Philip Morris International, the world’s largest tobacco company, has officially entered the cannabinoid business.

Philip Morris International, the world’s largest tobacco company, has officially entered the cannabinoid business.

What does this mean? From the 1950s to the 1990s, smoking was considered a “cool” habit and even a fashion accessory worldwide. Even Hollywood stars frequently feature smoking in movies, making them appear as delicate symbols. Smoking is common and accepted around the world. However, this situation did not last long, as the evidence of cancer and other fatal health problems caused by cigarettes ultimately leading to death cannot be ignored. Many tobacco giants have driven the popularization of cigarettes, making them easier for people to access. Philip Morris International (PMI) is one of the biggest drivers, and to this day, it remains the largest player in the tobacco industry. According to the World Health Organization, smoking causes approximately 8 million deaths worldwide. Obviously, with the rise of marijuana, Philip Morris International also wants a piece of the pie.

Philip Morris Company’s History of Interest in Cannabis

If you flip through the history of this tobacco giant’s interest in marijuana, you may be surprised to find that Philip Morris’ interest in marijuana can be traced back to 1969, with some internal documents proving that the company was interested in the potential of marijuana. It is worth noting that they not only see marijuana as a potential product, but also as a competitor. In fact, a memo from 1970 even showed the possibility of Philip Morris recognizing the legalization of marijuana. Fast forward to 2016, Philip Morris made a massive investment worth $20 million in Syqe Medical, an Israeli biotechnology company specializing in medical marijuana. At that time, Syqe was developing a medical cannabis inhaler that could provide patients with specific doses of medical cannabis. According to the agreement, Syqe will also work on developing certain special technologies to enable Philip Morris to minimize the harm caused by smoking to health. In 2023, Philip Morris reached an agreement to acquire Syqe Medical for $650 million, provided that Syqe Medical meets certain conditions. In a report by Calcalist, this transaction is a milestone, with the bottom line being that if Syqe Medical’s inhaler passes clinical trials, Philip Morris will continue to acquire all of the company’s shares for the aforementioned amount.

Then, Philip Morris made another silent move!

In January 2025, Philip Morris released a press release detailing the collaboration and establishment of a joint venture between its subsidiary Vectra Fertin Pharma (VFP) and Canadian biotechnology company Avicanna, which focuses on the development of cannabinoid drugs. According to the press release, the establishment of this joint venture aims to promote the accessibility and research of cannabis. Avicanna has already taken a dominant position in the field of health. However, the press release hardly mentions the involvement of Philip Morris, but it is clear that tobacco giants have long been interested in the cannabis industry. As early as 2016, when they first collaborated with Syqe Medical, it highlighted the company’s interest in the health field, and this collaboration with Avicanna further solidified this.

Changes in consumer attitudes and habits

In fact, it is reasonable for tobacco giants to shift towards cannabis or the health sector. As the saying goes, if you can’t defeat them, then join them! It is evident that the number of smokers has been decreasing in recent years. The younger generation of consumers is now breaking free from the constraints of tobacco and alcohol and turning to the consumption of marijuana. Philip Morris is not the only tobacco giant interested in the cannabis market. As early as 2017, the US holding company Altria Group began divesting its tobacco business and invested $1.8 billion in Canadian cannabis leader Cronos Group. Altria Group owns several large American companies, including Philip Morris, and even its website now features the slogan “Beyond Smoking”. Another tobacco giant, British American Tobacco (BAT), has also shown strong interest in cannabis. For some time now, British American Tobacco has been researching cannabis products, particularly injecting CBD and THC into e-cigarettes sold under the Vuse and Vype brands. In 2021, British American Tobacco began testing its CBD products in the UK. Renault Tobacco, also affiliated with British American Tobacco, has considered entering the cannabis industry. According to its internal documents, as early as the 1970s, Renault Tobacco Company saw marijuana as both an opportunity and a competitor.

Summary

Ultimately, marijuana is not a real threat to the tobacco industry. The tobacco industry should have self-awareness because tobacco can indeed cause cancer and lead to loss of life. On the other hand, marijuana is a friend rather than an enemy: as the increasingly widespread legalization and continuous increase in marijuana consumption prove that it can indeed save lives. However, the relationship between tobacco and marijuana is still evolving and developing. By legalizing marijuana, tobacco giants can learn from the challenges and opportunities experienced by marijuana. However, one thing is clear: the decline in tobacco consumption is indeed a significant opportunity for cannabis, as more and more people hope to use healthier products to replace tobacco. To make a prediction, we may continue to see tobacco giants investing in cannabis companies, as we have seen in the example mentioned above. This partnership is definitely good news for both industries, and we hope to see more such collaborations!