“THC infused beverages are a threat to alcohol” says Berenberg Bank alcohol beverage analyst Matt Reid.

Bill Griffin, 01 October, 2018

Berenberg Bank or simply Berenberg, is a Hamburg-based multinational full-service investment bank. It was founded by the Berenberg family in 1590 and is the world’s oldest bank. They are paying very close attention to cannabis and the threat it poses to traditional alcohol sales.

Matt was presenting at the first Cannabis Capital Convention held in Amsterdam yesterday. CCC’s Michael Kraland caught up with Matt and veteran of many industries Pierre de Labouchère to discuss just why alcohol companies are moving into alcohol.

“So far, cannabis has been available in dried flower form. We see this as a short term disruptor to alcohol because it is not perfectly substitutional,” explains Matt, “The method and occasion for consumption is very different.”

Regarding THC beverages Matt says, “If you can create a product that has a similar dosing to alcohol, with a similar consumption moment and recreate the drug onset and the length of recreational high (or euphoria) felt by users. That is potentially a killer product. So that is why we believe eventually there will be a cannibalisation to alcohol volumes by THC infused beverages across the industry and that is why we believe the beverage players are looking with great interest. And are looking to get into this industry at the early stages.”

“The economics favour the alcohol industries over and above the new cannabis entrants in terms of dominating this space as it develops.”

In the brief interview they also touch on CBD infused “soft drink” beverages. See the interview below.