Big Alcohol’s Move into Cannabis Beverages: The Inevitable Game Changer
The cannabis beverages market is poised for big changes — and it’s not a question of if Big Alcohol enters the space, but when. A recent article in Rolling Stone by Peter Su, highlights what I’ve long predicted: major beverage players will make their mark in cannabis, bringing their wallets, distribution networks, and scale with them.
Here’s what we know:
The global cannabis beverage market was valued at $1.16 billion in 2023, and it’s expected to grow at a staggering CAGR of 19.2% to reach $3.8 billion by 2030.
Alcohol sales are slumping — wine and spirits volumes fell 3% in 2023 — while younger consumers are increasingly drawn to healthier, alcohol-free alternatives. Cannabis-infused drinks meet this demand head-on.
What this means for the cannabis industry
Big Alcohol’s entry will bring opportunities and challenges. Their scale and expertise can normalise cannabis use, improve distribution, and push for clearer regulations. But let’s not be naive — Big Alcohol plays to win. Smaller cannabis brands may face acquisition, or worse, be squeezed out entirely.
For cannabis businesses, survival will depend on finding a way to work with these giants rather than against them. The companies left standing will likely fall into two categories:
1. The large MSOs: Multistate operators with the resources to weather competition.
2. Smaller players with a niche: Those who’ve carved out a unique voice, market, or product that makes them hard to topple.
What’s next?
I predict we’ll see partnerships between Big Alcohol and mid-sized cannabis players who can help them scale into this space. The best-case scenario? Collaboration that meets growing consumer demand for safe, innovative, and healthier alternatives to alcohol.
But we must tread carefully. As the Rolling Stone article points out, we’ve already seen how additives in alcohol have raised health concerns. The cannabis industry has worked hard to build trust and offer wellness-focused products. Let’s make sure those values aren’t lost in the rush to scale.
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