Beer sales declining in markets with legal marijuana, says financial firm
FOX NEWS - Beer may need to watch its back.
A new report from financial services firm Cowen and Company says beer sales have been dropping in markets where marijuana is now legal.
Vivien Azer, the managing director and senior research analyst at Cowen, says the beer business isn't booming in Colorado, Oregon and Washington-- all states where recreational cannabis use has been legalized.
“While (marijuana) retail sales opened up in these markets at different points of time, with all three of these states now having fully implemented a retail infrastructure, the underperformance of beer in these markets has worsened over the course of 2016,” Azer wrote in the report detailed on Brewbound.
Looking into the data, Azer noted that “the magnitude of the underperformance has increased notably,” with beer volumes falling more than two percent year-to-date. Sales in the states also trail the overall U.S. beer market.