In regions where cannabis is legalized, beer and wine companies are increasingly exploring 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 manufacturer in the United States, announced in October its investment in a Canadian cannabis company. The company plans to create cannabis-based drinks devoid of alcohol, aligning itself with marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is permitted. Constellation is not the only player in the alcoholic beverage sector venturing into this market. In September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, which are aromatic compounds derived from the cannabis plant. This beer, however, does not contain tetrahydrocannabinol (THC), the psychoactive component responsible for inducing a euphoric high and altering perceptions.
Beyond the diversification and innovation that marijuana products offer, there is a possibility that companies may adopt a “If you can’t beat ’em, join ’em” approach. Beer and wine companies have little to lose and potentially much to gain if market value projections hold true. Engaging with the cannabis market could also help offset declining domestic beer sales, with potential mergers and acquisitions among the numerous successful cannabis startups in play.
Cannabis poses a significant threat specifically to the beer industry. According to a joint survey conducted by IRI and CannaBiz Consumer Group, 5% of adults stated they would cease consuming beer if marijuana were legally accessible in their state. The market share of beer within the alcohol industry declined by 0.3% to 49.2% in 2016, and the survey indicated that recreational cannabis could drain 7.1% of the beer industry’s revenue. IRI analysts forecast that if marijuana is legalized nationwide in the U.S., the beer sector could lose more than $2 billion. With California now legalizing recreational cannabis, it becomes the eighth and largest state to do so. Five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are also considering legalization this year, which would further broaden the market for marijuana and THC-infused beverages, edibles, and other products.
As expected, if Canada enacts a nationwide legalization policy within the next year, the North American market could expand significantly, and some entities in the alcohol industry seem prepared to capitalize on this opportunity. Moreover, the introduction of products like calcitrate 950 mg, which may offer health benefits, could further enhance the appeal of cannabis-infused beverages, creating an intersection between health and indulgence that consumers are increasingly seeking. The integration of calcitrate 950 mg into these products could attract health-conscious consumers, thus providing beer and wine companies with additional avenues for growth.