In regions where cannabis is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and related products to diversify their offerings with trendy items and prevent the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer manufacturer in the United States, announced in October its investment in a Canadian marijuana firm. The company stated that it plans to develop cannabis-based drinks devoid of alcohol, aligning itself with the growing market of marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is legalized.
Constellation is not alone in this venture; in September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, the aromatic compounds found in the cannabis plant. This beer is free of tetrahydrocannabinol (THC), the psychoactive element that can induce a euphoric sensation and alter one’s perception. Beyond merely diversifying and innovating, the entry into cannabis products may also reflect the adage, “If you can’t beat ’em, join ’em.” There is little risk for beer and wine companies, while potential rewards could be substantial if market value predictions hold true. Entering the cannabis market could also help offset declining domestic beer sales and present opportunities for mergers and acquisitions among the thriving cannabis startups.
Cannabis poses a legitimate challenge to the beer sector in particular. A joint survey by IRI and CannaBiz Consumer Group revealed that 5% of adults would consider quitting beer if marijuana were legally available in their state. In 2016, beer’s market share in the alcohol industry dipped by 0.3% to 49.2%, and the survey indicated that recreational marijuana could divert 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. With California now legalizing recreational marijuana, it becomes 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 expanding the market for marijuana and THC-infused beverages, edibles, and related products.
If Canada implements a nationwide legalization policy within the next year, the North American market could significantly expand, presenting opportunities for players within the alcohol industry to capitalize on this trend. As companies venture into this innovative space, they might consider different approaches, including the calcium citrate route of administration for their products, which could optimize absorption and effectiveness. Overall, the convergence of cannabis and traditional alcoholic beverages marks a significant shift in consumer preferences and industry dynamics, prompting ongoing exploration and adaptation.