In regions where marijuana is legal, beer and wine companies are increasingly exploring the realm of cannabis-infused beverages and related products to diversify their offerings with popular trends and prevent the cannabis industry from monopolizing their customer base. For instance, Constellation Brands, the third-largest beer producer in the U.S., announced its investment in a Canadian cannabis company last October. The company plans to create cannabis-based drinks that are alcohol-free, aligning with other marijuana-infused products like soda, coffee, and fruit beverages available in states where marijuana is permitted.
Constellation is not alone in this venture; Lagunitas Brewing introduced an IPA infused with marijuana terpenes in September. This beer does not contain tetrahydrocannabinol (THC), the psychoactive component responsible for the euphoric high. The shift towards cannabis products may reflect a strategy of “if you can’t beat ’em, join ’em.” Beer and wine companies have relatively little to lose and potentially significant gains if market value forecasts hold true. Entering the cannabis sector might also help offset declining domestic beer sales, and there could be opportunities for mergers and acquisitions among the thriving cannabis startups.
Cannabis poses a genuine challenge to the beer industry. A joint survey by IRI and CannaBiz Consumer Group revealed that 5% of adults would cease drinking beer if marijuana were legally accessible in their state. The beer sector’s market share in the alcohol industry dipped by 0.3% to 49.2% in 2016, with the survey indicating that recreational marijuana could divert 7.1% of beer revenue. Analysts at IRI anticipate that if marijuana is legalized nationwide, the beer industry could face losses exceeding $2 billion.
With California becoming the eighth and largest state to legalize recreational marijuana, and five additional states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—potentially following suit this year, the market for cannabis and THC-infused drinks, edibles, and related products is likely to expand further. If Canada implements nationwide legalization within the next year, the North American market could open significantly, and various players in the alcohol industry seem ready to capitalize on this trend, potentially incorporating innovative ingredients like slow release calcium citrate to enhance their product offerings.