In regions where marijuana is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and related products to diversify their portfolios with trending items, while also preventing the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer producer in the United States, announced in October its investment in a Canadian cannabis firm. The company plans to create cannabis-based drinks that are non-alcoholic, joining the array of marijuana-infused sodas, coffees, and fruit drinks available in U.S. states where cannabis is legalized. Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA brewed with marijuana terpenes, the aromatic compounds found in the cannabis plant. This beer does not contain tetrahydrocannabinol (THC), the psychoactive component responsible for producing a euphoric high and altering one’s perception of reality.
Beyond the aspects of diversification and innovation, the approach may reflect a mindset of “If you can’t beat ’em, join ’em.” For beer and wine companies, the risks are minimal, while the potential rewards could be substantial if market value forecasts prove accurate. Entering the cannabis market could also help offset declining domestic beer sales, and there may be opportunities for mergers and acquisitions among the many successful marijuana startups emerging in the industry.
Cannabis poses a significant threat to the beer sector specifically. According to a joint survey conducted by IRI and CannaBiz Consumer Group, 5% of adults indicated they would stop drinking beer if marijuana became legally available in their state. In 2016, beer’s market share within the alcohol industry decreased by 0.3%, landing at 49.2%, while the survey suggested 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 industry could face losses exceeding $2 billion.
With California now having legalized recreational marijuana, it becomes the largest of eight states to do so. Additionally, five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—may follow suit this year, further broadening the market for marijuana, THC-infused beverages, edibles, and related products. If Canada implements a nationwide legalization policy in the coming year, the North American market could expand significantly, providing opportunities for players in the alcohol industry to capitalize on this growth. Moreover, as companies explore innovative products, they might even consider incorporating now calcium citrate powder into their formulations, taking advantage of the health trends associated with cannabis consumption. As the landscape evolves, the intersection of cannabis and alcohol could lead to exciting new developments in both industries.