pay more for their right agreements: $720.3 million and $619.8 million, respectively. Fox brought in $195 million from last year's Super Bowl and CBS generated $152 million the year before; those amount to 9% and 8% of each network's respective three-year rights fees.
In December, CBS, Fox and NBC extended their rights agreements with the NFL through 2022. The new agreements, which take effect in 2014, include several benefits for the networks. NBC's new rights contract gives it the rights to the late game on Thanksgiving, which was formerly hosted by the NFL Network. The popular game is sure to add a nice bundle of advertising revenue to NBC's coffers. CBS and Fox have been granted greater flexibility with choosing which games to air. The former conference affiliations have been effectively eliminated with the new agreements, and the freedom to target larger markets and more popular games should give the networks leverage when negotiating regular season advertising rates. The Super Bowl will also be streamed online for the first time ever, offering another new source of advertising income.
In Pictures: The Most Valuable Super Bowls
But those benefits come at a great cost. The new nine-year deals will boost the total annual payments of the three networks from $1.9 billion to $3.3 billion, a 58% increase. NBC will pay $1.05 billion, Fox $1.15 billion and CBS $1.08 billion annually. NBC's $245 million from Super Bowl advertising revenue would only cover 8% of its increased three-year payments to the NFL. For NBC, the championship game's direct value will have been nearly halved. The new agreements will have the same effect on CBS and Fox.
So how can the networks afford it? The new perks built into the deals will help. A report from Barclays Capital also suggests that some of the increased fees can be passed on to Multiple System Operators in the form of subscription price hikes. But if networks expect to keep up, then the Super Bowl must remain a core revenue generator. Record audiences and bargain pricing make the Super Bowl the most effective advertising platform each year. By utilizing their pricing power, the networks can ensure that the game will continue to support their payments to the NFL without worrying about losing advertisers, even when the asking price hits $7 million within a decade.
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4c4c81c61c97060758aca88307118d65 | https://www.forbes.com/sites/chrissmith/2012/05/07/would-banning-college-football-actually-help-academics/ | Would Banning College Football Actually Help Academics? | Would Banning College Football Actually Help Academics?
(Image credit: Getty Images via @daylife)
Last week, Friday Night Lights author Buzz Bissinger offered his arguments for why college football should be eliminated. The article appears in advance of tomorrow night's Intelligence Squared debate, in which Bissinger and author Malcolm Gladwell will argue in favor of a ban on college football. They will be opposed by former NFL defensive end Tim Green and sportswriter Jason Whitlock. Bissinger's piece gets at some serious issues with college football and raises some fantastic questions, but it ultimately misses exactly how important the sport is to academic programs at universities across the nation.
The core of Bissinger's argument is financial: athletic departments annually dump millions of dollars into football teams at the expense of university students and other athletic programs. He points to the University of Maryland as an example of the latter:
"The president [of the university], Wallace D. Loh, late last year announced that eight varsity programs would be cut in order to produce a leaner athletic budget, a kindly way of saying that the school would rather save struggling football and basketball programs than keep varsity sports such as track and swimming, in which the vast majority of participants graduate."
The choice that Bissinger portrays, however, is not so cut and dry. What Bissinger fails to grasp is that schools cannot have track or swimming without football and basketball. Maryland's football team might have seen its profits shrink in recent seasons, but it's still a far cry from the losses incurred by non-revenue sports. According to financial filings made to the Department of Education, all of Maryland's non-football-or-basketball athletic programs operated at a combined loss of $7.3 million last year. The simple fact is that the vast majority of sports lose money, but they are kept afloat thanks to profits from football and basketball. Remove those revenue generators, and the other sports will quickly follow suit.
(It should also be noted that Maryland's basketball team is not actually struggling financially; only nine college basketball teams were more profitable last year.)
But Bissinger's biggest concern seems to be the students who suffer as a result of expensive, coffer-draining football teams. Yes, the same students who are awake at the break of dawn to paint their faces and scream themselves hoarse each Saturday. Those same students who identify themselves daily as Buckeyes, Bruins or Bulldogs. The very same students who may have chosen their schools based on college football allegiances, and who enjoy their fandom as a lifestyle rather than an occasional source of weekend entertainment. Fortunately, college football has also been a valuable source of revenue for their academic experiences.
Successful football programs inject millions into their universities' academic programs. Athletic departments not only cover the costs of student-athlete scholarships, but they often contribute to non-athletic scholarship funds. Alabama's athletic department, for instance, contributed $3.5 million to the school's non-athletic scholarship fund last year as part of a $6.5 million contribution package for university programming. Even far less profitable programs like Iowa and Oregon State have been central to academic initiatives. Iowa Athletics contributed $9 million to a new Campus Recreation and Wellness Center, and Oregon State's athletic department spent $7 million to open the school's Academic Success Center. Both are available to all university students.
