Cannabis Is Taking Away From Beer Market Share Following Legalization

Infused cannabis products started trickling into the Canadian market in December, but wider distribution isn’t expected until later this quarter.

Lisa Campbell, CEO of Mercari Agency, a Toronto-based cannabis consultancy, noted that hurdles stand in the way of beer companies looking to capitalize on cannabis beverages – especially regulatory barriers.

For example, beer makers are unable to produce cannabis beverages unless they build out a separate facility – or partner with someone who already has a separate facility.

That adds significant cost and limits synergy.

Many cannabis beverage joint ventures with some of the biggest brewers have yet to launch a product despite such products being legal, she said.

“The ban of alcohol branding and nomenclature means beer brands can’t capitalize on their existing brands to gain cannabis market share.”