Financial analysts say they expect the expansion of the marijuana legalization movement will continue to pose a “significant threat” to the alcohol industry, citing survey data that suggests more people are using cannabis as a substitute for alcoholic beverages such as beer and wine.
A report from Bloomberg Intelligence (BI) projects that slumping sales of wine and spirits “may extend indefinitely,” which will “stem largely” from the increased consumer access to “legal cannabis,” as well as rising popularity of made-to-go drinks, for example. They estimated that the combined influence of cannabis access and shifts in consumer demand for certain alcoholic product types accounts for a 16 percent share valuation discount offered by the beverage company Constellation Brands, which owns major brands including Corona, Modelo, Pacifico and Casa Nobel Tequila.
According to the survey, nearly half of respondents reported using cannabis as an alcohol substitute at least once per week. Additionally, 22% said they use marijuana more often than alcohol.
