Constellation Brands has invested $245 million in Canopy Growth; the two firms could launch cannabis-based beverages when and if it's legal to do so
Smith Falls, Ont. – 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 to do so at all government levels.”
In its own statement, Canopy Growth says that as part of the partnership Constellation will “provide broad support in the areas of consumer analytics, market trending, marketing and brand development.”
Canopy Growth adds that the two companies will develop cannabis-based beverages geared to adults and market them “where and when such products are federally legal.”