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Big Tobacco, Alcohol, and Pharma Companies Are Moving Into the Cannabis Industry

Cross SectionalModerate evidence
The takeaway

A multi-case study of five major cannabis companies found significant investment and employee flows from alcohol, tobacco, and pharmaceutical companies, raising concerns about profit-driven practices undermining public health protections.

Cannabis regulators, public health advocates, corporate governance researchers.

All five major cannabis companies had investment ties to alcohol, tobacco, or pharmaceutical industries

What the researchers found

All five cannabis companies (Canopy Growth, Aurora, Tilray, Cronos Group, Organigram) had investment relationships with alcohol, tobacco, or pharmaceutical companies. Some received substantial investments that came with industry influence. Employee flows showed cross-industry expertise transfer, particularly in management, finance, and strategy, suggesting established industries are strategically positioning themselves in the cannabis sector.

Why it matters

The alcohol and tobacco industries have well-documented histories of marketing to vulnerable populations, lobbying against regulations, and prioritizing profits over public health. Their entry into cannabis markets raises concerns about importing these practices.

The numbers in context

Five cannabis companies analyzed; data from corporate reports, press releases, and LinkedIn; investment relationships documented with alcohol, tobacco, and pharmaceutical sectors; employee flow patterns identified in management, finance, and strategy.

How the study worked

Exploratory multi-case study analyzing business investments and employee movement between five cannabis companies and alcohol, tobacco, and pharmaceutical companies. Data from Nexis Uni, corporate reports, press releases, and LinkedIn.

What this study cannot tell us

Exploratory study focused on only five companies. Publicly available data may not capture all relationships. Cannot prove that cross-industry connections have actually harmed public health. Canadian/North American focus may not apply to other markets.

How to read the evidence

Moderate: Systematic multi-case study with multiple data sources, though limited to five companies and publicly available information.

When this study was published

Published in 2025 with data through 2024.

The bigger picture

Cannabis commercialization is at a critical juncture. The industry connections documented here mirror historical patterns where established consumer product companies have entered new markets and shaped regulation in their favor, often at the expense of public health.

Questions still open

  • Are cannabis marketing practices already showing influence from alcohol/tobacco approaches? How should regulators address cross-industry investment in cannabis? Would structural separation between cannabis and other substance industries protect public health?

Common questions

Why does it matter that tobacco companies invest in cannabis?
The tobacco industry has a documented history of marketing to minors, suppressing health information, and lobbying against regulation. Cannabis policy experts worry that these practices could be imported into the cannabis sector through investment relationships and employee transfers.
Which companies are involved?
The study examined Canopy Growth, Aurora Cannabis, Tilray, Cronos Group, and Organigram and their connections to alcohol, tobacco, and pharmaceutical companies through financial investments and management personnel movement.

Read the original research

Like birds of a feather? A multi-case study on the connections between cannabis, tobacco, alcohol and pharmaceutical companies in legalized cannabis markets.

The International journal on drug policy, 143, 104863

Citation

Ongenaert, Marthe; Decorte, Tom. (2025). Like birds of a feather? A multi-case study on the connections between cannabis, tobacco, alcohol and pharmaceutical companies in legalized cannabis markets.. The International journal on drug policy, 143, 104863. https://doi.org/10.1016/j.drugpo.2025.104863