The legal cannabis industry appears to become one of the biggest threats to the multi-billion dollar beverage alcohol business, according to a new report from a top analytical firm.
The IWSR, the leading source of data and intelligence on the alcoholic beverage market, in conjunction with and BDS Analytics, says a growing number of consumers, especially millennials, are showing a preferences to consume both booze and buds, versus older generations which tend to stick with just one. That could cut into long-term loyalty efforts by beverage makers, especially those in the beer and spirits fields.
“Our research shows that up to 40% of adults 21 and over consume cannabis in states where it’s legal,” said Jessica Lukas, vice-president at BDS Analytics.
“Cannabis presents substantial opportunities across consumer industries, including new occasions that alcohol cannot and will not play. Consumers will continue to look to cannabis products over alcohol for occasions when they are feeling creative, need to get motivated, or seeking health, medical or wellness benefits.”
One of the biggest threats to the alcohol business is when companies start creating a beverage that has some of the characteristics that people are used to with alcohol. You start drinking something alcoholic, you start getting a buzz relatively quickly.
Such a beverage would have to be based on water-soluble THC, which would be quickly absorbed and give the user immediate feedback, unlike fat-soluble THC, which takes much longer.
A cannabis drinkable eliminates the disadvantages of smoking and edibles: the smell and mess of smoking as well as the slow onset of edibles.
These drinkables are already on the rise, and once cannabis is federally legal, they will become widely available.
So the next time a person has a choice between an alcoholic drink or a THC infused drink, where a cannabis drinkable would be a much healthier choice without the problems of alcohol. It seems almost certain that cannabis would become a threat to the alcohol business.