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Pernod: Cannabis will not cannibalise spirits
There is no evidence that the increasing legalisation of cannabis will result in market share loss for premium spirits, the CEO of Pernod Ricard has said.
Alexandre Ricard says he has seen no evidence legal cannabis will steal market share from spirits
Speaking at a roundtable event in London yesterday (30 August), CEO Alexandre Ricard said the group is monitoring the situation, and has been doing so for some time.
However, there is currently no evidence to show that cannabis will cannibalise spirits consumption, Ricard said.
“We have been monitoring the situation for one clear reason: we want to understand if legalisation [of cannabis] may or may not have an impact on consumption of premium spirits,” Ricard explained.
“We do not have evidence of any cannibalisation or market share loss to cannabis.
“It’s too early to have a clear idea. We are looking to have clarity on whether it will impact or maybe not impact premium spirits. So far, the answer is no.”
Johnnie Walker maker Diageo has also said it is “monitoring” the development of cannabis in North America “very closely”, and that so far its legalisation has not negatively impacted its business.
Earlier this week, the drinks giant was rumoured to be in talks with various cannabis producers in Canada, but declined to comment on the reports.
Spiros Malandrakis, industry manager, alcoholic drinks, Euromonitor, told The Spirits Business earlier this year: “Cannabis cannot be stopped. It will not be stopped,” and has previously described cannabis-based beverages as the “biggest disruptor that ever was” to the US drinks market.
Drinks companies are already making moves into the new sector. US drinks group Constellation Brands channelled an extra US$4 billion into Canadian cannabis producer Canopy Growth Corporation, signifying the biggest investment in the cannabis industry to date.
Distributor Southern Glazer’s Wine & Spirits has established Great North Distributors, a wholly owned Canadian subsidiary that will be the exclusive representative for cannabis company Aphria.