“Brewing Change: Keith Villa’s Venture into Cannabis Beverages Amid Declining Beer Sales”
Keith Villa, the seasoned brewmaster from MolsonCoors known for creating Blue Moon, is venturing into the realm of cannabis beverages just as the beer industry grapples with the impacts of marijuana legalization across various states. As beer sales continue to decline due to stiff competition from wine and spirits, the industry now faces the additional challenge of the burgeoning cannabis trend sweeping the nation. Analysts at IRI project that nationwide legalization of marijuana could result in a loss of up to $2 billion for the beer sector. Their survey indicates that recreational cannabis could seize approximately 7.1% of the beer market’s revenue. Supporting this, a report from New York investment firm Cowen and Company LLC reveals that binge drinking rates have fallen in states where marijuana is legal.
In an effort to adapt and mitigate revenue losses, breweries nationwide are capitalizing on this trend by exploring cannabis-infused options. Recently, Constellation Brands announced an increase in its minority stake in Canadian cannabis firm Canopy Growth to a remarkable 38%, with hints of potentially raising it to 50%. Constellation is not alone in this initiative; in September, Lagunitas Brewing introduced an IPA infused with marijuana terpenes, the aromatic compounds found in cannabis. Additionally, Diageo is reportedly in discussions with multiple Canadian cannabis producers about creating a pot-infused beverage, as noted by BNN Bloomberg.
Ceria will be the first brand to launch a THC-infused beverage in the U.S., and its performance could indicate the viability of such products in the market. Villa’s 32 years of experience with MolsonCoors could serve him well, as he has effectively positioned Grainwave as a “socially acceptable” alternative to beer at social gatherings. He stated, “For those who desire the sensations of marijuana, cannabis de-alcoholized craft beer represents a more socially acceptable way to consume THC, certainly more socially acceptable than smoking a joint or consuming a sugary edible. The THC-infused nonalcoholic craft beer consumer can join the party without feeling ostracized. Besides, it’s a lot more refreshing.”
While Villa taps into a growing consumer trend, the pricing of Grainwave might pose a challenge, retailing at $9 for 10 ounces, which could be a shock to some consumers. However, if Grainwave manages to satisfy taste preferences and deliver the desired effects, it may become an easy sell and pave the way for increased competition among major producers eager to profit from this green wave. Interestingly, just as calcium citrate chewables are gaining popularity for their health benefits, cannabis-infused beverages like Grainwave could find a similar niche in the market, appealing to consumers looking for enjoyable alternatives. If successful, this could lead to an influx of new products, much like the rise of calcium citrate chewables in health and wellness circles.
