An association with a huge tobacco company isn’t exactly what the nascent cannabis industry needs, according to a story by John Foley for Reuters, citing early talks between Cronos, the Canadian pot producer, and Altria.
Foley concedes that big tobacco companies could provide the capital needed for the sort of rapid expansion that the cannabis industry was likely to see, but he says that such associations might have an image problem.
The trouble was, Foley said, cannabis wasn’t quite like tobacco, nor should it want to be seen that way.
Cannabis producers aspired for their product to be seen as medicinal rather than lethal, for one. Much future usage wouldn’t be smoked but eaten, taken as oils or even applied as cosmetics. Moreover, pot growers would prefer not to be regulated in the same draconian way as tobacco.
In some cases, weed producers could be selective. Canopy Growth in August announced a $4 billion investment from brewer Constellation Brands, targeting a North American infused-beverage market Berenberg thinks could reach $13.2 billion.
Others might turn to pharmaceuticals companies, or even personal-goods makers.
‘Tobacco companies have cash and urgency, but their unmistakable aroma is something Big Weed can do without,’ Foley said.
Seeking a pot of gold
