>> "THE WALL STREET JOURNAL" CALLED HIM A SERIAL ENTREPRENEUR.

ALAN NEWMAN, THE FOUNDER OF SEVENTH GENERATION AND MAGIC HAT BREWERY, ALSO HELPED START GARDENER'S SUPPLY COMPANY, AMONG OTHERS.

NEWMAN IS MY GUEST, NEXT ON PROFILE.

>> ALAN NEWMAN GREW UP IN LONG ISLAND AND CAME OF AGE IN THE 60'S, TRAVELING THE COUNTRY, ATTENDING A FEW COLLEGES, LIVING WITH HIS WIFE IN A COMMUNE.

THE COUPLE EVENTUALLY SETTLED IN VERMONT WHERE NEWMAN FOUNDED A MEDICAL PRACTICE CONSULTING COMPANY, GOT GARDENER'S SUPPLY COMPANY UP AND RUNNING, SPUN OFF FROM THERE TO FORM HIS OWN ENTERPRISE, NICHE MARKETING.

THROUGH ONE OF HIS CLIENTS HE TOOK OVER A NATURAL PRODUCTS CATALOGUE COMPANY HE RENAMED SEVENTH GENERATION.

A SPLIT FROM THAT COMPANY IN THE EARLY 90'S LED TO A NEW VENTURE.

MAGIC HAT BREWERY WAS BORN IN 1994, AND IS NOWED SECOND LARGEST BREWERY IN NEW ENGLAND, SELLING BEER FROM MAINE TO THE CAROLINAS.

MARKETING WIZARD, MARDI GRAS KING AND THE COMPANY'S CONDUCTOR OF COSMIC SYMPHONIES, ALAN NEWMAN, WELCOME.

>> YOU EVEN OUT AND MAKE MONEY?

>> I NEVER THOUGHT OF ANY OF THIS IN LATE OF LIFE.

WHEN I DO PRESENTATIONS OF COLLEGE KIDS I ASK, WHO HAD THE NEWSPAPER ROUTE?

I BELIEVE THAT NEWSPAPER ROUTES ARE ONE OF THE EARLY SIGNS OF ENTREPRENEURSHIP.

I HAVE NO IDEA WHETHER I'M RIGHT OR NOT.

>> SO THE OTHER PART OF YOU THAT PEOPLE KNOW ABOUT IS THIS KIND OF ADVENTURE, THIS WILD ADVENTURE.

AND INDEED, YOU AND YOUR WIFE, JUDY, TRAVELED AROUND THE COUNTRY, YOU WENT TO A COUPLE SCHOOLS, YOU LIVED IN THIS COMMUNE.

YOU FINALLY SETTLED HERE IN VERMONT.

DO YOU REMEMBER WHAT IT WAS THAT MADE YOU WANT TO SETTLE HERE?

>> GOD SPOKE TO ME, "ALAN, GO TO VERMONT" I DON'T HAVE CLUE.

I HAVE NO IDEA.

>> IT JUST WORKED.

>> I HAVE NEVER KNOWN WHAT WAS COMING NEXT IN MY LIFE.

>> YOUR FIRST BUSINESS, THOUGH, TOOK YOU AWAY FOR A LITTLE WHILE.

A CARAMEL CORN FRANCHISE.

>> YOU'RE KILLING ME.

>> IN A MASSACHUSETTS MALL.

>> IT WAS HELL.

>> BUT I MEAN, NOT YOUR FIRST EXPERIENCE.

SO YOU GET THIS THROUGH YOUR DAD?

>> I HONESTLY DON'T KNOW THE ANSWER TO ANY OF THESE QUESTIONS.

YOU KNOW, I FOLLOW MY NOSE.

I DO WHAT SEEMS TO MAKE SENSE.

THE CARAMEL CORN THING WAS A FABULOUS EXPERIENCE.

I DID IT BECAUSE WE HAD NO MONEY, IT WAS MUD SEASON IN VERMONT, I WAS DESPERATE.

I THOUGHT, THIS HAS GOT TO BE BETTER.

I HATE THE IDEA BUT AT LEAST WE'LL MAKE A LOT OF MONEY.

AND IT WAS THE LAST TIME I EVER DID ANYTHING WITH THE INTENTION OF ONLY TRYING TO MAKE MONEY, BECAUSE IT WAS JUST A MISERABLE EXISTENCE.

I DIDN'T LIKE IT AT ALL.

AND ASIDE FROM TEACHING ME NOT TO DO SOMETHING THAT I DON'T LIKE DOING, IT PLAYED NO OTHER ROLE IN MY LIFE.

>> AND YOU DIDN'T MAKE MONEY.

HOW DID YOUR FATHER INFLUENCE YOUR BUSINESS STYLE, DO YOU THINK?

>> HE HAD -- >> BECAUSE HE WAS A BUSINESSMAN.

>> YES.

HE RENTED SHOPPING MALLS.

HE HAD AN INTERESTING WAY HE DEALT WITH MONEY.

HE WOULD NEVER EXPLAIN IT THE WAY I'M ABOUT TO DO THAT.

HE HAD NO -- HE NEVER SEEMED TO HAVE INCOME COMING IN.

