Tobacco, Spirits Companies Ready To Segue Into Pot Industry

Noon Business Hour
January 10, 2019 - 8:38 pm
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CHICAGO (WBBM NEWSRADIO) -- Alcohol producers are taking note of the growing acceptance of marijuana, and many are starting to implement strategies to contend with the liquor industry’s potential disruption.

Chicago’s Michael Palumbo, Manager of the TMT Perseverance Fund and author of the book "Calculated Risk,” talked with the Noon Business Hour on Thursday.

“Liquor, beer and tobacco sales have been very sluggish over the past couple of years, and that can be directly attributable to the increase in cannabis consumptions,” he said.

“What’s happening is you’re getting some (mergers and acquisitions) from the big tobacco and spirits companies,” Palumbo added. “They’re buying some of these marijuana companies or at least parts of them because they’re afraid of missing out on what the missing trend is.”