Big Tobacco Ready To Venture Into The Cannabis Industry

in #market5 years ago

It is no surprise that big tobacco companies might be wanting to stake a claim in the cannabis market.

Over the last decade, smoking prevalence in the US has dramatically decreased. And since 1980, global prevalence of smoking is said to have declined about 42 percent for women and down 25 percent for men. Considering that there are billions here to be made in the cannabis industry, it's no wonder that tobacco giants might be considering the move to providing cannabis products.

Imperial Brands Plc in the UK is said to have recently sought out the services of an expert and leader in the field of medicinal cannabis. Just to give you an idea of the size of Imperial Brands Plc, this company has yearly revenue in the tens of billions.

The expert they called on was allegedly Simon Langelier who is the chairman of a supplier of cannabis oil extracts; PharmaCielo Ltd. And Langelier is said to has temporarily joined the board for Imperial Brands Plc, to act as a non-executive director.

It's reported that Langelier will be tasked with widening consumer adjacencies for the company, he's going to help them to diversify. It's rather clear that Imperial Brands is going to look now toward getting more involved in the cannabis market.

When it comes to the popularity of consuming cannabis, it's growing around the world. In the US for example, you can see from the chart below how popular the activity is compared to the consumption of other items.

Imperial Brands aren't the only big tobacco player that have been looking at the cannabis industry either.

But if these companies look to sell cannabis instead of tobacco, will the consumers be willing to trust purchasing their product from them rather than someone else. After all, the tobacco industry doesn't have the best reputation; maybe cannabis can fix that for them?

Their interest with tobacco companies to get involved in cannabis might also be something that has been brewing for many decades, and not something that's just flourished recently because of the new push for legalization and acceptance of the plant globally. It's reported that since the 1970s, big tobacco companies have been interested in cannabis and the legalization thereof.

The cannabis market in the US has become so sizable that big consumer product companies are unable to ignore it now; they'd be foolish to. The cannabis sales for 2016 were estimated to be somewhere around the ballpark of $6.7 billion and it's expected that those sales are going to top 20 billion within just the next couple of years.

And the $6.7 is just for "legal" sales of the product, whereas "illegal sales are estimated to be somewhere around $40 billion.

The legalization of cannabis has been described as the fastest growing industry within the US and it's projected that it could bring about the creation of more than 250,000+ new jobs by 2020.


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Pics:
Iriana Shiyan Shutterstock
digiday.jp
Euromonitor International, MBD via Bloomberg

Sources:
http://www.economist.com/blogs/economist-explains/2015/07/economist-explains-7
http://www.bloomberg.com/gadfly/articles/2016-04-20/marijuana-could-be-big-tobacco-s-next-pot-of-gold
https://www.sciencedaily.com/releases/2014/01/140107170737.htm
https://www.bloomberg.com/news/articles/2017-06-13/imperial-brands-board-gets-counsel-of-cannabis-company-leader
https://www.bloomberg.com/gadfly/articles/2016-04-20/marijuana-could-be-big-tobacco-s-next-pot-of-gold
https://etfdailynews.com/2016/12/09/is-altria-the-best-way-to-play-legal-marijuana/
https://www.forbes.com/sites/greatspeculations/2015/07/01/altria-opportunity-in-the-market-for-marijuana/#20785a92965d
https://www.usatoday.com/story/money/business/2015/04/11/cigarettes-and-marijuana/70746772/
http://dailycaller.com/2016/01/04/tobacco-giants-eye-lucrative-50-billion-marijuana-market/
http://www.businessinsider.com/arcview-north-america-marijuana-industry-revenue-2016-2017-1
https://www.inc.com/will-yakowicz/marijuana-sales-2016-50-billion.html
http://www.huffingtonpost.com/2015/01/26/marijuana-industry-fastest-growing_n_6540166.html
https://www.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/#276a51d53fa9

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Great piece well written, i support it :)

Finally getting to the place that marijuana legalization has been heading too. Of course there was almost certainly a plan on the part of big tobacco to engage in marijuana sales for decades now, they've just waited for the profit/optics balance to flip. I guess we're getting there!

