Molson Coors Brewing Co. is voicing concerns over the potential impact that national cannabis legalization will have on their beer sales in their latest 13F filing. 13F filing is a quarterly filing to investors required of institutional managers with over $100 million in qualifying assets. Although the process has been a growing problem for Coors, the legalization of cannabis is providing new business opportunities, jobs, and a safer alternative to Coors’ cash product. Popular support in favor of the cannabis legalization movement highlights the beneficial impacts on craft producers, processors, distributors, ancillary markets, and the tax revenue that is generated. On the opposite spectrum stand a list of detractors of the cannabis legalization process led by companies like Coors.
With headquarters in Denver and Montreal, the most recent 10-K filing with the U.S. Securities and Exchange Commission shows that Coors has been closely monitoring the impact that legal cannabis will play on its customers, their disposable income, and their purchasing habits. Coors’ 13-K filing lists cannabis legalization as a possible “risk factor” stating,
“although the ultimate impact is currently unknown, the emergence of legal cannabis in certain U.S. states and Canada may result in a shift of discretionary income away from our products or a change in consumer preferences away from beer.”
When a Fortune 500 company reporting $11B in annual revenue is considering cannabis to be one of the largest threats to their market it makes one thing clear, legalization is making a major impact. By allowing adults to make their own decision in regard to consumption we begin to truly consider factors such as perceived safety, level of addiction potential, effectiveness in relieving symptoms, and access or level of acceptance.
A study published in the National Library of Medicine concluded that,
“The substitution of one psychoactive substance for another with the goal of reducing negative outcomes can be included within the framework of harm reduction. Medical cannabis patients have been engaging in substitution by using cannabis as an alternative to alcohol, prescription and illicit drugs.” https://www.ncbi.nlm.nih.gov/p...
The progressive legalization of cannabis has and will bring an incredible amount of benefit to American way of life while also creating competitors out of established organizations dedicated to protecting their market share. Boston Beer Inc (Sam Adams) and the Craft Brew Alliance have also both suggested that the legalization of cannabis may have a significant impact on their beer sales and according to Nathan Reif at Investopedia, “In fact, it's possible that some beer companies may even partner with companies in the cannabis industry.”