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Home » Topics » Regulation

Regulation
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FTC Reportedly Looking at Coca-Cola, PepsiCo Pricing Strategies at Retail

It’s Prepared to Defend Sales and Distribution Practices
January 12, 2023
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PepsiCo-Owned Blue Cloud Distribution GM Says, ‘We’re in This for the Long Haul.’

September 15, 2022

      Hard Mtn Dew distributor Blue Cloud Distribution, set up last year by PepsiCo, is currently delivering products in nine states, according to the company. The states are Florida, Tennessee, Iowa, Oklahoma, Arkansas, Minnesota, Missouri, Nevada, and Virginia. To date, Blue Cloud Distribution has secured federal alcohol wholesale permits in 31 states. The permits come from the US Alcohol and Tobacco Tax and Trade Bureau (TTB), which collects federal excise taxes on alcohol and regulates labeling and marketing for alcohol products. Depending on the state, additional alcohol distribution permits could be required by state and county governments. In the US, alcohol beverages are regulated under a “three-tier” system made up of a state-by-state patchwork of regulations that generally prohibit vertical ownership of producers, wholesale distributors, and retailers. PepsiCo’s arrangement with Boston Beer for Hard Mtn Dew, as well as the company’s foray into alcohol distribution has generated tension with US beer distributors and confusion as to the entity’s operating model under the three-tier system. BD spoke with Blue Cloud General Manager Emiliano Di Vincenzo to seek additional clarity and to update progress with both Hard Mtn Dew and Blue Cloud...


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Bang Energy’s Path to Some Independent Pepsi Bottlers Appears Blocked

Amid Celsius Speculation, PepsiCo Leaders Open to Energy Distribution Deals. But ‘Not Urgent.’
July 15, 2022

Some independent Pepsi bottlers in the US may be unable to distribute Bang Energy for Vital Pharmaceuticals (VPX) following PepsiCo’s and VPX’s decision to sever ties by the end of this year. Bottlers...


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Honest Co-Founder Goldman Won’t Chase DSD as He Launches Organic Bottled Tea

Offers View on Small Health-Oriented Brands at Coke
June 23, 2022

As Honest co-founder Seth Goldman races to get his new ready-to-drink tea to market in the aftermath of Coca-Cola’s decision to discontinue Honest tea, there is one thing he is sure of for now. He won’t try to build a...


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Q&A: Blue Moon Craft Beer Creator Keith Villa Demystifies THC Beer

Ceria Founder Also Says Non-Alcoholic Beer Market Will Rival Craft Brew Market
June 23, 2022

Keith Villa, the PhD brewmaster who created Blue Moon almost three decades ago
for Coors Brewing, is credited with using that beer to help introduce scores of consumers to more flavorful craft brews. Blue Moon was a gateway brew for light beer drinkers who would eventually consume everything from IPAs to Saisons as craft beer went mainstream during 2000s. In recent years, Villa has been toiling away on his latest gateway project: cannabis- infused and alcohol-free beers. Villa’s company, Ceria Brewing, relaunched its beers with
a new look this month after first introducing the brand in 2018. Villa uses a proprietary process to get Ceria’s beers to 0.0% ABV. Ceria’s lineup includes a Belgian-style white ale called Grainwave (Villa’s latest Blue Moon) and an IPA called Indiewave. Versions of these alcohol-free beers with psychoactive THC and non-psychoactive CBD are available at licensed marijuana dispensaries in Colorado and California, where the recreational use of cannabis is permitted. The beers have less than 100 calories per 12-oz can. A six-pack of Ceria’s alcohol- free beer sells for about $10. THC versions sell at regulated cannabis dispensaries for about $6 - $8 per can, plus taxes. Given the growing interest in low- and no-alcohol beers and cannabis-infused beverages, BD took the opportunity to discuss both segments with Villa, who runs the company with his wife Jodi Villa, who is CEO. The following has been edited for length and clarity...


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Coca-Cola Considers Bottler Payments as Jack & Coke Joins Canned Cocktail Trend

Solutions Sought as Booze Market Taps Non-Alcoholic Brands
June 23, 2022

Coca-Cola is considering compensating its franchise bottlers in the US for company- sanctioned ready-to-drink alcohol beverages sold in bottlers’ exclusive territories, BD has learned from bottling executives. Just last week, Jack Daniel’s whiskey maker Brown-Forman and Coca-Cola announced a “global relationship” for a Jack & Coke canned cocktail to be launched in Mexico later this year. While other...


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Briefs: March 17, 2022

March 17, 2022

A collection of recent developments from around the industry to keep you up to speed...


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Alcohol Retailers in Florida, Tennessee, Iowa Clamor for Hard Mtn Dew

PepsiCo's Blue Cloud Aims to Service "All Retail Customers" in Phased Roll Out
March 17, 2022

Hard Mtn Dew has created a stir among some independent liquor store operators in three states where Boston Beer and PepsiCo launched the alcoholic soda one month ago. Operators in Florida, Tennessee, and Iowa told BD that they have so far ...


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Canopy Growth’s ‘Total Mood Management’ Strategy

Innovation Chief Julian Cohen Explores Cannabis Drinks for Energy, Relaxation, Sleep
February 9, 2022

Canopy Growth Chief Innovation Officer Julian Cohen says the company views cannabis as a consumer product, just like beverages and snacks. He sees an opportunity for cannabis to play in a “beneficial” beverage space in which cannabis and other functional ingredients such as vitamins, antioxidants and adaptogens are blended to “deliver on the promise of what we call total mood management.” In a separate interview, Canopy Chief Product Officer Tara Rozalowsky provided an update on the company’s US business and Quatreau’s launch.


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Opening Thoughts: February 9, 2022

February 9, 2022

The New York Times recently published a story under the headline, “Beverages With Benefits: Do They Really Work?” The piece addressed what it described as the “flourishing” functional beverage market, made up of everything from prebiotic sodas for gut health to nootropics for brain acuity. The newspaper rightly points out that such products are an extension of the health supplement market that has generated profits for decades. As this functional beverage market grows, entrepreneurs and large beverage companies alike have been...


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