Blue Cloud https://www.beverage-digest.com/rss en-us Hard Mtn Dew Now on National Expansion Fast Track After Strategy Shift PepsiCo Unit Renamed Blue Cloud National. Hard Mtn Dew Producer Boston Beer, Lipton Hard Iced Tea Maker FIFCO to Retain Roles. In May, Boston Beer will begin expanding Hard Mtn Dew to 50 states using its beer distribution network, the brewer said last week. As BD reported last week in an exclusive news alert, PepsiCo is shifting its... PepsiCo Unit Renamed Blue Cloud National.

Hard Mtn Dew Producer Boston Beer, Lipton Hard Iced Tea Maker FIFCO to Retain Roles.

In May, Boston Beer will begin expanding Hard Mtn Dew to 50 states using its beer distribution network, the brewer said last week. As BD reported last week in an exclusive news alert, PepsiCo is shifting its...

]]> http://www.beverage-digest.com/articles/1042 Thu, 07 Mar 2024 07:00:55 -0500 https://www.beverage-digest.com/articles/1042-pepsico-shifts-blue-cloud-alcohol-strategy-from-distribution-to-brand-licensing lead - web.jpg PepsiCo Shifts Blue Cloud Alcohol Strategy from Distribution to Brand Licensing PepsiCo is shifting its alcohol business strategy from distribution to brand licensing as the company looks to expand Hard Mtn Dew and Lipton Hard Iced Tea nationally at a faster pace, PepsiCo has confirmed to BD. Blue Cloud Distribution will be renamed... PepsiCo is shifting its alcohol business strategy from distribution to brand licensing as the company looks to expand Hard Mtn Dew and Lipton Hard Iced Tea nationally at a faster pace, PepsiCo has confirmed to BD. Blue Cloud Distribution will be renamed...

]]> http://www.beverage-digest.com/articles/1038 Tue, 27 Feb 2024 16:30:10 -0500 https://www.beverage-digest.com/articles/1038-pepsico-shifts-blue-cloud-alcohol-strategy-from-distribution-to-brand-licensing BC Truck.png Coke, Bottlers Discuss Revised Compensation Agreement For Alcohol Coca-Cola and the company’s US bottlers are negotiating a possible new compensation agreement for alcohol beverage extensions as the company pushes further into the sector with its Red Tree Beverages subsidiary, according to BD sources. The revised... Coca-Cola and the company’s US bottlers are negotiating a possible new compensation agreement for alcohol beverage extensions as the company pushes further into the sector with its Red Tree Beverages subsidiary, according to BD sources. The revised...

]]> http://www.beverage-digest.com/articles/1020 Wed, 31 Jan 2024 09:30:39 -0500 https://www.beverage-digest.com/articles/1020-coke-bottlers-discuss-revised-compensation-agreement-for-alcohol Briefs: August 30, 2023 A collection of recent developments from around the industry to keep you up to speed... http://www.beverage-digest.com/articles/935 Wed, 30 Aug 2023 14:05:03 -0400 https://www.beverage-digest.com/articles/935-briefs-august-30-2023 Dueling Alcohol Models What’s better: a Blue Cloud, or a Red Tree? For the past decade, Coca-Cola and PepsiCo have diverged in the US when it comes to soft drink distribution strategy. Coke owns no soda distribution operations, leaving that in recent years to independent franchised bottlers. On the other hand, PepsiCo owns and operates most of its US bottling distribution system. Now that both companies are seeking a growth path through alcoholic beverages, their strategies in the US have diverged once again. As you’ll read in today’s issue, PepsiCo is going all-in on the distribution of alcoholic beverages such as Hard Mtn Dew with its Blue Cloud Distribution subsidiary. The company appears... What’s better: a Blue Cloud, or a Red Tree?

