Home » sin stocks » Canadian Government Legalizes Marijuana… But Bans Menthol Cigarettes?

Is the Canadian government confused about its sin stocks?

Canada is in the process of legalizing pot. We’re seeing an increase in pot stocks in Canada and expect continued legislative changes in the near future.

But what’s really weird is: they have banned menthol cigarettes.

According to this article from Canadian Broadcasting Corporation, the Canadian government is adding menthol-flavored cigarettes to an existing list of banned flavors (such as chocolate and bubble gum) to help prevent children from taking up smoking.

The article quotes a smokeshop owner who points out the irony of the marijuana legalization process that is underway but the restrictions placed on tobacco products. Pot sin stocks over tobacco sin stocks, apparently.

And we’d like to point out our skepticism about whether children really start smoking because of the menthol flavor. Our guess is that they start smoking because of the peer pressure associated with the coolness of smoking; that one looks older by smoking.

For sin stocks investors, it’s part of the continued governmental assault on tobacco products even while other sin stocks are embraced and doing well. And it will be interesting to see what happens with cigarette companies in Canada now, since (in the US) menthol cigarette sales are helping to keep this stagnating industry level. Will they raise prices? Will they introduce alternatives? This might be a good place for Philip Morris International (PM) to test the North American acceptance of their tobacco-heating product.


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