HE LIVED ON THE PRESUMPTION THAT SOMEHOW THERE WOULD BE ENOUGH MONEY FOR TOMORROW.

AND I REMEMBER WHEN HE GOT SICK, HE WAS HOSPITALIZED FOR A COUPLE MONTHS WITH ULCERS AND HE WAS OUT OF COMMISSION AND MY MOTHER TOOK OVER THE FINANCE.

AND I REMEMBER SHE USED TO SIT AROUND THE KITCHEN TABLE PULLING HER HAIR OUT BECAUSE SHE COULDN'T FIGURE OUT HOW TO MAKE THIS WORK.

BECAUSE THERE JUST WASN'T -- IT DIDN'T WORK.

AND ALL MY LIFE, I HAVE LIVED ON THE PRESUMPTION THAT THE UNIVERSE WILL SOMEHOW TAKE CARE OF ME, AND WHEN I NEED SOMETHING IT ALWAYS APPEARS AND I'VE NEVER SEEN IT COMING.

AND SO I CLEARLY GOT THAT FROM HIM, THAT TRUST IN THE UNIVERSE THAT AS LONG AS I CONTINUE MOVING AND LIVE RESPONSIBLY, MY INCLUSION, SOMEHOW I GET TAKEN CARE OF.

AND I GET TAKEN CARE OF OKAY.

>> AND YOU HAVE.

EVEN THOUGH YOU SELL THE CARAMEL CORN AT A LOSS AND YOU HAVE YOUR FIRST CHILD AT THIS TIME, TOO.

>> RIGHT.

>> YOU COME BACK TO VERMONT AND YOU BECOME A MEDICAL PRACTICE CONSULTANT.

IN FAIRLY SHORT ORDER.

I MEAN, THERE WAS SOMETHING IN BETWEEN.

BUT HOW DID YOU PULL THAT OFF?

>> I DIDN'T PULL IT OFF.

IT HAPPENED TO ME.

AGAIN, I FOLLOWED MY NOSE.

I NEEDED A JOB, I TOOK A JOB, YOU KNOW, AT AN ORGANIZATION CALLED UNIVERSITY HEALTH CENTER THAT WAS JUST FORMING, DID MEDICAL BILLING.

IT WAS IN TOTAL CHAOS.

BECAUSE I SHOWED UP EVERY DAY AND HAD HALF A BRAIN IN MY HEAD I KIND OF ROSE THROUGH THAT ORGANIZATION.

AND I KIND OF RAN, YOU KNOW, A SECTION OF IT.

I HAD A FRIEND WHO LEFT.

I LEFT.

YOU KNOW, HE CALLED ONE DAY AND SAID, HEY, CAN YOU GIVE ME A HAND RUNNING A HEALTH CENTER FOR AWHILE?

I SAID SURE.

AND THAT LED TO A JOB WITH DARTMOUTH MEDICAL SCHOOL WHERE I COORDINATED A MEDICAL BILLING PROGRAM WITH 18 RURAL PRACTICES.

AND THAT LED TO THAT LED TO THAT LED TO -- >> SO HERE'S A PSYCH IN ENGLISH MAJOR WITH A LITTLE BIT OF SOCIALOLOGY MIXED.

IN BUT YOU ARE A WHIZ AT ABOUTS FINANCE AND ORGANIZATION.

DID THAT JUST COME?

>> I DON'T THINK ANYBODY WHO KNOWS ME WOULD CALL ME A WHIZ AT BUSINESS ORGANIZATION OR FINANCE.

I THINK WHAT DO I REALLY WELL -- AND AGAIN THIS IS ALL IN RETROSPECT -- IS -- AND SOMEBODY THAT I WORK WITH NOW WAS THE FIRST ONE TO ARTICULATE IT.

YOU GIVE ME A WHITE SHEET OF PAPER.

AND I LOVE DRAWING ON THE WHITE SHEET OF PAPER.

AND THAT'S WHAT I DO.

THE IDEA OF CREATION, OF CREATING A PERSONALITY, TAKING SOMETHING THAT'S AN IDEA AND FILL IT WILL OUT -- FILLING IT OUT.

FOR ME IT'S LIKE PAINTING ON A CANVAS.

WHEN I GET A BUSINESS IDEA, I GET IT PRETTY WELL FULLY DEVELOPED.

THEN IT'S JUST A MATTER OF WAITING FOR A TIME AND PEOPLE AND CIRCUMSTANCES TO COME ALONG SO THAT I CAN GET -- I MEAN, IT'S TAKEN -- I SAW WHERE WE ARE WITH MAGIC HAT 14-YEARS AGO.

AND THE FACT THAT IT'S TAKEN 14 YEARS TO GET WHERE WE ARE, TO ME IS CRIMINAL.

I MEAN, I DON'T UNDERSTAND HOW IT'S TAKEN THIS LONG.

>> COULD YOU GET THE PRESENT -- IF THERE'S ANYTHING YOU'RE A WHIZ AT IT'S MARKETING AND PRESENTATION AND MESSAGE.

IS THAT AS IMPORTANT, OR MORE IMPORTANT THAN THE PRODUCT OR SERVICE?

