BY PETER GALUSZKA On www.styleweekly.com.
On June 23, Richmond area fans of vaping got distressing news. The U.S. Food and Drug Administration was going to pull all Juul electronic cigarette products from stores for safety reasons.
The outcry was big enough that on July 5, FDA temporarily suspended the order, pending more studies of Juul’s product, which is highly popular. The agency noted on Twitter it had “determined that there are scientific issues unique to the Juul application that warrant additional review.”
One company caught in the bind is one of Richmond’s largest – Altria. And the controversy might push the cigarette giant more into cannabis as it tries to move away from tobacco, analysts say.
“Expanding on its position in cannabis could be one way for Altria to reposition its efforts and focus on a different growth avenue,” says David Jagielski, a contributing analyst for the Canadian unit of The Motley Fool.
Altria has already spent big money towards that path. Betting on the big potential for cannabis, it spent $1.8 billion in 2018 to buy about 42% of Cronos Group, a cannabis company based in Canada which has more liberal policies on marijuana than the United States. Also that year, and with the same strategy in mind, Altria bought a 35% stake in Juul.
But the pot play has run into snags. Congress has yet to pass laws that make cannabis legal. Until it does, Altria is hamstrung. Virginia has made possession of an ounce of marijuana legal but there is considerable confusion about unregulated products and more details that need to be worked out with legislation.
H/T: www.styleweekly.com
You can view the whole article at this link Going to Pot BY PETER GALUSZKA On www.styleweekly.com.
