Big Tobacco and Big Alcohol Invest Big in Cannabis in 2018

Seth Goldberg
Seth A. Goldberg

Altria announced today its $1.8 billion investment in Cronos Group, a Canadian cannabis grower, processor and dispensary, and the first pure cannabis play to be traded on a major US stock exchange, NASDAQ Earlier this year, Constellation Brands invested $4 billion in Canopy Growth, a large cannabis focused investment fund.

These investments demonstrate the strengthening gravitational pull of the cannabis space on non-cannabis companies.  The significant involvement of major companies like Altria and Constellation likely comes as no surprise to those following the burgeoning cannabis space, and should have their competitors considering similar moves.  There are innumerable legal hurdles to clear in entering the space, but there are few markets today that offer new ground to plow.