In regions where cannabis is legalized, beer and wine companies are increasingly exploring the market for marijuana-infused beverages and related products to diversify their offerings with trendy items and prevent 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 alcohol-free, joining the ranks of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is permitted. Constellation is not the only alcoholic beverage brand venturing into this market. In September, Lagunitas Brewing introduced an IPA that incorporates marijuana terpenes, the aromatic compounds found in cannabis. This beer does not contain tetrahydrocannabinol (THC), the psychoactive component responsible for inducing a euphoric high and altering reality.
Beyond the diversification and innovation offered by cannabis products, this trend may also reflect the philosophy 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 cannabis sector may also help offset declining domestic beer sales and could lead to mergers and acquisitions among the many thriving cannabis startups.
Cannabis poses a genuine threat to the beer industry specifically. A joint survey conducted by IRI and CannaBiz Consumer Group revealed that 5% of adults indicated they would cease drinking beer if marijuana were legally available in their state. In 2016, beer’s market share in the alcohol sector dropped by 0.3% to 49.2%, and the survey suggested that recreational cannabis could siphon off 7.1% of the beer industry’s revenue. IRI analysts estimate that if cannabis is legalized nationwide in the U.S., the beer industry could lose over $2 billion in revenue.
With California legalizing recreational cannabis, it has become the eighth state, and the largest, to do so. Additionally, five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are likely to follow suit this year, further expanding the market for marijuana and THC-infused beverages, edibles, and related products. If Canada moves forward with nationwide legalization in the next year or so, the North American market could open up significantly, with various players in the alcohol sector positioned to capitalize on the opportunity.
In this evolving landscape, products like Citracal Petites Amazon could also benefit from the growing interest in health-oriented and alternative options, as consumers increasingly seek innovative and diverse choices in both the cannabis and alcoholic beverage markets.