Tobacco companies are looking wistfully at cannabis

SHARE

The sales of tobacco continue to go down as the world is embracing alternatives that are cheaper or healthier. In order to recover the lost revenue the established companies are now looking at a new opportunity: pot.

The consumption of marijuana for medical reasons has been legalized in many US states and it seems that the change will continue.

From the point of view of the tobacco companies, the transition may seem to be a safe bet. They already know how to pack the product, enhance the addictive potential and sell it to a wide range of customers that trust the brand.

According to data provided by the Center for Disease Control and Prevention the rates at which cigarettes are smoked have continued to fall in the last 50 years. The vast majority of people is fully aware that smoking is a dangerous habit. Their popularity is very low among younger generations that have been exposed to the risks and consequences of smoking through a variety educational content.   Facts like smoking being banned in certain locations and higher taxes have also contributed to the downfall of the vice.  The popularity of electronic cigarettes is also affecting the industry in the long run.

Secret documents that have been published recently reveal that the tobacco industry has been looking at marijuana consumption since the 1960’s. The intentions are not clear but it is likely that marijuana was seen as a rival that threatened the profits.

Atrium, the largest cigarette manufacturer in the world, has recently invested in a Canadian cannabis company in exchange for 45% of its stocks. The partnership opens up a lot of possibilities and the two companies could push the legalization of marijuana at in other countries in the next decade.

The transaction marks the first foray of a tobacco company into the field of marijuana and the results could have a long-lasting impact. Earlier in October the recreational use of marijuana was legalized in Canada and it is believed that some US states will follow the example.


SHARE

Related Posts