Beer Sales Aren’t Taking A Hit After Marijuana Legalization In The US
Before the whole legalization process, big beer companies were concerned that legalizing marijuana directly jeopardizes the beer sales. There was a common misconception about beer and marijuana not being able to coexist on the market. However, it was a wrong prediction.
The beer industry was concerned that they would be sent into a rapid decline by people who chose weed over a beer. In one of their reports, they’ve stated –
“At first sight, one would regard marijuana and alcohol in general as clear rivals and that every extra dollar spent on weed meant a dollar less on booze.”
However, instead of a downfall, they saw an uptick in beer consumption in states where the medical and recreational use of marijuana is allowed. The beer consumption dropped 0.6% in the three years before legalization. However, it rose 0.1% three years after.
After this research was conducted the same beer industry stated –
“Beer and weed are complements rather than substitutes.”
There are a few ideas about why did the consumption of beer rise instead of dropping drastically. One of the theories is that the users of marijuana simply have more money in their pockets to spend on beer because of the fall in price per gram, since the legalization. This drop is mainly because the black market got weakened and marijuana got taxed.
There is a great example of how marijuana and beer overlap in modern culture. The police raided an event ten years ago which was organized by the Lagunitas beer brand. At which marijuana consumption was trivial and practiced. The company later produced a new brand of beer to pay tribute to the event. While their annual production numbers still make a reference to the number 420.
A world-renowned analyst said
“One does not need to look far into popular culture to see that beer and weed cultures can be highly complementary,”
Other industries are expected to enter the market such as Domino Pizza, Chipotle, Frito Lay, and more. They are likely to benefit from making food containing a percentage of THC.