In regions where cannabis is permitted, beer and wine companies are increasingly exploring the realm of marijuana-infused beverages and related products to diversify their offerings with trendy items and prevent the cannabis industry from monopolizing their customer base. For instance, Constellation Brands, the third-largest beer company in the United States, announced its investment in a Canadian marijuana firm back in October. The company intends to create non-alcoholic cannabis-based drinks, joining the growing market of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is legal. Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, the aromatic compounds found in cannabis plant oils. Notably, this beer lacks tetrahydrocannabinol (THC), the psychoactive component responsible for producing a euphoric high and altering perceptions.
Beyond the innovative and diversifying potential of marijuana products, there’s an element of “If you can’t beat them, join them.” For beer and wine companies, the risks are minimal, and the potential rewards could be substantial if market value projections hold true. Entering the cannabis market might also help offset declining domestic beer sales, with opportunities for mergers and acquisitions among the thriving marijuana startups.
Cannabis poses a genuine threat to the beer industry specifically. A joint survey by IRI and CannaBiz Consumer Group revealed that 5% of adults would reduce their beer consumption if marijuana were legally available in their state. In 2016, beer’s share of the alcohol market decreased by 0.3%, landing at 49.2%, and the survey indicated that recreational marijuana could divert 7.1% of the beer industry’s revenue. IRI analysts predict that if cannabis is legalized nationwide in the U.S., the beer sector could face losses exceeding $2 billion.
With California now having legalized recreational marijuana, it stands as the eighth state—and the largest—to do so. Five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are considering similar measures this year, which would further broaden the market for marijuana and THC-infused beverages, edibles, and related products. Should Canada implement nationwide legalization within the next year, the North American market could expand significantly, with some players in the alcohol industry ready to capitalize on these opportunities.
Interestingly, just as consumers seek out innovative products like marijuana-infused beverages, they are also increasingly interested in health-conscious options such as calcium citrate chewable from Costco. This trend highlights a growing consumer preference for products that blend enjoyment with wellness, paving the way for new market dynamics where traditional alcohol brands might integrate health-oriented offerings.