Issue link: https://read.dmtmag.com/i/1373098
6 tobaccoasia Issue 3, 2021 May / June From the Associate Editor © 2021 October Multimedia Co Ltd. TOBACCO ASIA (ISSN 2773-8701) is published bi-monthly by October Multimedia Co Ltd in January, March, May, July, September, and November. Printing and distribution of TOBACCO ASIA is overseen by October Inter Co. Ltd., Interchange 21 Bldg., Room 3225, 32nd Fl., 399 Sukhumvit Road, North Klong Toey, Wattana, Bangkok, 10110 THAILAND. Tel +66 2 660 3789. Fax +66 2 660 3881. E-mail: info@octobermultimedia.com, web: www.tobaccoasia.com. Representation for Tobacco Asia Asia / Middle East / Australasia China / Eastern Europe Italy / Spain / France October Inter Co. Ltd. Interchange 21 Bldg., Room 3225, 399 Sukhumvit Road 32nd Fl. Bangkok, 10110, Thailand Tel +662 660 3789, Fax +662 660 3881 Contact: Glenn Anthony John Mobile +1 917 843 0000 or +66 818 299 409 gaj@octobermultimedia.com The Americas / Northern Europe Turkey / Africa Cardinal Media LLC 2 Glenfield, Barrington RI 02806 United States Contact: Emerson Leonard Tel +1 917 680 1050 edl@octobermultimedia.com Printing/Distribution overseen by: October Inter Co. Ltd. Interchange 21 Bldg., Room 3225, 399 Sukhumvit Road, 32nd Fl. Bangkok, 10110, Thailand Tel +662 660 3789 Fax +662 660 3881 Published by: October Multimedia Co., Ltd. Printed in Thailand © 2021 October Multimedia Co., Ltd. All rights reserved. By-lined or initialed articles represent the opinion of the author. All articles published in Tobacco Asia or www.tobaccoasia.com are copyrighted. No part of this publication may be reproduced, or transmitted in any form or by any means, electronic or mechanical, including pho- tocopy, recording, or any information storage and retrieval system, without written permission. Nattira Medvedeva Associate Editor A Joint Development: Tobacco "and" or "vs" Cannabis? Over the past few years, cannabis has received increasing interest from governments, companies, and individual entre- preneurs for its potential growth opportunities as regulations controlling it gradually become less stringent. The drive to legalize cannabis seems the most active in the US where 16 states legalized recreational marijuana and 36 legalized medical marijuana. Both Canada and Uruguay le- galized both medical and recreational cannabis use; Luxem- bourg legalized medical cannabis; and France and Germany continue clinical trials on medical cannabis use. Since 2017, nine African countries legalized growing cannabis for medical and industrial use. Even the president of Malawi suggested tobacco farmers should switching to growing cannabis. (See news item page 44.) In Asia, cannabis use remains largely prohibited, with the exception of Thailand, which was the first to legalize medical marijuana use and cultivation in Asia, albeit under a lot of special condi- tions that very much limit production to a small handful of quasi-government bodies. (See Thomas Schmid's exclusive report on "Thailand's New Cannabis Policy…" on page 36.) So, is cannabis the next big thing that consumers, manufacturers, and even governments around the world will increasingly embrace ? The growth potential for this market segment certainly seems to be there. In 2018 Altria invested US$1.8 billion for a 45% stake in the multinational cannabis company, Cronos Group. Following this investment, Altria acquired patented marijuana vaporizers and filed new patent applications for proprietary devices. Earlier this year British American To- bacco paid around US$175 million for a 19.9% stake in Canadian cannabis producer Organi- Gram. Many other smaller companies have also started exploring the possibilities or even investing in r&d for new products in this segment. However, another big player, Philip Morris International still studies the prospects of this market segment, choosing to give priority to its smoke-free products for now. Earlier this year Pyxus International announced it was 'exiting' the cannabis business and shifting its focus back to its tobacco and e-liquid operations. Even tobacco farmers in Zimbabwe and Malawi who were initially interested in the potential of a cannabis crop changed their minds once faced with the financial demands and regulatory challenges that would entail. (See "Tobacco vs Cannabis in Zimbabwe and Malawi" starting on page 54.) While governments try to catch-up and control the market for cannabis products with new regulations, and while there may be some issues to be ironed out in areas from cultivation to manufacturing to logistics in getting the end product to consumers, cannabis is definitely a new segment to watch. It's unlikely that cannabis will replace tobacco, but similar to next generation products, it would be an alternative for consumers to choose and another product group that allows tobacco companies to diversify their product portfolio.