Fallout from the Hard Solo controversy could result in alcoholic products associated with well-known soft drinks being banned in Australia.

Hard Solo was recently renamed Hard Target following complaints about the product appealing to minors. And now the NSW Government is proposing to adopt regulation changes that could have significant implications for the drinks industry.

Liquor and Gaming New South Wales (L&GNSW) is considering formal regulatory action under the Liquor Act 2007 (NSW) (the Act) that would add additional clauses to section 100 of the Liquor Regulation Act 2018.

These include deeming a product “undesirable” if the name of the liquor product or its design or packaging encourages irresponsible, rapid or excessive consumption of the product; or if the liquor product is likely, for any reason, to be confused with soft drinks or confectionery.

According to the Independent Brewers Association, if the proposed regulatory change is adopted, it would mean if a product is deemed to be ‘undesirable’ it would no longer be able to be sold in NSW.

Learn more about the proposed regulatory changes here.

Alcoholic soft drink category expands in the US

While the NSW Government ponders banning alcoholic soft drinks, the category is rapidly expanding in the United States.

Among the latest releases are Absolut Vodka & Sprite, which the Coca-Cola Company and Pernod Ricard are rolling out this year, and Hard 7UP.

PepsiCo Canada announced last week that it had entered into an agreement with Labatt to create a new RTD product called SVNS Hard 7UP.

“Consumer demand for premium RTD products is undeniable, so innovating to meet Canadians’ preferences is both a priority, but also an exciting growth opportunity for the Labatt business,” said Mike D’Agostini, Director of Beyond Beer, Labatt Breweries of Canada. “With the launch of SVNS Hard 7UP, we’re excited to be disrupting the soda and seltzer category with a net-new brand entering the space, leveraging a recognizable flavour consumers know and love.”

“Labatt’s expertise in the alcoholic beverage space is why we are excited to build upon our longstanding relationship and innovate with one of our most beloved flavours,” said Laura Gray, Director of White Space Innovation, PepsiCo Beverages Canada. “By doing so, Canadian consumers now have even greater choice when exploring ready-to-drink options across the country, with a new product developed with a flavour they love.”

The Coca-Cola Company and PepisCo have both created divisions aimed at leveraging their brands in the alcohol space, called Red Tree and Blue Cloud respectively.

Blue Cloud has already collaborated to distribute licensed alcoholic products such as HARD MTN DEW and Lipton Hard Iced Tea.

Good Beer Hunting notes that these collaborations are also attracting regulatory attention in North America.

“With more soft drink and energy brands spinning off into alcoholic versions of core products, there’s something of a Wild West rush to get involved and cash in as regulators debate policies that could slow growth later on.”

What will it mean for Jack & Coke?

Brown-Forman has formed a partnership with The Coca-Cola Company to distribute Jack & Coke RTDs globally and it is proving to be a sales winner for the two drinks companies. 

Brown-Forman CEO Lawson Whiting told analysts late last year that the Jack Daniel’s and Coca-Cola RTD launch had been the most successful launch in Brown-Forman history in the United States, having achieved the second highest level of off-premise distribution across the portfolio, only behind Jack Daniel’s Tennessee Whiskey.

Jack & Coke has since launched in the UK, Spain, Poland, Germany and several Asian markets. It was slated to arrive in Australia in 2024.

However, as the packaging features a prominent Coca-Cola logo, it raises the question of whether the product would sit in a potential grey area in the NSW Government’s proposed regulations regarding whether “the liquor product is likely, for any reason, to be confused with soft drinks or confectionery”.

Watch this space …