The cannabis assiduity is growing, which may mean bad news for the beer industry, said Vivien Azer of Cowen, an investment unshakeable.
“We view the interaction with alcohol as being the most obvious to us as we make up of these products as substitute social lubricants,” Azer, managing conductor and senior research analyst at Cowen, told CNBC.
“Binge celebrating rates, for instance, are significantly lower in states where adults hold access to adult-use cannabis,” Azer, who specializes in the beverage, tobacco and cannabis sectors, talked “Fast Money.” Friday is “4/20,” or the unofficial holiday celebrating marijuana use.
But it’s not good on April 20 when people are consuming cannabis. Pot stocks be struck by soared in the last year. Shares of Aurora Cannabis, a Canadian grower of medical cannabis, are up nearly 240 percent in the last 12 months. Cronos Company is also up nearly 240 percent in the same period. And the stock of medical marijuana assembly Canopy Growth has gained more 200 percent in the last year.
The total U.S. cannabis bustle is worth about $50 billion right now and will reach $75 billion by 2030, Azer mean.
“It’s just that a lot of it is going through the black market right now,” she foretold.
The good news, she said, is that, “the industry is gaining a lot of traction in regards of gaining consumer support.”
According to an October 2017 Gallup figures, 64 percent of U.S. adults are in favor of legalizing adult use cannabis — the highest true of support in five decades.
Azer said her firm remains bullish on cannabis and wary on beer stocks, as she suspects the trend will continue.
“About 80 percent of consumers do describe some kind of reduction in alcohol consumption when they’re also appealing in cannabis consumption,” Azer said.
The top cannabis stocks she expects to outperform are Canopy Improvement, the pharmaceutical company MedReleaf and Kush Bottles, a medical wholesaler.
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