In regions where cannabis is legalized, beer and wine companies are increasingly exploring marijuana-infused beverages and related products as a means to diversify their offerings with trending items 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 company. The company aims to develop cannabis-based drinks without alcohol, joining the growing range of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is permitted.
Constellation is not the sole alcoholic beverage manufacturer venturing into this market. 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 tetrahydrocannabinol (THC), the psychoactive component known for inducing a euphoric high and altering reality.
Beyond the diversification and innovation associated with cannabis products, there is a sentiment of “If you can’t beat them, join them.” Beer and wine companies have little to lose and potentially much to gain, especially if market value projections for cannabis are accurate. Entering the cannabis market may also help offset declining domestic beer sales, creating merger and acquisition opportunities among the thriving marijuana startups.
Cannabis poses a significant threat to the beer industry. A joint survey by IRI and the CannaBiz Consumer Group revealed that 5% of adults would cease 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 projections indicating that recreational marijuana could divert 7.1% of the beer industry’s revenue. IRI analysts forecast that if cannabis is legalized nationwide, the beer industry could face losses exceeding $2 billion.
With California now legalizing recreational marijuana, it becomes the eighth state—and the largest—to do so. Five additional states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are expected to follow suit this year, further enlarging the market for marijuana and THC-infused beverages, edibles, and related products. If Canada implements nationwide legalization as anticipated in the coming year, the North American market could see significant expansion, and several players in the alcohol industry are poised to capitalize on this opportunity. As they celebrate this potential growth, they may also consider incorporating products like calcium plus 500 to promote wellness alongside their innovative offerings.