Yeah i think it's a good idea as long as they don't start putting all kinds of chemicals like they do in Tobacco. But it could be a good change and it could be a bad haha They just need to legalize it world wide damn just like tobacco!!!

very dope sharing ,thank you :)
here in Latvia nobody wants talk about it , even government says old lies how bad is it ...bla bla bla shame.

So now we need to hide ,if you want to smoke your stuff ,and then look forward to find Visine ,to get red off from ya eyes haha .. So then
you are ALWAYS SOBER :D
visine copy.jpg

I don't like the thought of tobacco companies selling cannabis but if it helps with legalizing it then I guess its for the greater good. I worry that they'll spray it with nasty pesticides and chemicals as they already do with tobacco.

I agree with your point, I also didn't like the initial thought of big tobacco selling cannabis products. However, one has to imagine with their already-established factories, marketing, etc. that there is potential for these companies to make cannabis more easily obtainable with existing channels and for a cheaper price! Plus, with tobacco companies diving into the cannabis trade, one can expect their focus to shift away from dangerous tobacco and more into healthy cannabis alternatives. Might not be the worst thing for us all!

i expect it'll be a hard sell for them lol but they've got the money to market it!

True, they did the same with vaping. I hope I'd be able to grow some for personal use.

buying up vape producers like crazy

That is a legitimate concern, though the illegal stuff that is around is frequently treated with banned products. I think the real thing we all have to do is vote with our $$$. So, we need to drive the tobacco industry away from harmful pesticides and towards helpful growing techniques. Just as we need to continue the drive away from smoking tobacco and towards cannabis.

hey ...far out man

true , great article , and thanks for sharing with us.

If Big Tobacco gets involved, it won't be long before their lobbyists will be providing "legislation" to "protect" Americans.

i.e. Help Big Tobacco monopolize it.

My bet is that they've had laws written for decades just waiting for the time to be right to roll them out in an attempt to crush any potential competitors under a mountain of regulations and compliance.

that's the fear, folks trying to use violence to "protect us" lol

Not to mention the fact that they have a proven track record of manipulating nicotine content in cigarettes to make them more addictive/toxic.

You know they're trying to pull something when they roll out the "protect" or "safety" or, worse yet for the "protection and safety of the CHILDREN".

hahaha... that's a horrible thought. And, yet, would surprise me either.

Hope the small players don't get taken out by the big corps!

We make and break the big corps. Only spend at small shops and you'll help protect them.

i would much rather support the small players, well whoever has the best product which is usually the small players in the cannabis industry

yeah me too - it will all depend on the end product...

They will. That's Capitalism

no, that's corporatism :)

I am sure that within a few years 20 "HIGHS" will be available like 20 Marlboro are now. Branding is Branding, folks love a brand I can see "Marlboro Highs".

The tobacco industry has no intent on losing market share. I recently discovered that the big tobacco own all the tobacco quit patch companies so you see, they have you at every stage and intend on staying that way so Cannabis is the natural progression as we turn away from tobacco.

I'm fairly sure I read somewhere that it was the tobacco industry that got it banned in the first place.

wouldn't be surprised!

They will go anywhere they can make money.

it is a very informative blog.....you may visit my blog also for interesting travel blogs i love to travel and i will be daily uploading about trips you can resteem my posts also ... follow me for interesting travel blogs

Legalization should be the way to go. Here in the Netherlands we look the other way and shops are allowed to sell, but production of Cannabis is prohibited. So, I can hear you think; but how do the shops get there Cannabis then? Backdoor policy ;)

Which is how the Netherlands gets around the UN level prohibitions. Love the Netherlands, but it's freaking cold there. Always wondered what the greenhouse costs are, considering how inexpensive some of the strains are at the coffee shops.

Can't tell you about the costs for the greenhouse, but I can tell you that it's 30degrees and sunny today ;)

lol. That sounds like the perfect weather for visiting!

It is! And coffeeshops are open till late, so grab a flight and GoCoconuts 😉

Ah! Would that I could! Too much going on right now. But, I think I've got enough Steem to pay for a RyanAir flight. Now I just gotta save up for room/board and the coffeeshops!

amazing

Let big tobacco into the marijuana patch and they will likely bring in GMO pot. Treat it with tons of chemicals and ruin all the natural health benefits of weed. Just let me grow my own. Thanks

"Just let me grow my own."

