Pot is still not going to be legal in California for recreational use.   PROP 19 failed to win enough votes on a low voter turnout and California will not have to worry about whether the taxes will offset the expense of policing open use.  As you might guess, there is a silver lining here as no legalized marijuana is now no  longer a threat to beer, wine, booze, and even tobacco.  Without assuming that this means that the hemp trade will go away, this is sort of a win for companies to the tune of  Altria Group Inc. (NYSE: MO), Anheuser-Busch InBev (NYSE: BUD), Brown-Forman Corporation (NYSE: BF-B), Constellation Brands Inc. (NYSE: STZ), Diageo plc (NYSE: DEO), Molson Coors Brewing Company (NYSE: TAP), and others.

Altria Group Inc. (NYSE: MO) is hard to really reference in a direct comparison because many pot smokers are not cigarette smokers.  The company does own an interest in SAB/Miller.  Shares are indicated up around $25.65 after closing at $25.57 yesterday.  Keep in mind that Altria shares are at multi-year highs.

Anheuser-Busch InBev (NYSE: BUD) is now global, so one market might not have mattered anyway.  Shares are down 2.6% at $61.82.

Brown-Forman Corporation (NYSE: BF-B) is indicated flat after a $61.22 close and its market cap is nearly $9 billion.  Some of its brands are Jack Daniel’s, Southern Comfort, Herradura, Finlandia, Jekel Vineyards, Gentleman Jack, Korbel California Champagnes, Michel Picard Wines, New Mix Ready-to-Drinks brands, and many more.

Constellation Brands Inc. (NYSE: STZ) is indicated flat after a $19.52 close and its market cap is roughly $4.1 billion.  Brands are Mondavi, Franciscan and others for wine; it imports imports, markets, and sells Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, St. Pauli Girl, and Tsingtao for beer; and Svedka, Black Velvet, and others in spirits.

Diageo plc (NYSE: DEO) is also an ADR and its market cap is north of $46 billion, although its shares are up 1% at $75.36.  Its brands are Crown Royal, Seagrams, Johnnie Walker, Smirnoff, Baileys Irish Cream, Captain Morgan, Jose Cuervo, Tanqueray, Guinness, and more.

Molson Coors Brewing Company (NYSE: TAP) reported earnings of more than $256 million; shares are up 2.2% at $48.25 this morning.

The interesting issue here is that the news of a failure to pass revolves more around a low voter turnout from the young and those who would have been for PROP 19.  The Economist recently showed a chart with damage by sins in the United Kingdom, and alcohol was shown to be far damaging in a United Kingdom study conducted by The Lancet:

JON C. OGG

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