Royalties Possible to Orange Bang, Monster as Arbitrator Challenges ‘Creatine’ Formulation
April 19, 2022
The legal rancor in recent years involving Bang Energy and Monster Energy took a surprising turn last week after a California court filing revealed an arbitrator’s $175 million ruling against Bang maker Vital Pharmaceuticals (VPX). The development has implications as well for Bang Energy distributor PepsiCo.
While still early, there is growing evidence that leveraging established brands for new alcohol products is a winning way to break through tired or saturated categories.
As you will read in today’s issue, demand for PepsiCo’s Hard Mtn Dew appears to be outpacing the company’s ability to add distribution (story below). That’s a nice place to be and likely not by accident. PepsiCo and partner Boston Beer have launched in states where non-alcoholic Dew is already a strong seller, so there is built-in demand.
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 ...
Two Camps Emerge: One Welcomes New Investment. Other Wants Direct Upside
February 23, 2022
Coca-Cola’s foray into the US alcohol beverage market has spurred mixed feelings from Coke bottlers without alcohol operations as they evaluate what the development means for their businesses. Coke and Molson Coors have steadily expanded distribution and added line extensions for Topo Chico Hard Seltzer, first introduced early last year. Coca-Cola has since licensed...
Margin Discussion Likely Lynchpin for Retailers, Independent Bottlers
February 23, 2022
PepsiCo is considering shifting Gatorade to direct store delivery (DSD) for large format stores in the US following successful market tests, the company has confirmed to BD. “We’ve done some tests,” CFO Hugh Johnston said in an interview. “The tests have been pretty successful.” He added that a decision about whether to go wider and
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.
Incoming CEO Mike Suco Stood Out as Keeper of Atlanta Flame
February 9, 2022
Coca-Cola Bottling Company United, Coca-Cola’s third largest US bottler, has named Mike Suco as the company’s eighth president and CEO in its 120-year history. Currently an SVP and chief commercial officer, Suco will succeed the retiring John Sherman as head of the Birmingham, Alabama-based bottler whose territory includes...
Alcohol Permits Issued in 17 States. Eight Additional States Registered
December 17, 2021
PepsiCo’s new Blue Cloud Distribution unit has now secured federal alcohol wholesale permits in at least 17 states as it prepares to launch Hard Mtn Dew next year. The company has registered a corporation called “Blue Cloud Distribution” in another eight states. Should federal alcohol wholesale permits be issued for those, Blue Cloud would then ...
NOTE: The Green Sheet included with this article maps the states where PepsiCo has secured an alcohol wholesale distribution permit 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.