How much would cost a pack of Marlboro M if it will be released today?
Marlboro M cigarettes will be available for sale through official outlets in Colorado and Washington states.
After the legalization of marijuana in several states of the United States the Marlboro company decided to produce cigarettes with marijuana! Cigarette company Philipp Morris has launched its new brand - "Marlboro M". Cigarettes will be available for sale in specialized stores, with a license for the implementation in Colorado state, as well as in the Washington state, after the legalization of marijuana.
To promote a new product the company has allocated 15 million dollars. Product Launch was scheduled for early 2015. Marlboro M cigarettes will be available for sale through official outlets in Colorado and Washington states. Due to the fact that in the United States is prohibited any tobacco product advertisement, the advertisements of a cigarette brand will be only banners with the letter "M" on the background and smoke.
Philipp Morris company shares rose strongly after this news about marijuana. And jumped to $ 998.00 from $ 83.03 just in a few hours after the news publication. But how much would be the price of a pack of cigarettes with (marijuana) after full legalization?
This commented Forbes columnist Tim Worstall argue with those who predict that a pack of 20 marijuana cigarettes will cost about $ 50. According to his calculations, the actual price will be about 50 cents.
Fast Company in its calculations of the approximate cost of one cigarette containing 1 gram of marijuana, based on the current cost of 2-3$ and retail price of $ 6.25. However, is it even possible to build some calculations in an environment where cannabis is illegal in the United States at the federal level?
So what that two American states legalized marijuana on their territories, but this is not enough for big business to came into play. So the company Altria (which owns such brands as: Philip Morris, Marlboro) said that isn't going to switch to marijuana in the near future.
However, suppose Worstall that marijuana will be legalized globally and Altria will begin to explore a new market. What will happen then?
Probably, the tobacco giant will turn its attention to the East African Malawi, from where today comes a significant part of tobacco. The Division of Drug Control of the United Nations, has a list of wholesale and retail prices for marijuana, in Malawi this is 3 $. That seems reasonable, because cannabis likes temperature of 25-30 degrees and a lot of sun, and obviously feels great in this tropical country. But you should note that 3 dollars is the price not per gram but per kilogram. In other words, marijuana's cost as raw material for cigarettes is in thousands of times lower than in Colorado and Washington.
Thus, the cost of a gram of marijuana grown in Malawi, multiplied by 20 gives 6 cents per pack. All other costs of packaging and transportation can not increase its cost for more than 20 cents per pack, which is confirmed by numerous data from the black market of cigarettes, where the price of non-branded products, or, for example, counterfeit Marlboro are about the same. Overall, the marijuana cigarette package of 20 cents prime cost will be sold in retail approximately at 50 cents.