Beer sales are down in states that have legalized cannabis, according to a new report from Cowen and Company.
The report found that sales among some of the top beer distributors have declined significantly in Colorado, Oregon and Washington; all states where the licensed distribution of cannabis is legal.
According to Vivien Azer, Cowen and Company’s managing director and senior research analyst, beer markets that have; “collectively underperformed” in the last two years in states where cannabis is legal. Azer says “the magnitude of the underperformance has increased notably” in 2016. Beer volumes have fell more than 2% year-to-date and are trailing the overall U.S. beer market.