EXCLUSIVE: Could Cronos Group Eventually Deliver Marlboro Greens To Consumers?

Cronos Group Inc CRON is up more than 20% over a 52-week period and the cannabis company announced better-than-expected financial results at the beginning of the month. 

Cronos Group Executive Chairman Michael Gorenstein appeared on Benzinga's YouTube show "Cannabis Insider" for an exclusive interview Tuesday. 

Innovation Focused: As the cannabis industry begins to mature, Cronos Group is "nowhere close to being finished," Gorenstein said. 

He told Benzinga the company is very excited about the progress of its innovation.

"A lot of the investments we've made over the last two, three, four years are starting to come to market."

Cronos Group recently launched a new type of edible that Gorenstein said quickly doubled its market share. The new edible type currently holds two of the top five SKUs in Ontario, Canada, the Cronos Group executive chairman said.

The company has the No. 1 flower SKU in Ontario, he said. 

Differentiation From Cronos: Cronos Group aims to differentiate itself from its competition, Gorenstein told Benzinga.

The company recently announced the ability to produce a rare cannabinoid called CBG, he said, adding that Cronos Group is preparing to launch the cannabinoid in one of its edible gummy products this quarter.

Many factors differentiate one cannabis product from another, but ultimately consumers are searching for the right effect, Gorenstein said.

The mixture of cannabinoids is how a company is able to deliver a specific effect to consumers, he said. 

Marlboro Greens? In 2019, Altria Group Inc MO acquired a 45% stake in Cronos Group. 

Altria has distribution in over 200,000 retail stores. The company knows how to manufacture and distribute a highly regulated product, Gorenstein said.

"They know how to roll a highly-regulated crop into a combustible and great-tasting consumer product."

What makes Marlboro so successful is its reliability and its consistency in taste and effect, he said.

Gorenstein went on to talk about the potential of a Marlboro Green-like product, the company's PharmaCann partnership, international expansion and more.

See the full interview here: 

CRON Price Action: Cronos Group has traded as high as $15.83 and as low as $4.91 over a 52-week period.

At last check Thursday, the stock was up 0.77% at $6.56.

Photo by Ronald Plett from Pixabay.