BDSA reports global cannabis sales will grow 10% in 2022

BDSA, Louisville, Colo., announced an update of its cannabis market forecast, a five-year rolling global forecast by country, state, province, channel and category. The report projects annual global cannabis sales to grow from $30 billion in 2021 to $57 billion in 2026, a compound annual growth rate (CAGR) of almost 13%. In the United States, cannabis sales will grow from $25 billion in 2021 to $42 billion in 2026, which will make up 75% of total global cannabis sales.

Despite an inflationary environment and concerns about recession that dampened consumer spending, legal cannabis sales in the United States will reach $27 billion by the end of 2022, a jump of 7% over 2021 sales of $25 billion.

“The ‘hockey stick’ trend of sales growth seen in the early years of legal cannabis has passed, and economic and regulatory headwinds are exerting pressure on legal cannabis markets,” said Roy Bingham CEO of BDSA, in a statement. “Still, our updated forecast predicts that steady gains in developing U.S. markets will continue to drive single-digit annual growth in total U.S. legal sales in 2022, with continued growth prospects out to 2026.”

Although sales have plateaued and even fallen in some of the most mature markets such as California, Colorado, Washington and Oregon, driven by declines in retail prices and a challenging macroeconomic situation, newer markets continue to see brisk sales growth. An example of this is the Illinois market, which is expected to bring in approximately $2 billion in total sales in 2022, a 14% increase over 2021 sales.

New markets will be the significant sales driver until 2026, as the number of non-legal states is rapidly dwindling. So far in 2022, New Jersey has launched adult-use sales, with New York expected to follow suit later this year. The launch of these two markets represents an expansion of legal cannabis access to approximately 22 million adults, who are forecast to contribute roughly $5 billion to the $42 billion legal sales total in 2026. BI

ANGEL’S ENVY, Louisville, Ky., announced that Owen Martin will join the company as Master Distiller. Beginning Oct. 17, Martin will lead all aspects of production and oversee innovation for ANGEL'S ENVY, including its annual Cask Strength program and limited release Cellar Collection and Founder's Collection programs. Martin is the first appointed Master Distiller of ANGEL'S ENVY since co-founder and Master Distiller Lincoln Henderson’s passing in 2013, the company says.

New York-based Loverboy announced the start of a chain wide expansion at Total Wine & More stores, marking the brand’s first national deal with a brick-and-mortar retailer for its entire product portfolio. While Loverboy’s sparkling hard teas were already available in Total Wine & More stores, now consumers will also start to see Loverboy spritzes and canned cocktails on shelves at select Total Wine & More stores, it notes.

Southern Glazer’s 2022 Liquid Insights Tour identifies top trends  

Southern Glazer’s Wine & Spirits, Dallas and Miami, unveiled the results of its 2022 Liquid Insights Tour, a coast-to-coast educational initiative designed to explore and identify the latest trends in cocktails and wine. The Liquid Insights Tour kicked off in Houston in February, and included stops in Kansas City, New York, Las Vegas, Chicago and Los Angeles.

Over the course of 111 days, Brian Masilionis, director of on-premise commercial strategy and national accounts for Southern Glazer’s, led a team of its mixologists to sample more than 400 drinks in 83 restaurants, bars and hotels, compiling their insights to discover emerging cocktail and wine trends across the United States.

Analyzing industry data and gathering insights within the beverage industry has long been a practice of Southern Glazer’s, where it is used for internal education and training of the company’s sales force and its accounts. Through the Liquid Insights Tour, Southern Glazer’s now is sharing its findings more broadly to help a hospitality industry still reeling from the effects of the pandemic, and to excite consumers about wine and cocktail innovation being driven by a new generation of diverse bartenders, sommeliers and beverage professionals.  

“Our driving purpose for conducting the Liquid Insights Tour was to uncover innovative beverage trends and experiences across the country to ensure Southern Glazer’s continues to have the most knowledgeable sales consultants in the industry,” Masilionis stated. “Throughout the tour, we evaluated the complete on-premise experience by examining product offerings, pricing, promotional approach, people, service and process.”

Top 10 Trends Revealed

Analysis of the findings of the Liquid Insights Tour revealed that top trends fell into three distinct categories: cocktail trends, wine trends and presentation/execution trends.

