A recent study demonstrates something we’ve known all along: Cannabis is a powerfully disruptive force. As it continues to disrupt other markets, investors who know how to pick the right stocks are going to make a fortune. Here’s how…

Back in December, I explained how cannabis had the potential to disrupt billion-dollar industries.

And we now have clear data to prove it.

A joint study conducted by the University of Connecticut and Georgia State University found that alcohol sales fell by 15% in states where medical marijuana became legal.

Even correcting for demographic factors known to influence alcohol consumption, such as age, sex, unemployment rate, and median household income, that number holds true.

And in states where recreational cannabis is legal, the number jumps to 20%.

Normally, a one-fifth drop in a sector that traditionally generates lucrative tax revenue would be cause for concern for state lawmakers.

In fact, these states aren’t worried at all – they’re celebrating…

A Tax Revenue Boom

Marijuana taxes tend to be much higher than alcohol taxes.

For example, in Colorado, excise taxes on alcohol are applied by volume, so for every gallon of beer, the state collects a mere eight cents – regardless of how much that beer costs – and then the standard 6.5% state sales tax is applied for the consumer.

Compare that with a 15% excise tax from cannabis cultivator to retailer and another 15% as a sales tax for end customers.

And with Colorado cannabis sales reaching an astounding $1.2 billion last year alone, it’s easy to understand how the state crushed the projected $100 million in annual tax revenue.

Source: www.colorado.gov

After a somewhat slow start in 2014, tax revenues in the state reached a whopping $270 million in 2018.

And Colorado isn’t alone in this tax revenue boom.

Not an Isolated Event

Last year, Washington State collected $367 million in cannabis taxes, and California – a state that’s only just now beginning to fix its legalization woes – saw $345 million.

With just a glance, the NICILytics database can tell you which cannabis companies to target for the biggest potential profits. To learn more, click here now.

California, who set tax rates too high and thereby bolstered the illicit markets, will serve as a cautionary tale to other states as they legalize cannabis and set their own tax rates.

In a way, the state’s mistake proves useful: We now have a good idea of how much is too much when it comes to taxes, and other states prove that cannabis can still be taxed at a higher rate than alcohol and consumers will continue to purchase legal, regulated product.

Of course, as “The Golden State” completes its transition to “California 2.0,” we can expect that number to grow.

In fact, we can expect tax revenues to grow in every state.

That’s because every single state that has legalized recreational cannabis has seen marijuana tax revenue increase year over year.

To put it bluntly, for other states to continue missing out on this opportunity is irresponsible – and they know it.

We’re going to continue to see states falling like dominoes. Going “all in” on cannabis today – before those remaining states go legal – is the best way to make sure you come out of this boom with a fortune.

Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. Big investment firms and members of the Fortune 500 are building enormous war chests, all in preparation of federal cannabis legalization. They’re preparing to push billions upon billions of dollars into this market… And once that happens, your shot at getting a cut of the potentially trillion dollar cannabis industry could be gone. To learn more about how to get in on the ground floor of cannabis investing – before big business gets involved- go here now.


11 responses to “The Disruptive Power of Cannabis on the Alcohol Markets”

  1. Morning Greg how are you hope you had a good weekend!!!! Thats one of the things that is pushing this industry forward. If you ask me I think it is the main thing. In a capitalistic country that we live they are not going to stand on the sidelines and watch other countries make billions of dollars on this industry and the US not get some!!!! I hope you have a great day and we have a great day at the market!!! I doubt it because it appears May is going to be a terrible month for us.

  2. Alcohol eats up your organs and destroys your health. Rick Simpson oil 798.4 million mg pure THC is nature’s tumor necrosis factor blocker. Of course cannabis is a plant-derived tnf blocker. synthetic versions of poison are humira, entyvio,and all other synthetic poisons that destroy you. just wait till sciences find out about the tnf blocker aspect of it even though I know they already know it’s just we’re just waiting on laws to change. when professionals scientists and doctors congressman and the law finds out the healing powers of cannabis, that light bulb moment is when we all start to get rich off this

    • Just so you know, Humira basically eliminated my auto-immune disease, Vasculitis where my immune system was repeatedly attacking my blood vessels. After a one year regiment of Humira, the Vasculitis has gone into remission and the doctor believes it’ll stay away forever. Parts of my body were destroyed by this disease, so I’m thankful for Humira. Hopefully it won’t come back to bite me in the ass; we’ll see, but for today, I’m back to normal.

