Alcohol sales dropped 15% in medically legal cannabis states

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A recent joint study done by researchers in U.S. and South America found that the drop in alcohol consumption directly correlates to the legality of medical cannabis.

The researchers used the Nielsen Retail Scanner to gather alcohol sales from 90 alcohol stores including grocery, convenience, drug and distribution stores from 2006 to 2015. They did it this way to gather solid evidence of alcohol sales as opposed to asking people about their alcohol consumption in a poll, since many would not be absolutely honest about their alcohol consumption habits.

The study then compared alcohol sales in states where medical cannabis is legal versus in states where medical cannabis consumption is still prohibited. The researchers included demographics such as age, race, etc, and economics and income in the study to really understand the audience. Over the span of the 10 years, counties located in medically legal cannabis states showed a 15 percent reduction in alcohol sales monthly.

The research also showed the consumer audience for cannabis and alcohol are very much the same, and cannabis and alcohol are almost substitutes of each other. So, introducing social or medical legal cannabis in states where alcohol is legal might have a negative effect on alcohol sales and cosumption.

While the research was done for medical cannabis, it can be used as an indicator of how alcohol sales and consumption will be effected in socially legal cannabis states. A question yet to be answered remains, however, whether cannabis legalization will replace alcohol altogether.

The study may show a significant decrease in alcohol sales because of cannabis, but Rob McMillan, Silicon Valley Bank Wine Division president, doesn’t believe cannabis will replace wine. If anything, McMillan claims beer sales might be the most affected by cannabis legalization. His reason being: He believes wine compliments a meal and cannabis doesn’t.

And while people may want to consume cannabis after a long day’s of work, many will still want to indulge in wine during their daily dinner.

With cannabis legalization spending like wild fire across the United States, let’s wait and see how alcohol sales – both beer and wine – are affected in the next few years.