A major beer company now considers legal cannabis as a threat to future business.
Molson Coors Brewing Company labeled the spread of marijuana legalization as a “risk factor” its annual financial report filed with the Securities and Exchange Commission on Wednesday, reports Fortune.
“Although the ultimate impact is currently unknown, the emergence of legal cannabis in certain U.S. states and Canada may result in a shift of discretionary income away from our products or a change in consumer preferences away from beer,” the filing reads. “As a result, a shift in consumer preferences away from our products or beer or a decline in the consumption of our products could result in a material adverse effect on our business and financial results.”
Consumer groups predicted in 2017 that further legalization could cost the alcohol industry billions in total sales, while recent research found a decline in alcohol sales in states with legal marijuana laws in place.
Cannnabis law reform was one of 40 risks listed by the company, which also includes climate change and loss of personnel.
Colin Wheeler, a…