TIL World’s biggest beer, wine and spirits producers have collectively lost $830 billion in market value over just four years. Changing drinking habits and rising health concerns have hit earnings across the sector. Millennials and Gen Z are also not much interested in alcohol.
I’m sure the fact the Canadians have stopped buying American products costing producers $500+ million per year hasn’t been so good for them either.
It’s unrelated since this is about global attitude changes towards alcohol. US brands weren’t the only ones impacted.
The younger generations just aren’t drinking as much as previous ones.
For the American market, that is what the big worry is. Foreign boycotts, not weed. We’ve been dealing with weed for a long time. When considering the global market in aggregate, we can break out submarkets and examine their issues (you know, macroeconomic analysis) without ignoring the general equilibrium issues like you seem to be doing.
The US has $5-7b in alcohol sales per month. Losing $500m a year due to a boycott isn’t a meaningful decrease, and certainly isn’t relevant to people losing faith in the global alcohol industry’s growth rate and selling stocks.
Due to a boycott from a single nation. How many countries we sell liquor to?
You may not think it’s related, but math and the bottom lines of American producers would disagree.
You do realize the global alcohol market is around $2t, right? A $500m change is 0.025% of the market.
We’re talking about companies with tens if not hundreds of billions of dollars in yearly revenue. They probably feel more pain when people stop drinking for Lent.
This article is talking about global trends and people losing faith in the alcohol industry’s growth rate causing them to sell stock.
My comment clearly (but apparently not clearly enough) referenced the fact that American producers are dealing with the add on effect that the Canadian boycott is having. I read the article, you failed to read my comment.
No, your comment was clear. It just has no relevance to the post.
I’ll make sure to give your opinion all the consideration it deserves, professor.
Hey, we think alike! That’s what I hear from my buddy out at the winery. Although, weed has been here a few decades, they’re used to it already. They don’t really care about it as much, they’ve even got an unofficial toking porch at the vineyard (don’t tell the POlice) the trade wars are killing them tho.