Vivien Azer, a top marijuana analyst with Cowen, is digging Altria’s recent announcement about taking a $1.8 billion stake in cannabis producer Cronos Group.

According to the analyst, the agreement should both companies and that Cronos’ emphasis on rare cannabinoids will likely prove valuable for Altria as it looks to diversify from tobacco.

Azer has said the move represents a “unique entry into cannabis.”

“While the potential uses of cannabinoids are vast, Cronos believes the key to successfully bringing cannabinoid-based products to market is in creating reliable, consistent and scalable production of a full spectrum of the roughly 100 cannabinoids, not just THC and CBD,” Azer wrote in a note this week.

She added, “Together, Cronos can leverage Altria’s operational capabilities and expertise in order create value-added form factors while focusing on ingredient composition without reliance on a massive cultivation (farming) infrastructure.”

“Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria,” remarked Altria CEO Howard Willard. “We believe that Cronos Group’s excellent management team has built capabilities necessary to compete globally, and we look forward to helping Cronos Group realize its significant growth potential.”

“The proceeds from Altria’s investment will enable us to more quickly expand our global infrastructure and distribution footprint, while also increasing investments in R&D and brands that resonate with our consumers,” stated Cronos Group CEO Mike Gorenstein.

He added, “Altria has decades of experience in regulatory, government affairs, compliance, product development and brand management that we expect to leverage, particularly as new markets for cannabis open around the world.”


Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Illinois Briefly Lets Medical Marijuana Patients Buy From Any Dispensary
29 June 2021
Experts Explore The Reason Why Marijuana Causes The Munchies
18 July 2018
Surgeon General Isn’t Sure if Marijuana is Solution to Opiod Crisis
15 June 2018