Can little cannabis help big tobacco?

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, Santas and more endorsed their favorite brands. War soldiers received free cigarettes as part of their rations. But when Fred Levine won the famous tobacco lawsuit, the industry's position as a front-runner began to rapidly decline. But can a little cannabis help big tobacco? Marijuana has recently surpassed tobacco in popularity among Americans. Currently, 16% of adults report smoking marijuana, compared to just 11% who smoke cigarettes. The power tobacco industry could expand but increase its share of cannabis.

In the United States and Canada, cigarette consumption peaked in 1965 at a staggering 4,259 cigarettes per capita annually. During this period, approximately 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. The “Big Tobacco” includes Philip Morris (now Altria), RJ Reynolds, British American Tobacco and Imperial Tobacco. They were and are important international corporations and were once big players on the stock market.

A central concern is demographic change. Nearly a third of respondents under 35 say they smoke marijuana, compared to 8% of young Americans who smoke cigarettes at least once a week. A drastic trend that will be difficult to change. Generation Z has always turned away from alcohol and started the California sobriety movement, where they only use marijuana and don't drink. The alcohol industry has a stake of over $12 billion.

Big Tobacco, while not on the same level, seems to have a future in the factory. Altria Group, the parent company of Philip Morris USA, made one of the largest investments by acquiring a 45 percent stake in Canadian cannabis company Cronos Group for $1.8 billion. British American Tobacco (BAT) is also actively investing in cannabis. Imperial and Phillip Morris have shown interest but haven't made a big splash yet.

Big Tobacco has the influence, money and smarts to take marijuana to the next level not just in the United States but around the globe. You can make cannabis an international success not only recreationally but also medically.