NEWS
Marlboro manufacturer
“in talks with” Canadian
cannabis grower
Altria is said to have had several meetings with Aphria over possible investment deal
By Gordon Stribling
Marlboro manufacturer Altria is reportedly
in talks with Canadian cannabis grower
Aphria to acquire a stake in the company.
Executives at Altria, the parent company
of Philip Morris USA, have had several
meetings with the cannabis grower according
to reports.
The Globe and Mail said the tobacco giant
was initially looking to acquire a minority
stake with the intention of later becoming
a majority shareholder.
Aphria confirmed that it engaged in discussions
with “potential strategic partners and/or
investors from time to time” but added that
there was “no agreement, understanding,
or arrangement in place with a potential
investor at this time.”
The talks were revealed a week before the
legalization of cannabis came into effect
on October 17.
According to Bloomberg intelligence analyst
Kenneth Shea, the tie-in would work as
both an offensive and defensive strategic
move for Altria.
32 | VMC
“A deal would make
Altria a participant in
the emerging growth
of legal cannabis
products in Canada
and internationally”
Shea wrote: “A deal would make Altria
a participant in the emerging growth of
legal cannabis products in Canada and
internationally and establish a critical
partner upon possible US federal marijuana
legalization.”
Altria are not the first tobacco company
to venture into the cannabis industry. Imperial
Brands teamed up with alcohol producer
Constellation Brands and Snoop Dogg’s
Casa Verde Capital venture firm in June
to invest in medical cannabis research.
In September it was reported that Coca-
Cola had held talks with Aurora Cannabis
to produce CBD-infused beverages.
Global spending on legal cannabis is
expected to reach $57 billion by 2027
with the North American recreational market
accounting for 67 percent of that figure.
There is mounting evidence that patients
in legal US states are moving away from
prescription opiates and onto medical
cannabis containing varying levels of CBD
and Tetrahydrocannabinol (THC).
Medical cannabis is expected to dominate
in the EU over the next decade, where
government-subsidized healthcare systems
have a spending budget of $1.3 trillion.
There is a growing appetite for medicinal
cannabis in Europe, particularly in the UK
where 45 percent of the world’s medical
cannabis is produced.
Following intense public pressure, the UK
government permitted specialist doctors
to prescribe medical cannabis. However,
Home Secretary Sajid Javid has ruled out
legalizing cannabis for recreational use.