Marlboro maker Altria the latest big company to explore marijuana

TORONTO» The maker of Marlboro cigarettes is joining some of the biggest names in beer in exploring the budding cannabis marketplace.

Altria Group Inc., which owns Philip Morris USA, is the latest big company to show interest in marijuana. Late Monday, Canadian medical marijuana company Cronos Group Inc. confirmed talks with Altria about a possible investment.

Altria, based in Richmond, Va., is one of the largest cigarette makers in the United States. The company said it had no comment on Cronos’ announcement.

Altria joins beverage makers such as Molson Coors, Constellation Brands and Heineken that already have announced moves in the cannabis space. Other big companies — such as Coca-Cola, Pepsi, Anheuser-Busch and Guinness brewer Diageo — haven’t acted yet, but have said they’re watching closely as the market for marijuana and its extracts evolves.

Shares of Torontobased Cronos Group rose 6 percent Tuesday to close at $10.74. Altria shares fell 2 percent to $54.40.

The cannabis market is expected to rapidly grow as legalization expands in the U.S. and social norms change. On Tuesday, conservative Utah became the latest state to legalize marijuana use for medical purposes.

Consumers are expected to spend $57 billion per year worldwide on legal cannabis by 2027, according to Arcview Market Research, a cannabisfocused investment firm. In North America, that spending is expected to grow from $9.2 billion in 2017 to $47.3 billion in 2027.

Cigarette and beverage makers, in particular, want a stake in the market.