Impact of Adult-Use Cannabis Legalization on Beer Sales in Canada: A Decline Trend

Recent research published in Drug and Alcohol Dependence sheds light on the effects of cannabis legalization on beer sales in Canada. Conducted by researchers from the College Pharmacy at the University of Manitoba, School of Pharmacy at Memorial University of Newfoundland, and Leslie Dan Faculty of Pharmacy at the University of Toronto, this study presents intriguing findings.

Published on Feb. 27, the study reveals a significant decline in beer sales across Canada following the initiation of legalization in 2018. The data indicates a noteworthy decrease of 96 hectoliters per 100,000 population immediately after non-medical cannabis legalization, with a subsequent monthly reduction of 4 hectoliters per 100,000 population. This equates to an average monthly decline of 136 hectoliters per 100,000 population post-legalization.

Interestingly, while cannabis legalization led to a decline in beer sales, it did not affect spirit sales, encompassing products such as whisky, rum, gin, tequila, liqueurs, and vodka.

The study suggests that while some individuals may increase alcohol consumption due to cannabis use, others are substituting cannabis for alcohol, particularly those with greater sensation-seeking behaviors.

Data sourced from Beer Canada and Spirits Canada reveal that the reduction in beer sales was prominent in Western provinces like Manitoba and Ontario, whereas no significant impact was observed in Quebec, Saskatchewan, Alberta, and British Columbia. The study highlights a substantial decline in beer sales ranging between 228 and 505 hectoliters per 100,000 population in Western provinces post-legalization.

Additionally, the research emphasizes a shift in consumer preference towards legal cannabis, with notable decreases in canned and kegged beer sales but no reduction in bottled beer sales.

Moreover, the study indicates a trend of consumers not using alcohol and cannabis concurrently, suggesting a potential shift away from alcohol consumption towards cannabis.

In conclusion, the study underscores the immediate and sustained decline in beer sales following non-medical cannabis legalization in Canada, particularly in Western provinces. Despite this decline, no significant change was observed in spirits sales post-legalization.

Beyond the study, anecdotal evidence from public figures like Hulk Hogan and other research studies suggest a growing trend of substituting alcohol with cannabis for various health benefits. This trend reflects a broader societal shift in attitudes towards substance use.

As different states navigate the regulation of cannabis and alcohol, such as seen in Connecticut’s contrasting regulations on Christmas and New Year’s Day sales, understanding the evolving dynamics between cannabis legalization and alcohol consumption remains crucial for policymakers and public health advocates alike.