^^^^

That right there! And, while we're at it, how about we quit limiting the number of plants that an individual can grow?

Damn straight. Arbitrary numbers.

Only meant to give "enforcement officers" an out for stealing plants and lives from individual growers

I completely agree. The mere fact that they sell cigarettes (knowing they cause cancer) shows they care nothing about the health of their consumers. So, they will no problem ruining the health benefits of marijuana in order to do whatever is necessary to make money!

Yeah, but tobacco causes cancer by itself anyway, the other chemicals they add just make it worse.

I would prefer big tobacco not be involved and let MJ be it's own thing, but greedy corporations being what they are if they can't have their slice they'll lobby against it instead.

True, its safer all round, thanks for the article

wonderfull article. Resteemed+Upvoted+follow

Only medical purpose is good else all waste

not sure what that means? this plant can provide amazing benefits aside from those in just the medical industry.

I don't support drugs which spoil youth.... But yes if used for betterment of world they are good and only for that purpose they should be used.. That is what I ment

There are many things that spoil youth. Most of them involve telling the youth what they should be doing, or not doing, or what they should believe in, or not believe in. Let's not spoil youth for the young by making decisions for them.

marijuana is less harmful than alcohol, so I don't see why people shouldn't be allowed to use it.

Your photo photo is very good, hopefully we can join so friends in team steemit, success always broe......

It's all about money

They sure have been buying up alot of. Land in selected areas.

FUCK THEM, STAY OUT OF MY BAG!

They are opening their minds 🙌🏼🙌🏼🙌🏼

Hi @doitvoluntarily. Nice article. Guess it goes to show whenever there is money to be made, there definitely will be "hawks" looking to swoop down and cash in on it. The rich gets richer.

I think it will be a positive and a negative for the cannabis movement. Time will tell I guess, @doitvoluntarily

great article! dont let tobacco enterpraises destroy cannabis industry!

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Well, as a libertarian...I say let them do it. I don't like them but if we can actually get to a free and open market...the good companies will win.

Interesting... Had no idea it can be such a huge bussiness

Anyone invest in cannabis stocks or cannabis coins ?

Marijuana legalization is finally going into right direction. But tobacco companies selling it, hm i just do not like the idea, on the other hand, they are so powerful, that they will be making big profits whit low prices, which is good for consumers :). Great post. Thank you for sharing.

It seems to me that big pharma and tobacco have been working behind the seems to eliminate the little grow opps and for a while now. really evident in California and Canada. even in South Dakota our attorney general who has been against even cbd just supported a bill that listed only one brand of CBD as legal. and geuss who donated to his campaign fund?!? luckily the activist community put out enough noise to shut that part of the bill down

Outdoor plants can be very beautiful, certain strains may grow better outdoors and yield more lbs than indoor plants.

Youre doing really a good job here on steemit, i like the fact that you insert all the sources into it. You invest time and that should be rewarded 👍

No surprise there really. What it will mean however is, more regulation for pot growers, designed to squeeze the little growers and distributors out. Secondly, the quality of packaged pot will be adulterated and mixed with chemicals as is currently done for tobacco. Bad for everyone, except the big tobacco companies.

Why would they want to mix in chemicals with it?

The same reason they mix chemicals with tobacco, to make it burn faster, and so that it never goes out. Haven't you ever noticed that, with tailor-made cigarettes, once lit, they burn until nothing is left, but self-made / hand rolled cigarettes are always going out? It is simply a means to make you buy more cigarettes. To make matters worse, these chemicals are toxic for you and worse than any of the naturally occurring ones in tobacco. This point is NEVER discussed publicly. So of course, the same will happen with big name brand joints.

Ah yeah, I remember reading something like that a while ago. Pretty awful.

That's the future if people don't realise the difference between decriminalisation and legalisation.

This level of research and reference earns my up vote, follow and mad respect. We smokers have known for years this was coming and planned for, but it's the level of work you did here that got my minnow penny!

I'm all in if big tobacco begins to focus more on medical marijuana than cigarettes. I think that's a win for everybody, other that tobacco smokers. I'm a fan of everything that pushes the legalization of marijuana.

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