US | Beer makers fear that cannabis legalization will affect sales

become-weed-connoisseur-pairing-bud-perfect-ipas-heroCannabis legalisation in 2018 is going to be a big subject which will definetely shake the foundations of some already established markets and disrupt the status quo in the USA .

One of the companies that have expressed their concerns is Molson Coors. According to their spokeperson within the company , alarm bells are ringing  amid fears consumers will trade a cold one for legal cannabis, denting beer sales.

 

“Although the ultimate impact is currently unknown, the emergence of legal cannabis in certain U.S. states and Canada may result in a shift of discretionary income away from our products or a change in consumer preferences away from beer, Molson Coors said in its financial report.

Another player likely to be affected by legalisation is The Boston Beer Company (, maker of Sam Adams, who along with fears about consumers switching to weed, are also facing more increased competition from other beverage makers.

Goldman Sachs downgraded breweries last summer, citing lowered demand for beer as consumers shift to wine. Data from the Brewers Association showed that in 2016, beer volume sales were flat.

 

Another major beer maker, Constellation Brands , maker of Corona and Modelo beers among others, are more proactive in their approach to rising competition. The company took a stake in medical cannabis company Canopy Growth last October.

 

CEO Rob Sands described the investment as part of its plans to identify “early stage consumer trends.”

In other words ,beer companies are going to have to be versatile no matter how much lobbying they can carry out. They will either switch activities to include cannabis in their products range or they will die a slow and painful death similar to the tobacco industry .

M.J

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