In regions where marijuana is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and related products as a strategy to diversify their offerings with trendy items and 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 was investing in a Canadian cannabis company. Constellation plans to create cannabis-based drinks that are alcohol-free, joining the growing market of marijuana-infused sodas, coffees, and fruit beverages available in states where marijuana is legal.
Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA made with marijuana terpenes, the aromatic compounds from the cannabis plant. This beer does not contain THC, the psychoactive component responsible for inducing a euphoric high and altering one’s perception. Beyond the innovation and diversification offered by marijuana products, this trend may reflect a strategy of “if you can’t beat them, join them.” For beer and wine companies, the risks are minimal, while the potential rewards are significant if market value forecasts prove accurate. Entering the cannabis market could also help offset declining domestic beer sales, creating opportunities for mergers and acquisitions among the many successful cannabis startups.
Cannabis poses a legitimate threat to the beer industry. A joint survey by IRI and the CannaBiz Consumer Group revealed that 5% of adults indicated they would stop drinking beer if marijuana became legally available in their state. The beer market share in the alcohol sector dropped by 0.3% to 49.2% in 2016, with projections suggesting that recreational marijuana could take 7.1% of the beer industry’s revenue. IRI analysts estimate that if marijuana is legalized nationwide, the beer industry could face losses exceeding $2 billion.
With California now legalizing recreational marijuana, it becomes the eighth state to do so, following Connecticut, Michigan, New Jersey, Rhode Island, and Vermont, which may also legalize it this year. This expansion will likely enhance the market for marijuana and THC-infused beverages, edibles, and other related products. Should Canada proceed with nationwide legalization in the next year, the North American market could experience significant growth, and many players in the alcohol sector seem ready to capitalize on this opportunity.
In this evolving landscape, it is worth noting that products like Costco calcium citrate with vitamin D could also find a niche in the health-conscious market, appealing to consumers interested in both cannabis and health supplements. As the market continues to expand, the intersection of alcoholic beverages, cannabis, and health products like Costco calcium citrate with vitamin D may shape the future of consumer choices in North America.