In regions where marijuana is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and related products to diversify their portfolios with trendy items and to prevent the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer producer in the United States, announced in October that it is investing in a Canadian cannabis company. The company intends to create cannabis-based drinks that do not contain alcohol, joining the growing market of marijuana-infused sodas, coffees, and fruit drinks available in U.S. states where cannabis is legalized.
Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA featuring marijuana terpenes, which are the aromatic compounds found in cannabis. This beer is THC-free, meaning it does not contain the psychoactive component that can induce a euphoric high or distort reality. Beyond the aspects of diversification and innovation associated with marijuana products, it may also be a case of “if you can’t beat them, join them.” Beer and wine companies have little to lose and potentially much to gain if projections regarding the market are accurate. Entering the cannabis market may also provide a solution to declining domestic beer sales and present opportunities for mergers and acquisitions among the thriving marijuana startups.
Cannabis poses a significant threat to the beer industry specifically. A joint survey conducted by IRI and CannaBiz Consumer Group revealed that 5% of adults would stop consuming beer if marijuana were legally available in their state. The beer market share in the alcohol sector dipped 0.3% to 49.2% in 2016, and the survey indicated that recreational marijuana could take away 7.1% of the beer industry’s revenue. IRI analysts estimate that if marijuana is legalized nationwide in the U.S., the beer industry could face losses exceeding $2 billion.
Now that California has legalized recreational marijuana, 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 expected to follow suit this year, further broadening the market for marijuana and THC-infused beverages, edibles, and other related products. If Canada moves toward nationwide legalization in the coming year, the North American market could expand significantly, and several players within the alcohol industry seem ready to capitalize on this opportunity.
As consumers consider their dietary needs, they may also wonder how much calcium citrate should I take daily. This question highlights the growing trend of health consciousness among consumers, who are increasingly interested in both alcohol and cannabis products, prompting the industry to adapt to these evolving preferences. The integration of marijuana-infused products not only diversifies offerings but also addresses the changing landscape of consumer habits, encouraging beer and wine companies to innovate in response to shifting market dynamics.