How Big Alcohol is Trying to Takeover the Legal Marijuana Industry (And They’re Not Even Subtle About It)

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Big Booze is Trying to Steal Marijuana (And They’re Not Even Subtle About It)

Well, folks, the vultures are circling. After decades of supporting cannabis prohibition, watching millions of Americans—disproportionately Black and Brown—get locked up for possession of a plant, the alcohol industry has suddenly developed an interest in marijuana. But don’t mistake this for a change of heart. This isn’t about embracing cannabis culture or righting historical wrongs. No, this is about one thing: cold, hard cash.

In a policy memo that reeks of entitlement, the American Beverage Licensees (ABL) trade association is now arguing that “intoxicating THC products” should be sold only by businesses licensed to sell alcohol. You read that right—the same industry that pushed to keep cannabis illegal now wants exclusive rights to sell it.

The audacity is breathtaking. After cannabis activists fought for decades to end prohibition, after countless lives were ruined by criminal records for possession, after communities were torn apart by the war on drugs, Big Booze wants to swoop in and claim the spoils. It’s like watching a bully steal your lunch money for years, then demand to be put in charge of the cafeteria.

Let’s be crystal clear about what’s happening here: the alcohol industry sees cannabis eating into their profits, and they’re scrambling to control the competition. A Bloomberg Intelligence report last year called cannabis a “significant threat” to the alcohol industry, noting that people are increasingly substituting weed for wine and beer. Rather than innovate or compete fairly, they’re trying to rig the game.

This isn’t just wrong—it’s offensive to every person who’s ever faced the harsh consequences of cannabis prohibition. It’s a slap in the face to communities of color that bore the brunt of enforcement. And it’s an insult to the grassroots activists who fought to legalize this plant while the alcohol industry stood on the sidelines, or worse, actively opposed them.

Cannabis belongs to the people, not corporations. It’s time to call this power grab what it is and fight to keep our plant out of the hands of the very industries that helped criminalize it in the first place.

Let’s take a closer look at what the alcohol industry is actually proposing. The American Beverage Licensees, which represents bars, taverns, restaurants, and package stores, released a policy memo this month that reads like a cannabis hostile takeover plan.

“States should restrict the sale of intoxicating THC products to businesses licensed to sell beverage alcohol and that are regularly inspected for compliance with laws aimed at preventing sales to individuals under 21,” the memo states. They claim alcohol retailers, “with many decades of proven compliance, are best positioned to sell these products.”

Best positioned? That’s rich coming from an industry responsible for approximately 95,000 deaths annually in the United States. Meanwhile, cannabis’s death toll remains at a solid zero. But sure, let’s trust the alcohol industry with cannabis safety.

What’s the real motivation behind this seemingly sudden concern for regulation? The answer is in the numbers. The same Bloomberg Intelligence report mentioned earlier projects that slumping sales of wine and spirits “may extend indefinitely,” which will “stem largely” from increased consumer access to legal cannabis. Another study estimated that marijuana sales will reach $37 billion by 2027 in the U.S.

“The use of cannabis among consumers is on the rise, and we believe it’s being substituted for alcoholic beverages,” Bloomberg analysts wrote. In other words, people are choosing cannabis over alcohol, and Big Booze is feeling the pinch.

Their solution? If you can’t beat ’em, control ’em. By restricting cannabis sales to alcohol licensees, they’re essentially attempting to capture the very market that’s threatening their bottom line. It’s like taxi companies demanding exclusive rights to operate Uber.

But it gets worse. The Beer Institute—another alcohol industry trade group—has recommended that lawmakers impose a federal excise tax on hemp and cannabis products “with the tax rate set higher than the highest rate for any beverage alcohol product.” They’re not just trying to control cannabis; they want to make it more expensive than their own products.

They’ve also urged a “zero tolerance approach” to THC and driving—a policy that could prevent casual cannabis consumers from ever being able to legally drive due to how long THC metabolites stay in the body. This isn’t about safety; it’s about creating onerous restrictions on cannabis use that don’t apply to alcohol.

The hypocrisy is astounding. After benefiting from relatively lax regulations compared to other substances, the alcohol industry now wants to subject cannabis to stricter rules than booze itself faces, while simultaneously controlling its distribution.

This isn’t regulation; it’s elimination of competition through regulatory capture. And we can’t let it happen.

The fundamental issue here goes beyond market competition—it’s about justice, equity, and the right of communities to build wealth after decades of being criminalized for cannabis.

When we talk about cannabis legalization, we’re not just discussing a policy change; we’re talking about rectifying a historical wrong. The war on drugs devastated communities, particularly Black and Brown neighborhoods, with excessive policing, mandatory minimum sentences, and the lifelong consequences of criminal records. The resulting intergenerational trauma and economic damage can’t be overstated.

An equitable cannabis market must provide opportunities for those same communities to benefit from legalization. That means accessible licensing, support for small businesses, and pathways for entrepreneurs without massive capital reserves to enter the industry. Restricting sales to existing alcohol licensees would slam that door shut, ensuring that corporate interests—primarily white and wealthy—maintain their stranglehold on legal intoxicants.

Let’s talk about barriers to entry. Alcohol licenses already cost tens or even hundreds of thousands of dollars in many jurisdictions. They’re limited in number and often controlled by those with political connections or substantial resources. Using this same restrictive licensing framework for cannabis would effectively exclude the very people who should be first in line to benefit from the legal market.

