Should The Liquor Industry Be Worried About Legal Cannabis?

By: Luke Jacobi

Marijuana legalization may already be putting pressure on alcohol companies.

The maker of Jack Daniels, Brown-Forman (NYSE: BF-A) (NYSE:BF-B), released its annual report on Thursday, which included a laundry list of risks -- among them, recreational marijuana.

"Consumer preferences and purchases may shift due to a host of factors, many of which are difficult to predict," it noted, "including… the potential legalization of marijuana use on a more widespread basis within the United States."

Recreational marijuana use is currently permitted in Colorado and Washington, while at least 22 states have legalized cannabis for medical use.

Related: Cannabis Investors Preparing For Industry Data From WeedStock

Cannabis stock specialist Alan Brochstein believes alcohol firms have reason to worry.

"Big Alcohol is watching marijuana legalization closely," he told Benzinga, "and its very likely that these companies are highly concerned. Cannabis legalization is likely to lead to a substitution effect." Continue reading "Should The Liquor Industry Be Worried About Legal Cannabis?"