Beer Sales go down by $2 Billion from Legal Cannabis
We’ve all seen the rise of an industry that emerged during the last years. Yes, we talk about the cannabis industry. It’s no surprise that legal cannabis sales in America start to affect the performance of other markets. We already heard about the punch that the wine market took, and apparently, the beer industry is second on that list.
How can this be?
According to a report from the Cannabiz Consumer Group, the beer market might lose the stunning amount of $2 billion in retail sales if more states legalize recreational cannabis.
The Cannabiz Consumer Group announced that roughly 27% of all beer drinkers expressed an opinion that they would substitute beer for cannabis if the herb gets legalized in their state because they already made that switch. As we reported before, wine and spirits sales would also notice a drop in sales.
Still, there are opinions that this beer-cannabis substitution could be short-termed because the novelty of legal cannabis sales could wear off. C2G noted that they regard the cannabis user as an educated buyer.
These Expectations Were Confirmed
Last September Cowen & Co research analysts conducted a report that confirmed this assessment. The paper states that the rapid growth of recreational cannabis usage seems to be weighing on the consumption of alcoholic drinks. According to the report, nowadays alcohol drinking is in decline for consumers with higher income. On the other hand, weed gained considerable share with this social class during the last five years.
As for the states where cannabis is now legal, the report said that over the course of 2016, beer sales worsened in these three states where a full cannabis retail infrastructure was utilized.
Another thing the beer industry should be worried about is the rising number of marijuana cocktails that hit the market at the moment. For example, the Modern Martini RX does not include alcohol in it but contains 50 to 100 mg of THC in every bottle. The Martini RX does not contain the Indica marijuana strain that gives us that known calm state of mind. Instead, it generates an uplifting effect (thank you Cannabis Sativa). The assortment of drinks include cool names like Laced lemonade or Canna Cosmo, and according to the manufacturer, it increases focus and creativity while relaxing your muscles. On the other hand, no beer brewery can say the same.
Another cannabis beverage supplement is coming from a company called Stratos. They infiltrate the cannabis-beverage industry with an innovative capsule with the name Ascend that can be dropped into a drink. The good thing is that it dissolves fast and does not alter the flavor of the drink, so you could just bring it to a bar and miraculously convert your soft drink or even water into a marijuana drink.
Another company, part of this cannabis-beverage mania is Prohibition Gold. The Seattle-based company offers a powdery package that blends with drinks, contains 10 mg of THC, and is called Potshotz. Greg Walters, the company founder, said that there was no point in reinventing the favorite drinks of the consumers because they are just missing the THC part.