>> IT'S ALL THE SAME THING.

YOU GOT TO DO IT ALL.

ESPECIALLY BEER IS A VERY COMPETITIVE MARKET TODAY.

YOU CAN'T BE IN THIS BUSINESS IF YOU'RE NOT MAKING WORLD-CLASS BEER, IF YOU DON'T HAVE GREAT QUALITY CONTROL, YADA YADA, ALL THOSE THINGS.

WHAT DIFFERENT REN CHEATS US IS OUR MARKETING IN MY OPINION.

OUR BEERS ARE VERY DISTINCTIVE.

WE TAKE GREAT QUALITY CONTROL MEASURES.

BUT A VERY CROWDED MARKET.

IT'S THE PERSONALITY OF THE BRAND, I THINK, THAT GIVES US THAT EXTRA LEG UP, THAT ALLOWS US TO TRAVEL OUTSIDE OF OUR HOME TERRITORY AND BE AS POPULAR IN VIRGINIA AND NORTH CAROLINA AND MANHATTAN AS WE ARE IN BOSTON AND THE RHODE ISLAND AND -- >> SOMETHING NEW AND FRESH.

I'M GOING TO TAKE YOU BACK AGAIN.

BECAUSE YOU'VE DONE SO MANY FASCINATING THINGS.

IN EARLY 80'S YOU HELPED START GARDENER'S SUPPLY WITH YOUR FRIEND WILL RAPP.

I THINK BECAUSE YOU HAD DONE THIS KIND OF BUSINESS AND KNEW ABOUT COMPUTERS?

>> NO.

IT WAS MY FIRST REAL BUSINESS.

I KNEW NOTHING ABOUT BUSINESS WHEN I DID THIS.

WILL DIDN'T, EITHER.

AND WE WERE BABIES IN THE WOODS.

AND WE USED TO SIT AROUN TALKING, WHAT ARE WE DOING?

WHY ARE WE DOING THIS?

THAT WAS REALLY WHERE I LEARNED THAT BUSINESS COULD HAVE A SOCIAL MESSAGE, IT COULD HAVE -- IT COULD BE -- IT COULD SERVE THE SOUL AS WELL AS HOPEFULLY THE POCKETBOOK.

>> SO THAT'S WHERE YOU DID HAVE THIS CONSCIOUS OBJECTIVE TO DO SOMETHING GOOD IN THE WORLD.

>> FIRST OFF, YEAH.

>> YOU KIND OF SPUN OFF FROM THERE TO YOUR OWN COMPANY CALLED NICHE MARKETING WHICH HELPED OTHER CAUSE-RELATED BUSINESSES, AS I UNDERSTAND IT, FIND THEIR NICHE.

AND ONE OF YOUR NICHE CLIENTS WANTED TO UNLOWLAND A NATURAL PRODUCTS CATALOG.

>> IT WASN'T REALLY NATURAL PRODUCTS.

IT WAS ENERGY CONSERVATION AND RENEWABLE ENERGY PRODUCTS.

IT WAS THE DULLEST, MOST BORING, WORST CATALOG I HAD EVER SEEN IN MY LIFE.

I'M NOT EXAGGERATING.

>> THEY TRIED TO SELL IT TO YOU, RIGHT?

>> TRIED TO SELL IT TO ME.

SORRY, FOLKS.

AND THEY FINALLY JUST KIND OF DUMPED IT ON ME.

AND I WAS PHILOSOPHICALLY ENAMORED WITH THE CONCEPT, YOU KNOW, THAT WE COULD -- I HAD ALWAYS BEEN INVOLVED IN ALTERNATIVE ENERGY PROJECTS IN RECYCLING AND A BUNCH OF RELATED PROJECTS.

SO I HAD TAKEN THEM ON AS A CLIENT REALLY MORE OF A HOBBY.

THEY NEVER REALLY PAID THEIR FAIR SHARE.

AND WHEN THEY DUMPED IT ON ME, I JUST KIND OF RESPONDED.

AND WE CHANGED THE NAME, WE CHANGED THE -- >> TO SEVENTH GENERATION.

>> -- WE CHANGED THE PROPOSITION OF THE CATALOG FROM CONSERVING ENERGY AND RESOURCES TO MORE PRODUCTS FOR A HEALTHY PLANET, BROADENED IT OUT QUITE A BIT.

AND WE CAUGHT A WAVE OF ENVIRONMENTAL ENTHUSIASM THAT HONESTLY I DIDN'T SEE COMING.

AND I DIDN'T SEE IT ENDING WHEN IT ENDED.

>> SO WE'LL GET TO THAT IN A MINUTE.

BUT YEAH, I MEAN, THIS COMPANY JUST BOOMED.

IT JUST TAKES OFF.

THE "NEW YORK TIMES" AND THE L.A.

TIMES AND BUSINESS MAG GENES ARE ALL INTRIGUED WITH YOU.

YOU WERE VERY HOT.

AND YOU KIND OF CREATED A NEW PARADIGM FOR BUSINESSES AS WELL.

IT'S ONE OF THE FIRST FUN WORKPLACES.

