April 4, 2018 / 11:45 AM / a year ago

BUZZ-Legal weed could hurt sale of cheaper beer brands - Cowen

** Cowen says more access to cannabis could put pressure on alcohol sales, particularly low-end beer brands

** Cannabis industry could generate $75 bln in sales by 2030 if legalized by federal goverment

** Adult use and medical use cannabis states have fewer binge drinking sessions per month and lower levels of binge intensity - Cowen analyst Vivien Azer

** Instances of binge drinking in states that allow adults to use cannabis see 13 pct fewer times compared with non-cannabis states - Azer

** Azer remains “outperform” rated on Kush Bottles Inc , Canopy Growth Corp, and MedReleaf Corp

** Says lower-end beer most exposed to risk of substitution with cannabis, remains cautious on “market perform” rated Molson Coors Brewing Co

** In a separate note, Azer raises Boston Beer Company to “market perform” on strong Nielsen data in the non-beer category, says beer trends remains sluggish, while non-beer trends look surprisingly strong

** Azer’s top pick is Constellation Brands Inc as its alcohol portfolio is the most defensible from cannabis substitution

** “we believe that cannabis has, and will continue to have, a negative impact on alcohol consumption” - Azer (Reporting by Jasmine I S in Bengaluru)

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