Is cannabis-infused beer the inevitable next step?

By Sumit Modi

Marijuana has now been legalized across large portions of the US, creating new business opportunities which Constellation Brands – the company which sells Svedka vodka and Corona beer – aims to take advantage of.

According to Bloomberg, Constellation CEO Rob Sands said: “There are going to be alcoholic beverages that will also contain cannabis… we’re looking at it.”

Voters on Tuesday approved the use of recreational weed in Nevada, Massachusetts, California, and Maine. A fifth of Americans now live in a marijuana-legal state.

Becoming involved in cannabis could prove necessary for Constellation and Sands, as over half of its sales are due to Mexican imports, and President-elect Donald Trump is not only famously anti-Hispanic, but wishes to renegotiate the North American Trade Agreement. Whether or not this affects the company, in Sands’ own words: “Why wouldn’t big business, so to speak, be acutely interested in a category of that magnitude? If there’s a lot of money involved, it’s not going to be left to small mom-and-pops.”

Infusing alcohol with cannabis may be the way to bridge the gap between smoking weed and drinking. Pot has long been seen as a threat to the spirits sector, but according to the National Survey on Drug Use and Health, the amount of drinkers who also smoke weed has grown over the past ten years.

“People who are using cannabis may be disinclined to drink as much as they might have otherwise,” Sands said, “but maybe they weren’t going to drink in the first place… maybe the whole thing will work out synergistically.”

 

Follow @BizReviewUSA and @NellWalkerMG

Read the January issue of Business Review USA & Canada here

Share

Featured Articles

Microsoft, McDonald’s latest firms to run civil rights audit

Microsoft and McDonald’s join Amazon, Citi, JPMorgan and others in conducting civil rights audits, as investor pressure to achieve racial equity mounts

Deep dive: Investment in carbon capture rises as CO2 spikes

Investment in carbon removal solutions and startups is heating up as fast as the planet, with Temasek and CEMEX Ventures the latest VCs to launch funds

Dialight envisions a safe industrial world with LED lights

Reliance on inefficient lighting technologies are not only harmful to the environment, but also increase injury risk and cost

Top 10: Tech, cyber, 5G, cloud speakers at TECH LIVE LONDON

Technology & AI

Eight big announcements made at Davos 2022, from ESG to tech

Sustainability

Hear Vodafone Business cyber chief Kawalec at Cyber LIVE

Leadership & Strategy