Reviving Alcohol Sales: The Role of Cannabis Brands in Boosting the Industry
Introduction
The alcohol industry has been facing a steady decline in sales over the past few years. This is largely due to changing consumer preferences, with more people opting for healthier alternatives and reducing their alcohol intake. However, a new trend is emerging that could potentially revive the struggling industry – the integration of cannabis into alcoholic beverages. This article explores how cannabis brands are playing a crucial role in boosting the alcohol industry.
The Decline of the Alcohol Industry
According to a report by IWSR Drinks Market Analysis, global alcohol consumption fell by 1.6% in 2018. This decline is attributed to a shift in consumer behavior, with more people prioritizing health and wellness. The rise of the ‘sober curious’ movement, where individuals choose to abstain from or reduce their alcohol consumption, has also contributed to this decline. Furthermore, the COVID-19 pandemic has exacerbated the situation, with many bars and restaurants forced to close, leading to a significant drop in on-premise alcohol sales.
The Rise of Cannabis Brands
While the alcohol industry is struggling, the cannabis industry is thriving. The global legal marijuana market is expected to reach $73.6 billion by 2027, according to a report by Grand View Research. This growth is driven by the increasing legalization of cannabis for medical and recreational use, as well as growing consumer acceptance of cannabis products. As a result, many cannabis brands are now looking to expand their product offerings, and one area they are exploring is the alcohol industry.
Cannabis Brands Boosting the Alcohol Industry
Cannabis-infused beverages are a growing trend in the alcohol industry. These products offer a unique selling proposition – they provide the social and relaxation benefits of alcohol, without the negative health effects associated with excessive drinking. This aligns with the current consumer trend towards healthier alternatives and could potentially attract a new demographic of consumers to the alcohol industry.
Several cannabis brands have already made significant strides in this area. For example, Canopy Growth, a leading cannabis company, has launched a line of cannabis-infused beverages in partnership with Constellation Brands, a major player in the alcohol industry. Similarly, Molson Coors has partnered with HEXO Corp to create Truss Beverages, a joint venture focused on non-alcoholic, cannabis-infused beverages.
These partnerships not only provide cannabis brands with access to the alcohol industry’s distribution networks and marketing expertise, but they also offer alcohol brands an opportunity to diversify their product offerings and tap into the growing cannabis market.
Conclusion
In conclusion, the integration of cannabis into alcoholic beverages presents a promising opportunity for the alcohol industry to revive its declining sales. By partnering with cannabis brands, alcohol companies can diversify their product offerings, attract a new demographic of consumers, and tap into the growing cannabis market. However, this trend also presents challenges, such as regulatory hurdles and consumer education, which need to be addressed for it to reach its full potential.
By C.N.W
Keywords: alcohol industry, cannabis brands, cannabis-infused beverages, consumer trends, health and wellness
Sources:
- IWSR Drinks Market Analysis. (2019). Global alcohol consumption declines by -1.6% in 2018. Retrieved from https://www.theiwsr.com/global-alcohol-consumption-declines-by-1-6-in-2018/
- Grand View Research. (2020). Legal Marijuana Market Size, Share & Trends Analysis Report By Type (Medical, Recreational), By Product Type, By Medical Application (Chronic Pain, Mental Disorders, Cancer), And Segment Forecasts, 2020 – 2027. Retrieved from https://www.grandviewresearch.com/industry-analysis/legal-marijuana-market
- Canopy Growth. (2020). Canopy Growth and Constellation Brands unveil cannabis-infused beverages. Retrieved from https://www.canopygrowth.com/investors/news-releases/canopy-growth-and-constellation-brands-unveil-cannabis-infused-beverages/
- Molson Coors. (2020). Molson Coors and HEXO launch Truss CBD USA. Retrieved from https://www.molsoncoors.com/news/molson-coors-and-hexo-launch-truss-cbd-usa
