A.t. Kearney Asks Whether Cannabis Displaces Beer, Wine Or Spirits Most Source: Beer Business Dail

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A study by A.T. Kearney of 2,000 American and Canadian consumers suggests North Americans are quite open to cannabis products of all kinds. About 76% said they would try medicinal cannabis products, while about 50% said they would try "cannabis-enhanced consumer products" like snack foods. The study was conducted in August/September.

Here's where it matters for us. The survey found that "of those individuals who said they would try recreational cannabis, most would consume it in place of beer."

The actual question posed was, "Would you use recreational cannabis instead of consuming alcohol? If so, which alcohol?"

Overall, 27% chose cannabis instead of beer, with another 22% each choosing cannabis instead of wine and spirits.

If they're trying to demonstrate substitutability for alcohol, however, we find this question problematic. For one, it doesn't determine (to our knowledge) those who weren't actually alcohol drinkers to begin with. Nor does it account for co-consumption that may occur.

To wit: Spirits drinkers, for example, who might both drink and smoke cannabis might find it easy to say they would use cannabis instead of beer -- when they weren't beer drinkers to begin with.

Sean Ryan, a partner on this study and chief of A.T. Kearney's U.S. bev alc practice, said he wasn't certain if the survey first confirmed whether respondents of that question were actually consumers of alcohol. If it didn't, he agrees, some of those responses could be coming from people who aren't.

Anywho, another interesting finding, particularly for the likes of Constellation Brands, is that people seem primed to welcome cannabis products from their favorite brands.

Survey asked, "How would you perceive your favorite brand if they launched a product containing cannabis?" Amazingly, 86% of Americans and 84% of Canadians said their perceptions of said brand would either stay the same or improve, even. For an alcohol company specifically, 61% of overall respondents said their perception wouldn't change, 21% said it would improve of said company, and 18% said it would worsen their impression.

"The survey clearly demonstrates the viability of the market for cannabis across multiple consumer segments - CPGs and retailers focused on health and wellness, snacking, functional food and beverage, and beverage alcohol need to have a perspective on how they will approach the cannabis opportunity," per Randy Burt, a partner in A.T. Kearney's consumer and retail practice.

Sean told BBD they will continue this line of questioning in future studies. "As we move forward into legalization in Canada, we want to watch and see what happens," he said. It's "not very often when you have an industry that is created at its very inception." Seeing how the market responds -- including adjacent industries -- will be key. It's a"very big learning moment for all of us to see how the industry evolves from [what it is to] what it might become."

Source: Beer Business
Daily October 16, 2018