Posted Aug 21st 2018
Two Tobacco Giants get involved in the cannabis industry-Philip Morris International, Imperial Tobacco
In the international market, Philip Morris International, British American Tobacco, Japan Tobacco and Imperial Tobacco have almost monopolized nearly 70% of the global cigarette market except China.
Philip Morris International
Philip Morris International not only has the first tobacco brand Marlboro, but also the famous Danone biscuits... is the world's largest tobacco company and the second largest food manufacturer in the world.
On January 27, 2003, Philip Morris officially changed its name to Altria Group (ALG). The main operating subsidiaries of ALG are Philip Morris USA and Philip Morris. Sis International, Philip Morris Capital, the three largest and most profitable tobacco companies, and Kraft Foods.
In 2016, Fip International invested $20 million in Syqe Medical, an Israeli company that produces 3D printed cannabis inhalers.
In the past few years, Fip International's European subsidiaries have applied for and obtained a series of patents related to terpenes, including marijuana... Now, Fip International has many patented products and the most popular products of cannabis pharmacies. Amazing similarities.
As shown above, 2014 ALG revenue is close to $24.52 billion. Some industry analysts predict that if ALG gains a 10% market share in the cannabis sector, its overall revenue will increase by about 16%. In fact, ALG can gain a bigger market share because it has a strong competitive advantage in distribution and branding. If it accounts for nearly 50% of the market, just like in the tobacco industry, ALG's income can almost increase. Doubled.
Imperial Tobacco is the world's fourth-largest tobacco manufacturer and one of the world's oldest tobacco companies, with 33 plants worldwide and products in more than 130 countries and regions.
Imperial tobacco brands include Davidoff, Gauloises Blondes L&B, News, JPS and West. Davidoff cigar is the most famous and the world's largest cigar brand.
Last month, Imperial Brands partnered with seed venture company Casa Verde to invest in British medical marijuana research company Oxford Cannabinoid Technologies.
Imperial Tobacco said in a statement that "cannabinoid products have great potential, and our investment enables Imperial Tobacco to support Oxford's important research while deepening its understanding of the medical cannabis market."
Last year, Imperial Tobacco also joined a Canadian cannabis executive Simon Langelier, and it is worth noting that Imperial Tobacco announced the investment three days after the US Food and Drug Administration approved GW Pharmaceuticals' cannabis drug Epidiolex.
Imperial Tobacco has been transforming in recent years, including product transformation and business transformation. From tobacco to pharmaceuticals and nebulizers, marijuana is an opportunity, or Imperial Tobacco is waiting to plan this opportunity...
Why does tobacco love marijuana?
In April this year, Fip International announced that its first quarter net income and shipments were less than expected. The stock price plummeted 16%, the largest decline since its listing in 2008, and triggered widespread selling in the overall market.
In the first half of the report released by British American Tobacco in June, it is estimated that global tobacco sales will fall by 3.5% this year.
Possibly because the adverse effects of tobacco use on health are gaining increasing attention, a study previously published by the World Health Organization and the US National Cancer Institute shows: by 2030 The number of tobacco-related deaths is expected to increase from about 6 million a year to about 8 million a year. Some developed countries have started a war against the tobacco industry. In this case, the choices for tobacco companies are either Raising prices is either innovation.
So the tobacco giant is aiming at marijuana.
Nowadays, in addition to cigarettes, cannabis vape pen is easy to find in cannabis pharmacies in legal areas. Most of its active ingredients are THC or CBD. It is easy to carry, does not produce any smoke, emits a little odor, and can completely replace traditional electronic cigarettes and tobacco. In terms of THC, it can satisfy the pleasure, while on the other hand, CBD has the effect of quitting smoking and shrinking tobacco consumption in both directions.
Earlier, Pax Labs, known as the "vaping world of apples", introduced a new device, the marijuana vape pen, which is popular among consumers and designed to resemble apples by heating liquid form of cannabis concentrate. Come to feel.
The tobacco industry is also increasingly using smokeless equipment such as evaporators, which can easily be transferred to the cannabis industry. Peter Luongo, general manager of Philip Morris International Canada, said: Smoke-free equipment is a "reasonable entry point" for tobacco companies to enter cannabis.
According to data from BDS and Arcview Market Research, marijuana consumer spending will beat multiple consumer categories, including the tobacco industry, by 2020. Instead of being defeated, it is better to preempt.