A recent report from CFRA Research projected that alcohol companies could be squeezed by legal cannabis in the coming years. Analyst Joe Agnese made the projection in a note published on March 5. “Due to shared usage occasions, we view the legalization of cannabis as a threat to alcohol industry consumption growth.”
Agnese pointed to research from the University of Connecticut and George State University that found that monthly alcohol sales dropped 13% in states that legalized medical cannabis. In the report, he predicts that Canada will made a very good test case.
The alcohol industry is undergoing some significant changes due to shifting demographics and consumer trends. One major trend is that of millennials moving away from beer and spirits to wine, which has seen its market share surge in recent years.
Statistics Canada released its report on the control and sale of alcoholic beverages for the year ending March