While concern over binge drinking in young people is persistent, a new study by Goldman Sachs suggests that millennials are grabbing for bud before the booze.
With the legal marijuana industry taking hold in the states and some parts of Europe, alcohol producers are noticing a decrease in bottom line as Millennials opt for different party favors.
The major beer producers in the U.S.A. such as Coors, Budweiser and Miller are predicting a three-percent drop in stock trading volume overall by the end of the year. Smaller beer companies such as Boston Beer (aka. Sam Adams) recently saw its shares fall five-percent, with the maker of Corona, Constellation reporting a 1.3-percent drop in stock price.
While these major alcohol producers are seeing a hit, craft beer companies aren’t reporting such depressing bottom lines. Craft breweries and craft brews are increasing in popularity resulting in a growth in sales in this niche market for beer lovers.
Similarly, wine producers don’t see any negative impact on their sales due to marijuana, citing that wine drinkers aren’t as brand loyal and are likely to shop around for different promotions.
So, is the decline in beer drinking actually due to marijuana?
The report notes that the decline in beer consumers correlates to the rise in marijuana use, which was a prediction of the beer industry as marijuana legalization in some areas came into effect.
It’s unsure why more millennials are choosing marijuana over the libations chosen by generations before them, but it could be suggested that involvement in the political discourse towards legalization, evidence supporting the benefits of marijuana use, and the promised profitability of the industry would have much to do with it.