THE GIST
For a month, beer distributor trade groups have circulated two photos of retail displays of Hard MTN DEW, a 5% ABV, non-caffeinated, alcoholic version of the popular soda. The images of the flavored malt beverage near toys and kids’ drinks have been paired with claims that these presentations prove the alcoholic product has been marketed to children.
But there’s a catch: Any details about how these displays came to be are virtually nonexistent. Groups making claims of impropriety won’t offer particulars to validate what they say is a harmful and potentially illegal practice. Companies at the center of the claims say they are unaware of these displays ever occurring—a stance repeated by government organizations—or that they couldn’t have happened in the first place.
In sharing these photos, the National Beer Wholesalers Association (NBWA) and the Associated Beer Distributors of Illinois (ABDI) laid blame for these displays at the feet of Blue Cloud Distributing, the newly created alcohol wholesale division of PepsiCo that sells Hard MTN DEW and which traditional beer wholesalers view as competition. Blue Cloud denies that its employees created these displays. Previous reporting showed that Nevada Alcoholic Beverage Control has never been made aware of these incidents and cannot say whether the displays violated state laws.
It’s a mystery not even Sherlock Holmes would want to take on: Nobody is offering clues, and some are already declaring this case closed.
WHY IT MATTERS
Traditional beer distributors have weaponized these photos in presentations to the NBWA convention in early October, and in formal objections to the Illinois Liquor Control Commission (ILCC). Beer Business Daily previously reported that ABDI submitted several photos to the ILCC showing Hard MTN Dew had been merchandised inappropriately in other states by displaying it near non-alcoholic products like candy or toys.
Photo courtesy of NBWA, which says this image was taken by a beer distributor at an Albertsons grocery store in Las Vegas. The organization declined to provide the name of the distributor or date the photo was taken.
The first photo shows cases of Hard MTN DEW next to packages of Kool-Aid Jammers flavored drinks; the second shows cases of Hard MTN DEW beneath a display of Hot Wheels toy cars. While citing these photos as a smoking gun at national conferences and in media, neither the NBWA nor ABDI responded to requests about who built the Hard MTN DEW displays, when, and under what circumstances. An NBWA spokesperson said that the Hot Wheels display was located in an Albertsons in Las Vegas and taken by a beer distributor, while the Kool-Aid display was in a Target in Henderson, Nevada and provided by “a member of the public health community.” The organization declined to offer any other details about the photos.
Photo courtesy of NBWA, which says this image was taken by “a member of the public health community" in a Target in Henderson, Nevada. The organization declined to provide the name of the person or date the photo was taken.
In a statement, the NBWA said: "This is not about blaming a specific retail partner, state or vendor, but it is important to raise a red flag about these highly concerning practices." However, the NBWA has called out Blue Cloud specifically in recent weeks, and named retail partners and locations when asked.
In additional follow-up communications:
A representative from Albertsons said the company is looking into the matter but has not responded with any findings.
Target communications did not respond to a request for information.
Good Beer Hunting called the three Target stores in Henderson, Nevada, but was only able to reach a manager at one location. That manager said this photo was not taken in that store, and that the store only stocks alcohol in designated alcohol aisles away from children’s products.
Absent more details from the NBWA, Albertsons, or Target, it may never be clear who created these displays, when, how, and their actual intent.
A spokesperson for Blue Cloud told Good Beer Hunting that the company has conducted its own investigation and, based on the information it has, it believes its employees are properly delivering and merchandising Hard MTN DEW. “The photos in question are likely an example of retailer merchandising choices that happen independent of BCD guidance or involvement,” the spokesperson said. Blue Cloud did not elaborate on what the investigation consisted of or any outcomes for internal or external communication.
Despite a lack of information, it seems this line of attack against Blue Cloud is intended to raise regulators’ eyebrows. ABDI president Robert Myers asked any distributors who have seen Hard MTN DEW for sale next to non-alcoholic Pepsi products or “in non-alcoholic areas” to send photos to the ABDI so they could be passed along to the state’s liquor commission. (The ABDI did not respond to a request for more information.)
The photos look damning, but beer shelves could be arranged by employees of the retailer (Target or Albertsons) or a distributor (Blue Cloud). Adam Vavrick, former beer manager for Binny's Beverage Depot in Chicago and former managing partner of Do Right Distribution, says that when it comes to high-visibility spaces such as aisle end caps or floor displays, where the Hard MTN DEW cases are located in the photos, distributor employees are generally the ones who set them. This practice would have the potential to implicate Blue Cloud employees.
“Most of the larger chains absolutely have distributors with merchandisers whose sole job is to put orders away so the store staff doesn't have to, or more specifically so they can place things the way they want,” Vavrick says. “It depends on the store, but probably the distributor’s employees’ hands are on that.”
That said, Vavrick doesn’t believe employees of retailers or wholesalers are deliberately trying to market alcohol to children. Rather, he suspects whoever made the display built it alongside non-alcoholic products by accident.
“Occam’s razor here: No one is thinking ‘Man I’m going to get so many kids fucked up with this,” Vavrick says. “It’s just an endcap that had space.”
Words by Kate Bernot