Water Wars in the West

Tom Ashbrook:

ight across the planet, good fresh water supplies are under pressure. In America’s West and Southwest, the combination of drought and booming population growth have made that pressure intense.
As the Colorado River and its giant reservoirs have shrunk, Arizona’s population has grown by 40 percent since 1990, and Las Vegas-area water use has doubled. California’s thirst for water is huge.
The trend lines show real trouble for desert cities. Global warming doesn’t help. And the West may be a lesson for us all.

audio

Committee for the Defense of Authentic Camembert

Elaine Sciolino:

Each of the 400 nine-and-a-half-ounce rounds that he produces every day is stamped with the seal of “Appellation d’Origine Contrôlée” or “AOC” — a coveted certification that authenticates the content, method and origin of production of a French agricultural item.
But Camembert purists like Mr. Durand are infuriated these days because two of France’s largest dairy producers want to change the rules.
Citing health concerns, the two companies, Lactalis and the Isigny Sainte-Mère cooperative, which together made 90 percent of the traditional raw milk Camembert in Normandy, began earlier this year to treat the milk used for most of those cheeses.
In doing so, they were forced to sacrifice their A.O.C. status, the first time in French history that Camembert producers voluntarily did so.
But they also have asked the French governmental food board to grant that status to their new Camemberts, arguing that the processing they use — either filtering or gently heating the milk — does not sacrifice the traditional taste and character of the cheese.

Into Middle America (Wisconsin), but Staying on the Fringe

Matt Gross:

As Paul tinkered, his friends sat around drinking beer while heavy metal played on the radio. “This is your truest Wisconsin experience,” mIEKAL said, “hanging out in an auto garage in the middle of nowhere.”
Wisconsin, however, announced itself with no such subtlety. After a weekend in Chicago, I’d driven west across Illinois, finally turning north amid the big estates near Forreston. Once I was over the state line, hills swelled up from the prairie, the sweet smell of manure wafted from dairy farms, and advertisements urged me to indulge in Cheddar cheese and frozen custard, bratwurst and ButterBurgers.
By the time I drove through New Glarus — a surreal town modeled on a Swiss village complete with chalet-style buildings and street signs in German — I knew I hadn’t simply entered a new state, but a new state of mind.
As culturally distinct as Wisconsin is, I was heading for a place that sat at yet another remove from mainstream America: Dreamtime Village, an intentional community of artists situated in the driftless hills of southwest Wisconsin (so called because they escaped the rough, cold touch of ice age glaciers).
Once known as communes, until the word became overly associated with hippies and other cultural relics of the 1960s and ’70s, intentional communities have a long history in this country, going back to the Shakers and even, I suppose, the Pilgrims. I’d long wanted to visit one, to see how utopian ideals were surviving in the more cynical America of today, and so I logged on to www.ic.org and searched for intentional communities in Wisconsin and Iowa. At first, I found what I had expected: devout Christians, pagan farmers and a polyamorous “family” (my wife, Jean, vetoed that one). Almost all, however, wanted serious members, not casual visitors like me.

Roche Buys Madison’s NimbleGen Systems for $272.5M

Jeff Richgels summarizes the deal:

NimbleGen’s revenues have been growing strongly, from $4.5 million in 2004, to $9.5 million in 2005 and $13.5 million in 2006, but it has accumulated a total loss of $44.5 million as of the end of 2006, including losses of $8.3 million in 2004, $5.2 million in 2005 and $6.8 million in 2006, according to its IPO filing.
The company had raised $70 million in private funding and had $19 million in cash and cash equivalents as of Dec. 31, 2006.

A few interesting data points: $272.5M Sale price, $70M capitalization, 140 employees (850K to $1M monthly staff burn rate, maybe much more) and $19M cash and equivalents at the end of 2006. These numbers nicely illustrate the risks and potential upside of technology plays. While $272.5M is not a home run by VC standards (10X+), it’s a nice out for many, perhaps most (all?) investors. It would be interesting to find out if some of the capitalization included participating preferences.
The good news for Dane County? Some of that money will probably finds its way back into new startups.
Kathleen Gallagher has more.