Mar­i­juana to take less than 1 per cent out of multi­bil­lion dol­lar booze sales: study

Cape Breton Post - - Business -

MON­TREAL — The recre­ational mar­i­juana in­dus­try is ex­pected to take a sip of less than one per cent ini­tially out of an­nual Cana­dian al­co­hol sales once it be­comes le­gal, a new anal­y­sis says.

The An­der­son Eco­nomic Group, a busi­ness con­sult­ing firm in New York, says le­gal­iza­tion of mar­i­juana would sap $160 mil­lion out of the coun­try’s $22.1 bil­lion booze sec­tor, ris­ing as use of the drug ex­pands.

While there are nu­mer­ous un­knowns gov­ern­ing the sale of mar­i­juana, the An­der­son Eco­nomic Group based its pro­jec­tions on al­co­hol sales in U.S. states that have le­gal­ized the drug. It also took into ac­count a host of fac­tors in Canada in­clud­ing spend­ing pat­terns, in­come and de­mo­graph­ics. The beer mar­ket, which is worth about $9.2 bil­lion, is an­tic­i­pated to take a $70 mil­lion hit from in the first year of mar­i­juana le­gal­iza­tion, the An­der­son Eco­nomic Group says.

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