Consumer Defensive

World wine consumption and production dropped in 2023 due to extreme climate changes, with major producers like Australia and Italy experiencing the worst impacts. While France bucked the trend with a 4% increase in production, global consumption fell to its lowest level since 1996, partly driven by rising inflation and a sharp decrease in wine drinking in China.

Christine Smith, the founder and CEO of Grön Edibles, discusses the brand's expansion plans into multiple U.S. markets in 2024, highlighting the strategic selection of states based on market analysis. Grön Edibles faces challenges in navigating the fragmented regulatory landscape of the U.S. cannabis market by adapting its supply chain practices to accommodate varied state laws while emphasizing a commitment to organic ingredients.

Florida's cannabis market is poised for a major transformation with the potential legalization of adult-use marijuana, which is projected to drive significant growth and make it the second-largest U.S. cannabis market after California. However, uncertainty surrounds the future market landscape due to the lack of a mandate for adult-use cannabis licenses in Amendment 3.

Australia's high rate of food allergies, affecting one in ten babies, has prompted research into preventative measures. Recent findings suggest that introducing common allergens like eggs, peanuts, and milk around six months of age, instead of delaying them, can significantly reduce the risk of developing food allergies in children.

Extreme weather events are not only impacting electricity bills but also pushing up vegetable prices, which have been a major contributor to retail inflation for over a year. A recent report by Crisil highlights how the rising intensity and frequency of weather disturbances have led to frequent fluctuations in vegetable prices in recent years.