PROBABLY YOU AND PHIL ACONZETI MIGHT EVEN COME LATER, KIND OF AT THE SAME TIME.

WHAT WAS -- THAT HAS YOUR SIGNATURE WRITTEN ALL OVER IT, THIS FUN WORKPLACE.

TELL US ABOUT THAT.

AND WHAT WORKED ABOUT IT?

>> WELL, YOU KNOW, WHAT I REALLY LEARNED FROM SEVENTH GENERATION MORE THAN ANYTHING ELSE IS, DON'T READ YOUR OWN PRESS CLIPPINGS.

WE WERE SO HOT.

>> YEAH.

IT DOOMED.

CRAZY.

-- ZOOMED.

CRAZY.

>> THREE MONTHS LATER WE HAD OUR FIRST CATALOG OUT.

WITHIN 18 MONTHS WE WERE DOING $7.5 MILLION WORTH OF BUSINESS, WE HAD 120 TO 150 EMPLOYEES.

WE HAD MOVED THREE TIMES.

I COULDN'T GET ON A PLANE WITHOUT SEEING THE NEWS REEL ON THE PLANE -- BEING ON THE NEWS REEL ON THE PLANE BEING SOMETHING IN THE NEWS.

WE WERE IN EVERY MAGAZINE IMAGINABLE.

I MEAN, IT WAS WHITE HOT.

>> RIGHT.

>> AND THEN IT CRASHED.

BUT WHILE IT WAS GOING, I STARTED THINKING THAT I COULD DO NO WRONG.

AND SO ANY FANTASY I'D EVER HAD ABOUT PLAYING WITH, I DID.

AND THE MORE I DID IT, THE MORE INTERESTING IT BECAME, THE MORE ODD AND QUIRKY IT BECAME.

BUT IT JUST SEEMED TO PROPEL THE GROWTH.

WHAT I DIDN'T KNOW THEN WAS IT HAD NOTHING TO DO WITH IT.

THEY WERE TWO TOTALLY DISTINCTLY DIFFERENT PATHS WE WERE ON.

BUT AT THE TIME I REALLY THOUGHT IT WAS THIS QUIRKY NATURE AND THIS BIZARRE ATMOSPHERE THAT I WAS CREATING THAT WAS PROPELLING THE BUSINESS.

>> NOT TO PROLONG THIS TOO MUCH, BUT THERE WAS ALSO AT THAT TIME THIS ACCEPT CALLED MONEY AND -- SEMINAR CALLED MONEY AND YOU WHICH ATTRACTED A LOT OF ENTREPRENEURS IN 980'S.

WHAT -- IN THE 80'S.

WHAT RUBD OFF ON YOU FROM THAT?

>> WHAT IT DID IT IS IT TOOK A LOT OF THE VIEWS I DIDN'T REALIZE THAT I HAD AND IT PUT THEM INTO A LANGUAGE THAT I COULD UNDERSTAND AND COULD ARTICULATE TO OTHERS.

AND YOU KNOW, IT TOOK A LOT OF THE THINGS THAT I HAD WATCHED MY FATHER ALWAYS PUZZLED AT, THIS WHOLE THING ABOUT TRUST THE UNIVERSE, TRUST THE DANCE AND ACT RESPONSIBLY.

IT TAUGHT A LOT OF THOSE PRINCIPLES IN A WAY THAT I GOT IT.

AND I WAS NOT A FAN OF NEW AGEISM THEN OR NOW.

FOR WHATEVER REASON IT CAME ALONG AT THE RIGHT TIME.

WE WERE GROWING GARDENER'S SUPPLY AT THE TIME.

WE REALLY DIDN'T KNOW WHAT WE WERE DOING.

AND IT BECAME THE TOUCH STONE FOR HOW WE BUILT THAT BUSINESS.

AND IT WORKED.

AND SO WHEN I LEFT THERE, I JUST ACCELERATED THE CONCEPT.

IT WAS NO -- WHEN I HAD GARDENER'S SUPPLY I HAD WILL TO RESTRAIN ME.

AT SEVENTH GENERATION THERE WAS NOBODY TO RESTRAIN ME.

>> I MEAN, YOU DID BRING ON JEFFREY HOL ANDER BECAUSE HE COULD RAISE CAPITAL.

BUT THE MAGAZINES WERE FASCINATED.

HIPPIE IN THE SUIT GUY AND -- YOU WERE GOOD COPY.

SO SUDDENLY 1991 COMES ALONG.

THE ECONOMY STAGNATES.

YOUR COMPANY JUST TAKES THIS REAL DIVE.

YOU TAKE A BREAK.

YOU WANT TO COME BACK IN SIX-MONTH AND HOLLANDER AND THE BOYS SAID, THAT'S OKAY.

WHY DON'T YOU -- OUCH!

>> IT WAS VERY PAINFUL.

PROBABLY ONE OF THE MORE PAINFUL BUSINESS EXPERIENCES I'VE HAD.

BUT, YOU KNOW, WE GET BEYOND THESE THINGS AND CONTINUE ON.

AND TODAY I LOOK BACK ON IT REALLY ENTIRELY -- IT WAS A FABULOUS EXPERIENCE.

