Tobacco Is Investing In Cannabis And These Companies Are Leading The Way
The times, they are a-changin'. 20 years ago, tobacco was all the rage but now, cigarettes are becoming a thing of the past. And cannabis? Well, cannabis is booming. At the beginning of this year, California legalized marijuana for recreational use and is set to become the biggest market for weed in the U.S. Not to be left behind, big-name tobacco companies are investing in cannabis.
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There's no doubt about the fact that tobacco companies have been keeping a close eye on weed for a long time. Cannabis has the inherent ability to be a serious competitor to tobacco but it can also be incorporated into tobacco products. Big tobacco companies have kept this notion on their radar for years, anticipating changes to laws that could propel cannabis to the top. And now, it looks like that's finally happening.
However, it's important to remember that cannabis isn't federally legal (yet) and, as such, tobacco companies are still wary. Investing in cannabis now is sure to give these companies a big return if and when cannabis is legalized on the federal level. Tobacco companies are taking small steps to ensure they have an edge when it comes to cannabis legalization.
Philip Morris International, based in Switzerland, has bought a patent for GMO plants with higher terpenes. This is pretty big news and a strong indication that big business expects cannabis to do really well.
Alliance One International
The U.S. tobacco company, based out of North Carolina, has already made a major investment in Canadian cannabis. As we've seen, legalization to the north is happening a lot faster than here in the U.S. and companies eager to cash in on cannabis are looking to Canada for a fast return. The way things go across the border will also help companies get a better idea of what legalization in the U.S. could mean for their business as well. Alliance One International bought an 80% stake in Goldleaf Pharm Inc., a pot grow facility in Canada.
Imperial Brand made an interesting board of directors choice last year, appointing the chairman of PharmaCielo, a Canadian supplier of cannabis oil extracts to their board. This shows that the Tobacco giant wants cannabis knowledge and experience on their side, indicating an interest in getting into the marijuana business.
One thing's for sure; cannabis means big money and companies are taking notice. The question is, will big business take over the cannabis industry completely? Or will there be room for smaller companies to make a name for themselves first?