For the past decade, Coca-Cola and PepsiCo have diverged in the US when it comes to soft drink distribution strategy. Coke owns no soda distribution operations, leaving that in recent years to independent franchised bottlers. On the other hand, PepsiCo owns and operates most of its US bottling distribution system. Now that both companies are seeking a growth path through alcoholic beverages, their strategies in the US have diverged once again.

As you’ll read in today’s issue, PepsiCo is going all-in on the distribution of alcoholic beverages such as Hard Mtn Dew with its Blue Cloud Distribution subsidiary. The company appears...

]]> http://www.beverage-digest.com/articles/911 Tue, 25 Jul 2023 14:08:47 -0400 https://www.beverage-digest.com/articles/911-opening-thoughts-july-25-2023 1-lead-web.jpg Coca-Cola Executive Details Red Tree Beverages Alcohol Subsidiary Coca-Cola has established a federally permitted alcohol subsidiary called Red Tree Beverages to further explore the US alcohol beverage business, Coke’s Chief of New Revenue Streams Dan White told BD in an interview. The unit, created late last year and “firewalled” from Coca-Cola’s non-alcoholic operations, is permitted to participate in marketing and strategy around ready-to-drink alcohol brands based on Coke trademarks that are produced by third parties including... Coca-Cola has established a federally permitted alcohol subsidiary called Red Tree Beverages to further explore the US alcohol beverage business, Coke’s Chief of New Revenue Streams Dan White told BD in an interview. The unit, created late last year and “firewalled” from Coca-Cola’s non-alcoholic operations, is permitted to participate in marketing and strategy around ready-to-drink alcohol brands based on Coke trademarks that are produced by third parties including...

]]> http://www.beverage-digest.com/articles/909 Tue, 25 Jul 2023 14:04:42 -0400 https://www.beverage-digest.com/articles/909-interview-coca-cola-executive-details-red-tree-beverages-alcohol-subsidiary PepsiCo’s Blue Cloud Executives Address Critics Despite PepsiCo’s considerable work to keep its Blue Cloud alcohol distribution operation separate from its non-alcoholic business, the subsidiary has become a magnet for criticism as it forges new ground in the highly regulated and competitive US alcohol beverage market. In a new interview, Blue Cloud Distribution GM Emiliano Di Vincenzo, and Blue Cloud Chief Legal Officer Randy Liebowitz, said the organization has... Despite PepsiCo’s considerable work to keep its Blue Cloud alcohol distribution operation separate from its non-alcoholic business, the subsidiary has become a magnet for criticism as it forges new ground in the highly regulated and competitive US alcohol beverage market. In a new interview, Blue Cloud Distribution GM Emiliano Di Vincenzo, and Blue Cloud Chief Legal Officer Randy Liebowitz, said the organization has...

]]> http://www.beverage-digest.com/articles/908 Tue, 25 Jul 2023 14:01:43 -0400 https://www.beverage-digest.com/articles/908-pepsicos-blue-cloud-executives-address-critics Buffalo Rock Latest Pepsi Bottler Eyeing Alcohol Distribution Buffalo Rock President and CEO Matthew Dent said the Birmingham-based Pepsi bottler intends to distribute alcohol in the three states where... http://www.beverage-digest.com/articles/863 Wed, 19 Apr 2023 10:00:00 -0400 https://www.beverage-digest.com/articles/863-buffalo-rock-latest-pepsi-bottler-eyeing-alcohol-distribution 2-lead.jpg Speculation Ended: PepsiCo’s Blue Cloud Not Acquiring Corwin’s Beer Business PepsiCo’s Blue Cloud alcohol distribution subsidiary will not acquire Corwin Beverage’s beer distribution business in southwest Washington state, Corwin CEO Keith Richards confirmed to BD. PepsiCo’s recent agreement to buy back Corwin’s Washington-based Pepsi franchise (see Territory Changes & Deals) sparked speculation as to whether PepsiCo would acquire Corwin’s beer business to distribute Hard Mtn Dew and perhaps... PepsiCo’s Blue Cloud alcohol distribution subsidiary will not acquire Corwin Beverage’s beer distribution business in southwest Washington state, Corwin CEO Keith Richards confirmed to BD. PepsiCo’s recent agreement to buy back Corwin’s Washington-based Pepsi franchise (see Territory Changes & Deals) sparked speculation as to whether PepsiCo would acquire Corwin’s beer business to distribute Hard Mtn Dew and perhaps...