I MEAN, IT WAS JUST A HELL OF A RIDE.

>> AND OUT OF THIS DIFFICULT SPLIT, MAGIC HAT IS BORN.

>> RIGHT.

>> YOU HOOK UP WITH A FORMER SEVENTH GENERATION EMPLOYEE THAT YOU PROBABLY HAD TO FIRE.

>> NO, HE QUIT.

HE HAD THE GOOD SENSE TO QUIT BEFORE WE FIRED HIM.

>> BOB JOHNSON WHO'S GOT THIS HOBBY OF BREWING.

AND I THINK IT'S YOUR BUYOUT MONEY FROM SEVENTH GENERATION HELPS START THIS ENTERPRISE.

>> SURE.

>> HOW DID YOU RUN THE COMPANY DIFFERENTLY?

>> YOU KNOW, SEVENTH GENERATION WE LOOKED TO BE ALL INCLUSIVE.

WE DID ALL THESE FABULOUS STAFF MEETING THINGS.

AND I WAS KIND OF SICK OF IT.

SO AT MAGIC HAT WE SAID, OKAY.

WE'RE GOING TO BE A LITTLE BIT LESS -- A LITTLE BIT MORE FOCUSED ON BUSINESS.

DOESN'T MEAN WE DIDN'T HAVE A LOT OF THE SAME PRINCIPLES.

SAME PEOPLE, YOU KNOW.

>> RIGHT.

>> SO IT'S NOT THAT WE WERE DIFFERENT PEOPLE.

BUT WE DECIDED NOT TO GROW AS QUICKLY, WE DECIDED THAT THE SEVENTH GENERATION GROWTH SPURT WAS NOT SUSTAINABLE AND IT CREATED FAR MORE PROBLEMS THAN IT WAS WORTH.

SO WHEN WE GOT INTO THE INDUSTRY BACK IN THE MID 90'S AND A LOT OF OUR BRETHREN WERE JUST GOING LIKE CRAZY, WE DIDN'T.

WE STAYED SMALL.

WE GREW ORGANICALLY.

WE GREW IN CONCENTRIC CIRCLES RATHER THAN SHIPPING BEER ALL OVER THE COUNTRY.

AND IT REALLY DID FORM THE BASIS OF MAGIC HAT, GOING SLOWER, GROWING MORE METHODICALLY, BUILDING OUR BASE, NOT GETTING SO FAR OUT OVER OUR SKIS, SO TO SPEAK.

>> WELL, MAGIC HAT HAS BEEN VERY SUCCESSFUL AND IS NOW HUGE.

BUT IT DID STUMBLE ONCE.

>> WHOA WHOA WHOA WHOA WHOA.

IT HAS STUMBLED MUCH MORE THAN ONCE.

>> MAYBE MORE THAN ONCE.

>> OH, YES.

>> SO HOW DO YOU APPROACH BUSINESS SLUMPS LIKE THAT.

>> A VERY SMART PERSON ONCE TOLD ME THAT YOU REALLY DON'T HAVE A BUSINESS UNTIL YOU CAN GO THROUGH TWO DOWN CYCLES.

WHAT YOU HAVE IS A GOOD HOBBY.

AND I TOOK IT TO HEART WHEN HE TOLD ME THAT MANY, MANY YEARS AGO.

AND SO I THINK WHAT MAGIC HAT HAS DONE IS PROVEN TO DATE -- I'M NOT GOING TO TELL YOU THAT SOMETHING COULDN'T HAPPEN TOMORROW THAT WOULD DO US IN.

BUT WE'VE HAD THE ABILITY TO WITHSTAND NUMEROUS DOWN PERIODS.

AND WE'VE GONE THROUGH SOME REALLY TROUBLED TIMES.

AND THOSE TROUBLED TIMES IN MY OPINION HAVE MADE US MUCH STRONGER AND MUCH MORE EFFECTIVE.

WHEN YOU'RE GOING THROUGH BIG GROWTH, YOU TEND TEND TO SPEND MONEY INSTEAD OF CREATIVITY.

YOU THROW MONEY TO SOLVE PROBLEMS AND YOU CREATE SOME REALLY BAD PRACTICES IN MY OPINION.

AND THOSE TIGHT PERIODS FORCE YOU TO GO BACK AND TAKE A LOOK AT WHAT YOU'VE DONE, TIGHTEN THINGS BACK UP, AND BE PREPARED FOR TIGHTER PERIODS WHERE YOU REALLY NEED TO GET BACK TO CREATIVITY.

SO I THINK THE TIGHT PERIODS AT MAGIC HAT, WHICH WE'VE HAD MORE THAN OUR SHARE OF, QUITE FRANKLY, HAVE ALL SERVED TO MAKE US STRONGER AND HAVE ALLOWED US TO BECOME WHO WE ARE TODAY.

>> SO IT'S GOING BACK TO CREATIVITY.

AND ALSO YOU'VE HIRED PEOPLE THAT HAVE EXPERIENCE IN THIS MUCH LARGER WORLD.

I THINK YOUR PRESIDENT NOW WAS AT COCA-COLA AND MILLER BEER.

