Browsing by Author "Agbovadan, Christopher"
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- The disruptive force of cannabis : impacts of recreational cannabis on the alcohol industryPublication . Agbovadan, Christopher; Rajsingh, PeterShifts in global cannabis legislation are having unprecedented effects on multiple industries. Cannabis is increasingly gaining traction in the consumer goods domain and carving out a place in the alcohol drinks industry. The latter is experiencing a secular decline while facing the game-changing trends of a more health-conscious consumer and the proliferating cannabis legalization. As cannabis and alcohol compete within the same need dimensions, the alcoholic drinks industry has valid reasons to be concerned about the potentially significant impact of recreational cannabis legalization. This dissertation explores how consumer preferences concerning alcoholic beverages and recreational cannabis are changing, and what strategies incumbent companies are adopting to respond to the disruptive phenomenon that cannabis represents. Academic literature about the impact of recreational cannabis legalization on the alcohol industry in a business context is marginally informative. This work aims to contribute to knowledge about business, cultural, social, and medicinal contexts complemented with theoretical knowledge. The approach relies on mixed exploratory research based on secondary and primary data using qualitative and quantitative data collection. Findings show that cannabis provides a massive opportunity and can potentially change the alcoholic drinks industry sustainably. Alcoholic drinks companies sense a multi-billion dollar opportunity and are getting involved in the cannabis through investments, M&A activities, and partnerships and joint ventures. Cannabis-infused beverages are likely to represent a new product category that co-exists alongside alcoholic drinks.