AP/ December 19, 2012, 10:32 PM

Will big tobacco jump on the marijuana movement?

A budtender holds a marijuana cigarette for a patient at Perennial Holistic Wellness Center medical marijuana dispensary, which opened in 2006, on July 25, 2012, in Los Angeles, California.

A budtender holds a marijuana cigarette for a patient at Perennial Holistic Wellness Center medical marijuana dispensary, which opened in 2006, on July 25, 2012, in Los Angeles, California. / Getty Images

SPOKANE, Washington The states of Washington and Colorado legalized possession of small amounts of marijuana in the November elections, but it is unclear if any cigarette makers plan to supply either market.

Marijuana remains illegal under federal law. President Barack Obama indicated last week that going after individual users won't be a priority, but there's no firm indication yet what action the Justice Department might take against states or businesses that participate in the nascent pot market, which has the potential to be large. For example, analysts have estimated that a legal pot market could bring Washington state hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

Bill Phelps, a spokesman for Philip Morris USA, maker of Marlboro, based in Richmond, Virginia, was vague when asked about the future intentions of the nation's largest tobacco company.

"We have a practice of not commenting or speculating on future business," Phelps said, adding "tobacco companies are in the business of manufacturing and marketing tobacco products."

Less mysterious was Bryan Hatchell, a spokesman for the second-largest cigarette maker, Reynolds American Inc., maker of Camel and Pall Mall, among many others.

"Reynolds American has no plans to produce or market marijuana products in either of those states," Hatchell said. "It's not part of our strategy."

But if major tobacco companies are not going to supply the new markets, it appears there are some ready to step in.

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Marijuana in Wash.: Still illegal to sell, grow

The Washington State Liquor Control Board is receiving plenty of applications from people who want to be certified to be able to grow pot legally, even though the agency is not yet soliciting such applications. Agency spokesman Brian Smith said Tuesday that some applications so far have come from people who have long been growing marijuana when it was against state law.

"We're getting a lot of interest from people that want to be producers," Smith said. "Some say they have been growing it illegally until now."

Indoor growing operations appear to be the most productive and secure for marijuana, Smith said.

"But we could have outdoor grows in eastern Washington," he said.

Since no state had previously legalized marijuana possession, Washington must invent a production system from the ground up, Smith said. Colorado did have a licensed system for growing medical marijuana, but that was very tightly regulated and probably more stringent than Washington needs, Smith said.

"We don't need to get to the level of oversight Colorado has in medical marijuana," he said.

Washington's new law decriminalizes possession of up to an ounce of pot for people over 21. But selling marijuana remains illegal for now. The initiative gave the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage.

In Colorado, a 24-member task force began work on pot regulations this week. The state's Department of Revenue must adopt the regulations by July, with sales possible by year's end.

© 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
17 Comments Add a Comment
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noml12 says:
im all for the mass production of marijuana on a giant industrial scale but the sound of having a big tobacco label on the packaging doesnt hit me right. how long until they start adding they're 1000 chemical poisons to the mix and we're no longer smoking a beautiful herb but smoking they're poisons. this is what scares me about legalization. i'd rather have marijuana illegal and grown organically by people who care about the plant and not just the profits than to let big tobacco ruin what i love. i want it grown organically, pure, and clean.
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vanchase says:
What I can't understand is all the indoor places ban cigarette smokers, but they allow pot smokers? How odd!
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pleaseletitbeso says:
The way I understand it Phillip-Morris has some 50 thousand acres set aside in the Emerald Triangle ( (Humboldt county etc.) on the off chance that the prohibition on Cannabis will be lifted, there is information out there.
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krisd999-2009 says:
I am sick and tired of liberals(commies) trying to control what people drink and eat and smoke and have sex. As soon as women got the vote, they went on crusades to ban alchohol and prostitution. They can't stand it if someone will make a profit. I am tired of them using force to create their perfect socialist society while filling up our prisons! It has been nothing but disaster. Let people grow plants-stop trying to tax and extract every dollar from our pockets for your government programs!
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ZephyrTMZ replies:
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KRISD -
I don't know where you're getting your information from, but the ones who have typically been against people's lifestyles in regards to drinking, smoking weed, and having sex are the conservatives. Also known as Bible-beaters or the Moral Majority.

Hippies were born from the Beatniks, which were born out of the Liberal movement. It is the conservatives that always seem to have some kind of moral agenda, based on their religious beliefs and/or what they believe others should be.
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nohater says:
tobacco companies should grow it and market it in states that have passed its legality. if you haven't used it by now you won't be using it if big tobacco markets it. drug cartels, mom/pop operations, are making a fortune so why not let big tobacco in on the deal? many people own stock in big tobacco, and maybe even your 401, IRA, etc. tobacco companies in south america could also grow it and export it to the USA much like they do cigars. you want to use it, drink it, eat it and it's legal many will make money off of your preference.
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wes714 says:
There was a book about this back in the 70s. Can't remember the title but I remember reading it in high school. Had them selling it like cigs.
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Don-TN says:
Just what we need.....dumb down the society,.take up guns, give drugs out, TSA starts body cavity searches on side of road, fleece what's left in the countries wealth...... Oh boy now pass that joint.
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Don-TN replies:
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But wait how much will that joint cost? Or can I buy it illegally? Surely the illegal dealers won't fold up and quit right away
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rwsmith29456 says:
Sounds like there will soon be a widespread demand for legal marijuana soon, not just medical marijuana. SOMEBODY is going to jump on the wagon to manufacture and sell varying types and sizes of rolled and packaged marijuana. If the tobacco companies aren't, maybe I will. =8^ )
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johnlockesghost replies:
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I see, a new investment opportunity.
dmkt6256 replies:
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I have a brillant idea, start using the prisons as weed plantations. All 50 states. Start a federal weed allowance program where the state charges $100 a month for a ounce a week for 52 weeks. You could have different plans for different payment options. Say, $25 a month for a ounce a month for 12 months. Then, $4000 for a ounce a week for 5 years. And even more, $15,000 for a ounce a week for life. Did someboby say something about no funding for healthcare, hunger, violence, missions to mars, converting our dependance on oil over to green alternatives? Here is your money, why can we not tap into this cash crop for everyone? Lets be the #1 exporter of weed in the world. Then after that lets be the first weed exporter to the heavens. There, the solution to all the USA cash flow problems. Within 10 years all crime will show marked decline.
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johnlockesghost says:
Marijuana can be ingested, also. So, is the Campbell Soup Company going to get involved? Or Bette Crocker ? Additionally, how are authorities going to govern the growing of the stuff? If people really decide that the law will eventually allow "home gardens", then widespread cultivation will be beyond the control of law enforcement.
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tychicum says:
yes.
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