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Rise In Marijuana Sales Is Starting To Worry Beer Companies, Here’s Why

Well folks, it might be time to replace those koozies and beer mugs with OG Kush and Clear Eyes.

According to business news outlet Quartz, marijuana could be making a push to topple beer as America’s favorite vice of choice…eventually.

When considering how many people have died from alcohol-related causes, it makes sense that a nation with a steadily growing concern for health and safety would begin gravitating more towards marijuana, a substance that has been directly related to very few deaths, if at all.

Ever since the legalization of marijuana for recreational use, the industry has been growing rapidly. The ArcView Group, an investment firm based in San Francisco that specializes in providing financing to marijuana-based ventures, recently released a study showing the massive increase in sales of both medical and recreational marijuana over the past year.

Below is a chart from the ArcView study that shows marijuana sales from 2011-2015, plus the projected sales for 2016. It’s clear to see that ever since states began legalizing marijuana for recreational use in 2013, the industry has boomed, attracting both longtime users and curious newcomers. There was a whopping 74 percent increase in national revenue, jumping from $1.5 billion in 2013 to $2.7 billion in 2014.

Beer’s only real competitor for the last few decades has been hard alcohol and liquor, and bringing in $2.7 billion, while impressive, still doesn’t even come close to beer sales (which are over $100 billion annually). So why are beer capitalists showing concern? Simply put: marijuana’s potential for growth.

While the gap between the two industries is about as wide as the Rio Grande, the fact that only a handful of states have legalized marijuana needs to be taken into account. It’s safe to say that had they been compared on an even playing field, with weed being legalized everywhere, the difference between the two would be a lot closer.

Furthermore, in the past two years, the alcohol sales tax has gone up drastically in Colorado. Many believe that this was done to keep up with marijuana sales, however the majority of beer companies insist that this rise in rates is simply natural market inflation.

So what do you think? Will the marijuana industry eventually take over or will beer still come out on top in the end?

You decide. Literally.

Photo Credit: Quartz, Dutch Passion, Leaf Science, The Oaks Treatment

Categories
Fast Food

The Most Successful Panda Express in the World Makes Over $4 Million a Year

Panda-Express-Orange-Chicken

Bet you never thought franchising a Panda Express would actually be the key to multi-millionaire status, huh.  But there’s serious gold hiding in that orange chicken (the chain sold 39 millions pounds of the chicken last year).

Panda Express began more than 30 years ago in California. It’s exploded across the nation, even opening up 12 stores (to be expanded to 40) in Hawaii.

The chain recently celebrated its 20th anniversary in Hawaii, hosting a party at its newest location in Moanalua. However, this is more than just a celebration of a nation’s obsession with chicken.  That’s because the first Panda Express in Hawaii located at the Ala Moana Center (a big tourist attraction) food court in Honolulu rakes in about $4 million dollars a year. It’s the highest revenue of any Panda Express anywhere else in the world.

Something to think about next time one of their employees hands you a sample on a toothpick.

H/T Star Bulletin

Categories
Hit-Or-Miss

Despite Gay Marriage Controversy, Chick-fil-A Benefiting From Backlash

chick-fil-a-sales

So, you know how earlier this summer Chick-fil-A made public its stance against gay marriage? If you don’t remember that, you might remember unwittingly visiting your local Chick-fil-A in August, only to see lines out the door and around the building as supporters of the chicken chain came to show their appreciation…and to also get some lunch.

Chick-fil-A, already famous (or infamous) for closing up nationally on Sundays, faced backlash from more than just gay marriage supporters, as a national fallout was predicted from the polarizing decision. And yet as the year winds down, Chick-fil-A appears to have come out on top.

According to Business Insider, consumer use, market share, and ad awareness have all seen notable increases since the initial controversy, indicating Chick-fil-A hasn’t suffered, but in fact benefited from its otherwise controversial stance.

Stats from the study by research firm Sandelman & Associates:

  • Consumer use was up 2.2 % in Q3 compared to the year prior
  • Market share up 0.6 %
  • Total ad awareness up 6.5 %

Think Chick-fil-A’s lucky streak will last? And, perhaps more importantly, will it spur other companies to kick up a little dust in favor of increased income?

Via Business Insider/Photo Courtesy of Chick-fil-A