In regions where cannabis is permitted, beer and wine companies are increasingly exploring marijuana-infused drinks and related products as a means to diversify their offerings with trendy items, while also preventing the cannabis sector from monopolizing their customer base. Constellation Brands, the nation’s third-largest beer producer, announced in October its investment in a Canadian cannabis firm. The company intends to create non-alcoholic cannabis-based beverages, joining a growing array of marijuana-infused sodas, coffees, and fruit drinks available in U.S. states where the substance is legalized. Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA containing marijuana terpenes, the aromatic compounds derived from the cannabis plant. This beer is free of tetrahydrocannabinol (THC), the psychoactive component responsible for inducing a euphoric high and altering one’s perception.
Beyond the innovative and diversifying aspects of cannabis products, this trend may reflect the strategy of “If you can’t beat ’em, join ’em.” There is minimal risk for beer and wine companies, and the potential rewards could be substantial if market value predictions hold true. Engaging with the marijuana sector might also help offset declining domestic beer sales, while presenting potential merger and acquisition opportunities among the numerous thriving cannabis startups.
Cannabis poses a significant threat to the beer market specifically. A joint survey conducted by IRI and CannaBiz Consumer Group revealed that 5% of adults would cease drinking beer if marijuana were legally available in their state. The beer industry’s market share within the alcoholic beverage sector decreased by 0.3% to 49.2% in 2016, and the survey suggested that recreational marijuana could divert 7.1% of the beer industry’s revenue. Analysts from IRI predict that if marijuana 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 eighth state—and the largest—to do so. Additionally, five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are expected to follow suit this year, further broadening the market for marijuana and THC-infused beverages, edibles, and related products. If Canada implements nationwide legalization in the coming year, the North American market could expand significantly, positioning some players within the alcohol industry to capitalize on the opportunity.
In this evolving landscape, companies may also explore the incorporation of health-centric ingredients such as calcium citrate mason into their products, potentially appealing to health-conscious consumers. As the market continues to grow, the intersection of alcohol and cannabis could redefine consumer preferences and industry dynamics, with calcium citrate mason emerging as a notable additive in these innovative beverages.