Altria continues its takeover bid for the cannabis and CBD market

The company Altria, or Philip Morris USA, which markets the Marlboro brand in the United States, is continuing its operations in the cannabis and cannabidiol (CBD) sector, by increasing investments and regulatory pressures.[1].

By investing $1.8 billion in the Canadian company Cronos Group at the end of 2018, one of the leading listed multinationals specializing in the marketing of therapeutic cannabis, Altria announced a shift in its strategy. As mentioned by a article Generation Sans Tabac, the brand sees the cannabis sector as “an emerging sector on a global level”. In February 2020, the cigarette manufacturer confirmed this new strategic direction by filing two patents for THC and CBD vaporizers, the two active cannabinoids in marijuana.

Removing Regulatory Barriers to Cannabis and CBD

To achieve this, this desire for diversification is facing several difficulties, starting with regulatory barriers. However, according to US federal documents related to lobbying transparency, the tobacco manufacturer is conducting a real public affairs operation to relax the legislative framework. In particular, Altria is said to have spent $30,000 with lobbyists to put pressure on the House of Representatives on tax issues. Similarly, the documents indicate that the multinational paid $50,000 to a firm specializing in cannabis issues, in order to encourage senators to mobilize on "issues related to hemp-based cannabidiol (CBD)."

Putting legalization on the political agenda

At the same time, according to the Cannabis Wire newspaper, the tobacco company is lobbying for the first time in its history for the legalization of cannabis at the federal level.[2]According to its spokesperson, Altria wants “working with policy makers and regulators to support a transparent, accountable and fair operating environment for the sale of cannabis”. The manufacturer's strategy seems to be paying off, as the Virginia House of Delegates and Senate have approved the bill legalizing the sale and consumption of cannabis. Without a veto from the Virginia governor, the cannabis market should see the light of day in 2023. At the federal level, similar developments could be observed in the coming years. For example, Chuck Summer, the new Democratic majority leader in the Senate, has stated that legalizing cannabis is now a "priority" for Congress.

The tobacco, nicotine, cannabis and CBD industry

This diversification operation by Altria is not a first. In December 2018, the tobacco manufacturer invested $12.8 billion in Juul, representing a stake of 35% in the capital of the world leader in electronic cigarettes. A year later, the latter lost nearly 70% of its value. These strategies note an underlying trend in the tobacco industry, which, faced with the decrease in tobacco consumption in the United States and worldwide, is seeking to initiate a transition to become an industry of tobacco, nicotine, and here, cannabis.

[1] Forbes, How Tobacco Giant Altria Is Becoming A Cannabis Company, February 9, 2021, (accessed 02/23/2021)

[2] Cannabis Wire, Altria, Maker of Marlboro Cigarettes, Is Lobbying on Cannabis Sales in Virginia, February 7, 202, (accessed 02/23/2021)

National Committee Against Smoking |