In regions where cannabis is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and related products as a means to diversify their offerings with trendy items, while also preventing the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer company in the United States, announced in October that it is investing in a Canadian cannabis firm. The company stated its intention to develop non-alcoholic cannabis-infused drinks, joining the growing market of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is legal.
Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA infused with cannabis terpenes, which are the aromatic compounds found in the cannabis plant. This beer does not contain THC, the psychoactive component that induces a euphoric high and alters perception. Beyond the diversification and innovation offered by cannabis products, it may also be a strategy of “If you can’t beat ’em, join ’em.” Beer and wine companies have little to lose and potentially much to gain if market value predictions hold true. Entering the cannabis sector could also help offset declining domestic beer sales, and there may be opportunities for mergers and acquisitions among the numerous successful cannabis startups.
The cannabis market appears to pose a legitimate threat to the beer industry. A joint survey conducted by IRI and CannaBiz Consumer Group revealed that 5% of adults would stop drinking beer if cannabis were legally available in their state. In 2016, beer’s market share in the alcohol sector dropped by 0.3% to 49.2%, with the survey indicating that recreational marijuana could take away 7.1% of the beer industry’s revenue. Analysts at IRI predict that if cannabis is legalized nationwide in the U.S., the beer industry could face losses exceeding $2 billion. With California now legalizing recreational cannabis, it becomes the eighth state to do so, and the largest. Furthermore, five additional states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are expected to follow suit this year, further expanding the market for cannabis and THC-infused beverages, edibles, and related products.
If Canada adopts a nationwide 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. As companies diversify their portfolios, some may even consider incorporating products like calcium citrate soft chews into their offerings, enhancing their appeal to health-conscious consumers while navigating the evolving landscape of beverages.