Tobacco has long been an economic giant…but is cannabis upending the system?
From the Marlboro Man to Virginia Slims, smoking a cigarette has been iconic. Movie stars, Santa Clause and more encouraged their favorite brands. Soldiers in war received complimentary cigarettes as part of their rations. But when
Fred Levine won the famous tobacco lawsuit, the industry reign as a top dog rapidly started to diminish. But can little cannabis help big tobacco? Marijuana has
recently surpassed tobacco in popularity among Americans. Currently, 16% of adults report smoking marijuana, compared to only 11% who smoke cigarettes. The power tobacco industry could expand but increase their stake in cannabis.
In the United States and Canada, cigarette consumption peaked in 1965 at a staggering 4,259 cigarettes per capita annually. During this period, about 50% of men and 33% of women smoked regularly. The tobacco industry’s influence extended far beyond sales, shaping culture, advertising, and even medical opinions. “Big Tobacco” includes Philip Morris (now Altria), R.J. Reynolds, British American Tobacco, and Imperial Tobacco were and are key international corporations and used to be big players on the stock market.
A key concern is the change in demographics. Nearly a third of respondents under 35 say they smoke marijuana compared to 8% of young Americans smoke cigarettes at least once a week. A drastic trend which will be hard to change. Gen Z has always drifted away from alcohol and started the California sober movement where they only consume marijuana and don’t drink. The alcohol industry has a stake with over $12 billion invested.
While not at the same level, Big Tobacco seems a future in the plant. Altria Group, the parent company of Philip Morris USA, made one of the largest investments by acquiring a 45% stake in Canadian cannabis company Cronos Group for $1.8 billion. British American Tobacco (BAT) has also been actively investing in cannabis. Imperial and Phillip Morris have shown interest but have yet to make a major play.
Big Tobacco has the clout, cash and cleverness to take marijuana to the next level in not only the US but around the globe. They can make cannabis an international juggernaut not only recreationally, but medically.
