New cannabis-infused products, such as beverages from Constellation Brands’ Houseplant, have contributed to a decline in domestic beer sales in Canada

New cannabis-infused products, such as beverages from Constellation Brands’ Houseplant, have contributed to a decline in domestic beer sales in Canada

Domestic Beer Volume in Canada Slips During First Year of Legal Marijuana

This article originally appeared here.

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Domestic beer volumes in Canada fell by 5% in the first full year of marijuana legalization, new Beer Canada figures have revealed.

Cannabis-infused produceds offered by Constellation Brands in Canada

Cannabis-infused produceds offered by Constellation Brands in Canada

The performance, in the 12 months to the end of November, is a significant decrease compared to 2018 when average growth was flat, according to the industry trade group. Cowen & Co analyst Vivien Azer said volumes from 2014 to 2018 were also stagnant for Canada’s sales of domestically-produced beer.

Azer linked the poor performance to the country’s federal legalization of recreational marijuana in October 2018. He went on to say that new forms of cannabis products hitting the market such as beverages, will “likely perpetuate this trend.”

A number of mainstream producers are launching cannabis beverage offerings in Canada since they were allowed to be purchased back in 2018. Bud Light producer Anheuser-Busch InBev has unveiled a range of CBD-infused teas as part of a cannabis joint-venture. Also last month, Constellation Brands showed off its upcoming THC and CBD beverage ranges.

Despite the domestic beer challenges, volumes for imported beer were up 1% in the 12 months to the end of November. Azer said this matched trends in the U.S., where consumers are trading up. The imported beer growth in Canada is the best since 2015.

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