Big Tobacco's Big Evolution

The drug landscape is changing in profound ways. With smoking tobacco hitting an all-time low (1) in 2012 at 20% for adult populations and a staggering 9% in teenage populations in 2014 (2), Big Tobacco has to set its profit hungry sights on another industry: Marijuana. Marijuana has seen some significant victories on the legalization front in the last few years (3). With pilot programs rolling out and seeing returns in Colorado and Washington, many of the original "marijuana myths" are being debunked. Eric Holder speaking out against mandatory minimums and new focus on the prison-industrial complex by politicians and activists around the country have led the charge against the criminalization of "minor drugs" such as marijuana. With some states on the verge of bankruptcy (looking at you Kansas and California), we very well may see the Colorado model being exported into the US at large in the near future.

But who stands to gain from out-growth of weed? Many fear that the natural "winner" in this new market will be similar to, if not the same as Big Tobacco. While "mom and pop" stores may have popped up and survived so far, as the legal weed market grows larger and larger, Big Marijuana takes over. After all, "Cannabis is just a plant" (4). Given economies of scale, the bigger players win, and that's the same ag companies that have won so far. And tobacco companies have recognized this. "Marijuana products seem to be a logical industry for tobacco companies" (5) state forecasters. This new market is shaping up like the markets of old. 

- Robert Mitchell

1 - http://www.gallup.com/poll/156833/one-five-adults-smoke-tied-time-low.aspx
2 - http://www.teenvogue.com/my-life/health/2014-09/teen-smoking-all-time-low
3 - http://stopthedrugwar.org/chronicle/2014/mar/10/new_jim_crow_michelle_alexander_tal
5 - http://www.mintpressnews.com/marijuana-legalization-may-open-door-big-cannabis-researchers-warn/193169/

4 - http://www.washingtonmonthly.com/magazine/march_april_may_2014/features/nonprofit_motive049293.php?page=all#,