Corona beer maker, Constellation Brands, has invested $ 4 billion in Canadian cannabis producer, Canopy Growth
Alcohol giant Constellation Brands, maker of the Corona brand, is investing $ 4 billion in one of Canada's largest cannabis producers. Constellation Brands has just completed the largest contract in cannabis history, acquiring 38% Canadian giant Canopy Growth.
The biggest contract in cannabis history
Constellation Brands, among the first major alcohol manufacturers to invest in the marijuana industry, also injected close to 200 million at Canopy last year. This agreement aimed to produce a non-alcoholic drink made from cannabis. Canopy Growth will use the profits to expand its business to 30 countries likely to approve medical marijuana, company CEO Bruce Linton said according to to Reuters.
“It's rocket fuel,” Linton said. “We are going to be much more global. "
We knew that had to happen
In the face of slowing sales, the alcohol industry is clearly adding cannabis as a cutting edge ingredient to its brewing. Because a growing number of people choose to fight against whiskey ...
For example Molson Coors Brewing Co. has started a joint venture with Hydropothecary Corp. to develop non-alcoholic and cannabis-impregnated beverages for the Canadian market. Lagunitas, property of Heineken, launched a soft drink, infused with THC. But their efforts will pay off if the stock market is an indication. Outside, Canadian equities Canopy have jumped from 52% after the ad.
How does this translate into the US market?
Linton, of Canopy, predicted that cannabis could become completely legal in the United States. And, "sooner than people think" ...
Yet these companies face a formidable obstacle in the Trump administration. Perhaps more precisely with the Attorney General Jeff Sessions, which for decades has made cannabis one of its main enemies. Still, Trump appeared to move slightly on the issue when he announced he would allow states to decide on the regulation of their medical cannabis programs.
