Profit trends

Memorial Day is now behind us.

And while investors may not realize it, this holiday weekend serves as the starting point for the busiest time of the year for a variety of industries … including one that, in my opinion will be one of the hottest summer trends.

The importance of this holiday mileage marker is clear …

It’s the first long weekend of summer temperatures. And it’s a chance for people to dip their toes in the summer vacation.

That’s why it serves as an unofficial start to the summer travel season.

This year, 37 million Americans – a 60% increase from 2020 – had to leave their homes during the holidays. Airlines are projected to enjoy the largest increase as air travel is expected to experience a 577.5% increase in demand over the long weekend.

But Memorial Day is also launching one of my favorite – and one of the most profitable – trends for investors …

The wettest of the holidays

Almost a decade ago, I stirred the pot by introducing investors to what I call “beer drinking season” in the United States.

There were some initial chuckles. But these were silenced as I guided investors through this trend towards one of the biggest gains the Oxford Club has ever made with Boston Beer Company (NYSE: SAM).

You see, Memorial Day weekend is when Americans really start rolling out their summer gear. Even I threw a few hot dogs and steaks on the grill last weekend.

Few things go better with sitting outside, enjoying the warm weather and the company of friends than a good cold.

And when you look at the holidays when Americans drink the most, Memorial Day is there in the mix.

Average drinks consumed per public holiday

According to the calendar, the next vacations on the bridge are Father’s Day, July 4th, Labor Day, Halloween, Thanksgiving, Winter Holidays, New Years and the Super Bowl.

These are all some of the best days of the year to drink beer. So my beer drinking season runs from Memorial Day to the Super Bowl.

And it’s a very profitable time for Boston Beer, Molson Coors Beverage Company (NYSE: TAP), Anheuser-Busch InBev (NYSE: BUD) and other brewers.

But this year, the beer drinking season will rival a burgeoning competitor.

An attempt to declaw the white claw

2020 has been kind of a pivotal year for cannabis.

Dispensaries were seen as “essential activities” during the pandemic. This sparked new highs in sales and stocks.

On top of that, five US states expanded or launched legal markets last year. And those numbers will continue to rise this year as the “green revolution” gains traction.

But the pandemic has forced certain innovations in the sector to take a back seat … namely cannabis drinks.

Cannabis drinks compete with traditional alcoholic drinks, including hard seltzers – like White Claw and Truly. The advantage here is that cannabis is not a depressant like alcohol, and responsible doses per drink are designed to mimic the strength of a glass of wine or a light beer.

With the pandemic diminishing, these are now poised to be the hottest trend of this summer.

Already, cannabis drinks are doubling the growth we see in almost every other product category.

Quarterly growth in cannabis sales by category

In the first quarter, sales of cannabis drinks in California, Colorado, Nevada, Oregon and Washington saw the strongest growth with 68.4% year-over-year.

And that’s probably just the start.

There are nuggets in my suds

The trend for companies to launch cannabis-infused drinks is gaining momentum.

In an effort to gain a first-come advantage, Pabst Labs launched its cannabis-infused Pabst Blue Ribbon seltzer in California.

Additionally, one of the industry’s biggest acquisitions in 2020 was in beverages. Canadian cannabis giant Aphria – now Tilray (Nasdaq: TLRY) – Bought one of America’s largest independent craft brewers, SweetWater Brewing Company, for $ 300 million last November.

The brewer already offers a 420 Strain G13 IPA, which is its second best-selling beer.

And just in time for the 4/20 cannabis vacation, Green thumb industries (OTC: GTBIF) announced the launch of three new flavors of Cann, a brand of cannabis-infused drink. Cann drinks contain 4 milligrams of CBD and 2 milligrams of THC each, which is an ideal amount even for new users of the products.

Cann and Green Thumb team up to launch drinks in Illinois and New Jersey. And then they plan to expand to other markets.

Of course, the grandfather of all cannabis infused drink offerings was when the alcohol giant Constellation marks (NYSE: STZ) invested $ 4 billion in Canopy Growth Corp. (Nasdaq: CGC). Canopy and its American counterpart, Area possibilities (OTC: ACRHF), are launching THC-infused drinks in California and Illinois this summer.

Infused drinks are considered a game changer for the US market. And the segment offers the highest growth potential not only in 2021 but in the years to come.

Today, cannabis infused drinks are still in their infancy. For example, in the first quarter of 2021, sales in this category totaled $ 31.3 million. That’s a fraction of the $ 1.1 billion the dried flower brought in.

But this is one of the product launches that we have been waiting for a few years.

Not everyone is going to smoke a joint or ingest an edible. But the drinks are designed to go hand in hand with traditional beer and other alcohols in responsible doses. So it’s an entirely different story.

More importantly, this is the first foray into cannabis to completely disrupt another industry. And that’s the blockbuster trend – which likely got a boost this Memorial Day weekend – all investors should watch out for this summer.

Here are the high returns,

Matthew




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