“Alcohol Industry Embraces Cannabis: Innovations in Marijuana-Infused Beverages Amid Market Challenges”
In regions where marijuana is legal, beer and wine companies are increasingly exploring marijuana-infused beverages and related products to diversify their offerings with trendy items, while also preventing the cannabis industry from monopolizing their customer base. Constellation Brands, the third-largest brewery in the United States, announced last October its investment in a Canadian cannabis company. They aim to create cannabis-based drinks that are alcohol-free, joining the growing selection of marijuana-infused sodas, coffees, and fruit juices available in U.S. states where the substance is permitted. Constellation is not the only alcoholic beverage company venturing into this market; for instance, in September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, the aromatic compounds found in cannabis. This beer does not contain tetrahydrocannabinol (THC), the psychoactive component responsible for inducing a euphoric high and altering reality.
Beyond the innovation and diversification offered by cannabis products, this trend may also reflect a sentiment of “if you can’t beat ’em, join ’em.” Beer and wine companies have little to lose and potentially much to gain, especially if market value predictions prove accurate. Entering the cannabis market could help offset declining domestic beer sales, and there are potential mergers and acquisitions opportunities among successful cannabis startups.
Cannabis poses a genuine challenge to the beer industry specifically. A joint survey by IRI and CannaBiz Consumer Group revealed that 5% of adults would stop drinking beer if marijuana were legally accessible in their state. Furthermore, beer’s share of the alcohol market decreased by 0.3% to 49.2% in 2016, with projections indicating that recreational marijuana could divert 7.1% of the beer industry’s revenue. IRI analysts estimate that nationwide legalization of marijuana in the U.S. could result in losses exceeding $2 billion for the beer sector. With California now legalizing recreational marijuana, it has become the eighth state—and the largest—to do so. Five other states—Connecticut, Michigan, New Jersey, Rhode Island, and Vermont—are expected to follow suit this year, further broadening the market for marijuana and THC-infused beverages, edibles, and related products.
If Canada implements nationwide legalization within the next year or so, the North American market could expand significantly, with various players in the alcohol industry ready to capitalize on this opportunity. The calcium citrate reaction, often discussed in cannabis research, may play a role in enhancing the efficacy of these products, and as interest grows, we may see more innovations that take advantage of such chemical interactions. As the cannabis market flourishes, the potential for new and exciting products that incorporate calcium citrate reactions may emerge, further enticing consumers and reshaping the beverage landscape.
