Good morning readers. Talk about taking one for the team. Henrik Fisker, along with his wife, Geeta Gupter-Fisker, co-founders of the EV company Fisker, have lowered their salaries to $1 in order to keep the company’s bankruptcy proceedings funded, as they look to offload the rest of their inventory. If you recall, the company filed for Chapter 11 bankruptcy on June 18th, earlier this year.

As for how much they were making? The company said in a regulatory filing last year that the couple was getting paid a minimum wage salary, which at the time was $62,400 in California. The filing also said they received an additional $710,000 in cash bonuses. The EV company continues to push for the sale of roughly 3000 SUVs left in its inventory, although its unclear who will scoop them up. American Lease was set to buy the remaining fleet of cars for $42.6 million, but an unknown buyer (under an NDA) has swooped in at the last second with a revised offer.

Let’s jump into today’s storylines.

In today’s digest:

• Athletic Brewing is ‘brewing success’ with it’s latest round of funding

• Headline Hustle: Jerome Powell tells Congress the US economy is no longer heated, Senators ask for a special counsel probe into Supreme Court Justice Clarence Thomas, Fifth Third Bank pays $20 million fine for its deceptive auto insurance practices

• The FTC’s crackdown on NGL

• Pulse Points: What’s Trending

FOOD & BEVERAGE

Athletic Brewing rides the non-alcoholic wave after raising $50 million (at a $800 million valuation)

Forget the buzz, Athletic Brewing is redefining the beer game—without the booze. The biggest nonalcoholic beer brand in the U.S. has just closed a fresh financing round that values it at a staggering $800 million—double its valuation from just two years ago.

Founded in 2017, Athletic Brewing has quickly outpaced competitors like Heineken and Budweiser to become the top nonalcoholic beer brand in U.S. grocery stores. According to NielsenIQ data, it sold over 258,000 barrels last year, ranking it among the top 20 U.S. breweries. This summer, the company also launched their biggest marketing campaign yet, “Ask For Athletic,” aiming to capture even more of the growing market.

The secret to their success?

A brewing process that mirrors traditional beer-making but keeps alcohol levels incredibly low. Their lineup includes everything from IPAs to Lagers and Ale’s, catering to a growing market of health-conscious consumers. As Americans, especially the younger crowd, cut back on alcohol, nonalcoholic beer has become the fastest-growing segment in the beer industry, hitting a $20 billion market valuation in 2023.

Athletic Brewing plans to use the fresh capital to expand further, including acquiring a third U.S. brewing facility, which will double its brewing capacity. CEO Bill Shufelt, who co-founded Athletic after leaving hedge-fund firm Point72 Asset Management, credits the company’s rise to a complete overhaul of the product and marketing strategy.

“Ten years ago, there were no options,” Shufelt said. “We had to totally change the product and the marketing.” The brand’s high-profile backers, including J.J. Watt, David Chang, and Lance Armstrong, reflect its appeal to a health-conscious, active lifestyle.

Cheers to that: Last year, Athletic Brewing exceeded $90 million in sales, thanks to better shelf placement in stores. And with the value of the non-alcoholic beer market projected to be $40 billion by 2033, the company is poised to lead the charge, proving that you don’t need alcohol to have a good time.

IN THE KNOW

Headline Hustle

⚖️ US economy is no longer heated, Jerome Powell tells Congress. Federal Reserve Chair Jerome Powell noted Tuesday that inflation has significantly decreased since its peak two years ago. However, Powell also emphasized that more progress is needed before cutting interest rates. He highlighted that the Fed aims to ensure inflation moves sustainably towards 2% and is also closely monitoring the job market. Despite recent signs of progress, Powell did not commit to a timeline for rate cuts. He stressed the Fed's dual mandate to balance price stability with maximizing employment, noting the need for careful timing to avoid economic disruptions.

🔎 Senators ask for special counsel probe of Supreme Court Justice Clarence Thomas. Two Democratic Senate leaders have requested a special counsel to investigate Supreme Court Justice Clarence Thomas for possible violations of federal tax and ethics laws. Senators Ron Wyden and Sheldon Whitehouse cited evidence suggesting Thomas accepted and failed to report lavish gifts from wealthy benefactors, potentially violating the Ethics in Government Act. The senators' letter to Attorney General Merrick Garland follows reports and a Senate investigation into Thomas's activities. This comes shortly after Thomas questioned the DOJ's authority to appoint a special counsel in a recent court ruling.

🏦 Fifth Third Bank charged for creating fake customer accounts, forcing clients into unnecessary car insurance. Fifth Third Bank has agreed to pay $20 million in penalties to settle a Consumer Financial Protection Bureau (CFPB) investigation into its auto insurance practices and a 2020 lawsuit regarding the creation of fake customer accounts. The CFPB found that the bank illegally charged over 35,000 customers for unnecessary auto insurance, leading to vehicle repossession for over 1,000 individuals. The settlement includes $5 million in redress for affected customers and a $15 million penalty for incentivizing employees to create fake accounts.

SOCIAL

FTC bans controversial app from serving kids amid cyberbullying scandal

In a bold move against rampant cyberbullying, the FTC and Los Angeles DA have banned the anonymous messaging app NGL from serving users under 18. The app, notorious for its “rampant cyberbullying and threats against children and teens,” has been ordered to pay a $5 million fine and implement strict age verification.

The ban marks a significant step in the FTC’s broader crackdown on social media companies and data mishandlers. FTC Chair Lina Khan condemned NGL for its “reckless disregard for kids’ safety,” stating that the app deceptively marketed itself as a “safe space” for teens.

The story behind MGL

NGL, which stands for “not gonna lie,” had amassed millions of downloads. It drew teens in by promising anonymity but preyed on their social anxieties with fake, computer-generated messages designed to manipulate them into paying for “sender” information. Instead of revealing who sent the messages, the app provided vague hints, leaving users frustrated and out of pocket.

NGL’s response: Co-founder Joao Figueiredo claimed NGL cooperated with the FTC’s investigation but disputed the findings. “We believe many of the allegations are factually incorrect,” he said, emphasizing the new age-gating measures as a step towards improvement.

To all social media platforms…beware. NGL’s case is a wake-up call for tech companies to prioritize user safety and transparency. As the FTC continues to clamp down on deceptive practices, the message is clear: exploiting vulnerable users, especially children, will not be tolerated.

SNIPPETS

Pulse Points

• Mass tourism troubles reached a peak in Barcelona, Spain, on Saturday as protesters threw items and sprayed travelers with water guns and canned drinks while shouting "tourists go home."

• President Joe Biden announced new commitments to strengthen Ukraine's air defense against Russia during a speech on Tuesday marking NATO's 75th anniversary.

• A majority of medical students at Johns Hopkins University will receive free tuition following a $1 billion gift from Bloomberg Philanthropies.

• A judge has dismissed nearly all claims in a copyright lawsuit filed by developers against GitHub, Microsoft, and OpenAI in 2022, as reported by The Register.

• Office vacancy rates hit a record 20.1% in the second quarter, the highest level since Moody's began tracking in 1979.

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