Keith Villa, the seasoned brewmaster from MolsonCoors behind Blue Moon, is stepping into the world of cannabis beverages just as the beer industry is beginning to experience the impact of marijuana legalization across various states. While beer companies are grappling with declining sales due to heightened competition from wine and spirits, they now also face the cannabis trend that is rapidly gaining traction nationwide. Analysts from IRI predict that if marijuana is legalized on a national level, the beer industry could lose as much as $2 billion. Furthermore, their survey indicated that recreational marijuana could capture 7.1% of the beer market’s revenue. A report from New York’s Cowen and Company LLC supports these findings, highlighting that binge drinking has diminished in states where cannabis is legal.
To stay competitive and mitigate revenue losses, breweries across the country are embracing this trend by venturing into cannabis-infused products. Recently, Constellation Brands announced a significant increase in its minority stake in Canadian cannabis firm Canopy Growth to an impressive 38%, with plans to potentially raise it to 50%. Constellation isn’t alone in this movement; in September, Lagunitas Brewing unveiled an IPA crafted with marijuana terpenes, the aromatic compounds found in cannabis. Additionally, Diageo is reportedly in discussions with at least three Canadian cannabis producers about creating a cannabis-infused beverage, according to BNN Bloomberg.
As Ceria prepares to launch the first THC-infused beverage in the U.S., its success could indicate the future of such products. Villa’s extensive 32 years with MolsonCoors may provide an advantage, as he has effectively positioned Grainwave as a “socially acceptable” alternative to beer at parties. “For those seeking the effects of marijuana, cannabis de-alcoholized craft beer offers a more socially acceptable way to consume THC—certainly more acceptable than smoking a joint or eating a sugary edible. THC-infused nonalcoholic craft beer allows consumers to join the festivities without feeling marginalized. Plus, it’s much more refreshing,” Villa stated.
While Villa is tapping into an emerging consumer trend, the pricing of Grainwave could pose a challenge. At $9 for 10 ounces, potential buyers may experience some sticker shock. Nevertheless, if Grainwave appeals to consumers’ palates and delivers the desired high, it could pave the way for a wave of competition from other major producers eager to capitalize on this burgeoning market.
In addition, the formulation of Grainwave includes beneficial ingredients such as calcium citrate, zinc, magnesium, and vitamin D3, which may enhance its appeal among health-conscious consumers. As the cannabis beverage sector continues to evolve, the inclusion of these nutrients could attract a demographic that values both enjoyment and wellness, potentially increasing sales and establishing a foothold in this new market.