Altria Group Discontinues Three Lines & Invests in Cronos Group

Altria Group, Inc., parent company of CDA member Altria Group Distribution Co., late last week announced major changes in their future, including the discontinuation of production and distribution of three non-combustible lines and a major investment in Cronos Group Inc., a Canadian-based global cannabinoid company.

The company announced on Friday, Dec. 7, the discontinuation of production and distribution of all Mark Ten and Green Smoke e-vapor products, as well as VERVE, its oral nicotine containing products. Altria’s Chairman and CEO Howard Willard noted, “We do not see a path to leadership with these particular products and believe that now is the time to refocus our resources,” while stressing the company’s commitment to continuing as a leader in alternative products that reduce risk. View Altria's trade announcements for direct customers and retailers.

On the same day, Altria announced a $1.8 billion investment in Cronos Group, Inc., a global cannabinoid company based in Toronto, Canada. The investment will provide Altria with a 45% ownership interest in the company, and that interest may grow in the future. “Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria,” said Willard. Altria expects to accelerate Cronos Group’s growth strategies and its R&D and intellectual property development, as well as provide a host of services, including regulatory affairs, regulatory science, compliance, government affairs and brand management. The transaction is expected to close in the first half of 2019.