☕️ Economic vibe check

Athletic Brewing doubles its valuation... July 10, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Miso Robotics]( Good morning. Yesterday, DreamWorks announced that Shrek 5 is coming to theaters in 2026, and that’s not the only sequel on the way. Two of the most rewatchable movies from the 2000s are getting a second chapter. - A long-awaited sequel to The Devil Wears Prada is reportedly in the works, with Meryl Streep and Emily Blunt reprising their roles in the cutthroat fashion world. - The [official trailer]( for Gladiator II, starring Paul Mescal and a massive rhino, dropped yesterday (it’s hitting theaters in November). The battle sequences are going to be epic. And Gladiator looks good, too. —Cassandra Cassidy, Sam Klebanov, Matty Merritt, Adam Epstein, Neal Freyman MARKETS Nasdaq 18,429.29 +0.14% S&P 5,576.98 +0.07% Dow 39,291.97 -0.13% 10-Year 4.300% +3.0 bps Bitcoin $57,881.48 +2.52% Helen of Troy $64.33 -27.73% Data is provided by *Stock data as of market close, cryptocurrency data as of 4:00pm ET. [Here's what these numbers mean.]( - Markets: The S&P 500 and Nasdaq rose for the [sixth straight day]( to yet another record close as JPow told the Senate he likes what he’s seeing on inflation (more on that later). It was enough to give stocks their longest winning streak since January. Very much not part of that winning streak was Hydro Flask-maker Helen of Troy, which plummeted after it missed earnings estimates, citing “softer consumer demand” for the once-viral product.  FOOD & BEV [Athletic rides nonalcoholic wave to $800m valuation]( [Athletic Brewing cans]( Washington Post/Getty Images The nonalcoholic beer that’s brought new meaning to brewskis with the boys is about to pop up on even more drink menus. Athletic Brewing [closed]( a new round of funding that values the company—known for its cool branding and less than 0.5% ABV—at $800 million, the Wall Street Journal reported. The new valuation, which doubled from two years ago, comes as the company received $50 million in [funding]( led by private equity giant General Atlantic. With the money raised, Athletic plans to expand at retailers and increase production. Its surfing-oriented branding appears to have carried over to its business, because Athletic is now riding a wave: - It’s the top nonalcoholic brand by sales in US grocery stores, and a top 20 US brewery by barrels sold. - The company generated $90 million in revenue in 2023 and expects to do more in 2024. - It produced over 258,000 barrels of beer in 2023, up from a few hundred barrels when it launched in 2018. - Athletic has 19% of the domestic market share for nonalcoholic beer and is driving 32% of total nonalcoholic beer category growth, according to NielsenIQ data. Changing attitudes: Nonalcoholic beer is the [fastest-growing]( segment of the beer market, thanks to the more than 40% of Americans who say they’re trying to drink less alcohol. Athletic said that 80% of their customers still drink alcohol but turn to their brews when they need a break from the nectar of the gods. Zoom out: It’s not the only alt-drink brand that’s capitalizing on a consumer shift that’s helped by the prevalence of weight-loss drugs. Water-in-a-can company Liquid Death was [valued]( at $1.4 billion in March, while “healthy soda” brand Olipop is reportedly circling an $800 million valuation of its own.—CC PRESENTED BY MISO ROBOTICS [Remember when humans did that?]( [Miso Robotics]( Working the local burger joint’s fryer is tough—so much so that it’s getting harder and harder for fast-food restaurants to staff their kitchens. In fact, ~3m fast-food jobs will go unfilled in the US alone. Thankfully, “[Miso Robotics]( has created some of the only restaurant-robot experiences that actually work.” That’s what Fast Company said in one of Miso’s back-to-back Most Innovative list inclusions. It’s why brands like White Castle turned to Miso’s AI-powered robot, Flippy, to operate their fryers and boost their profits up to 4x. Now Miso’s ready to scale. They’re even [collaborating with NVIDIA](. To fuel their growth, Miso’s opened a funding round for investors to tap into the $1t fast-food industry’s automation. [Check out Miso’s investment and bonus shares offer today](. WORLD [Tour de headlines](#) [Pharmacy shelves]Jeffrey Greenberg/Getty Images The FTC made two rare moves. In a [scathing report]( the Federal Trade Commission accused pharmacy benefit managers—the companies that act as go-betweens for drugmakers and consumers—of jacking