U.S. cigarette maker invests heavily in Canadian cannabis

Following the alcohol industry which is acquiring a stake in the Canadian medical cannabis business, now it's the tobacco industry's turn to endorse the cannabis industry.

Alliance One International (AOI), an independent tobacco leaf merchant based in North Carolina that supplies various multinational tobacco companies, has just taken a significant stake in two Canadian cannabis producers, Island Garden and Goldleaf Pharm, and at a hemp farm in North Carolina.

Island Garden is one of the three licensed producers authorized to supply the’Prince Edward Island in cannabis. It operates a 2,000-square-meter greenhouse in Charlottetown and plans to expand to 2 hectares.

Goldleaf Pharm is based in Ontario and is currently completing its 2,000-square-meter greenhouse, which is expected to expand to more than 5 hectares over the next three years.

As for hemp, AOI acquired a 40% stake in the company Criticality, with an option to reach 50% by 2020. Criticality grows hemp to extract cannabidiol (CBD).

The start of a trend?

These significant investments by a tobacco company could be just the first of many acquisitions. Tobacco and cannabis growers can, in fact, easily use the same cultivation and drying equipment, and both crops are labor-intensive.

The resurgence of hemp in the United States was also driven by tobacco-producing states seeking new markets, according to Bob Crumley, a hemp grower in North Carolina.

However, the interests of the tobacco and alcohol industries diverge from the health concerns of governments. When such behemoths set their sights on an economic opportunity—and even though this may legitimize the existence of an industry—the outcome is already a foregone conclusion. The only option for countries that wish to protect themselves from these influences is to regulate before the industry players arrive. But who in France is willing to listen?