The Smokeshow
Everyone wants a piece of the cannabis action
Image credit: Reefside.co
Written By Nick Weising
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annabis, whether recreational or medicinal, is now legal in 36 states. On March 31st, the state of New York legalized recreational marijuana, adding the Empire State to the large list of states with legal cannabis. Likewise, the Biden Administration and Democratic Congress may further loosen federal enforcement. This is a dramatic turn from the state of legalization just a few years ago, largely because of changing public perception. Once seen as a hard narcotic, marijuana is now largely viewed more mildly, with state governments seeking to tap into marijuana-related tax revenues.
According to Marijuana Business Daily, the legal market in the US will reach between $11.2 and $13.7 billion in retail sales this year and could grow to reach $30 billion by 2025.
The business world is not unaware. Large corporations in sin industries have been taking large stakes in cannabis companies in the United States and Canada. Altria, the parent company of Philip Morris USA, paid $1.8 billion for a 45% stake in Cronos Group, a publicly-traded marijuana conglomerate based in Canada. Alrtria also patented a variety of marijuana products and devices, suggesting that the The US marijuana market has grown significantly future of cannabis consumption will be via vaping in recent years. and ingestion. Although recent investments by the firm have faltered, Altria continues to inject capital, indicating strong faith in the long-term prospects of the marijuana industry. Research from Brightfield
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Group indicates that the international cannabis market is projected to hit $31.4 billion by 2021 with the U.S. currently driving more than 90% of worldwide sales.
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Cornell Business Review
Big Tobacco companies are not the only ones dipping their toes into the market. Alcohol giant Constellation Brands, the makers of Corona beer, bought a 38% stake in the largest Canadian cannabis company, Canopy Growth, for $4 billion in August 2018. This deal was preceded by a smaller $200 million investment in October 2017 by Constellation. Heineken has also invested in Canadian marijuana businesses, and Novartis, the pharmaceutical giant, entered into a strategic