Top cocktail insights:

• Uncommon Combinations: Bartenders were mixing spirits not commonly used together to create new and interesting cocktail flavor profiles such as Scotch and corn liqueur, rum and cognac, and gin and mezcal.
• Beyond Basic Balancers: The team found many cocktails that were made using an innovative variety of methods or modifiers to balance the drink or add layers of flavor.
• Caffeinated Comeback: Around the country, mixologists are giving new life into the Espresso Martini, incorporating a variety of creative ingredients such as amaro and coffee liqueurs or brandy with espresso or cold brew.
• Sophisticated and Spirit-Free: Non-alcohol offerings at the country’s top bars, restaurants and hotels now are just as elevated, delicious and pricey as their alcoholic counterparts, featuring similar ingredients, flavors and presentations just without alcohol.

Top wine insights:

• Bubbly Is Popping: Throughout the tour, more sparkling options were available by-the-glass and had a more prominent presence on top wine lists.
• Wines Chill Out: Chilled selections of red and sweet wines appeared on menus across the United States. Orange wines also appeared more frequently than ever before, often presented on menus in a combined rosé and orange section.  
• Tempting Trial With By-The-Glass & Premium Half-Bottles: Curated by-the-glass (BTG) options are becoming more diverse and more balanced between domestic and international offerings than in the past.

Top execution and presentation insights:

• Batching for Speed and Service: Top bartenders continue to innovate around batching their cocktails, including both partial (batching only non-perishable items) and full batching, driven by the need for speed and to improve quality and consistency in cocktail preparation, which allows for more time to connect with guests.
• Entertaining Experience Enhancements: Adding “flair” to the cocktail experience with the use of vapors, “air,” smoke or torch; the use of unique glassware; or the return of communal drinks to be shared; all are creating memorable moments for consumers.
• Meaningful Menu Innovations: Restaurants and bars are evolving their menus beyond being a functional tool to improve the consumer experience. The team saw great storytelling, unique categorizations and humorous names paired with detailed drink descriptions. QR codes, which rose in popularity due to COVID-19, now are being used to deliver broader offerings and information ― from curated, account-specific Spotify playlists to ever-changing allocated spirit offerings, all of which can be updated easily without needing to reprint menus. BI

Acclaimed professional football player Budda Baker, safety for the Arizona Cardinals, has become a shareholder in LIFEAID Beverage Co., Santa Cruz, Calif., investing a significant but undisclosed amount related to the FITAID Energy launch. The investment was confirmed by FITAID Energy co-founders and formulators Orion Melehan and Aaron Hinde, who run LIFEAID. “My investment is a no brainer,” Baker stated. “Nutrition is a huge part of my training and performance on and off the field. FITAID Energy brings the benefits of functional beverages to the energy drinks category, without any of the negatives.” Baker was advised on the deal by his business manager, k, and attorney, Yediel Kadosh.

Dancing Goat Distillery, Cambridge, Wis., announced that the long-awaited expansion is complete and the grounds are now ready for guests to visit. The project included the construction of its first open-air rickhouse in 2021, which currently houses more than 6,000 barrels. The expansion concluded in July of this year, doubling the distillery footprint from 17,000 square feet to a 34,000 square feet. Thanks to the new square footage, new Vendome 18-inch continuous column, and three 6,000 gallon open top fermenters feeding the still, whiskey production capacity has quadrupled. The revamped grounds also boast a spirits vault and gin academy, offering visitors an exclusive distillery experience.

Los Angeles-based G.O.A.T. Fuel, the health-forward energy drink from Pro Football Hall of Famer and NFL G.O.A.T. Jerry Rice, announced expansion into Publix locations across South Florida. The distribution expansion is the latest news to come from the first Black-owned energy drink available nationwide and signifies continued growth for the beverage company, it notes. The chain will retail four flavors — Blueberry Lemonade, Tropical Berry, Peach Pineapple and Pink Candy ― in single-serve 12-ounce cans. The expansion sees G.O.A.T. Fuel now available in almost 600 Publix stores across Florida, including 60 stores in Miami. Earlier this year, G.O.A.T. Fuel announced expansion into Target stores across Florida, California, Texas and Mississippi.