12-09-2018 | News
Photo credit: Alexey Novikov | Dreamstime.com
Marlboro Makes $1.8 Billion Investment Into Cannabis Industry
It's technically a move that would seem to make a lot of sense, Marlboro's parent company Altria is making a nearly $2 billion investment into marijuana. I'm not sure when the urban legends about Marlboro's potential interest in a legal marijuana industry began, but I recall hearing rumors as far back as the mid '90s.
Altria Group Inc's 45% stake in Cronos Group, a Canadian medical and recreational provider, could become a controlling ownership over the next 4 years leading to a 55 percent ownership by the Richmond, Virginia based tobacco giant.
Constellation Brands, the makers of Corona, is also entering the industry via $4 billion worth of shares of Canopy Growth Corp., another Canadian marijuana company. So far, that makes the makers of Corona and Marlboro the largest American investors in the burgeoning cannabis market.
Canada's recent legalization of marijuana has provided a safe testing ground for US investors. With Cronos Group stocks jumping 22% on Friday, more US investors may consider adding some green herb companies alongside their blue-chip stocks in their portfolio.
With more states decriminalizing or even opening up cannabis markets for medicinal and/or recreational use and changing perspectives related to marijuana use, the industry will continue to appear more appealing prospects for investment and acquisition.
By 2027, legal cannabis is projected to net $57 billion per year worldwide, according to Arcview Market Research. 2017 spending on legal cannabis in North America hit $9.2 billion but is expected to reach $47.3 billion in 2027.
Twitter: #marlboro #mmj #cannabisindustry #cannabis
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