While often enjoyed together, marijuana and beer have come together in a new way. Constellation Brands — an international alcohol company that includes everything from Corona to Svedka to Rex Goliath — has acquired 10 percent in the Canadian cannabis company Canopy Growth Corp.
The move is described as part of Constellation’s efforts to “identify, meet,and stay ahead of evolving consumer trends and market dynamics.”
“Canopy Growth has a seasoned leadership team that understands the legal, regulatory, and economic landscape for an emerging market that is predicted to become a significant consumer category in the future,” Constellation resident and CEO Rob Sands said in a release. “Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction.”
In addition to distributing big-name brands, Constellation made waves in the craft beer industry in 2015 when it bought San Diego-based Ballast Point Brewing Co. for $1 billion. Constellation is a publicly traded Fortune 500 company producing, marketing, and distributing beer, wine, and spirits.
Canopy Growth Corp. has a market cap of more than $2 billion, owning brands serving the Canadian and international markets where medicinal marijuana is legal. The 9.9 percent ownership is valued as a $245 million investment from Constellation, with options to purchase more ownership in the future. The deal will likely close late next year.
“We are thrilled to have the backing of such a well-established and respected organization such as Constellation Brands,” Canopy Growth Corp. chairman and CEO Bruce Linton said. “We look forward to working with the Constellation Brands team to access their deep knowledge and experience in growing brands as we continue to expand our business.”
Feature image courtesy of Tweed Farms.