News

California cannabis legalisation a "non-event" for beer sales - Constellation Brands CEO

Most popular

Should Campari Group be renamed Aperol Group?

just-drinks speaks to A-B InBev CEO Carlos Brito

Why water has become more important than wine

Campari Group's Aperol Q3 bonanza - Comment

MORE

Constellation Brands CEO Rob Sands has called the recent legalisation of recreational cannabis in California a "non-event" that won't affect beer sales in the state.

California legalised recreational cannabis use at the start of this year

California legalised recreational cannabis use at the start of this year

Sands, whose company is investing in the emergent cannabis beverage sector, said last week that disruption is unlikely as cannabis has already been legal in California for medical use for almost two decades. He forecasts little movement in the state's beer market in the wake of full legalisation, which came into effect on 1 January.

"I think one of the things that people don't necessarily appreciate is that cannabis [in California] has been generally available as medical marijuana and pretty accessible to almost everybody for 16 years," Sand said. "And therefore, the official legalisation on a state level of it for recreational purposes is probably a non-event."

California is the latest US state to legalise recreation marijuana use. The drug is now fully legalised in seven states, including Colorado and Oregon, as well as the District of Columbia.

Analysts have debated whether legalisation will hamper alcohol sales in the US. Last month, Euromonitor said beer is the most exposed category as states look likely to continue lifting restrictions over the next few years.

Sands last week said that it is still too early to tell how legalisation will affect sales in the US as a whole.

"It's probably not worth getting into a big debate right now about whether it's cannibalistic or complementary," he said. "There's just not enough information."

However, the CEO admitted that cannabis will be a "big market" in the future.

In October, Constellation invested US$191m in a 10% stake in Canadian cannabis company Canopy Growth, with plans to produce cannabis beverages in Canada. The country is set to legalise recreational cannabis use nation-wide in July this year.

Last week, Sands gave further details on the partnership, explaining that Constellation is setting up marketing operations in Canada to complement Canopy's existing sales team. Sands said the Canadian government is likely to give the green light to the production of cannabis beverages in 2019.

Sands was speaking after the release of Constellation's Q3 results in which sales rose despite slightly slower growth for beer.

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


Related Content

Cannabis – A clear and present danger to alcohol - Focus

Cannabis – A clear and present danger to alcohol - Focus...

What brewers need to be aware of before stepping into cannabis - Comment

What brewers need to be aware of before stepping into cannabis - Comment ...

Binge drinking rates in US cannabis states below national average - analyst

Binge drinking rates in US cannabis states below national average - analyst...

Blue Moon founder Keith Villa unveils psychoactive cannabis drink Ceria

Blue Moon founder Keith Villa unveils psychoactive cannabis drink Ceria...

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?