The alcohol industry’s sudden concern for regulation is particularly rich given their own checkered history. Alcohol marketing routinely targets young people despite age restrictions, and the industry has fought tooth and nail against public health measures like stronger drunk driving laws and warning labels. Now they want to position themselves as responsible stewards of cannabis? Please.

What makes this power grab even more galling is the emerging evidence that cannabis is actually safer than alcohol by most metrics. A Gallup survey published last year found that Americans consider marijuana to be less harmful than alcohol, cigarettes, vapes, and other tobacco products. The science increasingly supports this view, with alcohol linked to numerous diseases and social harms that cannabis simply isn’t.

This isn’t about public safety—it’s about market control, plain and simple.

A truly just cannabis market would prioritize:

  1. Easy paths to licensing for small businesses and social equity applicants

  2. Caps on market share to prevent monopolization

  3. Home growing rights for all adults (something the alcohol industry certainly doesn’t want)

  4. Community reinvestment of cannabis tax revenue

  5. Expungement of prior cannabis convictions

None of these priorities appears in the alcohol industry’s vision for cannabis. Instead, they see a future where the same corporate interests that profited while people went to jail for cannabis continue to profit from its legalization.

We cannot allow the same industries that supported prohibition to control the post-prohibition landscape. Cannabis freedom means more than just legal access—it means equitable opportunities and community control.

So how do we counter this corporate cannabis coup attempt? By building and supporting regulatory models that put people over profits and justice over convenience.

First, we must protect and expand home growing rights. The ability to grow your own cannabis is the ultimate check on corporate power in this space. Just as home brewing provides an alternative to Big Beer, home cultivation ensures that cannabis remains accessible regardless of market manipulation. Any regulatory framework that doesn’t include robust home growing provisions is designed to benefit corporations, not consumers.

Second, we need to demand truly equitable licensing frameworks. This means:

  • Low application fees that don’t shut out small entrepreneurs

  • License set-asides for social equity applicants and those harmed by prohibition

  • Grants and interest-free loans to help undercapitalized businesses compete

  • Limits on vertical integration to prevent monopolization

  • Zoning regulations that don’t concentrate dispensaries in already-disadvantaged communities

The economic benefits of widespread cannabis entrepreneurship are substantial. A diverse marketplace creates more jobs, keeps wealth in local communities, and fosters innovation. Small, independent cannabis businesses are more likely to source locally, pay living wages, and contribute to their communities than corporate chains.

We’ve already seen promising models in states like Massachusetts and Illinois, which have implemented social equity programs specifically designed to provide opportunities to those harmed by cannabis prohibition. While these programs aren’t perfect, they represent a step in the right direction—acknowledging that legalization must address historical injustices, not perpetuate them.

Third, we need to be vocal about the hypocrisy of the alcohol industry’s proposals. When industry representatives testify at hearings or lobby legislators, cannabis advocates must be there to counter their narratives. Point out that alcohol causes 95,000 deaths annually while cannabis causes zero. Ask why a substance that’s demonstrably more harmful should have regulatory authority over a safer alternative.

Finally, we need to vote with our wallets. Support small, independent cannabis businesses, especially those owned by people from communities harmed by prohibition. Avoid corporate cannabis whenever possible. Build relationships with your local dispensaries and growers. Ask about their ownership and values. Make it clear that ethics matter to you as a consumer.

The path forward isn’t through corporate capture—it’s through community control. Cannabis has always been a grassroots movement, built by people who believed in the plant despite facing legal consequences for that belief. We can’t abandon those roots now that legalization is spreading.

The alcohol industry sees cannabis as a threat to their profits. We should see their attempted takeover as a threat to the soul of cannabis culture—and fight accordingly.

Let’s be real for a moment. The fight for cannabis freedom didn’t begin with corporate interest—it began with people who believed in this plant despite the risks. It was built by activists who gathered signatures while fearing arrest, by patients who sought relief when conventional medicine failed them, by communities who continued to embrace cannabis culture despite targeted enforcement.

These are the people who deserve to benefit from legalization—not the alcohol industry that stood by or actively supported their criminalization.

The audacity of alcohol retailers claiming they should have exclusive rights to sell cannabis is matched only by their transparent self-interest. Their sudden concern for regulation isn’t about public health; it’s about eliminating competition and controlling a market that threatens their profits.

This isn’t just wrong—it’s unjust, unethical, and unacceptable.

Cannabis belongs to the people. It belongs to the communities that paid the price for its prohibition. It belongs to the patients who fought for medical access. It belongs to the small farmers who risked everything to cultivate it. It belongs to the budtenders and educators who share their knowledge with others.

It does not belong to corporate alcohol interests who want to dictate its future after opposing its legalization.

As consumers, voters, and advocates, we have power. We can contact our representatives and demand equitable cannabis policies. We can support businesses that align with our values. We can grow our own where legal. We can continue to educate others about the true nature of cannabis and its potential.

The alcohol industry is making their move, but this game isn’t over. The future of cannabis is still being written, and we—the cannabis community—hold the pen. It’s up to us to ensure that the next chapter features justice, equity, and true cannabis freedom—not corporate capture.

They think they can steal our plant after decades of supporting its criminalization. Let’s show them that the cannabis community won’t go down without a fight. Our plant, our future.

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