Big Pharma, Tobacco, and Alcohol Companies Seek Marijuana Profits
In a recent report from Marijuana Business Daily, big pharmaceutical, tobacco, and alcohol companies are not only keeping a watchful eye on the increasing success of the marijuana industry; they want a piece of the action. According to several experts who attended the Marijuana Business Conference this past Friday, these companies are looking to capitalize as well as exceed on the success already established by cannabis entrepreneurs. “The inconvenient truth is that Big Tobacco is coming for you and, surprise, surprise, she plans on giving it to you good and hard," said Patrick Basham, director of the non-partisan public policy research organization, to Marijuana Business Daily. Despite publicly stating that they have no interest in cannabis, research as well as market forecasts prove otherwise. Tobacco executives have not always been truthful when making claims such as these, and reports indicate that companies are intending to enter the market by leveraging on the success already created in the cannabis industry. As of late, Big Tobacco has been facing a "perfect storm" of regulatory adversities, negative publicity, and a dwindling consumer base, especially since the emergence of electronic cigarettes. Marijuana would be a perfect market for Big Tobacco to capitalize in because of recent legalization efforts and the increase of acceptance throughout the U.S. Big Alcohol and Pharmaceutical companies are having similar sentiments when addressing the marijuana industry and the negative effect that it could potentially have on their business. “We in the alcohol business, we’re scared… because we don’t know the effect weed is going to have on booze,” Harry Schumacher, publisher of Beer Business Daily and Wine & Spirits Daily, to Marijuana Business Daily. “You can’t have an industry that is tripling in size and taking revenue and profits away from manufacturers of alcohol and tobacco and not expect them to do something about it," said Tripp Keber, of Dixie Elixrs, to Marijuana Business Daily. Advocates such as Keber, warn current marijuana businessman in the industry that they had better be ready for stiff competition once these big companies begin to take root in the industry, since at the end of the day, you can't really blame a business for being a business.