Consider the immediate sales drop at alcohol-only stores—this could suggest some consumers switched from alcohol to cannabis right after legalization.
By Michael J. Armstrong, Brock University via The Conversation
Before Canada legalized recreational cannabis in October 2018, it was unclear how the change might affect beverage alcohol consumption. Would consumers drink less or more after cannabis became legal?
Drinking might decrease, for example, if people used cannabis in place of alcohol. That switch potentially could reduce alcohol-related harms. But economically, it would mean any gains in the cannabis industry would likely come at the expense of alcohol producers.
Conversely, drinking might increase if people used alcohol along with cannabis. That could boost alcohol industry profits and government tax revenues, but at the cost of increased health risks of both substances.
In response to this uncertainty, some businesses diversified. One alcohol producer bought a cannabis grower, while a cannabis firm took took over several beer brewers.
Research from the United States into the relationship between alcohol and cannabis use is inconclusive. Some studies report that alcohol use decreased in states that allowed cannabis, while others said usage increased or didn’t significantly change. Those conflicting conclusions might reflect the complex legal situation
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