Alcohol Sales Take a Hit — And Weed Might Be to Blame
Legal marijuana is rapidly becoming a cultural and commercial force — and the alcohol industry is starting to feel it.
In a recent earnings call, Lawson Whiting, CEO of Brown-Forman Corporation — the company behind Jack Daniel’s, Woodford Reserve, and other well-known spirits — pointed to a concerning 5% decline in net sales. While reduced consumer spending due to inflation and economic uncertainty plays a role, Whiting emphasized that a trio of long-term lifestyle shifts is reshaping the market: generational preferences, the rise of new weight-loss medications, and notably, cannabis.
“We’ve been saying that for a year and a half now,” Whiting said. “We’d be naive if we didn’t say that there isn’t some pressure coming from [cannabis].”
Cannabis: The New Go-To for Relaxation?
Brown-Forman’s observations echo a broader trend: more consumers — particularly younger adults — are choosing cannabis over alcohol for relaxation, socializing, and even wellness.
Surveys and market data show a growing number of people using marijuana as a substitute for beer, wine, and spirits. This shift is most visible in regions where cannabis is legal, reflecting a cultural change in how Americans view substances for recreation or relief.
Bloomberg Intelligence analysts have flagged this as a “significant threat” to alcohol sales, with long-term implications for industry growth.
A U.S.-Centric Shift — For Now
Interestingly, Whiting noted that this cannabis-driven disruption is largely confined to the United States. In Europe, where marijuana remains illegal or heavily restricted in most countries, alcohol consumption trends have remained more stable — though generational changes and health-conscious choices are also visible there.
Still, the CEO believes this U.S. trend is worth watching globally. As legalization expands, so might the ripple effects on how — and what — people choose to drink or smoke.
Business Risks and Market Uncertainty
In its official press release, Brown-Forman listed “changes in consumer preferences, consumption, or purchase patterns” as a major risk to its long-term business strategy. Among these, the continued legalization of cannabis was named directly, alongside economic volatility and health trends.
While the company did not offer a forecast for a full recovery, it pledged to respond with “agility and innovation” in the face of these headwinds.
“We are confident that… we are well positioned to navigate uncertainty and unlock new opportunities for sustainable long-term growth,” Whiting said.
Related: Cannabis Is Changing the Rules of the Market
The shift Whiting describes is just one part of a much broader transformation in how cannabis is reshaping markets. Learn more about the financial hurdles faced by cannabis entrepreneurs in our feature on Cannabis Financing Challenges, or explore how consumption patterns vary by gender in our deep-dive on Gender Differences in Marijuana Use in 2025. For a forward-looking perspective, read about the projected boom in our Medical Cannabis Market Forecast to 2030.
FAQ — Cannabis vs. Alcohol: What You Need to Know
Q1: Is marijuana really replacing alcohol for most users?
While it’s not a total replacement, survey data show many consumers — especially in younger age groups — are choosing cannabis over alcohol, particularly for relaxation or social events.
Q2: Why are alcohol companies worried about legalization?
Legal marijuana creates a new category of competition. As more people turn to cannabis, alcohol sales can decline, directly impacting profit margins for major beverage brands.
Q3: Are cannabis trends affecting alcohol sales outside the U.S.?
Not significantly — yet. In regions like Europe, where marijuana remains illegal or highly restricted, alcohol sales have remained more stable. But global trends may shift as more countries consider legalization.
Q4: What are alcohol companies doing to adapt?
Many are diversifying their product lines, investing in non-alcoholic beverages, or exploring cannabis partnerships where legal. Others are focusing on premium branding to retain loyal consumers.