]]> http://www.beverage-digest.com/articles/854 Thu, 06 Apr 2023 13:00:06 -0400 https://www.beverage-digest.com/articles/854-speculation-ended-pepsicos-blue-cloud-not-acquiring-corwins-beer-business Monster to Develop Small Brands In-House with Coke’s Blessing The Beast Unleashed Alcohol Offering to Walk Careful Line, CEO Makes Clear Monster Beverage executives announced they will use a new in-house non-alcoholic beverage incubator called Monarchy to distribute brands that aren’t yet large enough for partner Coca-Cola’s direct store delivery system. Monarchy will be operated out of... The Beast Unleashed Alcohol Offering to Walk Careful Line, CEO Makes Clear

Monster Beverage executives announced they will use a new in-house non-alcoholic beverage incubator called Monarchy to distribute brands that aren’t yet large enough for partner Coca-Cola’s direct store delivery system. Monarchy will be operated out of...

]]> http://www.beverage-digest.com/articles/818 Wed, 01 Feb 2023 08:00:29 -0500 https://www.beverage-digest.com/articles/818-monster-to-develop-small-brands-in-house-with-cokes-blessing PepsiCo Bottler to Piggyback Hard Mtn Dew on Soda Trucks G&J Pepsi-Cola Bottlers, PepsiCo’s largest fully independent US franchise bottler, is preparing to distribute Hard Mtn Dew on the same “blue trucks” that distribute Pepsi-Cola and other non-alcoholic brands. In an interview at BD’s Future Smarts conference in New York on Dec. 5, G&J CEO Tim Trant said the Cincinnati-based company has applied for beer distribution licenses ... G&J Pepsi-Cola Bottlers, PepsiCo’s largest fully independent US franchise bottler, is preparing to distribute Hard Mtn Dew on the same “blue trucks” that distribute Pepsi-Cola and other non-alcoholic brands. In an interview at BD’s Future Smarts conference in New York on Dec. 5, G&J CEO Tim Trant said the Cincinnati-based company has applied for beer distribution licenses ...

]]> http://www.beverage-digest.com/articles/800 Mon, 19 Dec 2022 08:00:00 -0500 https://www.beverage-digest.com/articles/800-pepsico-bottler-to-piggyback-hard-mtn-dew-on-soda-trucks 1-lead-full.jpg Briefs: November 22, 2022 A collection of recent developments from around the industry to keep you up to speed... A collection of recent developments from around the industry to keep you up to speed...

]]> http://www.beverage-digest.com/articles/796 Tue, 22 Nov 2022 10:00:00 -0500 https://www.beverage-digest.com/articles/796-briefs-november-22-2022 Analysts: U.S. Beer Wholesalers Troubled by Competition From ‘Big Soda’ At an annual convention and trade show for beer distributors last week, the National Beer Wholesalers Association warned attendees of what they see as unfair encroachment by PepsiCo’s Blue Cloud Distribution, according to Wall Street analysts who wrote about the meeting. When asked about criticisms leveled at PepsiCo and Blue Cloud, Blue Cloud executives sent BD the following rebuttal, which is reprinted in its entirety... At an annual convention and trade show for beer distributors last week, the National Beer Wholesalers Association warned attendees of what they see as unfair encroachment by PepsiCo’s Blue Cloud Distribution, according to Wall Street analysts who wrote about the meeting. When asked about criticisms leveled at PepsiCo and Blue Cloud, Blue Cloud executives sent BD the following rebuttal, which is reprinted in its entirety...

