British American Tobacco invests in cannabis and CBD

BTA is following a path similar to that of Altria, which in December 2018 invested $ 1.8 billion in the Cronos Group. The giants of the tobacco business that have joined the projects in the field of modern cannabis growing include such giants as Philip Morris and Alliance One International, which indicates that the hemp market has convinced large tobacco multinationals of its prospects and does not want to stop growth. ... 

In 2021, British American Tobacco (BAT) decided to radically change its attitude towards the modern cannabis sector. After providing financial support for anti-cannabis campaigns in the United States for years by the entire tobacco sector, BAT announced a $ 174 million investment in Canadian Organigram. This move makes British American Tobacco the largest shareholder in Canadian Organigram. 

According to industry experts, the agreement announced on March 11, 2021 is just the first step towards the ever-growing hemp and CBD sector that British American Tobacco wants to enter. 

“Our multi-categorical, consumer-centric approach, which is the key to our transformation, aims to provide a variety of choices and meet the growing needs of adult consumers. This choice also aims to create lower-risk alternatives to flammable cigarettes. We want to go beyond tobacco and nicotine and tackle exciting new areas of product innovation, ”David O'Reilly, BAT's director of research, explained to the press. 

In addition, the new partnership, on the one hand, will provide Canadian Organigram with the opportunity to officially enter the global market, and on the other, will give British American Tobacco the opportunity to gain access to the latest ideas and technologies of the Organigram R&D center, as well as the experience of Canadians. in the hemp business.

Commentary of the specialists of the Association "Ukrainian technical hemp"

British American Tobacco is a British multinational company that manufactures cigarettes, tobacco and other nicotine products. As of 2019, it is the largest cigarette manufacturer in the world. BAT has launched a pilot project related to its own line of e-cigarettes CBD. The offer is currently limited to the City of Manchester, but British American Tobacco aims to expand this segment of its business across the UK by the end of 2021.

Canadian Organigram is a leading Canadian licensed manufacturer of high quality medical and recreational cannabis.

On the one hand, the radical change in the thinking paradigm of one of the leaders of the tobacco industry is surprising due to the fact that until recently BTA was one of the largest donors to companies that counteract the development of cannabis farming in the United States. However, if we look at the root of the problem, we can say that BTA is following a path similar to the one along which Altria (a manufacturer of Marlboro cigarettes, among other things), which in December 2018 invested $ 1.8 billion in The Cronos Group is a hemp company based in Toronto. The giants of the tobacco business that have joined projects in the field of modern cannabis growing include such giants as Philip Morris and Alliance One International, which indicates that the hemp market has convinced large tobacco multinationals of its prospects and does not want to stop growth.