In regions where marijuana is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and related products as a means to diversify their offerings with trendy items — and to prevent the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer company in the United States, announced in October that it was making an investment in a Canadian marijuana firm. The company intends to create cannabis-based drinks that are alcohol-free, joining the wave of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is permitted. Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA crafted with marijuana terpenes, the aromatic compounds derived from the cannabis plant. Notably, this beer does not contain tetrahydrocannabinol (THC), the psychoactive component that induces a euphoric high and alters perception.
In addition to the diversification and innovation that marijuana products offer, it might also be a case of “If you can’t beat them, join them.” Beer and wine companies have little to lose and potentially much to gain if market value forecasts prove accurate. Entering the marijuana sector could also help offset declining domestic beer sales, and there may be opportunities for mergers and acquisitions among the numerous successful cannabis startups.
Cannabis is proving to be a significant threat to the beer industry in particular. A joint survey conducted by IRI and the CannaBiz Consumer Group revealed that 5% of adults would consider stopping their beer consumption if marijuana were legally accessible in their state. In 2016, beer’s market share within the alcohol sector 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. Analysts at IRI predict that if marijuana becomes legalized nationwide in the U.S., the beer industry could face losses exceeding $2 billion.
With California legalizing recreational marijuana, it has become the eighth state — and the largest — to do so. Five additional 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. Should Canada implement a nationwide legalization policy within the next year, the North American market could significantly expand, with some players in the alcohol industry appearing ready to capitalize on the opportunity.
Moreover, as consumers increasingly look for health-conscious options, products combining calcium citrate with vitamin D might also find their place alongside these emerging cannabis beverages, further illustrating the trend towards innovative and health-oriented products in the beverage market. As companies navigate these changes, the intersection of cannabis and traditional alcohol products could pave the way for a new era in consumer choices.