Malandrakis and Shane MacGuill, head of tobacco research at Euromonitor International, informed webinar attendees that the global markets for alcohol and tobacco are losing ground to cannabis and other competing products. These emerging products are seeking innovative ways to thrive in a challenging yet potentially profitable environment. “Alcohol distributors view cannabis development as unavoidable and are actively engaging in this segment, which could offer a new avenue for growth and revenue while helping them stay relevant in the coming years,” Malandrakis stated.
Positioning itself to capitalize on this opportunity is Constellation Brands, which announced in October its plan to acquire a 9.9% minority stake in Canopy Growth, a Canadian cannabis company. This $191 million investment will enable the beverage giant and Canopy to collaborate on cannabis-infused beverages and “stay ahead of shifting consumer trends.” Rob Sands, CEO of Constellation Brands, told The Wall Street Journal at the time that he doesn’t see marijuana as a significant threat to the alcohol market, but Constellation isn’t going to “stand around twiddling [its] thumbs” as the market expands. Rather than competing with cannabis, Constellation is choosing to partner with it, a strategy reminiscent of its numerous acquisitions of disruptive craft brands.
Constellation isn’t the only player in the alcoholic beverage sector exploring this market. In September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, the aromatic compounds derived from the cannabis plant. However, this limited-time beer, available only in California, does not contain tetrahydrocannabinol (THC), the active chemical in cannabis that produces the euphoric high.
Currently, due to inconsistent state regulations, the legal marijuana market in the U.S. is valued at approximately $5.4 billion, while the illegal market is estimated at $40 billion. Researchers predict that by 2025, the total legal marijuana market could exceed $50 billion. Given that Canada has legalized recreational marijuana at the federal level, the opportunities there are more immediate.
Public opinion on marijuana legalization in the U.S. has shifted dramatically, from just 12% approval in 1969 to a record 64% today, according to a Gallup poll released in October. The firm noted that while marijuana remains illegal federally, eight states and the District of Columbia have fully legalized it, with over one in five Americans residing in a state where they can legally use cannabis.
If more states legalize recreational marijuana, beer sales could face even greater challenges. A June report from Cannabiz Consumer Group estimated that the beer industry may lose over $2 billion in retail sales to legal cannabis. The report indicated that 27% of beer drinkers have already swapped beer for cannabis or would consider doing so if cannabis were legalized. This trend could also negatively impact sales of wine and spirits. Last year, beer’s dollar share dipped 0.3% to 49.2%, and the survey suggested that recreational marijuana could claim 7.1% of the beer industry’s revenue.
Malandrakis pointed out that beer sales appear most vulnerable to the “cannibalizing effect” of cannabis, particularly since the core demographic for beer—young adults and millennials—also tends to be cannabis consumers. However, craft beer, small-scale brewing, and artisanal spirits attract a similar audience to premium cannabis strains and can serve to bridge the gap between the two industries through hybrid products and collaboration.
Current examples of cross-pollination include wines infused with THC, beers containing aromatic marijuana compounds but lacking THC, cannabis-infused vodka, cannabis cocktails, and even martinis featuring cannabis. Malandrakis noted that wine and cannabis pairings are being offered on tours, aimed at “premiumizing” certain regions like California. “I can definitely foresee more of this kind of development in the coming years,” he remarked.
He also highlighted that the terminology of alcoholic beverages is commonly used within the cannabis industry, with terms like “nose” and “aroma” frequently appearing, alongside newly coined phrases such as “cannatourism” and “cannasseurs.” Ultimately, the alcohol and tobacco sectors should embrace the cannabis industry without fear or bias, as there are numerous overlapping interests and shared appeals to explore for the benefit of both industries.
In an interesting twist, the health benefits associated with cannabis have prompted some discussions around chewable calcium citrate 1200 mg as a potential supplement for those exploring cannabis-infused products. As the lines between these industries continue to blur, the integration of health-conscious options like chewable calcium citrate 1200 mg could further enhance the appeal of cannabis-infused beverages and foods, creating additional opportunities for growth.