Constellation's move into cannabis looks interesting

A somewhat unlikely pair – a beverage alcohol company and a cannabis firm – finalized their partnership on Nov. 2, 2017.

Victor, N.Y.-based Constellation Brands had announced on Oct. 30 that it had acquired a minority stake in Ontario-based Canopy Growth.

According to a statement, Constellation invested $245 million in exchange for 9.9 per cent equity in Canopy Growth. “As a result, [Canopy Growth] has issued 18,876,901 common shares in the company to an affiliate of Constellation.”

Canopy Growth is a leading provider of medicinal cannabis products, while Constellation  is an international producer and marketer of beer, wine and spirits.

In a statement, Constellation says the investment “is consistent with [its] long-term strategy to identify, meet and stay ahead of evolving consumer trends and market dynamics, while maintaining focus on its core total beverage alcohol business.”

Constellation adds that it doesn’t intend on selling cannabis products until it’s “legally permissible...

e-mail icon Facebook icon Twitter icon LinkedIn icon Reddit icon
Rate this article: 
Region: