Data Dive: Does Legalization Hurt Beer Sales?

Politics The latest in cannabis legalization including laws and policies legislators views election coverage and more. Politics Data Dive: Does Legalization Hurt Beer Sales? Gage Peake Some segments of the alcohol industry fear the coming of cannabis legalizationand theyre expressing that anxietywith big donations to defeat ballot measures this November. In Massachusetts the Beer Distributors of Massachusetts PAC a political action committee representing 16 of the states beer distributors has donated $25000 in the fight against legalization. Earlier this month the Wine amp; Spirit Wholesalers of Massachusetts donated $50000 to fight Question 4 the states adult use proposal. In Arizona the Arizona Wine and Spirits Wholesale Association has given $10000 to a group opposing Prop. 205 legalization in that state. Whats the fear? Loss of market share to cannabis apparently. RELATED STORY Arizonas Weird Winding Journey Toward Legalization In an SEC filing last Februarythe Boston Beer Company maker of Samuel Adams noted that certain states are considering or have passed laws and regulations that allow the sale and distribution of marijuana. It is possible that legal marijuana usage could adversely impact the demand for the companys product. Daniel Rees an economics professor at the University of Colorado Denver predicted three years agothat the legalization of cannabis would drive consumers to choose marijuana over beer. But has cannabis legalization actually affected beer sales? Not according to the data. We dug into beer sales and state alcohol tax figures in Colorado and Washington the states with the longest record of adult-use cannabis sales. (Alcohol tax rates have remained the same over that period so alcohol tax revenue is a goodindicator of sales trends.) The result? Alcohol sales tax revenue has grown steadily over the past several years before and after cannabis became legal for adult use. Heres what it looks like in a single image: Tax Revenue From Cannabis Beer and Wine in Washington State As cannabis sales skyrocketed in Washington beer and wine sales were unaffected. In Washington State tax revenue from beer wine and hard alcohol sales has increased steadily over the past three years. Beer tax revenue went from $29.9 million in 2014 to $30.7 million in 2015 and has increased to $31.4 million so far in 2016. In Colorado alcohol sales tax revenue has grown steadily since 2011. In the two years prior to cannabis legalization tax revenue increased at a steady rate from $38.9millionto $40.1 million. Then in 2014 the states total net tax receipts for all forms of alcohol grew to $40.9 million. In 2015 net alcohol revenue increased to $41.8 million. In Oregon the data is limited. But it too shows a steady gain in beer production and sales. Adult-use cannabis went on sale in Oregon in October 2015. During June 2015 Oregon brewers produced and sold 54272 barrels of beer. Nearly one year later in June 2016 the number of barrels sold increased to 62800. Thats market growthof 15 percent. Mostindustries would call that a banner year. In Oregon beer production and sales increased 15 after legalization. So alcohol salesand specifically beer saleshave continued to steadily increase in states that have legalized the adult use of cannabis. In fact that increase in alcohol sales in adult-use states bucks the nationaltrend for alcohol with salesflat to slightlydown. According to tax revenue data from the U.S. Treasury Departments Alcohol and Tobacco Tax and Trade Bureau alcohol sales brought in $10.1 billion in tax revenue nationwide in 2012. That figure dipped to $10.0 billion in 2013 rose to $10.4 billion in 2014 and held steady in 2015. Revenue from beer sales fluctuated nationally too. In 2012 beer sales brought in $3.7 billion in tax revenue nationwide. In 2013 that figure dipped to $3.5 billion. In 2014 it rose to $3.7 billion and last year it fell again to $3.6 billion. Nationwide: Beer and total alcohol sales tax revenue National trends: Beer sales are off slightly while total alcohol sales maintain. The upshot: Alcohol sales have increased slightly nationwide over the past four years. Beer sales are down slightly. In states that have legalized adult-use cannabis alcohol salesand beer sales in particularhave grown steadily. So while the brewers of Sam Adams worry that legal marijuana usage could adversely impact the demand for Boston Lager the data tell a different story. 2016 Electionalcohollegalizationpolitics Gage Peake Gage Peake is a staff writer who specializes in breaking news coverage politics and sports. Related Articles Oakland Rolls Out Drug War Reparations Dr. Bronners to Give $660000 to Cannabis Legalization Efforts in Five States U.S. Attorney General Says Cannabis Is Not a Gateway Drug More Related Stories Politics Arizona School Officials Endorse Prop. 205 Politics What's the Deal with Florida's quot;Dispensariesquot;? Politics State of the Leaf: Colorado Warms to MMJ for PTSD The post Data Dive: Does Legalization Hurt Beer Sales? appeared first on Leafly. by Gage Peake at Leafly