Are we seeing the next step in the CBD and vape market?
At Tasker Payment Gateways, we have our ears close to the ground for all things high-risk e-commerce. Since we help merchants with high-risk payment gateways and merchant account recommendations, we try hard to keep our readers informed. Whether it’s through our tips and tricks page of important news items in the high-risk world, or through our more in-depth pages on selling vape products, cigar and tobacco e-commerce, or online CBD sales.
A very recent development is the news that Altria is in talks about buying the Canadian marijuana producer Cronos Group. As some of you might know, Altria is the tobacco giant behind Marlboro (among others).
On top of this, it’s also been reported that Altria is considering expanding its business into the vape market as well by acquiring the controversial vape powerhouse, Juul Labs. Seeing such a commercial giant move into these burgeoning markets would be a very interesting development.
What would this mean for the vape and CBD industries?
It should be said that Altria’s acquisition and buy-in of Juul and Cronos Group aren’t completed or finalized, so we can only speculate at this point. It is very exciting news, however, and the introduction of the tobacco giant’s strength could be a very promising development from a lobbying standpoint. If you’ve been following our articles on the vape industry, you’ll know that there’s been quite some back-and-forth on regulation for vape products and sales.
What to expect for vape e-commerce sales
We recently reported on the FDA’s actions regarding vape sales, both for e-commerce sites and brick and mortar stores. In a nutshell, there’s been a crackdown on flavored e-juice sales. For e-commerce sites, it’s important to start setting up carriers that perform ID checks on delivery.
With Altria stepping into the picture, however, the vape and e-liquid market would get the benefit of their experience influencing regulators of highly scrutinized products. Juul has grown very quickly over the last year and a half and actually managed to reach “decacorn” status faster than Facebook did.
In other words, while the financial muscle of Altria might not be the biggest draw here, it should help align the production of e-juice with the FDA. Ideally, this would result in a less turbulent environment for selling vaporizers and e-liquid online.
What to expect for CBD online sales
Over the last couple of years, there’s been quite a lot of movement in the legal CBD sales market, and there’s now plenty of ways for Canadian merchants to sell CBD products online. We’ve helped many legal hemp oil and CBD merchants both in Canada and in the US find high-risk payment gateways and merchant accounts. From our perspective, if Altria acquires or buys a majority share of Cronos Group, this could be a substantial development for the industry as a whole.
It would be a significant change both here and abroad, which can only help provide some stability and experience to the still new industry. While Cronos Group is by no means a small company themselves, seeing the American tobacco giant diversify into the CBD industry would still be a big change.
Altria aims for a big move into CBD and vape business
We want to be careful not to overanalyze this potential move. That said, one of the biggest American tobacco giants moving into these industries would be quite a vote of confidence for such relatively new markets. For most of our clients, the big question would be what this might mean for CBD and vape e-commerce site owners.
From what we can see, Altria ought to provide some experience and weight on the production side of things, rather than becoming a competitor of niche and specialty sites. In other words, a highly experienced manufacturer of high-risk products is about to enter the market for both vape and CBD products. This should help stabilize the market, but only time will tell. It certainly looks to be a move in the right direction for both industries, ideally leading to it being easier for high-risk merchants to sell their products online.
High-risk payment gateway recommendations for your vape or CBD site
We hope that those of you who sell CBD products, or vaporizers, and e-juice online are as positive as we are about this development. This could prove to be a very good move overall for all high-risk business owners in these regulated industries.
If you’re looking for a high-risk payment gateway and merchant account recommendation, we’re always available for a talk about your business. We have a wide network of industry contacts and can find the best fit for your needs. We’ve helped hundreds of merchants set up vape, legal hemp oil and CBD product payment gateways. Feel free to get in touch, we’re always available for a no-commitment talk about your high-risk payment options.