Is Marijuana Legalization in Northeast Affecting Alcohol Distributors?

Marijuana legalization in the Northeast has affected alcohol distributors to a big extent. The big players in the alcohol business are pushing on marijuana legalization initiative for obvious reasons.

Massachusetts is amongst the five states that are not working to conduct a poll for legalizing recreation marijuana. On the other hand, the alcohol industry is pushing against it because it means losses for them. Amongst the anti-legalization group, The Intercept’s Lee Fang, which contains 16 of the state’s beer distributors have proposed against its legalization.

Moreover, Boston Beer Company is also very worried about the potentials of cannabis legalization. There are certain states that are considering or have passed the laws that encircle regulation of sale and distribution in marijuana. The main reason why marijuana usage could affect you is that it could adversely affect the demand for the company’s products and that too to a huge extent.

The beer world and beer people are all concerned about weed legalization. However, there is a big difference between the former group and the latter distributors of beer. Both the distributors and brewers are quite worried about the negative sales impacts of the beer. Moreover, it is also quite surprising to see the distribution side of the beer industry and how they have negatively reacted to beer. Marijuana has been legalized in other states and beer and alcohol distributor is part of the conversation regarding marijuana legalization.

The logic behind this is simple: After marijuana is legalized, the state government will continue to regulate marijuana industry in a similar fashion to the beer and alcohol industry. The distributors are now acting as a middle man between the brewers and wholesalers. Moreover, they have all the tracks, routes and employees in the process as well.

What is even more bizarre is that beer and alcohol sales are up alongside the legalization of marijuana. This is true for Colorado. The tax records are indicative of the fact that alcohol sales have continued to rise in Colorado even though recreational marijuana has been legalized. The government has benefitted from the legalization of marijuana because the tax revenues that have come from marijuana have tripled between the time periods of June 2014 to May 2015. Alcohol sales are on the rise and they will continue to rise even though the excise tax is 2.1 percent.

The concerns between alcohol and beer groups and marijuana legalization are a tricky subject. There are many concerns encircling the beer groups and alcohol groups in Massachusetts due to financial pushback. Moreover, it is also not clear as to how these push backs are based on logic.

It is also not very clear as to whether the recreational marijuana initiative will pass in Massachusetts or not but we feel that doing so will have an adverse impact on sales. Moreover, the latest poll also suggests that 41 percent of the people are in favor of it and 9 percent are still unsure about recreational marijuana legalization.


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