Alcohol goliath pours $190M into Canadian cannabis company
The terms of the deal include an option for Constellation to increase its future ownership interest in Canopy to nearly 20 percent
Monday, October 30, 2017
Constellation Brands, the alcohol goliath, is putting its money toward another emerging sector — cannabis-based beverages. The company plans to spend C$245 million ($190.88 million USD) to acquire a 9.9 percent stake in Canopy Growth Corp., the companies announced Monday. Canopy, itself a giant in the emerging Canadian and international cannabis markets, produces and sells marijuana through its brands such as Tweed. The Wall Street Journal first reported about the investment. Constellation will provide support in areas such as consumer analytics, marketing and brand development, Canopy officials said, adding that the companies will collaborate in developing cannabis-based beverages for adults in areas where marijuana is federally legal. (See also: Cannabis may be replaced by beer's best ingredient for pain therapy)
