presented by -- >> this week, tim draper talks about his plan to split california into three parts. a beer executive explains the business of brews. and at the diversity officer with an unusual proposal. our reporters wendy lee of the san francisco chronicle and wired's peter rubin, this week on "press: here." good morning, mcgrew. this past thursday marked the solstice and the start of summer and it is a darn good excuse to talk about beer.

the business of beer is a lot more complicated than you think. you can't just brew the stuff and expect to make money. you have to find a distributor and you have to compete with hundreds of other beer makers for shelf space. drinking beer is fun, making beer is work. nobody knows that better than robert nathanson, long time expert in the adult refreshment industry and ceo of paul mia beer joined by wendy lee of san francisco chronicle and peter wired. and let's talk about beer. you can't just make this stuff and sell it, right? you had a target audience, a specific audience from the get-go. >> yeah. so i've always been in the he chiropractor. and having a product that was 100%al natural flavor spoke to e of valid in these events that we did where people were tasting our beer and

said this is incredible. >> but you're going after more than j the healthy. you had a specific person in mind. i was reading your deck and people who drink certain kind of beer but upscale a little bit, you had a very narrow market. >> we did. we wanted to reach the millennials, 21 to 35 but it turns out everyone who drinks our drink falls in love with it. and that is why california is so great. they're looking for the healthy alternative because there are so many drinks that claim to be all natural and we set out to make that one drink or beer made from 100% natural products. >> as a millennial, that is -- the older millennial range of your demographic, how do you plan on separating yourself out from the other craft beers at the supermarkets. >> there is a big rage of the ipa and the pilsner and we're a lager which is easy to drink. and when we started making our product, we decided to make it

so that everyone could enjoy it. right. so in terms of all of the pilser and which is lager infused with lemon. the lemon that we use is 100% natural. and when people taste it, this is my new favorite. >> robert, let me jump in on this whole natural thing. are you saying that budweiser has something -- isn't beer water and hops and yeast and i think that is it? is budweiser not 100% natural? >> so a lot of beer companies are adding flavors. and that is what is hot right now. like the -- the grapefruit, or -- >> is there right grapefruit? >> they are using artificial flavors. so it is not 100% natural. ours we d 100% natural l lemons and that got us good to make sure we are natural. >> if you are how would

beer slide into that. >> great question. the cider is loaded with carbohydrates which is sugar and high calories. palmia coming in at 9 calories 9 the 9 grams of carbohydrated and safe for people with debriabete and the ciders taste great but they are not good for you. >> you can't just jump out and make a beer. there are distributors and much more complex than people understand. for instance, getting a distributor. >> it is. distribution will make or break to every bar and restaurant and asked them, who do you like and wh your beer? and they always came back with who are you with? and i said well i want to distributor that will take pride in what we do and believes in what we do and that is when we found charissa in the south bay

and morris and they will help us put more beers on more shelves. so yeah, getting a distributor is not easy. and what they want from you is traction. so that is exactly what i did. i went to every store and got a beer on the shelf but without reorders, it is a hard sell to sell to distributors. >> a lot of the titans of the craft beer scene in recent years have also been acquired by the even bigger brewing companies, mcguire -- so what kind of middle ground is there -- between kind of the teeny tiny brew it themselves and distribute it themselves and this kind of ever attenuating market place and where do you fit in. >> the key word is traction. ball aft point has traction. so right now we're gaining the traction and getting into such great accounts. and we're only nine months old. so when you see us on the counter or the shelf of a whole foods, we're sitting with beer

years and everyone is askinet i one thing is you could -- could be said is the taste. everyone loves it. >> so i saw in your deck you mentioned one of the ways you'll try to market is by meeting taste makers and so how do you find these taste makers? >> so we go into a lot of events. and at events you have the experts in the fields. and they are judging. so that is what we're doing, licking their lips and tasting the product and getting these great awards. this last week we were at an event in fremont called the burger and beer festival. and we were up against 38 well-known breweries and beers and we ended up winning the people's taste. >> i know you have itehind so would you like to pick up your award. >> i would love to. it is a great honor. >> so you've been in the alcohol adult beverage industry for a while. one of the things that i've

noticed are the great number of vodkas that have come out. i have a friend who said all vodka is the same. it is just water and alcohol. could you settle that for me? and why so many vodka and are they all the same? >> vodka is not the same. >> all right. >> it is about how many times its been distilled and now companies are saying we're seven times distilled and after a few times it is 99% ethanol. >> and now i've proved him wrong. why is there so many vodkas? because it is easy. >> not that it is easy. but the big time rappers, p. diddy is with and joining -- enjoying the vodka and when go to a bar that separates the vodka company from the little guys. give me a red bull'll squee against the commercial. where is the alcohol beverage industry going, aside from your own beer. i saw there was spiked water.

i saw a commercial for that. where are we going towards in the alcohol industry? >> everyone is looking for something unique. something different. and with the spiked water or with the all natural beverages out there, one thing can be said -- that is recession-proof and that is alcohol. in a good economy, people are drinking n. a bad economy, people are drinking even more. so watch for a lot of alcohol to be consumed. >> robert nhan and paul, the best of luck newbeer. and well some sober talk ahead, as the head of diversity said progress isn't diversing. when "press: here" continues.

