More alcoholic beverage companies are tapping into the cannabis industry

Canada is now the second country worldwide to legalize recreational marijuana.

On Tuesday the Cannabis Act passed in the Senate with a 52-29 vote. The new act allows the production, cultivation, distribution and retail selling of the substance.

This poses as grave imminent competition to the alcohol beverage companies. Maybe that explains why many of Canada’s beverage companies have decided to buy shares in the cannabis industry.

They are also hoping to produce cannabis-infused beverages.

About 9.9% of Canopy Growth Corp, a Canadian marijuana company was purchased by Constellation Brands in October 2017. The shares were bought for $247 million.

Southern Glazer’s Wine and Spirits, Canadian branch designed a product strictly from cannabis products in May.

Société des alcools du Québec (SAQ ) signed a five-year contract with Cannabis producer Hydropothecary. SAQ is hoping that they will become the preferred supplier products for the Quebec market for the first five years post-legislation.

Many beverage companies are entering into the cannabis market (Image via Weed Seed Shop)

Market Damage

Many consumers are moving from regular alcohol beverages to THC infused beverages. It is no surprise that legal-marijuana suppliers have reaped $11.3 million in revenue, topping the amount of profit by liquor stores, which made $10.5 million in 2017 for the first time in Aspen, Colorado.

Bourcard Nesin, beverages analyst at Rabobank, reported that some people have even stated that they would prefer to consume cannabis if the federal Government would legalize it.

People are even beginning to question the limitations placed on cannabis possession.