]]> http://www.beverage-digest.com/articles/770 Thu, 20 Oct 2022 08:57:00 -0400 https://www.beverage-digest.com/articles/770-analysts-us-beer-wholesalers-troubled-by-competition-from-big-soda Highlights From NACS Show for Convenience Retailers Last week’s NACS convention for convenience store operators in Las Vegas offered a first look at product innovation from beverage makers looking to get new products into retailer store resets for 2023. The annual event includes a... Last week’s NACS convention for convenience store operators in Las Vegas offered a first look at product innovation from beverage makers looking to get new products into retailer store resets for 2023. The annual event includes a...

]]> http://www.beverage-digest.com/articles/757 Mon, 10 Oct 2022 15:02:00 -0400 https://www.beverage-digest.com/articles/757-highlights-from-nacs-show-for-convenience-retailers NACS Lead-100.jpg PepsiCo to Show New Lemon Lime Soda Brand, Pink Drink Innovations at NACS PepsiCo will unveil a new lemon lime soda called Starry at the annual NACS show for convenience store operators that starts today, according to company sources. While details are scarce, BD has learned that the drink is a new brand within the lemon lime soda category dominated by Coca-Cola’s Sprite. Starry will include regular and zero sugar versions, according to the sources. It will be available nationally starting in... PepsiCo will unveil a new lemon lime soda called Starry at the annual NACS show for convenience store operators that starts today, according to company sources. While details are scarce, BD has learned that the drink is a new brand within the lemon lime soda category dominated by Coca-Cola’s Sprite. Starry will include regular and zero sugar versions, according to the sources. It will be available nationally starting in...

]]> http://www.beverage-digest.com/articles/753 Sat, 01 Oct 2022 14:04:00 -0400 https://www.beverage-digest.com/articles/753-pepsico-to-show-new-lemon-lime-soda-brand-pink-drink-innovations-at-nacs pink.png starry.jpeg Blue Cloud Distribution GM Says, ‘We’re in This for the Long Haul.’ 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... 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...

]]> http://www.beverage-digest.com/articles/746 Thu, 22 Sep 2022 12:00:00 -0400 https://www.beverage-digest.com/articles/746-pepsicos-blue-cloud-distribution-gm-says-were-in-this-for-the-long-haul PepsiCo-Owned Blue Cloud Distribution GM Says, ‘We’re in This for the Long Haul.’ 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...       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...

]]> http://www.beverage-digest.com/articles/743 Thu, 15 Sep 2022 04:45:00 -0400 https://www.beverage-digest.com/articles/743-pepsico-owned-blue-cloud-distribution-gm-says-were-in-this-for-the-long-haul blue-cloud-logo-wide.jpg Boston Beer Sees Dew Alcohol Extension as Growth Rising Star 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... 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...

]]> http://www.beverage-digest.com/articles/703 Tue, 02 Aug 2022 08:44:00 -0400 https://www.beverage-digest.com/articles/703-boston-beer-sees-dew-alcohol-extension-as-growth-rising-star Hard Mtn Dew Expands to New States as Market Share Soars in Existing Markets Boston Beer CEO Says Trial ‘Higher Than I’ve Ever Seen.’ Scarcity, Cross-Border Sales Likely Bolstering Demand. Boston Beer’s Hard Mtn Dew, distributed by PepsiCo’s Blue Cloud unit, has now expanded to... Boston Beer CEO Says Trial ‘Higher Than I’ve Ever Seen.’ Scarcity, Cross-Border Sales Likely Bolstering Demand. Boston Beer’s Hard Mtn Dew, distributed by PepsiCo’s Blue Cloud unit, has now expanded to...

]]> http://www.beverage-digest.com/articles/666 Mon, 09 May 2022 08:20:00 -0400 https://www.beverage-digest.com/articles/666-hard-mtn-dew-expands-to-new-states-as-market-share-soars-in-existing-markets Opening Thoughts: March 17, 2022 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. 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.