welcome back to show about r hiring and sexism and equality in silicon valley. i have no idea if that is the 13 out o roughly 325 guests an. audrey blanc worries we are tired of talking about equality. she calls it diversity exhaustion and commissioned a sudden study about how silicon valley handle it. fatigue has set in and progress has stalled. people are tired about talking about diversity and inclusion and frustrated by talk not turning into action. and study finds minorities they have to find so hard for things

that haven't changed and people in majority groups feel barraged with messages that they are the problem. they have no idea how to help. aubrey knows a great deal about fair hiring, the head of diversity and belonging atlasian. thank you for being with us this morning. i know it is dangerous to talk fi ut fatigue. evidence there may be some. >> yeah. so i think you see this across -- i like to say people are living in a diagram of exhaustion. there is theho we push for this for five years and the most recent wave. but look at the numbers. there hasn't been a change in representation in the valley. and then you have the folks who have been getting the messages about you should help, but they maybe don't know what that looks like or how the behaviors or decisions need to be changed. and so they are tired of hearing about it and it is ironic, if you are tired of hearing and if we did things we'd stop talking about it, right. so there is fatigue in different

ways. but what we need to do is start making progress. and there are ways to do that. our research actually showed that there was a 10 percentage point decline in the promoting y cases we saw a 50% year over people advocated for diversity within the workplace. so it is not justcorporate leve seeing it in individuals. now great investors know the best time to invest is in a down market. so i think that the optimistic thing is that companies that double down are going to have a competitive advantage in this space. if you are seeing a lack of investment, that becomes a bigger advantage over time for companies that really care and invest. >> so how much about making change is -- there is the discussed pipeline issue and recruiting and how much is fixing it at the root and how much is fixing what is at a company. >> and i would say a lot of the

root issue is tech culture and the stereotypes around it itself. so we know that there are stereotypes about your staying up at night and coding until 4:00 in the morning and there is a particular demographic profile of people that associate with tech. when you say think of a tech leader, there is probably a small number of people you think of and they probably all look similar to each other. so i think that to answer the question, when you look at the data, the tech industry is to women and 18% aren't women at minimum. 11% to 18% of technical degrees are given to black and hispanic individuals and representation at companies is much lower than that. and that includes nontechnical roles. so i think that of course we need to make investment in making sure people have access to technical education, but retention is a bigger problem. even over the last five years, a foundation found the representation of black women in technology has dropped by 13%.

and that is a cultural issue. >> so when there is a fire storm me like the jamesase that women weren't suited to be engineers, how do you use that to your advantage at a company. how does that become a galvanizing point something that repels would-be workers. >> and we talk about wking open. and that is open and respectful dialogue. and so when things like that come out it is an opportunity to educate people about the facts that -- well, the distribution of women in computing varies across time and country. so it is probably nottin trinsitrin -- not intrinsic to gender and if you could ask questions as long as it is done respectfully and get answers. i'm on hook, a trade scientist by trade and so let's talk about that and what are we trying to resolve and what is interesting is the research about the facts

that bias harassment and discrimination exist in technology is rock solid. the tech lever study showed it is costing the industry year. and that black men and wthe most leave. so let's focus on the problems that we know exist and see what the industry starts to look like. >> and i want to ask you about -- sometimes people often share that sometimes the diversionity initiative falls on deaf ears and there aren't enough white men actively engaged in the initihatate.o yo this? do you think there needs to be a -- more outreach to white men to get them more involved? >> yes. without question. so research from hbr showed that white men were the soenl demographic groups that aren't socially but the flip side is they could do a lot of to help and there are so many

well intentioned people and one of the things that we need to do overall but would have the biggest benefit for that group and for turning great people into active allies is switch from what i think we saul know is happening now which is this call out culture into something i called a call-in culture. i won't blast you for something on twitter that was well intentioned but a miss but i will ping you privately and say, i know you have great intention, but that impacted me in this way. could you do this instead. >> could you go back. you said white men are statistically the only men -- people not punished for advocating for change. we have a privilege -- speaking for all white men -- we have a privilege in advocating for change? we have a privilege to everything, including that? >> yes. but that is good news. it means that people can do little things thatthinmp huge. this is also something our research found.

so much of the discussion here is happeningvel, at the company. and the fact is your average employees, whether they are a white man or not, has no idea to you ho impact the season and so we talk about building a sense of belonging and diversity at the team level. why? because it makes sense for analysis and it is where diversity happens but it is a unit that people could influence. so i'm not asking you to fix the whole company. i'm asking you to make the environment on your team just better tomorrow than it was yesterday. >> so what are you seeing that gives you hope in silicon valley? whether that is at a corporate level or a sub-field where you are seeing change actually take root or -- >> make it a little -- tell us your hope quickly. >> yes, i think in the last year, there are so many people who have had their eyes opened cope of this problem and i think the discussion is turning to start talking about using empirical research to make this change.

