The first big holiday party weekend of the summer and beer didn’t make the biggest splash…did a green plant figure in to the issue?
Beer is at the heart of Memorial Day celebrations—a crisp, refreshing companion to beach days, backyard BBQs, and gatherings with friends and family. It is in the top drivers to alcohol sales. But this year, a flat holiday weekend occurred amid long-running concerns over beer’s decline. Is cannabis part of Memorial Day’s beer sales drop? Over the 2025 Memorial Day weekend, beer sales underwhelmed expectations, according to a Goldman Sachs survey of roughly 50 distributors covering nearly half of U.S. alcohol retailers.
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Among major brands, Heineken showed the sharpest decline, with 66% of distributors reporting lower sales than last year. Bud Light, Corona Extra, and Miller Lite also posted year-over-year drops, while select brands like ABI, Pacifico, and Twisted Tea bucked the trend with modest gains. Distributors largely pointed to persistent inflation, tariff worries, shifting consumer taste toward spirits or more “sophisticated” drinks, and reduced alcohol consumption among Millennials and Gen Z—which aligns with Gallup data showing only 62% of 18–34‑year-olds reported drinking alcohol from 2021–2023, compared to 72% two decades ago.
In Canada, where adult-use cannabis has been legal since 2018, beer sales volumes shrank sharply: an immediate drop of 96 hectolitres per 100,000 population, with an ongoing monthly fall worth 136 hectolitres—a trend linked with increased cannabis spending . Statistics Canada data for 2023/24 showed beer volume fell 4.5%, the steepest yearly decline since tracking began in 1949. A specific Nova Scotia study found a 2.2% drop right after legalization, with sustained lower sales afterward.
A Bernstein‑cited Numerator survey indicated 36% of cannabis‑using drinkers now drink less alcohol, and almost half say they’ve replaced some alcohol with cannabis . Moreover, cannabis users have shown a stronger preference to forgo beer over other alcohol types.
Jon Taffer, host of Bar Rescue, asserts no doubt exists that cannabis‑infused beverages are altering drinking habits in the U.S.: “It’s no question cannabis is affecting the spirits industry,” with CBD drinks projected to grow from $5.3 billion in 2021 to $16 billion by 2026.
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But cannabis isn’t the sole factor. Rising health consciousness—including trends like “Dry January”—and new warnings linking alcohol to cancer are pushing consumers toward lower-alcohol or alcohol-free options. Meanwhile, economic pressures (inflation, tariff concerns, tight household budgets) persist. Adding strategic shifts from younger generations and innovations in non-alcoholic drinks, the drinking landscape is clearly evolving.
For beer brands, the path forward lies in diversification—expanding non‑alcoholic lines and tapping into cannabis‑adjacent markets. Heineken and Constellation Brands have already made early moves, while craft breweries explore cannabis-infused variants. Meanwhile, cannabis companies like Tilray are snapping up craft breweries to leverage distribution networks and position for future crossover products.
Cannabis isn’t the only culprit—but growing evidence suggests a meaningful portion of consumers are replacing beers with cannabis products or cannabis-infused drinks. As both industries innovate, beer brands that adapt—by offering alcohol-free options or partnering with cannabis—will have a better chance at regaining relevance in a changing marketplace.