]]> http://www.beverage-digest.com/articles/642 Thu, 17 Mar 2022 08:31:00 -0400 https://www.beverage-digest.com/articles/642-opening-thoughts-march-17-2022 Alcohol Retailers in Florida, Tennessee, Iowa Clamor for Hard Mtn Dew 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 ... 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 ...

]]> http://www.beverage-digest.com/articles/638 Thu, 17 Mar 2022 08:14:00 -0400 https://www.beverage-digest.com/articles/638-alcohol-retailers-in-florida-tennessee-iowa-clamor-for-new-product Coca-Cola Accelerates Crossover of Key Brands to U.S. Alcohol Market Constellation Brands, under a new agreement with Coca-Cola, will launch a Fresca-branded canned alcoholic cocktail in the U.S. this year. Called Fresca Mixed, the ready-to-drink beverage will be spirit based, according ... Constellation Brands, under a new agreement with Coca-Cola, will launch a Fresca-branded canned alcoholic cocktail in the U.S. this year. Called Fresca Mixed, the ready-to-drink beverage will be spirit based, according ...

]]> http://www.beverage-digest.com/articles/613 Tue, 25 Jan 2022 12:27:00 -0500 https://www.beverage-digest.com/articles/613-coca-cola-accelerates-crossover-of-key-brands-to-us-alcohol-market PepsiCo’s Blue Cloud Operation Sets Sights on Half of US States So Far 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. 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.

]]> http://www.beverage-digest.com/articles/601 Fri, 17 Dec 2021 08:02:00 -0500 https://www.beverage-digest.com/articles/601-pepsicos-blue-cloud-operation-sets-sights-on-half-of-us-states-so-far 1-blue-cloud-trucks-lead.jpg Reyes Holdings to Combine West Coast and Midwest Coke Bottling Operations Reyes Holdings will merge Illinois-based Great Lakes Coca-Cola Bottling and California-based Reyes Coca-Cola Bottling into a single operating unit starting Jan. 1, BD has learned from multiple sources. Reyes Coca-Cola CEO Bill O’Brien will helm the combined unit as CEO and the entity will ... Reyes Holdings will merge Illinois-based Great Lakes Coca-Cola Bottling and California-based Reyes Coca-Cola Bottling into a single operating unit starting Jan. 1, BD has learned from multiple sources. Reyes Coca-Cola CEO Bill O’Brien will helm the combined unit as CEO and the entity will ...

]]> http://www.beverage-digest.com/articles/580 Sat, 30 Oct 2021 15:16:00 -0400 https://www.beverage-digest.com/articles/580-reyes-holdings-to-combine-west-coast-and-midwest-coke-bottling-operations reyes-large PepsiCo Executives Discuss Rationale for Alcohol Self-Distribution Unit During a third-quarter earnings conference call on Oct. 5, analysts naturally wanted to know more about the strategy behind PepsiCo’s decision to form an... During a third-quarter earnings conference call on Oct. 5, analysts naturally wanted to know more about the strategy behind PepsiCo’s decision to form an...

]]> http://www.beverage-digest.com/articles/571 Tue, 12 Oct 2021 09:09:00 -0400 https://www.beverage-digest.com/articles/571-pepsico-executives-discuss-rationale-for-alcohol-self-distribution-unit PepsiCo’s Self-Distribution Entity for Hard Mtn Dew Emerges Registrations filed in at least 16 US states for new corporate entities called Blue Cloud Distribution will be used to... Registrations filed in at least 16 US states for new corporate entities called Blue Cloud Distribution will be used to...

]]> http://www.beverage-digest.com/articles/548 Thu, 16 Sep 2021 01:33:00 -0400 https://www.beverage-digest.com/articles/548-pepsicos-self-distribution-entity-for-hard-mtn-dew-emerges 1-cloud-lead.jpg