British American Tobacco invests 56.8 million $ in Charlotte's Web

Charlotte’s Web, a company that sells CBD products under the same name, announced that it had secured a $56.8 million investment from a subsidiary of British American Tobacco (BAT), a deal that gives the multinational tobacco giant a 19.9 % stake in the Colorado-based hemp and cannabidiol company.

«This investment will provide Charlotte’s Web with funds that we believe will enable more in-depth and broader research and development activities, which are essential to our continued innovation, our global presence, and the advancement of our intellectual property portfolio,» said Jacques Tortoroli, CEO of Charlotte’s Web, in a statement.

Kingsley Wheaton, director of growth at BAT, said in a statement that Charlotte’s Web had «strong brand equity, an extensive retail presence … and a track record of in-depth scientific research.».

British American Tobacco and Cannabis

This isn't the first time BAT has invested in a cannabis company. In September, BAT acquired a minority stake at the German cannabis company Sanity Group for an undisclosed amount.

In Canada, BAT spent approximately $175 million to acquire a 19.9% stake. at Organigram, a licensed cannabis producer Holdings in 2021. BAT invested an additional $5.1 million in Organigram this year.

In the case of Charlotte’s Web, BAT’s investment follows a series of other notable recent agreements:

• In October, *Charlotte’s Web* became the First CBD Sponsor of the Major League Baseball
• Earlier this month, Charlotte’s Web signed a distribution agreement with Stark Foods International, an importer and distributor of specialty foods and European beauty products
• Also in early November, Tilray and Charlotte’s Web announced a strategic alliance in Canada. Tilray will launch Charlotte’s Web’s full-spectrum hemp-derived CBD products in Canada in 2023