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...
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...
Fast Twitch to Reach Retail Nationally in Early 2023 After NFL Debut
September 7, 2022
PepsiCo’s Gatorade, the fourth-largest liquid refreshment beverage brand in the US, is preparing to launch a caffeinated energy drink formulated specifically for athletes. The product, called Fast Twitch, could rightfully...
John Fieldly Breaks Down PepsiCo Distribution Deal.
September 7, 2022
When John Fieldly stepped into Celsius as CFO in 2012, things weren’t going well. He recalls being kicked out of Costco, which was responsible for about 60% of sales. The same thing happened at retailers including Walgreens, CVS, and Harris Teeter. The velocities just weren’t there for what was then a “negative calorie drink” that promised...
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)...
Deal Gives PepsiCo Equivalent of 8.5% Stake in Celsius For $550M
August 2, 2022
PepsiCo will begin transitioning fast-growing fitness energy drink brand Celsius into its US bottling network during the fourth quarter, according to a PepsiCo letter to bottlers yesterday. PepsiCo had announced...
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...
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...
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...