Corona Brewer Invests Additional $3.8 Billion in Canadian Pot Company

By |2018-08-27T20:15:14+00:00August 15th, 2018|Marijuana News, Michigan|
  • Producer of Corona adds $3.8 billion to prior investment in Canopy Growth
  • The partnership plans to expand into nearly 30 countries
  • They plan to move into the U.S. only when cannabis is federally legal

Constellation Brands Inc. has doubled down on the cannabis industry after investing an additional $3.8 Billion in Canopy Growth. This massive investment gives Constellation a 38% stake in the company, with a potential for an even larger share down the road.  At the end of 2017, the alcohol industry giant initially invested about $200 million to create a cannabis infused beverage with the largest Canadian pot conglomerate.

Investing in the Future

According to Euromonitor International, sales in legal U.S. cannabis markets are expected to increase by a whopping 300% from 2015 to 2020.  Additionally, the global market is expected to reach an astounding $32 billion in sales by 2022. On a conference call, Canopy Growth CEO, Bill Linton said the additional funds will be used to expand global market shares in nearly 30 countries.  These investments will be in the form of roughly $1 billion and happen over the next year.

Despite the massive growth projected in the United States, the pairing indicated they will not move into the U.S. until marijuana is federally legal. The company added, “Canopy Growth remains committed to not entering the U.S. market in any manner that would contravene U.S. federal laws.”  That being said, Linton indicated Canopy is doing everything legally acceptable to prepare for U.S. legalization.

Big Corporations Becoming the Cannabis Norm

It was inevitable.  We are seeing the beginning stages of the normalization of Cannabis, and large corporations are beginning to realize they must adapt or die.  In addition to Constellation’s big moves, Molson-Coors is expected to begin developing a cannabis infused beverage with Canadian pot company Hydropothecary Corp.  Large cannabis companies like MedMen and Ignite are also slowly eating up market shares in the Western U.S.

“This deal marks the end of the warm-up in our sector … It’s fully go-time. This is rocket Fuel”, Linton added.  It seems the powerhouse of a partnership has no plans of slowing down anytime soon.


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Jackson White