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

Marthe Ongenaert; Tom Decorte

doi:10.1016/j.drugpo.2025.104863

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

Int J Drug Policy. 2025 Jun 5:143:104863. doi: 10.1016/j.drugpo.2025.104863. Online ahead of print.

Authors

Marthe Ongenaert¹, Tom Decorte²

Affiliations

¹ Department of Criminology, Penal Law and Social Law- Faculty of Law and Criminology, Ghent University, Universiteitstraat 4, 9000 Gent, Belgium. Electronic address: Marthe.Ongenaert@UGent.be.
² Department of Criminology, Penal Law and Social Law- Faculty of Law and Criminology, Ghent University, Universiteitstraat 4, 9000 Gent, Belgium.

PMID: 40479916
DOI: 10.1016/j.drugpo.2025.104863

Abstract

Background: As of 2024, cannabis legalization in Northern American countries has spurred industry growth, intersecting with alcohol, tobacco, and pharmaceuticals. This study examines the investments and employee movement between five cannabis companies and alcohol, tobacco and pharmaceutical companies in order to explore the connections between the industries. While these relationships may bolster cannabis businesses, they also pose risks such as profit-driven practices that could undermine public health protections.

Method: An exploratory and descriptive approach was used to analyze business investments and employee flow between five cannabis companies (Canopy Growth, Aurora Cannabis, Tilray, Cronos Group, and Organigram) and alcohol, tobacco, and pharmaceutical companies. Data was collected through Nexis Uni, corporate reports, press releases, and LinkedIn, documenting financial transactions and management transitions.

Results: The results reveal investment relationships between the five cannabis companies and companies from the alcohol, tobacco, and pharmaceutical sectors. Some cannabis companies have secured substantial investments from alcohol and tobacco firms, which view cannabis as both a competitor and an opportunity for market expansion. These investments often come with influence, allowing industries to shape the cannabis market. Additionally, employee flows indicate cross-industry expertise transfer, particularly in management, finance, and strategy. This suggests that traditional companies are strategically positioning themselves within the cannabis sector, while cannabis companies are leveraging expertise form other sectors to drive innovation.

Conclusion: The connections between cannabis and traditional industries raise concerns over market dynamics and public health risks by importing profit-driven tactics that weaken regulations and public safety. By drawing on lessons from established industries, future studies can help navigate the balance between industry growth and societal well-being, ensuring that cannabis commercialization does not come at the expense of consumer health.

Keywords: Alcohol; Cannabis; Industries; Legal markets; Tobacco.