• Home  / 
  • News
  •  /  Alcohol, Tobacco Companies Could Lose $55 Billion Per Year to Legal Cannabis

Alcohol, Tobacco Companies Could Lose $55 Billion Per Year to Legal Cannabis

cannabis buds with glass of wine

Altacorp Capital, a Toronto investment bank, recently released a report forecasting an annual Canadian cannabis market of slightly more than 10 billion Canadian dollars by 2025 between recreational and medical marijuana. However, the report also indicated potential losses of up to $55 billion for the world’s major alcohol and tobacco companies. And apparently, those at the helm of said industries are more than aware of the forecast.

Even more, they are considering merging with the blossoming cannabis industry. The catch is, for this to happen, cannabis would have to become fully legal all across North America. If such a thing happens, or rather by common consensus, when this happens, the alcohol and tobacco industries will have little choice but to get onboard the cannabis train or lose billions of dollars in annual revenue. That said, it’s no stretch of the imagination that to prevent such significant losses. These mega-industries will indeed find a way to grow along with the marijuana market, rather than get left behind.

The director of Altacorp’s Life Sciences division, David Kideckel, wrote the report mentioned above. Kideckel believes that mature industries such as alcohol, tobacco, and even cosmetics, will most likely make their way into the growing cannabis market for years to come.

Furthermore, Kideckel went on to propose the idea that many of these mega-companies will not only enter the cannabis industry but will also enable the young marijuana market to open up and expand at a much faster rate. Also, these industry-leading companies from the tobacco and alcohol sectors will enable pre-existing cannabis companies, as well as new partnerships, to flourish by helping to expand research and development, distribution, marketing, and much more.

Kideckel also believes as he stated to that a larger number of corporations would be eager to get involved just as soon as the United States passes some sort of legislation legalizing cannabis on a federal level (whether medically or recreationally). And he’s not simply referring to tobacco and alcohol giants, but of non-alcoholic beverage, wellness, nutrition, and pharmaceutical outfits as well.

So far, tobacco and alcohol giants Altria Group and Constellation Brands alone have agreed to invest 7.4 billion Canadian dollars into two Ontario-based cannabis outfits: Canopy Growth and Cronos Group. And as you could probably guess, there are plenty more giant corporations eyeballing the fledgling marijuana market as well.

Click here to add a comment

Leave a comment: