Alcohol Industry Frantically Lobbies Against Legal Weed as Beer Sales Predict $2 Billion Drop

There are a few new cannabis statistics that are causing the alcohol industry in America to shake in fear.

With just about half of the states in America embracing forms of legalized marijuana, with some states permitting the recreational use of it. It is poised to dramatically affect the alcohol industry in the near future. According to a new published study, the beer industry will be at risk to lose billions once marijuana is legalized across the nation. 

The study states,“Cannabis Consumer Group’s (C2G) research findings predict that legal marijuana will “canna-balize” 7.1% of revenues from the existing retail beer industry.” Even though the revenue margin may seem small to some, the profit losses are projected to exceed over 2 billion dollars.

And while research attempts to predict what can happen, when and if, weed is legal nationwide, many alcohol consumers are already making the switch over to marijuana. The study states, “Twenty-seven percent (27%) of beer drinkers state that they already have substituted cannabis for beer, or would substitute their beer retail purchases with cannabis in the future if legal.” There’s no shortage of recreational pot smokers either.

The study claims, “There were 24.6 million legal cannabis consumers in the US in 2016.” And while beer, wine, and, liquor sales will certainly be affected by the nationwide legalization of weed, “C2G’s projects that legal cannabis penetration will settle at a level comparable to that of beer and wine and that a fully mature market would create a new $50 billion industry.” Fifty billion dollars is nothing to shake any stick at.

"The forecasts were generated using C2G’s CannaUse™ study on the cannabis mindset and behaviors of 40K individual participants, the company’s warehouse of over 55MM cannabis purchase transactions, and CPG consumer panel and point-of-sale data sourced from IRI through an exclusive data and analytic share arrangement,” the study writes.

Rich Maturo, the CEO of C2G explains that there are ways to begin to approach offsetting losses sustained within the beer industry, however, it comes first from understanding why marijuana users prefer to smoke weed. “Those at risk of losing sales to legalized cannabis can undertake a variety of actions to offset their losses,” he said. “Consumers use cannabis to satisfy various need social, medical and experiential need states. Understanding these needs will help their cause. Those at risk of losing sales to cannabis can try to offset some of the losses by understanding and speaking to a consumer’s needs.” That seems to be a positive trait for marijuana and a negative one to the beer industry.

Socially speaking, alcohol is the most widely used drug in America, made legal after the failed war on alcohol, otherwise referred to as the Prohibition. Research has proved alcohol not only kills, but is often found in the bloodstreams of those who’ve been convicted of crimes at the time they committed their offense. It remains, as The Free Thought Project has reported, one of the most dangerous legal drugs readily accessible to all Americans over the age of 21.

Maturo says the best way to compete with marijuana is to take a more accepting approach. “Those companies that are gathering insights on cannabis and have the foresight to see it as presenting an opportunity in addition to a risk will fare much better than those who strictly take a defensive position,” he said. They are lobbying intensively to force the state to continue arresting whoever smokes marijuana, as it forces everyone to be a customer of theirs.

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Alcohol Industry Frantically Lobbies Against Legal Weed as Beer Sales Predict $2 Billion Drop Alcohol Industry Frantically Lobbies Against Legal Weed as Beer Sales Predict $2 Billion Drop Reviewed by Jamm Real on 07:47:00 Rating: 5
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