It is now confirmed that Altria Group, Malboro Owner, has invested in Cronos Group. Altria Group itself is a big name in the market for tobacco manufacturers and producers. This American based company is famous for it’s product – Marlboro. Recently it is confirmed that Canada has legalized the use of Marijuana in the state. And on that very particular day, the Marijuana ran out of stock in the market. Cronos Group is a Cannabis manufacturer, and because of Cannabis being legal, Altria Group has invested $1.8 Million in Cronos Group. By this investment, Altria will get 45% shares of the company. Furthermore, Altria can also increase their share from 45% to 55% in next five years, and get the majority hold of the company itself only.
The Canadians are really very happy with Cannabis being legal in the state. It does not mean that they can just go out and have it. But a limited quota is allowed to every person. There are still some formalities that have to be fulfilled in order to get that particular amount of Cannabis or Marijuana. Another advantage for Marlboro is that it already has a competitive advantage over tobacco manufacturing, and this is also a similar product in a way that only cannabis will be added. So yes a big advantage and also market for Marlboro to get into and make more money out of it.
Also in America Marijuana is now legal in many states. Following are some states where Marijuana has been declared after taking consent from the public, 64% votes were there to legalize Marijuana:
- Washington, DC
So this is a great opportunity for Marlboro to make the most of it. As it is now holding 45% shares of Cornos Group, so it is legal for them to do it in the selected states where Marijuana is legal.