There is an undercurrent of anxiety in the cannabis industry. Many in the business are predicting that it is only a matter of time before “big tobacco,” with its vast financial and agricultural resources, steps in and takes over.
The only factor that is currently preventing them from doing so is the fact that marijuana is federally illegal in the United States. But each year it seems more and more likely that, at some point, the feds will back off and let the states do their thing.
If that does happen – federal prohibition ends – depending on how it ends, there will still be the challenge of dealing with state regulations, all of which prevent distributing marijuana out-of-state.
For tobacco conglomerates to be able to glom onto a national market, marijuana regulation will have to go the way of other regulated adult use products such as cigarettes and alcohol which can be produced in one state and sold in another.
It is a hurdle, but not a big enough hurdle to stop them from entering the ring.