      • Glad to hear that you have regained your health. I’m sure drugs like Entyvio and Humira help those who are in need. TNF or Tumor Necrosis Factor is the direct cause of inflammation in gastro-intestinal diseases such as Crohn’s, Ulcerative colitis, and diverticulitis to name a few. Tumor Necrosis Factor is very destructive to your organs and there are many TNF blockers such as Humira or Entyvio that help block this direct cause of inflammation. Rick Simpson Oil or 798.4mg THC or any full spectrum pure THC oil extract that comes in a syringe package is a natural TNF blocker. There is a reason that people have been healed from all types of cancers and debilitating diseases using whole plant extract; whole plant extract has been proven to induce “the entourage effect”, which means total wellness and full healing.

  3. If you were going to invest in cannabis stocks,which ones would recommend when trying to get in starting to invest in cannabis stocks

  4. Recently, the corporation my husband works for required all of it’s employees at a work site in a legal cannabis use state to undergo medical testing for evidence of illegal substances in their bodies. One hundred and fifty employees tested positive and were fired. This was in response to work related issues and the federal government’s decision.

    How will our country deal with this issue? If an employee wants to use cannabis on their own time, I feel that is their choice in States who have voted to legalize. That and driving while under the influence of cannabis laws are going to have to be addressed.

    If my doctor or airline pilot have cannabis in their systems, I’m fine with it. I would have significantly more concern over a doctor or pilot suffering from the effects of alcoholism. Even a hangover, with no evidence of alcohol impairment left in the body, would cause me greater concern than evidence of cannabis use.

    When I drive under the influence of cannabis, (which, according to current laws is always), my driving behavior is much safer. Not because I’m worried about being arrested, but because cannabis reduces my anxiety and aggression.

    To fire and arrest people, will do much greater harm to their lives than cannabis will. I can’t imagine the people fired by my husband’s company who had only THC on their drug tox screens…how this substance that helped them so much, is now being used as a way to harm them by their employer and their government.

    Testing for THC is a joke. If alcohol use was detected for up to three months after it’s last use, very few people would have a job if it’s use was grounds for firing. Yet we all know the destruction that alcohol use can cause. It is much worse than cannabis.

    In my opinion, evidence of cannabis use cannot be used to fire individuals once it is federally regulated and legalized. It will be impossible to hire anyone once cannabis is legal if not allowed in our systems. It will be used by so many.

  5. greg,
    It is much cheaper to grow pot in Columbia.
    How is this going to affect US and Canadian pot companies

  6. I live in the state of Mississippi where cannabis is rated schedule 1 drug. I was taking Clonazepam 2mg. twice daily for my Parkinson for 3years also Lirica for Bel pasie 7months. I went for a refill and they gave me a drug test and I had Cannabis in my System so they cut my meds.off cold turkey! A week later I started to have violent seizures up to 4 a day as the meds. are schedule 1 drug legal an Cannabis is illegal.Because of a law that went in affect 1/1/2019 .I am 76yrs.of age. Do I deserve a Death Sentence for having Canibus in my system as Cannabis is controling my Parkinson’s without the drug clonazepam.Lirica has bad side affects and I am glad I am off of it. What is wrong with this picture!!

  7. In my 50 plus off and on use of marijuana, I have some observations:

    Marijuana made me see wood grain I had never seen before.

    I was in a group that smoked Lipton’s Tea, thinking it was marijuana. Most got high. Attitudes and expectations are IMPORTANT.

    I was driving once. I felt TOO high. I pulled over and waited. I think a drunk would keep on confidently driving. Alcolol consumers are MUCH MORE AGGRESSIVE.

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