up drug prices. The criticism was unusual from the FTC, which has typically used a hands-off approach with the companies and could suggest a formal investigation or lawsuit is imminent. Elsewhere, the agency [banned]( the controversial anonymous messaging app NGL from hosting underage users, the first time it’s ordered a digital platform to stop serving minors amid a crackdown on social media’s exploitation of teens. Millions of Texans are without power after Hurricane Beryl. It could take weeks for power to be restored to the [more than 2 million people]( who were still without electricity as of yesterday afternoon, CNN reported. The National Weather Service said the outages could create dangerous conditions as the state (and much of the rest of the country) deals with extreme heat. In Houston, where Beryl struck as a Category 1 hurricane on Monday, the heat index passed 100 degrees this week. Texas utility CenterPoint Energy said it expects about 1 million homes to regain power by Wednesday night. Meta is removing some posts that target “Zionists.” The company that owns Facebook and Instagram announced yesterday that it’s [updating its hate speech policy]( to take down posts using the term “Zionist” when it’s used generally to describe Jewish people or Israelis. “We will remove content attacking ‘Zionists’ when it is not explicitly about the political movement, but instead uses antisemitic stereotypes, or threatens other types of harm through intimidation, or violence directed against Jews or Israelis under the guise of attacking Zionists,” the company wrote in a blog post. The move comes after a formal review, which included consulting with 145 academics, civil rights experts, and other advisors. Meta admitted that enforcing the new policy will be difficult. ECONOMY [Jay Powell gives Congress an economic vibe check]( [Jerome Powell testifying before Congress]( Kleponis/Getty Images Just like students when a teacher hints at what’s on an upcoming exam, economy watchers latched onto [every soundbite]( of Jay Powell’s biannual testimony to Capitol Hill lawmakers yesterday. Though the Fed chair neglected to directly address interest rate plans: - He noted the cooling job market and recent progress in lowering inflation, adding that price growth would need to continue slowing for the Fed to issue a cut. - Powell explained the Fed’s conundrum: Keeping rates elevated for too long could hamper the economy, but cutting too quickly could reignite inflation. His words reinforced analysts’ expectations that rates will be slashed sometime this year, with investors estimating a 73% chance of a rate cut by September, according to CME Group. Politics vs. Powell Any Fed moves in the coming months carry more political weight than usual due to the presidential election in November. Democratic Senator Sherrod Brown, who chairs the Senate Banking Committee that heard Powell’s testimony, urged him to consider how high interest rates push up housing costs and jeopardize the job market. Meanwhile, his Republican colleague Senator Kevin Cramer said a rate cut before the election would “be a bad perception.” Rates aside…Powell told Senators that the Fed is making progress on revising controversial rules proposed by regulators that would require big banks to keep a larger [financial cushion]( devised as part of an international agreement to prevent crises.—SK TOGETHER WITH APOLLO NEURO [Apollo Neuro]( De-stress in style. Are meditation, mindfulness, and breathwork just not cutting it, especially when you’re already busy and feeling stressed? [The Apollo wearable]( puts you back in the driver’s seat. Developed by neuroscientists and physicians, it’s designed to alleviate stress and improve sleep quality. Users also report significant improvements in focus and heart rate variability. [Check it out](. RETAIL [Etsy sees its handmade roots as the key to growth]( [Mural that reads “keep commerce human” from Etsy campaign.]