What's more, college football games are an invaluable source of revenue for local businesses. Some teams generate more than $5 million per home game for local hotels and restaurants. It's fair to argue that local businesses are not the responsibility of university athletic departments, but those businesses, which also serve and often employ university students, stand to suffer significant losses if college football were to be banned.
Bissinger also takes umbrage with the many alumni "who absurdly judge the quality of their alma mater based on the quality of the football team," but that doesn't change the fact that those same alumni donate hundreds of millions of dollars each year to academic programs. Some even put their lives on the line. Athletic departments also rely on the annual contributions that are tied to luxury seating and season ticket options for home football games. Removing college football would completely eliminate that wealthy revenue stream.
And while Bissinger rightly points out that some mid-major schools like Alabama at Birmingham and New Mexico State have football teams that have lost money, the criticism really ought to be an indictment of the BCS revenue distribution model. Schools from conferences that automatically qualify for BCS bowl games enjoy a greater share of league money, leaving mid-major schools to share the scraps. It's good news, then, that the newly proposed playoff system will eliminate automatic qualification while more than doubling the conference distribution pool. An even share of BCS money will hopefully help mid-major programs increase their profitability.
This is hardly to argue that college football is without serious problems. Are some athletic departments guilty of overspending on unsuccessful programs? Certainly. Do college football players get screwed over while coaches and networks make millions? No doubt. But those are reasons for reform, not removal. The argument to ban college football seems rash and tends to understate just how valuable a successful college football program can be to university initiatives.
My humble suggestion? Let's leave the crazy talk to SEC fans from here on out.
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04a974325ae01d136af9699cc31f37cd | https://www.forbes.com/sites/chrissmith/2012/06/12/minnesota-twins-turn-to-high-tech-cameras-to-improve-stadium-security/ | Minnesota Twins Turn To High-Tech Cameras To Improve Stadium Security | Minnesota Twins Turn To High-Tech Cameras To Improve Stadium Security
Target Field has featured a state-of-the-art camera system since opening in 2010. (Photo credit:... [+] Wikipedia)
Marvin Norwood and Louis Sanchez will soon have to stand trial for last year's vicious beating of Bryan Stow, the San Francisco Giants fan who miraculously survived the violent incident but will suffer severe brain damage for the rest of his life. The Stow family's subsequent lawsuit against the Los Angeles Dodgers and then-owner Frank McCourt alleged that the team had insufficient security measures, and fans loudly echoed the sentiment. Complaints grew even louder when another fan was assaulted after a Dodgers' home game earlier this season.
Some have suggested that improved lighting or more security personnel could help stymie future incidents of fan violence, but the most proactive teams have turned to much more sophisticated technology. One such team is the Minnesota Twins, who installed a state-of-the-art, high-definition camera system at Target Field, their home since 2010.
The team installed nearly 170 high-definition Avigilon cameras during stadium construction. The cameras offer a full megapixel resolution and ample, affordable storage space. Three "bowl cameras" are used to widely monitor crowd behavior, while the rest are located in high-traffic areas both outside and within the stadium walls.
Such an advanced and expansive camera system is obviously a pricey investment. Dave Horsman, the Director of Ballpark Operations at Target Field, could not provide precise installation costs, but he noted that the team was forced to switch camera systems during construction because its first choice would have put the stadium project over budget. Despite the initial cost, however, Horsman feels that the camera network will save the team money in the long-term. The team's security command center now requires fewer staffers, and the simplicity of the interface means that any security employee can be slotted into camera duty. Says Horsman, "There is not much in terms of training costs, so you don't have to dedicate a specific person to cameras."
And the benefits of comprehensive video coverage are immense.
Horsman says that the bowl cameras have helped security personnel locate and remove troublesome fans, while cameras on the stadium's exterior have assisted in preventing fans from attempting to climb over the stadium's fence on multiple occasions. Recordings of such events have also assisted the team in refuting fan accusations of unfair ejection. Team administrators even used video footage to corroborate a staffer's claims of a conflict between employees. "Not only do we have the ability to prevent issues," argues Horsman, "but we can go back and find out what was missing." In other words, video footage helps security teams to adapt and adjust so that they will be better prepared in the future.
Would high-definition video cameras have been enough to stop Bryan Stow from being attacked? Maybe not. But they could have improved the response times of medical professionals, provided conclusive evidence against his attackers and even aided the Dodgers in identifying contributing factors that could be changed to prevent future incidents.
