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Blue Cloud Distribution GM Says, ‘We’re in This for the Long Haul.’

Unit Now Holds Permits in 31 States
September 22, 2022

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. Hard Mtn Dew distributor Blue Cloud Distribution, set up last year by PepsiCo, is currently delivering products in nine states, according to the company. Blue Cloud Distribution also has secured federal alcohol wholesale permits in...


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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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Opening Thoughts: August 18, 2022

August 18, 2022

The liquor store sure has changed. I popped into one last week to grab some Finnish Long Drink for our dog sitter. I left having seen the very embodiment of a trend.

A massive display of Svedka vodka sodas and teas greeted me at the door. Other floor displays throughout the store pitched bright-colored cans of premixed cocktails, like a gin and tonic from Bombay Sapphire. Newer canned spirits brands such as High Noon and Cutwater stacked the cases high and sold them – at a premium.

An entire section of shelves was permanently labeled “Ready-to-Drink.” An endcap display, big enough to incorporate a full-sized bicycle, marketed a product from craft beer trailblazer Dogfish Head (eventually acquired by Boston Beer). The display wasn’t for beer, however. It was for canned cocktails by Dogfish’s distilling unit. Even Dos Equis offered a blanco tequila ready-to-drink margarita.

I asked an alcohol distributor stocking a display about the transformation (spurred in part by consumers’ boredom with beer)...

    


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Boston Beer Sees Dew Alcohol Extension as Growth Rising Star

Still, Regulatory Hurdles for PepsiCo’s Blue Cloud Unit Slow Expansion
August 2, 2022

Hard Mtn Dew was a bright spot in an otherwise challenging second quarter for Boston Beer. Founder and Chairman Jim Koch said the flavored malt beverage (FMB) product, produced under a license from...


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Opening Thoughts: July 15, 2022

July 15, 2022

The beverage industry is full of niche and regional brands that find ways to remain relevant as consumer trends come and go. We drop into two such brands today – Jel Sert and Ale-8-One. Each has a century of history that started with determined founders.

Jel Sert began life in 1926 making instant gelatin desserts. Founders Charles and Lillian Wegner created the product using...


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