HOW IMPORTANT IS THAT TO YOU?

>> IT'S HUGE.

YOU KNOW, I'M AN ENTREPRENEUR, NOT A BUSINESS GUY.

THERE'S A REAL DIFFERENCE.

I'M CERTAINLY NOT A MANAGER.

AND IN ALL THE BUSINESSES I'VE DONE, I'M OKAY, YOU KNOW, I CAN HOLD IT TOGETHER UP UNTIL ABOUT 7, $7.5 MILLION IN SALES AND 50, 60 EMPLOYEES.

ONCE YOU GET BEYOND THAT IT'S A WHOLE DIFFERENT WORLD.

AND I NEITHER HAVE THE INTEREST NOR THE SKILL SET TO DO THAT.

AND SO INSTEAD OF BEING THROWN OUT, WHICH IS USUALLY HOW I GET OUT OF THESE BUSINESSES, I DECIDED TO EMBRACE IT THIS TIME.

>> WISDOM TO SEE IT DIFFERENTLY.

>> EXACTLY.

WHAT IF I BROUGHT IN SOMEBODY WHO ACTUALLY KNEW WHAT THEY WERE DOING AND I GOT VERY LUCKY BACK IN 2004.

I BROUGHT IN TWO PEOPLE WHO WERE MUCH BETTER AT DOING WHAT THEY DO THAN I AM.

AND WE BUILT A MANAGEMENT TEAM AROUND THEM.

>> AND FREEING YOU UP TO BE THE CONDUCTOR OF COSMIC SYMPHONIES WHICH WHAT, SENDS YOU AROUND THE COUNTRY.

>> YOU KNOW, I DO ALL THE THINGS TODAY THAT I DO WELL.

AND I DO VERY FEW OF THE THINGS THAT I DO POORLY.

WHICH MAKES LIFE MUCH MORE FUN.

IT'S ALL GOOD TODAY.

>> CERTAINLY YOUR COMPANY IS ONE OF THESE AND WAS ONE THAT HAS BEEN DOING THIS FOR 20 YEARS.

A SOCIALLY-RESPONSIBLE COMPANY.

HOW WOULD YOU DEFINE THAT?

WHAT IS THAT TO YOU?

>> BEING A GOOD NEIGHBOR IS HOW I -- THAT'S HOW I DEFINE IT.

YOU KNOW, EARLY ON IT KIND OF STRUCK ME THAT WE TREATED PEOPLE -- WE TREATED OUR NEIGHBORS DIFFERENT THAN WE TREATED PEOPLE WE WORK WITH.

AND WE WOULD NEVER, YOU KNOW, TREAT OUR NEIGHBORS THE WAY WE SOMETIMES TREAT PEOPLE WE WORK WITH.

AND SO I MADE A DECISION EARLY ON THAT FOR ME, I'D LIKE TO CREATE A BUSINESS THAT'S A GOOD NEIGHBOR IN THE COMMUNITY THAT IT OPERATES IN AND DOES THOSE THINGS THAT GOOD NEIGHBORS DO FOR THE COMMUNITY.

AND THAT'S REALLY HOW I SEE IT TODAY.

YOU KNOW, SO THE MARDI GRAS PARADE, FOR INSTANCE, THAT REALLY WAS ORIGINALLY INTENDED AND TO THIS DAY IS OUR GIFT TO THE PEOPLE WHO SUPPORT US.

DOWNTOWN SHORT STREET, SOME OF OUR BEST ACCOUNTS ARE DOWN THERE.

THIS IS THE WORST TIME OF YEAR.

THEY HAVE NO REVENUE THIS TIME OF YEAR.

THIS GIFT FILLS THEIR COFFERS TO ALLOW THEM TO GET TO SPRING.

OUR CUSTOMERS WHO COME OUT IN DROAFS GIVES THEM SOMETHING TO DO MID WINTER OTHER THAN SIT IN THE HOUSE.

>> AND IT'S A DESTINATION.

PEOPLE COME FROM OUTSIDE -- >> FAR, FAR BEYOND ANYTHING I EVER IMAGINED.

>> THIS IS WHERE YOU STAY WHEN YOU COME TO BURLINGTON FOR THE -- >> UNBELIEVABLE.

AND I FOUGHT AGAINST IT.

I THOUGHT THIS WAS THE STUPIDEST IDEA I EVER HEARD.

OUR FIRST EMPLOYEE IS STILL WITH US -- YOU KNOW STACEY.

IT WAS STACEY'S IDEA.

I SAID, STACEY, THIS IS THE STUPIDEST THING I EVER HEARD.

AND SHE JUST DUG IN AND WOULDN'T LET IT GO AWAY.

AND SHE FOUGHT AND SHE FOUGHT AND SHE FOUGHT.

AND SHE REALLY CREATED THE EVENT.

AND TO THIS DAY REALLY RUNS THE EVENT.

>> AND IT ALSO IS A GIVE BACK TO THE RAPE CRISIS CENTER.

>> ABSOLUTELY.

>> WHAT'S INTERESTING ABOUT WHAT YOU'VE CHOSEN AS YOUR KIND OF FOCUS FOR COMMUNITY ACTIVITY IS AROUND, WHAT DOES BEER EFFECT OR ALCOHOL EFFECT.

