May 30: California has become the largest state in the US to legalize recreational cannabis use since January 1, 2018 after making it legal for medical use in 1996 and with legalization catching on like wild fire also in other states reaching 10 there is a likelihood of several wine drinkers switching to the legalized pot, thus affecting wine consumption in the US and wherever it is legal to smoke pot
As of 1 January 2018, adults aged over 21 can possess up to an ounce (28 grams) of the drug and can grow up to six marijuana plants at home, in California. When the scheme was announced last year, there was a positive reaction from the wine industry as they could mix the weed with wine and making it an interesting feature for a new market. However, the issue now is people switching from wine to pot as a chunk of wine connoisseurs, especially in California are switching to pot for several reasons.
Legal pot may thus reshape wine sales across the country as professionals, particularly women seeking to cut calories, switch to cannabis, according to a new analysis by Rabo Bank, one of Europe's biggest banks.
Conventionally, people presumed that beer drinkers might switch to pot under the new regimen. But the new analysis by Rabo Bank claims that women who used to avoid consuming illegal weed, are likely to begin taking pot more consistently as it's legalized- specially professional who feel the need to relax after stressful day and without consuming calories from a glass or two of wine (90-240 calories).
Existing research does indicate that rising marijuana use will negatively affect the growth of wine and alcohol. Out of the categories of wine, beer, and spirits, the Rabobank report says that wine is most likely to be threatened by the expected rise of consumption of legal grass.
One reason why wine sales could be affected by cannabis is that both products are competing for the health-conscious consumer. According to a News Poll by Yahoo, 72% of consumers believe that marijuana is safer than alcohol. Around 75% of wine consumers think that wine is healthier than other alcoholic beverages.
Personal health is particularly important to older consumers. Medical marijuana is now legal in 29 states and its association with medicine has undoubtedly assuaged consumer fears about marijuana use. Smoke-free marijuana formats could be especially appealing to health-conscious consumers over 40.
For weight-conscious consumers, cannabis has another advantage that it is calorie free. Research has repeatedly shown that cannabis use does not lead to an increase in body mass index (BMI); if at all it is related to a lower BMI. Heavy alcohol use is consistently associated with weight gain. However, the success of cannabis’ appeal to the health-conscious consumer is based on the assumption that companies will market their brands as healthy, lifestyle products, highlighting cannabis’ health-related advantages over alcohol.
Interestingly, cannabis legalization is taking place in states with high wine consumption rates. According to a market analysis, the average, per-capita wine consumption in states with legalized cannabis is 13.4 liters, while the average for states without legal adult-use cannabis is 8.2 liters. Over 30 percent of wine in the U.S. is consumed in states that have legalized adult-use cannabis. Only 22 percent of beer is consumed in states with legal cannabis.
There has also been competition for the resources. In Northern California, large investment groups have started pouring money into the purchase of vineyard properties for planned cannabis use. Mendocino’s historic Fetzer winery property has been already bought for converting the site into a new cannabis processing and distribution center where they plan to host tourists for consumption and education like the wine tasting rooms.
The growth of the cannabis industry will result in competition not only land but also for man power. Both cannabis and wine grape cultivation require hand labour throughout the growing season. This can lead to labour shortages as the industries compete for the same full time and seasonal workforce. In both fields, qualified employees can make decent money during harvest, depending on skills and supply. Cannabis harvest is typically less laborious and potentially more profitable.
Proponents state that the wine and cannabis industries could have a symbiotic share of the tourism industry. Cannabis and wine combo tours have the potential to introduce a new demographic of consumers to each of the industries, and it could even provide greater exposure to smaller wineries who rely heavily on direct to consumer sales to maintain their profitability.
There remains significant uncertainty in identifying exactly how many consumerswill switch from alcohol to cannabis. In fact, it will take many years to fully understand the impacts of legalization and for consumers to change their behaviours and beliefs. Wine industry will have to be vigilant and watch the situation carefully. Wine producers need to re-position themselves for success in a world with legal cannabis.
However, Indian producers do not have to worry about this predicament for decades.
For a couple of earlier related Articles, please visit:
http://www.indianwineacademy.com/blog_128_580.aspx
http://www.indianwineacademy.com/item_1_498.aspx
Subhash Arora