$34 billion.
This is how much U.S. consumers spent on beer last year.
That ain’t chump change.
But apparently, some of that market share is about to be taken over by the cannabis industry.
According to analysts from Cowen and Co., the beer industry could soon lose more than $2 billion in retail sales to legal cannabis:
While recreational cannabis has only limited availability, the rise of cannabis consumption more broadly looks to be weighing on alcoholic beverage consumption, where it is now in decline for men and higher income consumers.
Analysts at Cowen also noted that within three states that have fully legalized, the underperformance of beer in those markets has worsened since 2016.
Now, I’m not saying everyone’s going to give up their Budweiser and microbrews for cannabis, but make no mistake, cannabis is having a huge impact on the beer market. And you better believe we’re looking to take advantage of this action.
The First Crack in the Dam
Last week, we saw the first crack in the dam.
As reported by the Independent, sales of cannabis have officially overtaken alcohol in Aspen, CO, where it is legal for anyone over the age of 21 to purchase and consume cannabis.
In 2017, cannabis dispensaries in Aspen did about $11.3 million, while sales of alcohol came in around $10.5 million.
Although Aspen only has a population of less than 7,000, some in the alcohol industry are seeing this as a sort of “canary in the coalmine” situation. And they’re leaving nothing to chance.
As someone who’s been in the cannabis game for a long time now, I can tell you that I’ve met and know a lot of alcohol execs who have been investing heavily in the cannabis industry. Some even sit on the boards of cannabis companies.
And, of course, you may remember last year, when it was announced that Constellation Brands — the company that owns Corona — ponied up nearly $200 million to get a 10% stake in one of the biggest cannabis players in the world: Canopy Growth Corporation (TSX: WEED).
It should also be noted that just recently, the owner of Lagunitas Brewing Company, which was sold to Heineken for about $1 billion, told industry experts that cannabis will be “way, way bigger” than craft beer.
To put that in perspective, in 2016, the craft beer industry did in excess of $23 billion in sales.
Not Even Market Crashes Can Stop Cannabis
Last week, when the market took a nosedive, something interesting happened…
Most cannabis stocks remained stable or even rose in value.
Full post by Jeff Siegel at Energy and Capital
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Why is this stock not talked about?
Received a Federal Grant $2,500,000.00,
MYM Nutraceuticals Inc (MYMMF)
#️⃣Weedon Project – 1.5 Million sf greenhouse, a medical cannabis university & resech lab, History museum, attached Testing facility, a lecture auditorium, A cannabis Health Care Clinic, 22 apartments for Treatments. The plan will make Weedon the cannabis capital of Canada.
#️⃣Laval Project has been completed, The facility is 10,000 sf & expanding to 37,000 sf.
#️⃣Northern Rivers Project is a 1.2 Million sf greenhouse project when completed, is expected to be the largest cannabis greenhouse in Australia. Yippee, they received a Federal Grant $2,500,000.00, In the second quarter of 2019 the first crop is expected to be planted.
#️⃣ MYM has purchased a 49% stake in Colombia Organica, The plan is to build a production facility near Medellin, Colombia for the cultivation, processing of cannabis, in the manufacturing of pharmaceutical & medicinal chemical substances & botanical products. Colombia Organica holds a seed to sale license for low THC cannabis & is in the application process for both high THC cultivation & extraction cannabis. They have existing licensing permits to grow, produce & create cannabis derivatives to be commercialized &/or exported. They will continue the process of developing & registering seed strains with Colombia Agriculture Institute.
#️⃣MJT Manufacturing Project is located in Toronto, Ontario. This GMP certified, state of the art extraction laboratory production facility is dedicated to industrial HEMP (CBD) processing. This high capacity production space is able to produce large volumes with a high level of consistency. The facility is capable of producing a full range of CBD extracts & uisolates. The MJT production facility is focusing on product development MYM owned brand.
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