Is Cannabis Replacing Beer? Canadian Study Links Weed Legalization To Drop In Alcohol Sales
Portfolio Pulse from Maureen Meehan
A Canadian study published in Drug and Alcohol Dependence found that legalizing cannabis led to a decline in beer sales, with an immediate drop of 96 hectoliters per 100,000 people and a further monthly decline of four hectoliters. Canada's excise tax revenue from cannabis in the 2022-23 fiscal year surpassed that from wine and beer combined. Tilray Brands (TLRY) acquired eight beer brands from Anheuser-Busch (BUD), positioning itself in both the beer and cannabis markets. Tilray's CEO plans to infuse these drinks with THC or CBD upon U.S. legalization.
March 05, 2024 | 4:40 pm
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Anheuser-Busch sold eight beer brands to Tilray, potentially affecting its market share in the beer industry as cannabis becomes a more popular choice.
The sale of beer brands to Tilray could indicate Anheuser-Busch's strategic shift or downsizing in certain market segments. As cannabis gains popularity, this move might reflect an adaptation to changing consumer preferences, potentially impacting BUD's short-term market share and investor sentiment.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Tilray acquired eight beer brands from Anheuser-Busch, aiming to infuse them with THC or CBD upon U.S. cannabis legalization, potentially expanding its market presence.
Tilray's strategic acquisition of beer brands and plans to infuse them with cannabis derivatives upon U.S. legalization could significantly enhance its market position and product offerings, likely boosting investor interest and stock performance in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90