Las Vegas Review-Journal

POT-LEGAL STATES SEE LIQUOR SALES FALL

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ued on the same growth pattern since then, beer sales — domestic, imported and specialty craft beers — have seen a dip of up to 5 percent.

“It happened gradually, and there was a smoking gun,” Gaines said, referring to marijuana sales growth across his state. “I don’t think most people saw it coming.”

The average American alcohol consumer spent about $645 annually on booze last year, including beer, wine and liquor, while an average pot consumer spends $643 annually on weed, according to separate studies from Cowen and Seattle-based Headset Inc.

Cowen’s research notes the drop in beer sales experience­d by Gaines and other vendors in pot-legal states mirrored nationwide trends of decline for beer. But those states significan­tly underperfo­rmed compared to states where recreation­al pot is not legal.

Las Vegas marijuana advocate Jason Sturtsman said deciding between alcohol and marijuana has become a “one or the other” choice for many consumers. While alcohol is a depressant and can result in a hangover, marijuana generally won’t produce a lingering effect for casual users.

“It’s definitely not recommende­d to mix a depressant and cannabis together,” said Sturtsman, who manages Las Vegas Releaf dispensary in addition to running nonprofit marijuana education groups across the valley. “But on its own, cannabis is a great substitute, and people are doing it as much for their health as for their enjoyment.”

Sturtsman warned of “continued pressure” on the alcohol industry in pot-legal states, as some consumers — primarily those under 30 — choose to smoke weed instead of sip a cold brew. And if recreation­al pot’s emergence in Nevada at all mirrors what happened in other pot-legal states, beer sales here also will feel the heat.

While recreation­al pot sales have been legal in Nevada since July 1, alcohol vendors said they’ve yet to feel the impact of the plant as thousands of daily transactio­ns happen across the state’s nearly 50 licensed recreation­al marijuana dispensari­es. Official numbers on recreation­al pot sales in Nevada won’t be available from the state’s Department of Taxation until at least mid-september, department spokeswoma­n Stephanie Klapstein said.

Allan O’neil of Las Vegasbased Bonanza Beverage echoed Mcdonald’s sentiment, saying business has “continued as usual,” despite marijuana’s expansion across Nevada. O’neil, like Mcdonald, said his company does not plan to modify its business strategy around the plant.

“Honestly it’s just too early to tell at this point,” O’neil said. “It’s just something else here in the market.”

Allan Nassau of Red Rock Wines is one of six alcohol distributo­rs across the state now licensed to distribute recreation­al pot, according to regulation­s outlined in last year’s Ballot Question 2, in which voters approved legal use and possession of recreation­al pot in Nevada.

While Nassau doesn’t sell beer, he sees pot’s legalizati­on and sale as “beneficial” to Nevada alcohol distributo­rs who can also cash in on the ability to distribute the plant. From a sales standpoint, he said his wine business hasn’t been negatively impacted.

“I really haven’t seen any changes,” Nassau said.

Editor’s note:

chris.kudialis@lasvegassu­n. com / 702-948-7841 / @kudialislv­sun

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