( M. Santiago/Getty Images Etsy CEO Josh Silverman thinks he’s found a way to help you sift through thousands of the same “wine o’clock” t-shirts on his site: by going back to its human roots. The site [released]( new standards for its sellers yesterday that it hopes will increase transparency about how items are produced. Etsy’s products will now be required to fall into one of [four categories]( “made by” (like a handmade necklace), “designed by” (e.g., a digital illustration), “handpicked by” (items such as vintage clothes), or “sourced by” (like craft supplies). - Sellers will still be able to tag items as “vintage.” - Art generated with the help of AI will still be allowed and would likely fall under the “designed by” category. Big picture: The change is accompanied by a big “human-made” [marketing campaign]( in an attempt to win back some customers and appease sellers who have complained about drop-shippers and low-quality products. Etsy, which has seen sales shrink since its mask-filled boom in 2020, is trying to compete with companies like Temu, Shein, and Amazon, which are battling to make the cheapest and fastest-shipped products.—MM STAT [Prime number](#) [A woman walks by a "For Lease" sign on a building]Beata Zawrzel/Getty Images The only thing more vacant than the look in the eyes of Jets fans every September is the US office building. Vacancy rates hit a [record 20.1%]( in Q2, the highest since Moody’s started tracking nearly 50 years ago. It’s particularly empty [in San Francisco]( where the vacancy rate reached 34.5% this quarter, up from 33.9% in Q1 and just 5% pre-pandemic, per real estate firm Cushman & Wakefield. That’s despite the AI boom bringing lots of new business to the tech-centric city, including a 500,000-square-foot OpenAI office—San Fran’s biggest lease in six years. Moody’s projects vacancy rates will continue to climb through 2026 as companies figure out ways to get employees back into the office that don’t involve donuts. NEWS [What else is brewing](#) - [Tesla’s]( US electric car market share fell below 50% in Q2 for the first time, according to estimates by the research firm Cox Automotive. - [Two Democratic senators]( sent a letter to the Justice Department asking it to appoint a special counsel to investigate if Supreme Court Justice Clarence Thomas broke federal tax laws for allegedly failing to report lavish gifts he received. - [Boeing]( delivered 44 commercial aircraft last month, the most since its 737 Max debacle in January. - [Goldman Sachs]( bought a majority stake in the company that built the stages for Taylor Swift’s Eras Tour. - [Disney]( announced plans for a new cruise ship that will set sail from Tokyo in 2029 as part of the entertainment giant’s 10-year, $60 billion parks and cruises expansion. - [Spotify]( is adding comment sections to its podcast episode pages in a bid to compete with YouTube and presumably give Joe Rogan fans another outlet to discuss conspiracy theories. RECS [Wednesday to-do list] Fly: AirHelp’s 2024 ranking of the [best and worst airports](. Cringe: WSJ analyzed the latest [corporate buzzword]( “double-click.” Learn: How hippos that Pablo Escobar [smuggled into Colombia]( decades ago are still wreaking havoc. Bask: The 30 coruscating images named to the [Astronomy Photographer of the Year]( shortlist. Invest: [Fast food’s future]( = automation. That’s why brands like White Castle use Miso Robotics. [Invest in Miso alongside 34k+ people (and get up to 10% bonus stock)]( Prepared and protected: Deploy a safety net, remove human compliance from the equation, and enjoy a [simplified and streamlined system]( your team will thank ya for—courtesy of CrashPlan. [Learn more]( *A message from our sponsor. GAMES [The puzzle section](#) Word Search: Chemical elements are all around us—you just need to know where to look. [Find them in today’s Word Search](. Who wants to be a millionaire? Who Wants to Be a Millionaire? returns to the air today, 25 years after it premiered on ABC. If that makes you feel old, here’s your opportunity to also feel dumb. The following is the $1,000,000 question from an episode in 2009. See if you can be an imaginary millionaire. The question: “Nephelococcygia” is the practice of doing what? - Finding shapes in clouds - Sleeping with your eyes open - Breaking glass with your voice - Swimming in freezing water SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER Finding shapes in clouds Word of the Day Today’s Word of the Day is: coruscating, meaning “flashing or sparkling.” Thanks to Carl from Stamford, CT, for the brilliant suggestion. Submit another [Word of the Day here](. ✢ A Note From Miso Robotics This is a paid advertisement for Miso Robotics’ Regulation A offering. Please read the offering circular at [invest.misorobotics.com](. Written by [Adam Epstein]( [Cassandra Cassidy]( Sam Klebanov, [Matty Merritt]( and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. Interested in podcasts? - Check out ours [here]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2024 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011