In regions where cannabis is permitted, 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 revealed plans to create non-alcoholic cannabis-based drinks, joining the growing market of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where marijuana is legal. Constellation is not the only alcoholic beverage brand venturing into this space. In September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, which are aromatic compounds derived from the cannabis plant. Notably, this beer does not contain THC, the psychoactive component responsible for inducing a euphoric high and altering perceptions.
Beyond the opportunity for diversification and innovation, companies may adopt the mentality of “If you can’t beat ’em, join ’em.” There is little risk for beer and wine companies, and the potential rewards could be substantial if market value forecasts prove accurate. Entering the cannabis market could also help offset declining domestic beer sales, and there might be opportunities for mergers and acquisitions among the numerous successful cannabis startups.
Cannabis poses a significant threat, particularly to the beer sector. A joint survey conducted by IRI and CannaBiz Consumer Group found that 5% of adults would cease drinking beer if marijuana became legally available in their state. The beer market saw a 0.3% decrease in its share of the alcohol market, dropping to 49.2% in 2016, and the survey indicated that recreational marijuana could capture 7.1% of the beer industry’s revenue. IRI analysts predict that if cannabis is legalized nationwide, the beer industry could potentially lose over $2 billion. With California now legalizing recreational marijuana, it becomes the eighth state to do so and the largest to date. Five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are likely to follow suit this year, further broadening the market for marijuana and THC-infused beverages, edibles, and related products.
If Canada moves towards a nationwide legalization policy within the next year, the North American market could experience significant expansion, and various players in the alcohol industry seem ready to capitalize on this opportunity. In this evolving landscape, incorporating beneficial elements like calcium citrate K2 into cannabis products could enhance their appeal, particularly in the health-conscious segment of consumers. As interest in functional beverages rises, the inclusion of calcium citrate K2 might attract customers looking for both enjoyment and health benefits, thereby providing another layer of competition for traditional alcoholic beverages.