but also more an actionable strategies that people could implement, tiny things and micro advocacy and i hope that people will take that on and say i can do one micro advocacy a day. >> i like ending on hope. aubrey blaench, thank you. >> and tim draper got his way. the plan to break california into three states is on the ballot when "press: here" continues.

welcome back to "press: here." there is an unusual proposal to split california into three new states. this is not a theoretical idea. supporters gathered enough signatures for the november ballot. chose split it up or no keep it the way it is. if it is a yes vote we need congress to give the final approval. tim draper is the money behind this idea. reporters with fortune and the financial times join me in a pretaped interview with tim. >> do you ever wonder why you are in california and pay the highest taxes in the entire country and running over potholes, the water doesn't work. you're not getting the best water. orovil oroville dam is about to break. >> is it because of los angeles? >> no. why is our education among the

worst. bottom three. math 47thth. and then why a prison problem where prison population in the last four years. and it just makes you wonder, what is going on. why do we have horrible education, horrible infrastructure, and high taxes. why does that happen? and i came to the conclusion that california is actually -- there is a whole disconnect there. it's -- you could say it is corrupt. you could say that -- >> and breaking into three will solve it how. >> because you get a fresh start and a fresh slate. and each of the three californias will empower the people in each of the states to restart and rethink the way a state should be run. and we're going into a very

interesting technology time and that could actually help people start thinking inoperate. and you might see -- but in any case, we have huge baggage. why is all -- why is all of the money going into pensions for retired employees when -- retired government employees when it could be going into building out infrastructure and improving our lives sand really improving -- >> richard from the financial times. >> a lot of people around the country will see this as an attempt by sill -- silicon valley to secede. and we have a tech center that people feel have too much wealth and power. >> this saved us from having y this is -- >> this is silicon val f california and it is becoming a

self-organizing -- >> all three of the states will be about roughly equal in population and roughly equal in income. although, yes, silicon valley will always be the wealthiest in the country until somebody invents something better in detroit or somewhere else. and we just have a really good economic engine. and it is working very, very well. and what ideally we want is for all three of the states -- and maybe all 52 of the states -- to then have that kind of strong economic engine without having -- we have the best of all of the things, why do we have the worst government? >> is there no way, is broken and to overhaul some of way.three states.

and put together another nonprofit to explore ideas in california called "innovate your state" and i had 600 submissions and looked through the submissions and i -- and we tried some and we funded some, we did different things for california. but really fundamentally california's government has become rotted. and we are -- we are basically subs siddizing it by continuing to allow this to happen. >> i thought the idea was insane until i looked up this happens all of the time historically. west virginia broke off from virginia during the civil war. i knew that one. but vermont used to be part of new york. maine used to be part of so this is nit done. and it is not -- it is a peaceful way to have -- >> assuming congress approves, which they did in these cases. >> right. and sure that is another hurdle to get congress to approve after

we've gotten this through but we need the first step. we just need this first step to get people going and thinking, our how would operate? >> but we lose -- politically we lose some clout because we lose a lot of electoral votes. >> well we? who is we? you have three states and end up with six senators instead of two. >> exactly. >> but this is why it is a political nonstarter because there is no way washington will allow six or four new democratic senators -- >> i'm not sure they are democrat or -- >> in california, you're multiplying california -- >> and right now 46% of the population of california are democrats. 46%. 26% are republican. 28% are declined to state. most californians are looking and saying, this is a mess. this two-party system here inanw

ways -- >> i think you're putting your finger on a lot of issues that california will agree with but i think it is a political nonstarter in washington that washington would allow the west coast to suddenly become -- >> well let's say all three -- all three of the states go vote republican, or all three vote democrat, there will be a moment in time when washington is all democrat or all republican and then it will pass. >> give me the grocery store pitch. when the young man or the young lady comes up and said, hey, will you sign this? give me the 10 or 15 or 20 seconds -- i'm very busy in california. what is the pitch? >> simply that we pay the most and we get the worstn ce ha the highest taxes, and we have the worst education. worst infrastructure. infrastructure speg 3% of our budget. >> tim draper. you have a website people can learn more.

>> cal3.com. >> and venture capitalist and a good guy. thank you. >> thanks so much for having me.

that is our show for this week. thanks to my guests and thank you for making us part of your sunday morning. >> announcer: "press: here" is sponsored by barracuda.

to "comunidad del valle," i'm damian trujillo. and today, "los idolos del pueblo," los tigres del norte, right here in our studio, exclusive, on your "comunidad del valle." male announcer: nbc bay area presents "comunidad del valle" with damian trujillo. ♪ [singing in foreign language] [singing in foreign language] damian: yeah, this is another legendary band. this is banda recodo de don cruz lizarraga. they're here in our studio to enlighten us, because they're gonna be sharing a stage with los tigres del norte and paquita la del barrio. welcome to the show, gentlemen. alfonso lizarraga: thank you very much, my friend, damian. it's our very pleasure to stay with you here. damian: thank you. well, he said he didn't speak any english, but he's surprising us right now.