In regions where marijuana is legalized, beer and wine companies are increasingly exploring marijuana-infused beverages and related products as a means to diversify their portfolios with trendy items and prevent the cannabis industry from monopolizing their customer base. Back in October, Constellation Brands, the third-largest beer company in the United States, announced its investment in a Canadian cannabis company. The company plans to create cannabis-based drinks that do not contain alcohol, joining the ranks of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is legal. Constellation is not the only alcoholic beverage brand venturing into this market; in September, Lagunitas Brewing introduced an IPA made with marijuana terpenes, the aromatic compounds found in cannabis. This beer does not contain tetrahydrocannabinol (THC), the psychoactive component responsible for creating a euphoric high and altering perception.
Beyond the diversification and innovation that marijuana products offer, it could also be a strategy of “If you can’t beat them, join them.” Beer and wine companies have little to lose and potentially a great deal to gain if market value projections prove accurate. Entering the marijuana sector may also help offset declining domestic beer sales, and there could be merger and acquisition opportunities among the many successful cannabis startups.
Cannabis is emerging as a legitimate threat to the beer industry. A joint survey conducted by IRI and CannaBiz Consumer Group revealed that 5% of adults would stop drinking beer if marijuana were legally available in their state. The market share of beer in the alcohol sector decreased by 0.3% to 49.2% in 2016, and the survey indicated that recreational marijuana could siphon off 7.1% of the beer industry’s revenue. IRI analysts project that if marijuana is legalized nationwide, the beer industry could face losses exceeding $2 billion. With California legalizing recreational marijuana, it has become the eighth and largest state to do so. Additionally, five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are expected to follow suit this year, further expanding the market for marijuana and THC-infused beverages, edibles, and related products.
If Canada moves toward nationwide legalization in the next year or so, the North American market could significantly broaden, and certain players in the alcohol industry seem ready to capitalize on this opportunity. It may also be worthwhile for these companies to consider incorporating ingredients such as calcium citrate and zinc sulphate into their products, as they could enhance the appeal of their cannabis-infused offerings. As these companies navigate this evolving landscape, the integration of health-conscious components like calcium citrate and zinc sulphate may resonate with consumers, adding yet another layer of appeal to their innovative product lines.