Legal weed could hurt sale of cheaper beer brands - Cowen

East Side Games

04/04/2018 12:42

** Cowen says more access to cannabis could put pressure on
alcohol sales, particularly low-end beer brands
    ** Cannabis industry could generate $75 bln in sales by 2030
if legalized by federal goverment
    ** Adult use and medical use cannabis states have fewer
binge drinking sessions per month and lower levels of binge
intensity - Cowen analyst Vivien Azer
    ** Instances of binge drinking in states that allow adults
to use cannabis see 13 pct fewer times compared with
non-cannabis states - Azer
    ** Azer remains "outperform" rated on Kush Bottles Inc
 KSHB.PK , Canopy Growth Corp  WEED.TO , and MedReleaf Corp
 LEAF.TO 
    ** Says lower-end beer most exposed to risk of substitution
with cannabis, remains cautious on "market perform" rated Molson
Coors Brewing Co  TAP.N 
    ** In a separate note, Azer raises Boston Beer Company
 SAM.N  to "market perform"  on strong Nielsen data in the
non-beer category, says beer trends remains sluggish, while
non-beer trends look surprisingly strong
    ** Azer's top pick is Constellation Brands Inc  STZ.N  as
its alcohol portfolio is the most defensible from cannabis
substitution
    ** "we believe that cannabis has, and will continue to have,
a negative impact on alcohol consumption" - Azer

 (Reporting by Jasmine I S in Bengaluru)
 ((jasmine.is.thomsonreuters.com@reuters.net))