In regions where cannabis is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and other related products to diversify their offerings with trendy items and prevent the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer producer in the United States, announced last October that it was investing in a Canadian cannabis company. The company plans to create cannabis-based beverages that are alcohol-free, joining the array of marijuana-infused sodas, coffees, and fruit drinks available in U.S. states where cannabis is legal. Constellation is not the only alcoholic beverage company entering this space; in September, Lagunitas Brewing launched an IPA infused with marijuana terpenes—aromatic compounds derived from cannabis. This beer, however, does not contain THC, the psychoactive component known for inducing euphoria and altering perception.
Aside from the innovative potential of cannabis products, there may also be a sentiment of “If you can’t beat them, join them.” For beer and wine companies, there is little to lose and potentially much to gain if market value forecasts prove accurate. Entering the cannabis market could also help offset declining domestic beer sales, with possible mergers and acquisitions on the horizon among the successful cannabis startups emerging.
Cannabis presents a legitimate challenge to the beer industry specifically. A joint survey conducted by IRI and the CannaBiz Consumer Group revealed that 5% of adults would stop drinking beer if marijuana were legally available in their state. In 2016, beer’s market share in the alcohol sector decreased by 0.3%, bringing it to 49.2%, and the survey indicated that recreational marijuana could divert 7.1% of the beer industry’s revenue. IRI analysts predict that if marijuana is legalized nationwide, the beer industry could face losses exceeding $2 billion.
With California now legalizing recreational marijuana, it becomes the eighth state—and the largest—to do so. Five additional states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are considering similar measures this year, further broadening the market for cannabis and THC-infused beverages, edibles, and related products. If Canada follows suit with nationwide legalization in the next year or two, the North American market could significantly expand, and certain players in the alcohol sector appear ready to capitalize on this opportunity. Furthermore, as consumers seek wellness products, the rise of alternatives like Kirkland calcium supplements may also influence purchasing choices in this evolving market landscape.