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| Cannabis Crop Awaits Legalization |
Although the impact of legal, recreational
cannabis use on alcohol sales remains uncertain, the WSWA’s decision to take a
position on marijuana legalization ultimately has little to do with the trade.
By supporting and encouraging regulation of intoxicants like cannabis and
alcohol, the WSWA hopes to put the health and safety of the consumer first.
There
is no evidence that the increasing legalization of cannabis will result in
market share loss for premium spirits, the CEO of Pernod Ricard has said. Speaking at a roundtable event in London,
CEO Alexandre Ricard said the group is monitoring the situation, and has been
doing so for some time. However, there
is currently no evidence to show that cannabis will cannibalize spirits
consumption, Ricard said. “We have been
monitoring the situation for one clear reason: we want to understand if legalization
of cannabis may or may not have an impact on consumption of premium spirits,”
Ricard explained.
“We do not have evidence of any cannibalization
or market share loss to cannabis. “It’s
too early to have a clear idea. We are looking to have clarity on whether it
will impact or maybe not impact premium spirits. So far, the answer is no.” The largest liquor producer in the world,
Diageo is said to be monitoring the legalization of cannabis in North
America very closely and that so far its legalization has not negatively
impacted its business. Earlier this
week, the drinks giant was been noted as being in talks with several cannabis
producers in Canada, but declined to comment on the rumors.
Drinks
companies are already making moves into the new sector. US drinks group
Constellation Brands has been reported to have funneled some $4,000,000,000 into
Canadian cannabis producer Canopy Growth Corporation, signifying the biggest
investment in the cannabis industry to date.
Southern Glazer’s Wine & Spirits has opened Great North Distributors,
a wholly owned Canadian subsidiary that will be the exclusive representative
for cannabis.
This is an
interesting question that only time will show the true results upon the spirits
industry.
