News

Beer most at risk from "very real" cannabis threat - Euromonitor

Most popular

Another drinks CEO steps down - But, why?

Pernod Ricard Performance Trends 2014-2018 - data

What's coming up in soft drinks in 2019?

What's coming up in spirits in 2019? - Predictions

MORE

Beer will be the most exposed alcohol category to cannabis as the legal market for the drug explodes over the next few years, Euromonitor has said.

Warning that research on cannabis remains inconclusive, Euromonitor analysts said in a presentation this week that the beer category is in danger because of the crossover between beer drinkers and cannabis users. In comparison, wine "tends to be in equilibrium with the ascendant cannabis industry", the analysts explained.

The recreational use of cannabis is set to become legal across Canada from July next year. A handful of US states have already legalised its use, with more expected to follow over the next few years. Alcohol companies are already moving to take advantage of the loosening of restrictions, with Constellation Brands at the end of October agreeing to purchase a near-10% stake in Canada-based medicinal cannabis company Canopy Growth Corp. However, what effect legalisation will have on alcohol sales is still unclear. A Bernstein report from earlier this year stated that early indications suggest "beer and weed are complements rather than substitutes".

In this week's webinar Euromonitor said cannabis's threat to alcohol sales through cannibalisation was "very real". According to the analyst, by 2020 the legal cannabis market is expected to be worth US$8bn in Canada and $16bn in the US.

Euromonitor said alcohol companies may be able to bridge the gap between drinkers and cannabis smokers through premium offerings. It said craft beer and small-scale wineries "appeal to a similar sense of connoisseurship" found in premium cannabis and both use the same descriptive language, with words such as bouquet, strains, appellations and nose.

Is cannabis here to stay? Constellation Brands has the US$191m answer – Comment


Related Content

FREE TO READ - What just-drinks said about the cannabis category - The review of 2018

FREE TO READ - What just-drinks said about the cannabis category - The review of 2018...

Molson Coors

Molson Coors "working to understand" cannabis - CEO...

The future of cannabis in the drinks industry - just-drinks FUTURES

The future of cannabis in the drinks industry - just-drinks FUTURES...

Who needs alcohol when Coca-Cola can have versatile cannabis? - Comment

Who needs alcohol when Coca-Cola can have versatile cannabis? - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?