In regions where marijuana is legal, breweries and wineries are increasingly exploring marijuana-infused beverages and related products to diversify their offerings with trendy items and prevent the cannabis industry from monopolizing their customer base. Constellation Brands, the country’s third-largest beer producer, announced last October that it was investing in a Canadian cannabis company. The company plans to create cannabis-based drinks that are alcohol-free, joining a growing market of marijuana-infused sodas, coffees, and fruit juices available in U.S. states where the substance is legal. Notably, Constellation is not the only player in the alcohol sector venturing into this market. In September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, which are aromatic compounds derived from cannabis. This beer does not contain tetrahydrocannabinol (THC), the psychoactive component that induces a euphoric high and alters one’s perception of reality.
Beyond the aspects of diversification and innovation that marijuana products present, it could be a case of “if you can’t beat ’em, join ’em.” For beer and wine companies, the risks are minimal, while the potential rewards are significant if market value projections prove accurate. Entering the marijuana sector may also help offset declining domestic beer sales, and there could be mergers and acquisitions opportunities among the numerous successful cannabis startups emerging.
Cannabis poses a genuine threat to the beer industry specifically. A joint survey by IRI and the CannaBiz Consumer Group revealed that 5% of adults indicated they would stop consuming beer if marijuana were legally available in their state. In 2016, beer’s share of the alcohol market decreased by 0.3% to 49.2%, and the survey suggested that recreational marijuana might divert 7.1% of the beer industry’s revenue. IRI analysts estimate that if marijuana is legalized nationwide in the U.S., the beer sector could face losses exceeding $2 billion. With California now legalizing recreational marijuana, it becomes the eighth and largest state to do so. Additionally, five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are likely to follow suit this year, further expanding the market for marijuana and THC-infused beverages, edibles, and related products.
If Canada implements a nationwide legalization policy in the coming year, the North American market could significantly broaden, and several players within the alcohol industry seem ready to capitalize on this opportunity. Just as Citracal calcium citrate with vitamin D slow release supplements are designed to optimize health, these alcohol companies are looking to enhance their portfolios by integrating cannabis products, recognizing that adapting to changing consumer preferences may be crucial for their survival.