Alcohol Consumers turning to WEED.
Many alcohol companies are watching the cannabis market closely, either because they see their own opportunity or see it as a competitor. We have already seen companies like STZ invest in cannabis companies and others are launching their own cannabis beverage. BDSA data shows that the 6-month consumption of cannabis products has risen from 32% in the Spring of 2018 to 47% in the Fall of 2021. Price deterioration of these products has affected the top line, however. BDSA also estimates that the total U.S. legal cannabis market is projected to total $46B by 2026. “One demographic that has seen a swift rise in cannabis consumption is alcohol consumers. BDSA Consumer Insights data from Fall 2021 show that ~55% of alcohol consumers in states with access to legal, Adult-Use cannabis report consuming cannabis in the past six months, a 7% increase from the previous Fall. While consumption of alcohol by cannabis consumers remained flat over that same period, the number of cannabis consumers who report co-consuming cannabis with certain types of alcohol has also seen an appreciable rise.”
PA CANNABIS SALES.
Pennsylvania May cannabis sales came in at ~$96M for the month. This is a MoM decline of 6% and a YoY decline of 8%. This compares to April when the state saw a MoM decline of 2% and a YoY decline of 5%. This deceleration in sales is a trend we are seeing across the country due to high cannabis inventory putting pressure on sales. We will go into further detail about this later in the month during our Monthly Cannabis Q&A + Industry Tracker Call.
Cannabis coming to the Hamptons.
TILT Holdings, which is a Hedgeye Long, is partnering with the Shinnecock Indian Nation to open a dispensary located at 56 Montauk Highway. "first-of-its-kind, fully Indigenous-owned cannabis operation," a release said. "Little Beach Harvest is positioned right along the main Southampton roadway, creating a unique engagement point between the First People and the Hamptons community." Patch.com
