Why More Beer Companies Could Soon Be Turning to Cannabis
Constellation Brands (NYSE: STZ) shook up the cannabis industry when, in 2017, the beer maker invested in marijuana producer Canopy Growth (NASDAQ: CGC). Since then, it has invested billions more in the company. Budweiser maker Anheuser-Busch InBev has also shown interest in the industry, as have other companies.
The cannabis industry is in its early growth stages, and it may only be a matter of time before more money pours into it from the big beer companies.
It has been more than four years since Canada legalized marijuana. And a recent study shows that there is a negative correlation between revenue from medical marijuana and alcohol. The data goes up until 2018, so it doesn't factor in the recreational market. But it did show that for a dollar of medical marijuana sold, alcohol revenue, on average, declined between 74 and 84 cents. In a separate study involving Washington state, researchers found that legalizing marijuana resulted in alcohol sales declining by 15%.
Source Fool.com
