💸 The Tape

If you’ve been sipping a little less whiskey and sparking up a little more weed lately, you’re not alone—and the alcohol industry is definitely noticing.

Lawson Whiting, CEO of Brown-Forman Corporation, the proud parent of Jack Daniel’s and Woodford Reserve, says cannabis is becoming an undeniable buzzkill for spirits sales. During a Thursday earnings call, Whiting pointed to a 5% drop in net sales and identified a now-familiar trifecta of woes: changing generational preferences, the rise of weight loss drugs, and yes—marijuana.

“We’d be naive if we didn’t say there isn’t some pressure coming from those,” Whiting admitted. Still, he maintained that the average consumer is just strapped for cash. “Their wallet just doesn’t have as much money in it.”

In other words, between pricey rent, $18 cocktails, and your cousin’s wedding in Tulum, something had to give. And increasingly, it’s alcohol.

But let’s not pin it all on pot. Whiting noted that even in Europe, where legal weed is far less available, the same downward trends are emerging. That said, cannabis legalization is explicitly listed in Brown-Forman’s risk disclosure as one of the “uncertainties” threatening future growth.

Whiting tried to strike a note of cautious optimism, saying: “While our results did not meet our long-term growth aspirations, we made important progress in an exceptionally challenging macroeconomic environment.” Translation: We’ll innovate our way out of this—just as soon as we figure out what Gen Z actually wants to drink.

This isn’t just corporate hand-wringing, either. Analysts from Bloomberg Intelligence have been warning for years that cannabis is becoming a "significant threat" to alcohol sales, especially as millennials and Gen Z consumers increasingly swap beers for blunts. One 2023 investment bank report even predicted cannabis will gain 20 million more regular users by 2027, while alcohol could lose a few million fans. Booze might be the original social lubricant—but weed is the new mood manager.

Cannabis sales are expected to hit $37 billion by 2027, according to projections. And as more states go green, the bar tab could keep shrinking.

So, while Brown-Forman and friends are still pouring out old favorites, the future might involve a little less whiskey neat—and a lot more pre-rolls and gummies.

Cheers to changing times.

📈 Dog Walkers.

$VREOF ( ▲ 1.21% ) Vireo Acquires Proper Brands

What’s Going On Here: Vireo Growth Inc. (CSE: VREO; OTCQX: VREOF) has closed its $102 million acquisition of Proper Brands, a leading independent cannabis operator in Missouri. The deal gives Vireo control of 11 dispensaries (plus one undeveloped license), a 100,000+ sq. ft. cultivation and manufacturing facility, and a growing delivery business powered by Arches technology.

The $102M price tag was paid in 196.2 million Vireo shares at $0.52 per share, reflecting a 4.175x multiple on Proper’s 2024 EBITDA of $31M. Clawbacks are built in if 2026 EBITDA falls short, and share lock-ups will be staggered over 33 months.

With this deal, Vireo cements a strong foothold in Missouri’s adult-use market—especially around St. Louis and Kansas City.

$BLOZF ( ▼ 0.28% ) Cannabix Marijuana Breath Test Nearly Ready

What’s Going On Here: Cannabix Technologies Inc. (CSE: BLO) and Omega Laboratories have hit a key milestone in launching the Marijuana Breath Test (MBT), a novel THC detection tool targeting “recent use.” Omega delivered a full validation packet for its lab-developed method to test for delta-9 THC, delta-8 THC, CBD, and CBN using Cannabix’s Breath Collection Unit (BCU) and Cartridges.

Unlike traditional blood, urine, or saliva tests that detect cannabis days or weeks after use, the MBT focuses on active impairment windows. The test is lab-based and intended as a collect-and-send solution. Omega is now integrating the tech into its drug testing services, with commercialization plans underway.

As part of the agreement, Cannabix will issue 3 million shares to Omega, which also gains a board seat in the near future.

🗞️ The News

📺 YouTube

DEA Accused of Blocking Cannabis | Germany’s Telehealth Crackdown Begins | Trade to Black

What we will cover:

✅ Host Shadd Dales breaks down how cannabis executives are thinking — and what it takes to lead a company in one of the most complex industries today. With limited access to capital, high taxes like 280E, shifting regulations, and increased competition, CEOs are being forced to get sharper, leaner, and more strategic than ever.

From managing cash flow to prioritizing profitability, from preparing for U.S. rescheduling to eyeing global markets like Germany — every decision right now matters. These leaders are cutting through noise, adapting to new realities, and playing the long game.

This isn’t about doom and gloom. It’s about understanding what success looks like when the playbook keeps changing.

If you’re an investor, executive, or just trying to understand where this industry is heading, this is the insight you won’t find in an earnings release.