Cameras are just the beginning of high-tech stadium security, and Horsman is excited about ongoing developments in surveillance technology. Video analytics continue to improve, allowing cameras to read license plates, recognize faces and identify oddities like unattended bags or cars driving the wrong way. Horsman even suggests that new video technology will be able to recognize a throwing motion, helping security teams to pinpoint unruly fans who would have previously gotten away with tossing things onto the field or at other fans.
Stadiums have long turned to technology to improve the fan experience, from massive digital scoreboards to beer cups that fill from the bottom. But fans should be most thankful for the high-tech endeavors that are also being implemented behind the scenes to keep them safe.
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eb5cad189099c0eb491b84b80f5b88fe | https://www.forbes.com/sites/chrissmith/2012/07/30/nbcs-tape-delay-of-london-olympics-helps-ratings-hurts-athletes/ | NBC's Tape Delay Of London Olympics Helps Ratings, Hurts Athletes | NBC's Tape Delay Of London Olympics Helps Ratings, Hurts Athletes
(Image credit: Getty Images via @daylife)
When did you first hear that Ryan Lochte, Michael Phelps and the rest of the American men's 400-meter freestyle team had fallen to the French in heartbreaking fashion? For me, it was sometime yesterday afternoon as I flipped back and forth between boxing and soccer. I didn't see a second of the race, however, until NBC broadcast it later that evening.
That intentional delay has been the subject of much outrage for fans who don't want to wait several hours after a race's conclusion to watch it. The outbursts can be seen most clearly on Twitter, where #NBCfail has become a popular tag, and many fans are guilty of outright whining. NBC couldn't care less about the reaction, though, because the network had an incredible opening weekend, and last night's coverage set a viewership record for the first Sunday of the Games.
Tape delays are nothing new, of course. NBC pays billions of dollars for the Games' broadcasting rights, so it makes sense that the network would package the most anticipated events and air them when most people are watching. In 2008, the West Coast was treated to a delayed viewing of many important events, including some of Phelps' races. The reason why the tape delay is particularly irksome this time around is that the ubiquity of social media has made it almost impossible to avoid news of anticipated events.
Four years ago, I crowded around a TV with a group of friends, all of us screaming as Jason Lezak made his miraculous come-from-behind charge to slip past the French anchor and seize gold. This time? The lead-up to the race went something like this:
Friend: "Hey, the relay that Lochte lost is coming on."
Me: "Oh, alright."
So much for excitement. Everybody in the room knew that the American team would grab a quick lead, hand Lochte a head start on the rest of the field and ultimately fall to a surging Yannick Agnel, France's young anchor. The race had an exciting finish, but I wasn't nearly as invested this time around. Even if the American team had won, I doubt there would be much celebration during the broadcast.
It's difficult not to wonder how that limit on emotional investment could hurt an athlete's future popularity and sponsorship potential. If, say, Phelps had won his eight gold medals in 2012 instead of 2008, would he have received the same amount of adulation? The accomplishment would be the same, but there would likely have been less fervor surrounding NBC's evening broadcasts of his races. Furthermore, Phelps would have lost the visceral connection with fans, the same emotional reaction that advertisers rely on and pay for when signing athlete endorsers.
It ultimately comes back to the fact that sporting events are the only telecasts where "live" still means something. That's why NBC's viewership success thus far is widely considered a surprise, and the network might face some more embarrassment if ratings fall off because of the tape delay. NBC is more than willing to make that gamble, even if it means less excitement for fans and fewer endorsement dollars for the Games' top athletes.
See Our Full Coverage Of The London Olympics
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6b90978dd70a7064672ebc31f52f7fa5 | https://www.forbes.com/sites/chrissmith/2012/09/05/the-nfls-most-valuable-fans/ | The NFL's Most Valuable Fans | The NFL's Most Valuable Fans
Gallery: The NFL's Most Valuable Fans 12 images View gallery
Each and every NFL team relies on its fans to survive. Without fans at the games, teams don't sell tickets, concessions or stadium advertising. Without fans rooting from home, teams don't get wealthy local radio and television deals. It's true that NFL teams enjoy a cut of rich league-wide revenue streams like national television deals, but the local fans remain a core revenue driver. In fact, the average NFL team generated 43% of team revenue from local sources.
Teams in larger markets like Chicago, Dallas, Houston and New York obviously generate more local revenue than those in smaller metro areas, so it seemed pointless to list the teams that simply have the fortune of playing in the nation's most populous cities. Rather, we sought to determine the NFL's most valuable fans on a per capita basis, dividing each team's local revenue by the local metro population; in the cases of the New York teams (Jets and Giants) and Bay Area teams (49ers and Raiders), we allocated half of the metro population to each team. Local revenue is considered any team income not attributable to national or league-wide revenues, and it includes components like tickets, concessions, advertising, sponsorships and local media deals.
