There is yet another sign that the landscape for the legalization of Cannabis use in North America. Lately Altria; the company behind the renowned cigarette brand Marlboro cigarettes has announced that they are going to make a huge investment in a cannabis company called Cronos Group. The amount of the total investment is approximately about 2.4 billion Canadian dollars, which roughly calculates into 1.8 Billion US dollars.
This shows the trend that more and more big companies in the tobacco industry are being drawn towards the world of Cannabis and they are showing it by investing heavily into this business.
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Mike Gorenstein; CEO of the Cronos enthusiastically announced the news of this major investment to press. In the press conference, he explained as to why this partnership makes sense and he also played out the brief outline of what this extra money can accomplish for the company’s future.
“Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth … the proceeds from Altria’s investment will enable us to more quickly expand our global infrastructure and distribution footprint, while also increasing investments in R&D and brands that resonate with our consumers. Importantly, Altria shares our vision of driving long-term value through innovation, and we look forward to continuing to differentiate in this area.”
This news was received rather positively in the stock market. J8ust after the announcement of this new, the share prices for the Cronos Company’s stock saw an increase of nearly 35 percent.
Many other big brands have also jumped into the prospect of making money through cannabis with their deep wealthy pockets as of late. It is not only the tobacco giants, which are looking to incorporate this new emerging business into their own businesses. On e pother brand that actually sells the famous and home favorite alcoholic beverages like Corona beer and Svedka vodka known by the name Constellation Brands has also dived into this major cannabis market.
Back in August, Constellation Brands announced the news for their investment of 4 billion US dollars in another Canadian cannabis producer by the name “Canopy Growth”. Now earlier this month there was also news about the renowned ‘Coca Cola’ brand of being in negotiation talks with the company named ‘Aurora Cannabis’. There is speculation that Coca Cola is also looking to making a line of beverages infused with CBD, which is a non-psychoactive compound, found in cannabis.