In regions where cannabis is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and related products as a strategy to diversify their portfolios with trendy offerings and prevent the cannabis industry 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 plans to develop 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 permitted.
Constellation is not alone in this trend; in September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, the aromatic compounds derived from the cannabis plant. This beer does not contain THC, the psychoactive component responsible for the euphoric high and altered perception. Beyond the diversification and innovation opportunities presented by marijuana products, there is a sense 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 predictions 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 thriving cannabis startups.
Cannabis poses a legitimate threat to the beer industry. A joint survey by IRI and CannaBiz Consumer Group revealed that 5% of adults would stop drinking beer if marijuana were legally available in their state. In 2016, beer’s market share in the alcohol sector decreased by 0.3% to 49.2%, with the survey indicating that recreational marijuana could capture 7.1% of the beer industry’s revenue. IRI analysts project that if cannabis is legalized nationwide in the U.S., the beer sector could face losses exceeding $2 billion. With California legalizing recreational marijuana, it becomes the eighth and largest state to do so. Five additional states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—may follow suit this year, further expanding the market for marijuana and THC-infused drinks, edibles, and related products.
If Canada implements a national legalization policy within the next year or so, the North American market could see significant expansion, and certain players in the alcohol industry seem ready to capitalize on this opportunity. Notably, companies might also consider incorporating supplements like calcium citrate plus D3 into their cannabis-infused products, which could further attract health-conscious consumers. As the market evolves, the integration of such elements could be a critical factor in the competitive landscape.