Cannabis + Alcohol = Magic Brew or Witches Potion?

Back in 2016 I wrote about the possibility of big tobacco cornering the legal marijuana market.
(marijuana is the Mexican word for cannabis)

This was just around the time marijuana legalisation movement was taking hold across the US.
I uncovered some big tobacco memos from the late 60s, which showed how these companies wanted to move in on marijuana.

As this memo to Philip Morris’s manager of chemical and biological research, dated September 1969, reveals, it had been discussing this market for some time.

‘From all I can gather from the literature, from the press, and just living among young people, I can predict that marihuana smoking will have grown to immense proportions within a decade and will probably be legalized. The company that will bring out the first marihuana smoking devices, be it a cigarette or some other form, will capture the market and be in a better position than its competitors to satisfy the legal public demand for such products. I want to suggest, therefore, that you institute immediately a research program on all phases of marihuana.’

However, most countries banning cannabis put an end to those big tobacco’s plans.

Fast forward to 2018 , and marijuana is being legalised around the US and many other countries, so it is only a matter of time until big tobacco moves in. (From 17th October 2018, recreational cannabis will be fully legal in Canada. Sales are expected to hit over $1 billion within just ten weeks.)

As I showed, tobacco has the farmland, the distribution, the technology and the advertising clout to make a very profitable move into legal marijuana.

But if you’ve been following the news over the last couple of weeks, you’ll know, my guess was off.

It's not tobacco. It is brewing and alcohol that are seeing a huge opportunity with legitimate Cannabis products.

Although I still believe big tobacco will also move in on legal marijuana eventually.

When you think about it, it makes perfect sense for the booze trade.

Over the last couple of decades, alcohol has become more and more socially unacceptable. It’s been linked to more and more diseases. And, perhaps most importantly, “the youth” are abstaining.

From the Guardian in June:

It’s summer, the World Cup is on, and there’s a heatwave on the way. But for increasing numbers of people, from pregnant women to abstemious millennials to health-conscious weight-watchers, that does not mean drinking to excess. And, with drinking rates among UK adults at their lowest since 2005, companies are falling over themselves to unveil their new non-alcoholic and low-alcohol drinks.

“Low- and no-alcohol drinks represent a relatively small part of the entire market, but demand is increasing every year,” said Miles Beale, chief executive of the Wine and Spirit Trade Association. “The low-alcohol wine category has increased 10 times since 2009 to around 3% of the market – that’s more than 37 million bottles, worth over £70m. Producers are responding to consumer demand for products that fit changing lifestyle habits – we know that overall alcohol consumption is decreasing, particularly among young people – with innovative new products that are lower in alcohol.”

The alcohol industry has seen what happened to tobacco, and it doesn’t want to share the same fate.

The new, hot, “healthy” and in many places legal substance is marijuana.

However, smoking marijuana is still bad for your lungs. You are inhaling smoke, after all. Even if it’s not as bad as inhaling tobacco smoke, it’s still not great for your lungs.

The thing about the intoxicating psychoactive drug ingredient in marijuana (THC) is that you don’t need to burn it to get a hit. You can eat or drink it.

So, this gives alcohol makers a golden opportunity. Right now, there’s barely any evidence out there saying that MODERATE THC consumption is bad for you. Especially when it’s imbibed and not smoked.

To legitimise cannabis drink products Governments will have to stipulate the maximum THC content of the drink unit and the safe amounts for consumption.Sales outlets for the products will have to be licensed.

By putting THC into 0% alcohol drinks, the alcohol industry gets a whole new lease of life. People can still get a buzz, but without any of the negative effects or long-term health worries of alcohol consumption.

From Global News:

Heineken-owed Lagunitas recently released an IPA-inspired beer that is made from hops and cannabis, called Hi-Fi Hops. The company said the beverage is alcohol-free and does not contain any carbs or calories.

Oregon’s Coalition Brewing also released a CBD-infused beer called Two Flowers IPA.
(CBD - the other chemical compound in marijuana, which has the medical world excited because it has natural medicinal properties and no intoxicating psychoactive effects).

In August, Molson Coors announced it was partnering with Quebec-based pot producer, HEXO Corp., and making a non-alcoholic weed beverage for the Canadian market.

Constellation Brands, which makes beers like Corona and Negro Modelo, along with whiskies, tequilas and vodkas has invested $4 billion in Ontario pot producer Canopy Growth.

In fact, if they market it right, it could even be a health drink - Zero alcohol, but high in anti-inflammatory CBD.

Cartoon Image Credit - Vector Toons.com