- The cannabis industry is at a critical moment of expansion and legitimisation, with projections indicating the global market could exceed $100 billion by 2030.
- In this landscape of exponential growth, big alcohol corporations have quietly entered the scene with clear intentions to dominate the market.
- This phenomenon represents one of the most glaring ironies in the recent history of drug policy: the same entities that spent decades funding campaigns against cannabis legalisation are now positioning themselves as their primary distributors.
For over half a century, the alcohol industry has been one of the leading opponents of cannabis legalisation. This opposition was neither accidental nor disinterested: it stemmed from the perception of cannabis as a direct threat to their profits. While millions of people in the U.S. (primarily from Black and Latino communities) were incarcerated for marijuana possession, alcohol lobbyists funded political campaigns and biased studies that reinforced the stigma against this plant.
The war on drugs, fervently supported by the alcohol industry, has left a devastating legacy of lives destroyed by mass incarceration, separated families, and entire criminalised communities - all while alcoholic beverages, with their well-documented risks to public health, continued to be freely marketed under comparatively lax regulations.
The Strategic Shift: From Prohibition to Monopolisation
But now there has been a change in position, not because of a sudden ethical awakening but because of a cold commercial calculation. As cannabis legalisation advances relentlessly (with over 70% of Americans supporting this change, according to 2024 Gallup polls), the alcohol industry has realised it's better to join this green revolution than to keep fighting it.
On 3 April 2025, the American Beverage Licensees (ABL - the leading association representing bar, tavern, and liquor store owners in the U.S.) published a policy memo on state regulation of intoxicating products containing THC. This document, presented under the guise of a concern for public safety, revealed their true intention: to ensure THC products can only be sold in establishments licensed to sell alcohol.
The group argues that alcohol retailers, with their extensive record of compliance, are better positioned to handle these products due to their history in preventing underage sales. This argument conveniently ignores the existence of cannabis dispensaries that operate successfully in legalised states, complying with strict protocols for age verification and consumer education. More importantly, this centralisation would stifle small entrepreneurs and independent dispensaries that have been pioneers in the legal cannabis industry.
The memo also proposes regulating cannabis similarly to alcohol, with licensing requirements, clear labelling standards, advertising restrictions, and lab testing to ensure safety and purity. This proposal has sparked strong backlash from the cannabis industry, which describes the memo as a "hostile cannabis takeover plan", accusing the ABL of hypocrisy in seeking to control a market it once helped keep illegal.
Alcohol causes approximately 95,000 deaths annually in the U.S., while cannabis has no recorded history of direct fatalities, according to public health data. Additionally, a Bloomberg Intelligence report projects cannabis sales will reach $37 billion by 2027, posing a significant threat to wine, beer, and liquor sales, which could decline indefinitely.
The ABL's proposal also raises concerns about anti-competitive practices. By restricting THC sales to alcohol retailers, small entrepreneurs and new market entrants could be excluded, particularly those from communities affected by the ban. This contrasts with social equity efforts in the cannabis industry, which aim to provide licenses and opportunities to individuals with non-violent cannabis-related offences.
The Fallacy of "Specialised Expertise"
The alcohol industry's sudden interest in cannabis has a simple explanation: economic survival. Data shows that in markets where cannabis has been legalised, alcohol consumption tends to decline, especially among young adults. Faced with this reality, alcohol corporations have adopted a strategy of "if you can't beat your enemy, join them (or simply control them)". By restricting cannabis sales to alcohol licensees, they are essentially trying to capture the very market that threatens their profits - it's as if taxi companies demanded exclusive rights to operate Uber.
Constellation Brands, one of the world's largest alcohol producers, is a prime example of this trend. The company has invested heavily in Canopy Growth, one of Canada's biggest cannabis producers. Even Coca-Cola has explored entering the market with CBD-infused beverages. These investments are not philanthropic but calculated bets to avoid missing out on a lucrative emerging market.
Cannabis-infused beverages represent one of the fastest-growing segments. While alcohol is absorbed into the bloodstream and metabolised quickly, the psychoactive components of cannabis are digested differently, producing delayed but potentially more intense effects. This key difference has sparked a technological race to develop cannabis drinks with effects as predictable and controllable as those of alcohol.
Moreover, the economic power and lobbying expertise of the alcohol industry could translate into regulations that prioritise their interests over public health, social equity, and environmental sustainability.
Emerging Trends and the Future of Cannabis
Despite these monopolisation attempts, the cannabis sector shows signs of resilience and independent evolution. By 2025, significant advancements are expected in several areas, including the growing demand for edibles, which reflects a trend towards more discreet and healthier consumption methods. This evolution could create opportunities for cannabis-specialised companies to develop innovative alternatives beyond the alcohol beverage model.
The DEA also surprised the world in April 2024 by announcing its intent to reconsider the classification of cannabis as a Schedule 1 substance. This reclassification could pave the way for federal health programmes, cross-border trade, and greater access to financial services for cannabis businesses, potentially reducing their reliance on big investors like alcohol corporations.
Vigilance and Resistance
The alcohol industry's attempt to dominate the legal cannabis market is an alarming example of corporate opportunism: the same industry that actively contributed to the criminalisation of cannabis and its consumers now seeks to position itself as its primary economic beneficiary.
In the face of this reality, consumers, activists, and lawmakers committed to a fair and equitable cannabis industry must remain vigilant. THC product regulations should prioritise public health, social justice, and economic opportunities for communities historically harmed by prohibition - not the interests of corporations that now see cannabis as just another business opportunity after decades of opposition.
The future of legal cannabis should reflect the values of the community that has fought for its legitimisation, not become a mere appendage of the alcohol industry. Corporate hypocrisy should not be rewarded with exclusive rights over a market whose transformative potential goes far beyond mere profits.
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