AND AMONG OTHER THINGS, MAGIC HAT HAS TAKEN ON A NEW MEANING WITH YOUR SAFE SEX CAMPAIGN.

COULD YOU TELL US A LITTLE ABOUT THAT?

>> WELL, I ALWAYS LIKED THE IDEA OF GIVING BACK SO.

WE LOOKED AT HOW CAN WE GIVE BACK.

AND BECAUSE AS WE GOT BIGGER THE NUMBER OF REQUESTS JUST -- I MEAN, WE GET TONS OF REQUESTS.

SO WE NEEDED SOME WAY TO ORGANIZE IT.

AND WE SAID, LET'S FOCUS ON THOSE THINGS THAT WE HAVE AN IMPACT ON.

EARLY ON, VERMONT CARES CAME TO US.

AND THEY SAID, LISTEN.

WE CAN REACH PEOPLE WITH OUR MESSAGE OF AIDS EDUCATION, AWARENESS WHILE THEY'RE IN SCHOOL.

AND WHEN THEY'RE 32, 34 AND THEY'RE GETTING MARRIED AND THEY'RE SETTLING DOWN WE CAN REACH THEM AGAIN.

BUT FROM 21 TO 28, YOU KNOW, WE DON'T HAVE ANY WAY TO REACH THEM.

>> AND A REALLY IMPORTANT TIME.

AND THAT'S YOUR AUDIENCE.

>> THAT'S OUR AUDIENCE.

SO WE CAME UP WITH A GREAT SEX IS WORTH PROTECTING CAMPAIGN.

WE LOOKED AT ALL THE PRO BONO PROGRAMS THAT HAVE BEEN DONE.

AND THEY ALL SOLD ABSTENTION.

WE'RE THINKING, 2:00 IN THE MORNING, YOU'VE BEEN DRINKING ALL NIGHT.

YOU'RE SITTING THERE WITH SOMEBODY.

TO COME IN WITH THE MESSAGE OF ABSTENTION, NOT ACTUALLY GOING TO BE TERRIBLY EFFECTIVE IN MY OPINION.

SO WE CAME IN WITH, WHAT'S THE ONE THING WE CAN DO?

AND THEY SAID, DRIVE THE MESSAGE WEAR A CONDOM.

SO WE BUILT THE WHOLE PROGRAM AROUND HOW YOU CAN HAVE SAFE SEX.

AND WE TOOK THE NAME, WHICH TO THIS DAY WE NEVER SAW PRIOR.

I DON'T KNOW HOW WE EXISTED IN RETROSPECT.

BUT WE NOW HAVE MAGIC HATS AND WE USE THOSE.

WE DO BAR PROMOTIONS, WE DO A LOT OF SEX EDUCATION WITH IT.

WE WORK WITH SOME ORGANIZATIONS AROUND AIDS EDUCATION AWARENESS.

>> IT'S PRETTY INTERESTING.

BECAUSE A LOT OF PEOPLE USE SEX TO SELL OF COURSE IN AMERICA.

BUT THEY AREN'T EXPLICIT ABOUT IT AT ALL.

AND IN A WAY IT'S A VERY INTERESTING TO ME THAT YOU ACTUALLY ARE VERY EXPLICIT HAS THE REACTION BASICALLY BEEN POSITIVE OR DO SOME PEOPLE GO, OH, WHAT ARE YOU DOING?

>> VERY POSITIVE.

BUT OVERALL WE TOOK OUR SPOTS.

WE DON'T DO THESE PROMOTIONS IN THE T.G.I.

FRIDAYS.

WE PICK THE COLLEGE BARS WHERE THE MESSAGE MATCHES UP WITH THE CUSTOMER.

AND WE HAVE HAD NO -- WE'VE HAD NO PUSHBACK.

PEOPLE TEND TO REALLY APPRECIATE IT.

THEY LOVE THE FACT THAT WE'RE OPENING UP THE CONVERSATION.

WE'LL GO TO A GROUP OF SIX PEOPLE, YOU KNOW, GUYS AND GIRLS HANGING TOGETHER.

AND WE'LL PUT SOME LITERATURE ON THE TABLE AND WE'LL THROW SOME CONDOMS ON THE TABLE AND START THE CONVERSATION GOING.

AND WE'LL COME BACK 20 MINUTES LATER AND THEY'RE STILL TALKING ABOUT HOW TO USE THE INFORMATION WE GAVE THEM.

AND IT'S REALLY A SUPER LITTLE PROGRAM.

>> SO YOU HAVE A -- YOU KIND OF HAVE YOUR ARMY OF PEOPLE THAT YOU NOW ARE ALL THE WAY OUT TO CHICAGO.

AND YOU HAVE THIS PRETTY LARGE REGION.

CAROLINAS.

YOU'RE GOING DEEPER INTO THE SOUTH, I THINK, ALL THE WAY UP TO MAINE.

SO YOUNG PEOPLE GO IN WITH BEER AND CONDOMS, I GUESS, TO SOME PLACES.

HOW IS THAT GOING TO WORK?

