Blue Cloud Distribution is committed to following all government regulations for licensing and business operations, while providing expanded choices for consumers in this growing market.”
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At the NBWA convention, leadership shared photos of Hard MTN DEW displayed next to products that appeal to kids, calling this “concerning” and “not cool.” (NBWA declined to share full details on the source of the photos, including the names of people who took them.)īlue Cloud did not make anyone available for an interview, but did provide a written statement that said, in part: “Recent comments at the National Beer Wholesalers Conference misrepresented key facts about Blue Cloud Distribution which was established to operate at the wholesale tier within the parameters of the three-tier system. (Blue Cloud has not been found to have broken these laws.) NBWA leadership has also claimed that Blue Cloud has cross-promoted alcohol in stores near items intended for children, such as juice or toys. Wholesalers’ stated concerns center on so-called “slotting fees” that PepsiCo pays retailers to stock food and non-alcoholic beverages, like Ruffles potato chips and Gatorade, but which are not legal for beer wholesalers to pay to retailers for preferential placements. If you’re in a state that doesn’t have strong franchise laws, you’re in a freakin’ world of hurt."īlue Cloud was a major topic of conversation at the National Beer Wholesalers Association’s (NBWA) annual convention in early October, and is also at the root of a complaint two beer wholesalers filed this month with the Virginia Alcoholic Beverage Control Authority (VABC). I think there are going to be people not taking traditional routes to market in the future," says Don Faust, Jr., chairman and CEO of Texas' Faust Distributing. "Any threat to our tier, I’m clearly not a fan of. The entrance of one of the world’s largest soft drink companies into the distribution business has created tension with traditional beer wholesalers, many of whom see Blue Cloud as both a practical and existential threat to the status quo. Wholesalers are worried not only that PepsiCo could break the rules, but also change them. The greatest threat this newcomer poses is in its potential to change generations of policies and laws that have helped alcohol distributors thrive, disrupting their long-standing position in the market. Subscribe to PremiumĪnd while Blue Cloud’s portfolio may only include two brands, the mere existence of this company is enough to put industry members on their toes. Big plays, smart moves, and otherwise curious indicators of beer's possible future. From Barons to Barrels with Captain Pabst.Message in a Bottle with Brewery Ommegang.Beer is Labor with East Brother Beer Co.
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