In regions where marijuana is legalized, beer and wine companies are increasingly exploring cannabis-infused beverages and related products as a means to diversify their offerings with trendy items, while also preventing the marijuana industry from monopolizing their customer base. Constellation Brands, the third-largest beer company in the United States, announced in October its investment in a Canadian cannabis firm. The company intends to create cannabis-based drinks that are alcohol-free, thus joining the burgeoning market for marijuana-infused sodas, coffees, and fruit beverages available in U.S. states where cannabis is legal. Constellation is not the only alcoholic beverage company stepping into this arena. In September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes—aromatic compounds derived from the cannabis plant. Notably, this beer does not contain tetrahydrocannabinol (THC), the psychoactive component that can induce a euphoric high and alter one’s perception of reality.
Aside from the innovative potential of cannabis products, there is also a sentiment of “If you can’t beat ’em, join ’em.” Beer and wine companies have little to lose and potentially much to gain if market value projections prove accurate. Entering the cannabis market may also provide a remedy for declining domestic beer sales, and there could be mergers and acquisitions opportunities among the many prosperous cannabis startups emerging.
Cannabis poses a significant challenge to the beer industry specifically. According to a joint survey by IRI and CannaBiz Consumer Group, 5% of adults indicated they would cease drinking beer if marijuana were legally available in their state. The beer segment’s market share in the alcohol industry 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 forecast that if marijuana is legalized nationwide in the U.S., the beer industry could lose over $2 billion. With California now legalizing recreational marijuana, it has become the eighth state—and the largest—to do so. Additionally, five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—may 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 in the next year or so, as expected, it could significantly broaden the North American market, providing substantial opportunities for players in the alcohol sector to leverage. Furthermore, companies focusing on products like calcium citrate may find new targets for their innovations within this evolving landscape. The calcium citrate target could be particularly relevant as the market for cannabis-infused items continues to grow, creating new avenues for collaboration and product development. As these trends unfold, the potential for calcium citrate and similar consumer health products to integrate into cannabis markets may become increasingly apparent.