November 21, 2013

Cigarette Companies to Become ‘Budweiser’ of Marijuana?

In the coming years, major consumer-facing cannabis brands could arise as more states pass medical and recreational marijuana laws and the industry grows.

And one Wall Street guru thinks he knows which companies will be behind these brands.

“Who’s going to be the Budweiser of marijuana? My guess – they would all deny it – would be cigarette companies,” Gerry Sullivan, head of the Vice Fund, predicted in an article by Reuters.

In fact, Sullivan said the Vice Fund – which invests in risque industries such as gambling, guns and alcohol – will keep strong positions in tobacco companies partially for this reason.

Cigarette companies could indeed be positioned well to enter the marijuana industry, and many cannabis professionals have long feared an invasion by Big Tobacco (and Big Pharma).

But it would likely take a significant change on the federal level before this happens. Mainstream corporate giants, such as those in the tobacco industry, would need a clear sign from the government that they could participate in the marijuana sector, likely through new legislation and a reclassification of the drug.

And cigarette companies have shown little interest in the cannabis industry, at least publicly.

Still, there’s no question they are keeping an eye on the situation, and cigarette heavyweights are likely having internal discussions about how to get involved if and when the government changes its position.


4 Comments:

  1. Highly doubtful considering it’s illegal for a cigarette company to be owned by or associated with medical marijuana dispensaries in Colorado not sure about other state rules but. Big tobacco can keep there their nicotine out of my plant. Also because the war on tobacco is so huge and marijuana is veiled as medicinal I highly doubt the tobacco industry would be interested in getting into that considering we’re trying to heal the very thing they create. Death -

  2. I have heard that tobacco companies had bought up lots of land in N Cali, specifically in Mendocino and Humboldt counties, in anticipation of marijuana becoming legal.

  3. I’ve heard the the major cigareite companies long ago registered trademarks for brands such as ‘Acapulco Gold’ ‘Kaui Wowie’ and many others back in the 60′s and have maintained those trademarks all through the years awaiting legalization. Any truth to it?

  4. The likely outcome of all this sickens me, but tobacco companies know the business of marketing way better that almost anyone out there. What we need to be really vigilant about is denying them the opportunity to compound nicotine with cannabis products. In the UK, marijuana is routinely smoked with tobacco which makes it just as bad if not worse that smoking cigarettes.

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As MMJ Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

Privateer Holdings Expects to Raise $50M

Privateer Holdings, one of the largest private equity firms in the cannabis industry, is reportedly [click to read more...]

WeedMaps Ad Pulled From Times Square

Online dispensary directory WeedMaps recently purchased electronic billboard space in New York City’s Times Square, [click to read more...]

Wisconsin Legalizes CBD Oils, But Questions Remain

Wisconsin has become the latest state to legalize cannabidiol extracts, joining Utah and Kentucky in [click to read more...]

More Oversight on Rhode Island MMJ Industry Urged

A marijuana working group in Rhode Island is lobbying for greater oversight of the state’s [click to read more...]

Nevada MMJ Businesses Scramble to Meet Application Deadline

Prospective medical marijuana business owners in unincorporated areas of Nevada’s largest county are making a [click to read more...]

Boston Dispensary Told to ‘Go Away’

A medical marijuana dispensary looking to set up shop in Boston can’t seem to win [click to read more...]

CO Seeks to Shut Down Raided Dispensaries

Colorado regulators recently moved to shut down four dispensaries that were targeted during a high-profile [click to read more...]

DOJ Chief ‘Cautiously Optimistic’ About Rec Cannabis Programs

The nation’s top law enforcement official said he is encouraged by Colorado and Washington State’s [click to read more...]

70+ Oregon Cities Temporarily Ban Dispensaries

More than 70 municipalities in Oregon have implemented moratoriums on medical cannabis dispensaries, limiting businesses [click to read more...]

CA Marijuana Cultivators Urged to Cut Water Use

Legal and illegal marijuana cultivators in Northern California could be draining valuable water from the [click to read more...]

Kentucky Approves CBD Extracts Law

Kentucky has joined Utah on the short list of U.S. states to legalize cannabidiol (CBD) [click to read more...]

Maryland Revives Medical Cannabis Program, Passes Decriminalization

Maryland lawmakers have revamped the state’s medical marijuana program by establishing a framework of rules [click to read more...]

Denver Rec Shop Projects $10M-$12M in 2014 Sales

The owner of one of Colorado’s largest recreational marijuana stores projects his 2014 revenues will [click to read more...]

GrowLife Trading Halted by SEC, Cannabis Stocks Drop

The U.S. Securities and Exchange Commission has temporarily halted stock trading for GrowLife Inc. (PHOT), [click to read more...]