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...
