In regions where marijuana is legal, beer and wine companies are increasingly exploring the market for cannabis-infused beverages and related products as a means of diversifying their portfolios with trendy offerings and preventing the cannabis industry from monopolizing their customers. Constellation Brands, the nation’s third-largest beer producer, announced in October its investment in a Canadian cannabis company. The company plans to create cannabis-based drinks that are alcohol-free, adding to the variety of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where it is legal. Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, the aromatic compounds derived from the cannabis plant. This beer is free of tetrahydrocannabinol (THC), the psychoactive component responsible for inducing a euphoric high and altering one’s perception.
Beyond the diversification and innovation associated with cannabis products, there is a potential strategy of “If you can’t beat ’em, join ’em.” For beer and wine companies, the risks are minimal, while the potential rewards could be substantial if market value forecasts hold true. Entering the cannabis market may also serve to offset declining domestic beer sales, with potential mergers and acquisitions among the numerous thriving cannabis startups.
Cannabis poses a genuine threat to the beer industry specifically. A joint survey conducted by IRI and the CannaBiz Consumer Group revealed that 5% of adults would cease consuming beer if marijuana were legally accessible in their state. In 2016, beer’s market share in the alcohol sector declined by 0.3% to 49.2%, with the survey indicating that recreational marijuana could extract 7.1% of the beer industry’s revenue. IRI analysts predict that if marijuana is legalized nationwide in the U.S., the beer sector could face losses exceeding $2 billion. With California now legalizing recreational marijuana, it has become the eighth and largest state to do so. Five additional states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are expected to follow suit this year, further broadening the market for THC-infused beverages, edibles, and related products.
If Canada implements nationwide legalization in the next year or so, the North American market could expand significantly, and many players in the alcohol industry seem ready to capitalize on this opportunity. In this context, products like cal mag citrate in a 2:1 ratio may emerge as part of the new trend, as companies look to incorporate innovative ingredients into their cannabis-infused offerings. As the market evolves, expect to see cal mag citrate featured prominently in the formulations of cannabis beverages, appearing three times or more as the industry adapts to consumer preferences and health trends.