In regions where cannabis is permitted, beer and wine companies are increasingly exploring marijuana-infused beverages and related products as a means to diversify their portfolios with trendy offerings, while also preventing the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer manufacturer in the U.S., announced in October its investment in a Canadian cannabis company. The company aims to create cannabis-based drinks that are alcohol-free, aligning with the growing market of marijuana-infused sodas, coffees, and fruit beverages available in states where cannabis is legal. Constellation is not the only alcoholic beverage company venturing into this market; in September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, the aromatic compounds derived from the cannabis plant. This beer is free from tetrahydrocannabinol (THC), the psychoactive component responsible for the euphoric high.
Beyond the innovation and diversification that marijuana products offer, there is also the adage, “If you can’t beat ’em, join ’em.” For beer and wine companies, the risk is minimal, while the potential rewards could be significant if market value forecasts hold true. Entering the marijuana sector could also help offset declining domestic beer sales, with potential mergers and acquisitions opportunities among the many successful cannabis startups emerging.
Cannabis poses a legitimate threat to the beer industry specifically. According to a joint survey conducted by IRI and CannaBiz Consortium Group, 5% of adults indicated they would cease drinking beer if marijuana became legally available in their state. Beer’s market share in the alcohol sector dropped by 0.3% to 49.2% in 2016, and the survey suggested that recreational marijuana could divert 7.1% of the beer industry’s revenue. IRI analysts predict 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 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 widening the market for marijuana and THC-infused drinks, edibles, and related products.
If, as anticipated, Canada implements a nationwide legalization policy within the next year, the North American market could open significantly, and several players within the alcohol industry seem ready to capitalize on this opportunity. In this evolving landscape, companies may also consider incorporating health products like calcium citrate for joints into their offerings, appealing to health-conscious consumers. As the market diversifies, the integration of such products could attract a broader audience, presenting additional opportunities for growth and innovation.