No one on Wall Street knows the burgeoning cannabis industry better than Vivien Azer, the managing director for consumer beverages, cannabis and tobacco at investment house Cowan and Company.
She often asks beer company CEOs about legal cannabis taking market share away from the most popular alcoholic beverage in America in states where pot is legal. Routinely, the executives dismiss any challenge from marijuana with the argument that people already get as much cannabis as they want on the black market, so any switch over to legal weed isn’t going to dent beer sales.
During a January 8 conference call, Azer said 2018 was the “worst year for beer sales in the near decade we’ve been covering the alcohol industry and we continue to believe that growing cannabis use is a factor.”
It’s all about re-engagement, a big trend for the current year and beyond. It goes like this: Once cannabis is legal, more people who may have dabbled with it in college or whenever will return to the green herb and hence drink less beer.
Cowen and Company Reports Decline in Beer Sales
Cowen’s latest consumer survey shows that people who used pot in the past month climbed to 39%