In Pictures: The NFL's Most Valuable Fans
The Green Bay Packers stand well ahead of the field, generating a massive $390 per local fan, well above the league average of $50 per fan. The team's per-fan success is skewed so high because the team plays in the league's smallest metro area, comprised of just 310,000 residents. The Packers' local population is 7% the size of the league's average metro area. But the small population isn't the only contributing factor to the Packers' top spot. Green Bay generated about $121 million in local revenue, good for tenth-most in the league and the third-most of any team on our list, highlighting that NFL teams can thrive in smaller metro areas. Closely following the Packers are other small market teams like the Saints ($85 in local revenue per fan), Bills ($74), Titans ($67) and Jaguars ($58).
Though two NFC teams lead our list, the AFC makes up its bulk: seven of the 11 teams (there is a three-way tie for ninth) are from the AFC. The AFC's success is mostly due to the conference's smaller market sizes; the average AFC metro area is comprised of 3.9 million people, compared to the NFC's 5 million, which includes Green Bay. The AFC also has the most valuable fans across the league as a whole, with the average conference team generating $44 per fan. While NFC teams brought in an average $56 per local fan, that number drops to just $34 when the Packers are omitted.
Population isn't everything, though. The Cowboys rank eighth on our list with $53 in revenue per fan last season despite playing in the league's third-largest metro area. Dallas has been the NFL's most valuable team since 2007, and this year it became just the second professional sports team behind Manchester United to cross the $2 billion mark. The Cowboys generated $500 million in revenue last season, with a staggering $345 million coming from local sources.
Another large market team to make the cut is the New England Patriots, who tied with the Browns and Chiefs for the final spot on our list with $49 in revenue per fan. The Pats, who play in the league's tenth-largest market, generated $225 million in local revenue, second behind only Dallas.
In Pictures: The NFL's Most Valuable Fans
Full List: The NFL's Most Valuable Teams
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852305f13899df65da79e87309008ba2 | https://www.forbes.com/sites/chrissmith/2012/12/19/best-college-football-teams-for-the-money-2/ | Best College Football Teams For The Money | Best College Football Teams For The Money
The Kansas State Wildcats are heading to the Fiesta Bowl this January, making their first BCS bowl appearance in nearly a decade. Led by Heisman-finalist quarterback Collin Klein, the Wildcats ran roughshod over almost every opponent this season, going 11-1 with a sole late-season loss to Baylor. The 2012 success comes on the heels of a 10-3 record and Cotton Bowl appearance last season.
But while the team's on-field success has been a popular topic of discussion this season, what's flown under the radar is just how little Kansas State spends on its football program.
Gallery: The Best College Football Teams For The Money 11 images View gallery
The school reported football expenses of $38 million from 2009 through 2011. The average team from an automatic-qualifying (AQ) conference spent $53 million in that time period, and only four AQ teams spent less than the Wildcats over those three seasons. That low spending coupled with on-field dominance has makes Kansas State the most cost-efficient team in college football.
Complete Coverage: The Business of College Football
To find the best college football teams for the money, we looked at each team's three-year-average of spending per win, using the most recent financial data made available by the Department of Education (2009-10 through 2011-12) and the three most recent seasons played, not including this year's bowl games. Our methodology operates under the rationale that much of one year’s spending contributes to the following year's on-field performance. We limited our scope to teams that have been members of an automatic-qualifying conference for the last three seasons, and we adjusted each team's win totals to reflect a 12-game schedule to account for conference championships and bowl games.
The Wildcats spent an average $1,445,623 per victory over the last three seasons. They are closely followed by the Stanford Cardinal ($1,522,942 per win) and NC State Wolfpack ($1,580,752 per win).
Oregon (No. 6), LSU (No. 7) and Oklahoma (No. 8) are the only three teams in our ranking to make our list of college football's most valuable teams. The three teams also manage to rank among college football's best teams for the money despite spending more than the average team from 2009 through 2011. Oregon is heading to its fourth consecutive BCS bowl this year, and the three teams have combined for four BCS bowl bids over the two prior seasons, including two national championship appearances.
Two of college football's best teams for the money won't play in a bowl game this season: Connecticut and North Carolina. The Huskies failed to qualify, but the 8-4 Tar Heels will be staying home this postseason only because of NCAA sanctions. The two teams have combined for three bowl appearances in the two previous seasons, including a Fiesta Bowl bid by UConn following the 2010 season.
In Pictures: The Best College Football Teams for the Money
Complete Coverage: The Business of College Football
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