What really struck me in this week’s
class was Tracy’s response to questions about the marijuana
industry, particularly about the wine industry’s
view of the marijuana industry as direct competition. While I fundamentally disagree
with the notion that cannabis is a substitute for wine (I simply don’t see people picking up a joint instead of a glass of pinot
noir), I can understand wine producers looking at the immense buzz surrounding
marijuana as a potential threat to their current business.
What I was not expecting was her
comment about wine being a “traditional” industry with old school values, old school values that lead
wine entrepreneurs to take actions that make it difficult for cannabis groups to
enter the industry. I consider this outlook exceptionally hypocritical and a
classic example of the once young upstart becoming the old guard. Less
than 100 years ago weren’t liquor producers seen as deviants
and criminals? Isn’t this exactly how established
wine companies are now looking down at marijuana producers?
If I was in the California wine
industry in the production or distribution domain I would lean into the
marijuana industry, partner with marijuana producers and attempt to leverage my
massive facilities and existing infrastructures to double down on what I see as
not a substitute but rather complimentary product. Instead of attempting to keep marijuana out of
the old boys’ club I would instead embrace this product
and the many options for brand and product integration and ultimately create
alliances within the growth industry.
I absolutely agree with your final point about marijuana as a complementary industry to wine, especially when viewed through the lens of tourism. I think there is a huge opportunity to create experiences, based on beautiful agricultural landscapes and learning about quality product and sampling, that tie these two industries closely together. An interesting analog to this is the craft brewery scene. Anecdotally, regions with a concentration of craft breweries, such as Denver, San Diego, and Petaluma, are looking to become top names in cannabis experiences as well to further brand and differentiate themselves as hubs of quality substance production and experience. I recognize that the brand association of craft beer is quite different from wine, but especially among their millennial customer segments, there is a ton of overlap. Why then, are wineries taking such an opposite stance? Isn't there room for wines and wineries today that defy the "traditional" characterization?
ReplyDeleteIt seems to me to be a short-sighted stance to be overly worried about defending the "traditional" brand association and values of the wine industry. While this feels highly relevant today, based on trends in analogous industries (like spirits and wine) wouldn't one predict that the stigma of the cannabis industry will be a short-term phenomenon? I would. At least among the populations that "matter" for these industries (i.e. younger, coastal, urban, etc.)...
I agree with both of you guys as well - it seems naive of the wine industry to try to act morally superior to the marijuana industry and disassociate with them. However, along with the argument that they may feel threatened as a substitute (even though I would also view it as complementary), another reason they may be disassociating themselves is the vague legal path from here. Clearly there are legal issues that are somewhat fragile with the wine industry today - not on the consumption side but the other areas in which Tracy (and Jordan and Professor Rapp) outlined for us on Thursday. Maybe they want to "suck up" to the higher legal powers who are anti-marijuana and try to stay as far away from possible as to not deal with further regulation issues? Especially as the Wine Institute continues to push forward an agenda of increasing interest in U.S. wine abroad. Why get involved with such a potentially messy issue when you need regulators on your side for both state-to-state regulation export regulation? When I try to put myself in their shoes it seems like that may be more of the "real" reason they are taking such a hard stance as anti-marijuana.
ReplyDeleteLannie, Kelsey, and Jake – you all raise really interesting points.
ReplyDeleteOne additional reason that wineries may be less open to cannabis is that it is illegal to sell wine and cannabis in the same place in California (http://cannabusinesslaw.com/2017/02/mixing-alcohol-and-cannabis/), meaning vineyards couldn't include marijuana in their experiences. In general, this could make those in the wine industry view the purchases as more of a tradeoff.
Relatedly, it was reported last year that the beer industry could lose up to $2 billion to the marijuana industry (I'd expect impact on the wine could be similar, which would feed fears). Interestingly, Constellation Brands (which owns Corona, Modelo, Svedka), took the opposite approach that we've heard about with the wine industry and bought a ~10% stake in a Canadian marijuana company (http://www.esquire.com/food-drink/drinks/a13132921/constellation-invests-in-cannabis-company/).
I was also intrigued by the conversation in class of the outlawing of cannibus-infused wine and alcohol, and was researching this a bit on the internet. I found one winery in Sonoma – Rebel Coast Winery – which is producing an alcohol-free, marijuana-infused Sauvignon Blanc (more info here: https://newatlas.com/marijuana-wine-thc-california/52715/). I'll be interested to see how they do, and how the alcohol and wine industries interact and compete in the coming years.
I also saw the alcohol-free marijuana-infused wine. It isn't available yet, but when it is it will be interesting to see how much like wine it tastes. Like some of you, I dislike the hypocritical nature of the old guard putting on regulations that they would have fought against in their infancy. Such is the name of the game and many of us may be in a similar situation if we have the opportunity to put up barriers to entry to our industries. Hopefully we will take the high road though (pun intended).
ReplyDeleteAn interesting thing about not allowing marijuana and alcohol in the same product is now they will have a more adversarial relationship. The Rebel Wine specifically markets itself as a "no hangover" wine. Before marijuana legalization, non-alcoholic beverages only gave you calories. Now with the ability to have marijuana in it you can get the taste of alcohol and an altered state (though obviously a different experience) without the hangover of wine. While I like wine, even more so as I learn more through this class, I wouldn't mind if non-alcohol wine takes some market share from wine since they are being, in my opinion, unfairly attacked. It'll be interesting to see how it shakes out.