MO - Should Altria Have Infused Its Wines With CBD Instead of Selling Them Off?
As Altria Group (NYSE: MO) focuses more narrowly on its core objective of eventually transitioning to cigarette alternatives and smokeless products, the tobacco giant is selling off its wine business for $1.2 billion in an all-cash deal with hedge fund Sycamore Partners.
Although the Ste. Michelle Wine Estates operations were comparatively small, they were profitable. Altria also has another investment gathering dust on the shelves: the $1.8 billion it sunk into marijuana producer Cronos Group (NASDAQ: CRON) .
Because beverages infused with cannabidiol (CBD) are only starting to ramp up, it seems the cigarette company is missing out on a chance to have the two partners develop their own product to compete in the space.
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Should Altria Have Infused Its Wines With CBD Instead of Selling Them Off?