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Altria to invest $1.8 billion in cannabis company Cronos Group, exits some e-cig brands
Source: CNBC
Altria to invest $1.8 billion in cannabis company Cronos Group, exits some e-cig brands
• Altria Group will buy a 45 percent stake in leading cannabinoid company Cronos Group for about $1.8 billion.
• Altria will discontinue MarkTen and Green Smoke e-cigarette products and its Verve oral nicotine.
• The company is still weighing an investment in e-cigarette company Juul, and talks could conclude as soon as later this month, a person familiar with the situation tells CNBC.
• The steps are a sign of the new world in which Altria must compete.
Lauren Hirsch
Published 1 Hour Ago Updated 3 Mins Ago
Altria Group said Friday it agreed to buy a 45 percent stake in leading cannabinoid company Cronos Group for about $1.8 billion, a sign of the new world in which Altria must compete.
Altria is also weighing an investment in e-cigarette company Juul, CNBC has reported. Those talks could be completed as soon as soon as later this month, a person familiar with the situation tells CNBC.
Sales of cigarettes have slowed and its customers have either turned to other recreational products — like cannabis and e-cigarettes — or are threatening to do so in the future. Those industries, though, are in need of expertise to navigate regulatory hurdles and capital to invest in their company.
"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 consumer," Cronos CEO Mike Gorenstein said in a statement.
-snip-
• Altria Group will buy a 45 percent stake in leading cannabinoid company Cronos Group for about $1.8 billion.
• Altria will discontinue MarkTen and Green Smoke e-cigarette products and its Verve oral nicotine.
• The company is still weighing an investment in e-cigarette company Juul, and talks could conclude as soon as later this month, a person familiar with the situation tells CNBC.
• The steps are a sign of the new world in which Altria must compete.
Lauren Hirsch
Published 1 Hour Ago Updated 3 Mins Ago
Altria Group said Friday it agreed to buy a 45 percent stake in leading cannabinoid company Cronos Group for about $1.8 billion, a sign of the new world in which Altria must compete.
Altria is also weighing an investment in e-cigarette company Juul, CNBC has reported. Those talks could be completed as soon as soon as later this month, a person familiar with the situation tells CNBC.
Sales of cigarettes have slowed and its customers have either turned to other recreational products — like cannabis and e-cigarettes — or are threatening to do so in the future. Those industries, though, are in need of expertise to navigate regulatory hurdles and capital to invest in their company.
"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 consumer," Cronos CEO Mike Gorenstein said in a statement.
-snip-
Read more: https://www.cnbc.com/2018/12/07/altria-to-invest-1point8-billion-in-cannabis-company-cronos-group.html
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