Wrigley Heir Enters the Medical Marijuana Business
As the marijuana industry continues to be one of the fastest-growing sectors in the economy, it’s no surprise that many well-known businesspeople are investing in cannabis enterprises. Earlier this week, William “Beau” Wrigley Jr., heir to the Wrigley company famous for its chewing gum, joined the ranks of such investors.
The billionaire, who sold the family brand rights to Mars Inc. in 2008, invested $65 million in Surterra Wellness, a Florida-based company specializing in therapeutic marijuana. Currently, Surterra operates 10 stores in Florida and plans to expand into other regions with the support of Mr. Wrigley and other potential investors.
Formally, Wrigley will become chairman of the company’s board of directors. He stated that he had long avoided the marijuana market due to concerns about possible government reactions, but recent successes in reform convinced him of the safety and profitability of such investments.
“When I realized how reliable and profitable this industry is, I became genuinely interested in working with its representatives,” the 54-year-old businessman told Bloomberg. “I haven’t heard of any other sector of the economy that is growing and increasing profits like the legal marijuana market.”
Looking Beyond Medical Marijuana
In addition to the medical market, Mr. Wrigley is also considering investments in the recreational segment, which experts predict will generate $5 billion in total profits by 2022. Some regions, such as Michigan, will decide the fate of local recreational reform in a public referendum this November. Currently, the entire national industry, divided into recreational and therapeutic segments, already generates $11 billion in annual profits.
“Right now, every fool with money is investing in promising marijuana businesses without paying attention to all the nuances of the industry’s operation and development,” Wrigley noted in an interview. “It wouldn’t be surprising if, within a couple of years, many of these investors go bust along with the small companies they invested in.”
Other Major Investors Join the Cannabis Industry
Wrigley is far from the first wealthy businessman to change his professional focus and become a director at a young cannabis firm. For example, two months ago, Ben Kovler, heir to the Jim Beam company, announced he was taking over as CEO of Green Thumb Industries, which produces and distributes marijuana in six U.S. regions.
Other alcohol industry executives, from brands like Blue Moon and Budweiser, have also entered the cannabis sector. This is a notable trend, as many in the alcohol industry believe marijuana will soon surpass alcohol sales in every available market. Many entrepreneurs have chosen not to leave their original industries entirely, instead opening separate cannabis subsidiaries within their conglomerates.
Even some U.S. federal politicians, such as former House Speaker John Boehner—who previously opposed any form of legalization—have started investing in rapidly appreciating marijuana company stocks.
In any case, there is hope that this collaboration between the two industries will be fruitful and help expand reform across the country.