AMSTERDAM--The Netherlands’ experiment with a fully legal cannabis supply chain is drawing new scrutiny after it emerged that a major US tobacco-linked company is connected to the planned acquisition of the country’s largest licensed cannabis producer.
CanAdelaar, the biggest grower participating in the Dutch cannabis trial, is set to be acquired by Canadian cannabis company Cronos. Cronos is approximately 41 percent owned by Altria, the US company formerly known as Philip Morris and the maker of Marlboro cigarettes in the United States. The connection was revealed through a joint investigation by Investico, De Groene Amsterdammer and NU.nl.
The Dutch trial was created to test a fully legal cannabis supply chain. Under the program, 10 licensed growers are allowed to supply coffeeshops in 10 municipalities.
Cronos first announced the acquisition in December, but the deal has not yet been finalized. The company now expects the €57.5 million purchase to be completed later this year, pending regulatory approval in the Netherlands and a Bibob background screening of the buyer.
The planned takeover has raised concern among addiction and tobacco experts, who fear that marketing and lobbying methods associated with the tobacco industry could enter the Dutch cannabis market. Seven specialists consulted for the investigation expressed concern about the transaction.
Marc Willemsen of the Trimbos Institute, a Dutch knowledge center focused on addiction and public health, warned that companies in this sector have little incentive to reduce long-term use. Tom Bart of addiction service Jellinek pointed to the tobacco industry’s use of influencers and social media in the promotion of vaping products.
The investigation also reported that Aspeya, a subsidiary of Philip Morris International, funded nine of the 11 authors behind at least four scientific papers that presented possible benefits of cannabis compounds. Philip Morris International became a separate company from Altria in 2008.
Kevin Jenniskens of Cochrane Netherlands, which evaluates the quality of medical research, said industry-funded studies should be treated with caution, noting that findings often favor the interests of those financing the research.
Cronos rejected concerns about the acquisition, describing it as a strategic expansion into Europe. The company said Altria does not control its daily operations, commercial strategy or brand decisions, and stressed that Cronos is not a tobacco company. CanAdelaar also said it operates independently from Altria.
Altria did not respond to questions. Philip Morris International said it is moving its business toward smoke-free alternatives for adult smokers. Aspeya said the funding and potential conflicts of interest were disclosed in the scientific publications.
The Dutch justice and health ministries, which oversee the cannabis trial, declined to comment on an ongoing transaction.
CanAdelaar produces around 20,000 kilos of cannabis annually in former tomato greenhouses near Hellevoetsluis. By one estimate, that amount would be enough for about 60 million joints. Residents in the area have filed approximately 2,500 complaints about odor from the facility.
The Dutch cannabis legalization experiment is scheduled to continue until 2029.
