Will Marlboro Weed Cigarettes Soon Flood The Market?

Updated: December 13, 2018

Altria, the company that makes Marlboro cigarettes jumped into the cannabis market on December 7th. They invested $1.8 billion in the Canadian cannabis firm Cronos. This also made them almost half owner of the company, with 45% ownership stake.

Win-Win For Both Sides

Since the sale of classic cigarettes slows down, Altria will have only 1% revenue growth this year and presumably in the year 2019 as well. However, this deal gives Altria great possibilities to grow.  In the next 5 years, Atria can increase its stake to 55%.

Mike Gorenstein, Cronos Group’s chairman, president, and chief executive officer said: “Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth.”

 

In addition, Cronos benefits from this deal as well. Company explained in the press release, that Altria’s long history in the business implies that it offers “product development and commercialization capabilities, and deep regulatory expertise.”

And mutual benefits can already be seen. Just when the news about a collaboration between Altria and Cronos became public, shares of Altria grew for 2% and shares of Cronos for 30%.

Cannabis Market Is Growing

So does that mean, Marlboro weed cigarettes will soon flood the market? Probably not. However, the acceptance of weed is becoming more and more common, and the cannabis market is increasing with a fast pace. Since the legalization of recreational use of marijuana in Canada in October and in several US states in November, not just Cronos, but other cannabis stocks have been put under the spotlight. Smart companies, such as Altria, realize that in the future cannabis market will grow even further and at a faster pace. The sooner they establish their position in this market, the better for them.

And many beverage, tobacco and other companies are doing just that. Constellation Brands, a company that makes Corona, already invested in Canadian marijuana company Canopy Growth. Furthermore, there were rumors that Coca-Cola planned on investing in Canadian cannabis company Aurora. However, rumors this appeared not to be true. And beer brand Languitas, owned by Heineken, is already selling cannabis infused sparkling water.

 

What are your thoughts on that? Do you like that cannabis market is growing? And would you buy Marlboro weed cigarettes? Leave a comment below! 

Join us

Join our insiders club for monthly motivation, news and presales. We are not going to spam your email box. We are going to send one or two emails per month. We promise they will be valuable.

You may also like

January 24, 2019
Stoner Music: 5 Classics to Listen to When You Are High

It’s easy Sunday evening. You’ve done your choirs and now you have time for yourself. You lay down on your comfortable sofa, light one up and relax. But something is missing – a good music. And not everything is appropriate to listen to when you’re blazed. Having troubles picking the right stoner music? No worries, High […]

Read More
December 13, 2018
Will Marlboro Weed Cigarettes Soon Flood The Market?

Altria, the company that makes Marlboro cigarettes jumped into the cannabis market on December 7th. They invested $1.8 billion in the Canadian cannabis firm Cronos. This also made them almost half owner of the company, with 45% ownership stake. Win-Win For Both Sides Since the sale of classic cigarettes slows down, Altria will have only […]

Read More
May 23, 2018
Strains for Pain: Different Strains for Different Types of Pain

As it’s well known and mentioned in many cannabis news, marijuana is very successful when it comes to relieving pain. You name it, cannabis will be helpful in most of the cases. But of course, we can’t generalize cannabis strains and say that just smoking a random joint will be of any good since every […]

Read More
May 16, 2019
How to make cannabis chocolate

Making cannabis chocolate is really one of the simplest and fastest ways how to make edibles. So if you're in a rush and would like to make edibles in a matter of an hour or you just like chocolate and would like to combine it with your second favorite thing - cannabis, this is definitely […]

Read More
1 2 3 17

Leave a Reply

Your email address will not be published. Required fields are marked *

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram
Tweet
Share
Share
Pin