
Cannabis Cuts in on Alcohol Market
The tobacco and alcohol industries are set to face at least $55 billion of loss per year as the cannabis industry grows across North America. A lot of the companies that will potentially be in competition with cannabis are actually starting to invest the marijuana market. These companies are branching into the cannabis industry to prevent loss of market share. Alcohol companies are investing in innovative new cannabis-related technologies. These efforts aim to keep the companies relevant. Industry analysts predict that alcohol and tobacco companies will increasingly migrate into the cannabis sector as it cuts into their profits. These partnerships and acquisitions are accelerating growth and innovation in the flourishing cannabis industry as everyone finds their feet. These companies are pushing cannabis into more than just standard product retail. It is integrating it into the non-alcoholic beverage industry, as well as nutritional and wellness supplements, personal care and Big Pharma sectors. Alcohol and tobacco giants are preparing for further announcements from federal and state governments about regulation in the U.S. The first global liquor company to go into cannabis was Constellation Brands, of New York. They invested CAD$5 billion into Canopy Growth which is based in Ontario, Canada. Big tobacco is also chasing the market rush and invested CAD$2.4 billion in Cronos Group, a producer also from Ontario. Market projections say that it can only go up from here. Forecasts say that by 2025 the Canadian recreational cannabis market will hit CAD$9.1 billion and an extra CAD$1 billion on top of that in medical sales. Uptake of legal cannabis in Canada has been slower than expected as provinces and municipalities work through retail legislation at their own pace. Analysts say that markets will be oversaturated by 2020 as licenced producers open their businesses and establish a customer base.