![]() HARD MTN DEW’s struggles also raise questions for future launches. But without sales upticks from new states of distribution, PepsiCo’s investment will be more difficult to justify with each passing week in the red. So, while many brands have relatively short lives, few receive as much attention (or have required as much effort to launch) as HARD MTN DEW.īecause of the business relationship between PepsiCo and Boston Beer, and the time and money invested in releasing a high-profile brand, there’s a possibility that sunk costs will keep HARD MTN DEW afloat for a bit longer. Smirnoff Ice has almost 60 brands listed in IRI, but only about half registered sales in October. Twisted Tea, one of the country’s top-selling FMBs, has 22 different flavors and line extensions that have been tracked by IRI in recent years today, nine are still on the market. FMBs like HARD MTN DEW generally include many brands that launch and get discontinued within a year or two as part of normal churn. It’s now 0.6% even after adding six additional states. despite being available in just a few states. Out of the gate, HARD MTN DEW’s flagship variety pack went from a near top-25 FMB to hovering around 50th in the category last month.Īt its sales peak in April, the portfolio claimed nearly 1% of all FMB dollars sold in the U.S. But the less-rosy reality tests how much patience PepsiCo and Boston Beer have for this product as its momentum stalls. Current headaches would be more justifiable if HARD MTN DEW were a top seller. Playing the long game is a necessary perspective. PepsiCo, which licenses the HARD MTN DEW name and soda formula to Boston Beer to produce the alcoholic version, has brushed off concerns about this slower-than-expected rollout leadership t old Beverage Digest in Septembe r that the partnership is a long-term one. Boston Beer declined to comment for this story, but founder Jim Koch said during the Beer Insights Seminar in November that regulators in 20-30% of states could block distribution of HARD MTN DEW, presumably due to concerns about how it complicates the traditional three-tier system of alcohol distribution. (Data for Arkansas, the ninth market, is not available.) It was a continuation of months of declines across HARD MTN DEW’s distribution footprint.īoston Beer Co., the company that produces HARD MTN DEW, would no doubt like to offset shrinking sales by opening new states of distribution to inject volume and dollars. ![]() 6, HARD MTN DEW posted negative month-to-month sales growth in at least eight of its nine existing sales markets. Now it’s 2.8%.įor the four-week period ending Nov. Tennessee chain stores have sold less every month since the end of April.ĭes Moines, Iowa grocery and big-box stores tracked by IRI show the brand held 18.1% share of FMB sales when it first arrived. In Florida, volume has declined every month in grocery, convenience, and other chain retail stores since it arrived in February. The brand has floundered in its original launch markets: Without new markets, HARD MTN DEW’s overall sales numbers look dismal. Today, it’s struggling, and Dunn says she’s unsure whether it’s still stocked. ![]() I n March, a manager at the store said that the product had been selling well and had its own floor display. “We’ve had quite a bit and our manager had to pull cases off the shelf.” “I don’t think it’s doing too well,” says Tia Dunn, an employee at Fareway Grocery in North Liberty, Iowa. (Blue Cloud did not respond to a request for comment.) Despite arriving to wild fanfare, the flavored malt beverage (FMB)’s failure to capture organic volume adds to a growing list of challenges. Blue Cloud faces r egulatory scrutin y and criticism from existing beer wholesalers who claim, without details, that it has marketed HARD MTN DEW to children. Subscribe to Premiumĭeclining sales for HARD MTN DEW come at a difficult time for the brand and for Blue Cloud Distributing, the wholly owned subsidiary of PepsiCo that distributes it. 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.Let Go or Get Dragged by Jerard Fagerberg.Ferments at Low Temps by Stephanie Byce. ![]()
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