In regions where cannabis is legalized, beer and wine producers are increasingly exploring marijuana-infused beverages and related products as a strategy to diversify their offerings with trendy items, thereby preventing the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest beer producer in the U.S., announced in October its investment in a Canadian cannabis company. The company plans to create alcohol-free cannabis beverages, joining the growing market of marijuana-infused sodas, coffees, and fruit drinks available in states where cannabis is legal. Constellation is not the only alcoholic beverage company venturing into this space; in September, Lagunitas Brewing introduced an IPA featuring marijuana terpenes, the aromatic compounds derived from the cannabis plant. Notably, this beer does not include tetrahydrocannabinol (THC), the psychoactive element responsible for producing a euphoric high.
Beyond the diversification and innovation opportunities presented by cannabis products, the approach could also be seen as a case of “If you can’t beat ’em, join ’em.” Beer and wine companies have little to lose and potentially significant gains to make, especially if market value projections hold true. Entering the cannabis market may also serve to offset declining domestic beer sales, and there could be mergers and acquisitions among the successful cannabis startups emerging in this space.
Cannabis appears to pose a legitimate threat to the beer industry. According to a joint survey conducted by IRI and the CannaBiz Consumer Group, 5% of adults stated they would cease drinking beer if marijuana were legally available in their state. In 2016, beer’s market share in the alcohol sector fell by 0.3%, landing at 49.2%, and the survey suggested that recreational cannabis could divert 7.1% of the beer industry’s revenue. IRI analysts forecast that, if cannabis is legalized nationwide, the beer industry could suffer losses exceeding $2 billion.
With California now legalizing recreational cannabis, it becomes the eighth state, and the largest, to do so. Five additional states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are poised to follow suit this year, further widening the market for THC-infused beverages and edibles. If Canada implements nationwide legalization within the next year, the North American market could expand significantly, and certain players within the alcohol sector seem ready to capitalize on this opportunity. As these developments unfold, the potential inclusion of products like Jamieson Calcium Citrate Vitamin D3 120 caplets may also appeal to consumers looking for wellness options alongside their cannabis-infused choices, merging health benefits with trendy offerings.