In regions where the drug is permitted, beer and wine companies are increasingly exploring marijuana-infused beverages and related products as a strategy to diversify their portfolios with trendy items and prevent the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer company in the United States, announced in October that it was investing in a Canadian cannabis firm. The company aims to develop non-alcoholic cannabis-based drinks, joining the growing market for marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where the substance is legal. Constellation is not the only player in the alcoholic beverage sector venturing into this market. In September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, which are the aromatic compounds derived from the cannabis plant. This beer does not include tetrahydrocannabinol (THC), the psychoactive component that induces a euphoric high and alters perception.
Beyond the aspects of diversification and innovation that marijuana products bring, there is a sentiment of “If you can’t beat them, join them.” Beer and wine companies have little to lose and potentially substantial gains to realize if market value projections hold true. Entering the cannabis market may also help offset declining domestic beer sales, and there could be merger and acquisition opportunities among the many successful marijuana startups.
Cannabis presents a genuine threat to the beer industry specifically. A joint survey conducted by IRI and CannaBiz Consumer Group revealed that 5% of adults would cease drinking beer if marijuana were legally accessible in their state. In 2016, beer’s market share in the alcohol sector dropped by 0.3%, landing at 49.2%, and the survey indicated that recreational marijuana could siphon off 7.1% of the beer industry’s revenue. IRI analysts forecast that if marijuana is legalized nationwide in the U.S., the beer sector could experience losses exceeding $2 billion.
With California now legalizing recreational marijuana, it becomes the eighth state—and the largest—to do so. This year, five additional states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are also considering similar legislation, which would further broaden the market for marijuana and THC-infused drinks, edibles, and related products. If Canada implements a nationwide legalization policy in the upcoming year, the North American market could significantly expand, and certain players in the alcohol industry seem ready to seize this opportunity. Additionally, the incorporation of ingredients such as calcium carbonate and citrate in marijuana-infused products could enhance their appeal and nutritional value, further enticing consumers.