IT SOUNDS LIKE KIND OF A PERFECT JOB.

BUT IS THAT HOW YOU MOVE INTO NEW MARKETS?

>> EXACTLY.

WE DO IT ONE BEER AT A TIME.

WE GO INTO A COUPLE OF BARS AT A NEW TERRITORY.

WE DO PROMOTIONS THAT ENCOURAGE PEOPLE TO SAMPLE OUR BEERS, THAT ENCOURAGE -- WE HAVE A SALES PERSON WHO WILL PUT A FACE ON THE MAGIC HAT BRAND TO THE CUSTOMERS DOWN THERE, WHO WILL TALK ABOUT THE COMPANY, TALK ABOUT THE BEERS THAT WE DO, TALK ABOUT THE PROGRAMS THAT WE DO, TALK ABOUT OUR WEBSITE.

AND YOU KNOW, IT'S REALLY ONE BY ONE, WHICH IS THE REASON WHY WE DON'T GROW ANY QUICKER THAN WE DO.

WE WENT INTO TWO STATES LAST YEAR.

WE WENT IN VERY SLOWLY TO BOTH STATES.

WE BUILD VERY SLOWLY ONCE WEE IN A STATE.

IT TAKES US CLOSE TO THREE YEARS, THREE TO FOUR YEARS BEFORE WE REALLY HAVE DEVELOPED THE TERRITORY.

AND THAT'S REALLY BY DESIGN.

BECAUSE IT'S AN ORGANIC GROWTH BUSINESS.

AND WE STILL DO THINGS ONE BEER AT A TIME.

>> WELL, AND YOU'RE ACTUALLY EXPANDING -- I THINK YOU'RE DOUBLING YOUR CAPACITY, WHICH IS REALLY SOMETHING.

YOU'RE THE SECOND LARGEST CRAFT BEER PRODUCER IN THE WHAT, 23rd LARGEST BREWERY IN THE UNITED STATES?

SOMETHING LIKE THAT.

>> I DON'T KNOW.

WE'RE GETTING BIGGER.

>> YOUR OFFICIAL NAME IS ACTUALLY MAGIC HAT BREWERY AND PERFORMING ARTS CENTER.

>> CORRECT.

>> AND AT THE VERY BEGINNING -- >> YOU REMEMBER THOSE DAYS.

>> I DO REMEMBER THOSE DAYS.

YOU GAVE SPACE TO PERFORMING ARTS GROUPS.

IT WAS FANTASTIC TO REALLY GIVE THEM A START.

AND I THINK YOU GOT TOO BIG.

YOU NEEDED ALL OF YOUR SPACE.

BUT YOU'RE NOW DOUBLING THAT EXPANSION.

WHAT IS THAT PIECE WHERE YOU'RE FOCUSED ON THE PERFORMING ARTS?

AND YOU'RE A PERFORMER.

>> WE THOUGHT ABOUT KILLING IT, YOU KNOW, JUST WIPING IT OFF THE NAME 20 TIMES.

AND EVERY TIME IT COMES UP, SOMEBODY, FREQUENTLY ME, FREQUENTLY SOMEBODY ELSE ARGUES, YOU KNOW, IT REALLY HELPS US KEEP FOCUSED ON OUR MISSION WHEN WE BEGAN.

WHEN WE BEGAN, WE ALWAYS WERE HEAVILY INVOLVED IN THE PERFORMING ARTS SCENE, WHETHER IT WAS LOCAL CENTER, REGIONAL NEW ENGLAND OR NOW THROUGHOUT THE EAST COAST.

AND WE CONTINUE TO DO A LOT OF EVENT MARKETING.

WE CONTINUE TO BE AT A LOT OF PERFORMING ARTS EVENTS.

WE CONTINUE TO PUT A LOT OF MONEY INTO THOSE THINGS.

AND WE'VE DECIDED IT REALLY DOES HELP US REMEMBER THIS IS WHERE WE CAME FROM, THIS IS SOMETHING THAT'S VERY IMPORTANT TO US.

AND QUITE FRANKLY, I LOOK FORWARD TO THE DAY, YOU KNOW, SOME DAY THAT WE ACTUALLY COULD ONCE AGAIN HAVE THAT PERFORMING ARTS CENTER THAT WE HAD.

>> IT WAS FANTASTIC.

WHAT GIVES YOU THE GREATEST JOY IN YOUR WORK BEFORE WE LEAVE?

>> WHY DIDN'T YOU TELL ME AHEAD OF TIME SO I COULD THINK ABOUT AN ANSWER?

>> EVERYTHING.

>> I GUESS A KNEE JERK.

AND IT SOUNDS A LITTLE SICKENING SWEET TO ME.

THE PEOPLE.

THEY'RE PEOPLE WHO YOU WATCH WHO COME IN AT A COLLEGE AND YOU WATCH THEM GROW AND LOOK AT THE WORLD DIFFERENTLY.

>> I'M SORRY.

IT WAS UNFAIR OF ME.

THANK YOU SO MUCH, ALAN NEWMAN AND MAGIC HAT.

THANK YOU FOR JOINING US ON PROFILE.

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