If there was any doubt that marijuana is developing into a massive market en route to compete with alcohol, additional evidence arrived today. Beverage goliath, Constellation Brands, announced the acquisition of a minority stake in Canopy Growth, a large, Canadian medical marijuana provider.
Constellation is picking up 9.9% of the weed grower and retailer for about $191 million according to a press release. In addition, additional shares will be available in the future.
“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,” said Constellation Brands President and Chief Executive Officer, Rob Sands. “Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction.”
According to the release, “Constellation has no plans to sell any cannabis products in the U.S. or any other market unless or until it is legally permissible to do so at all government levels.”
Greenwave Advisors placed retail pot sales in the U.S. from 20 legal jurisdictions at $6.5 billion, but projected that figure will hit $30 billion by 2021.
Canopy Growth is one of the largest marijuana producers in the world, boasting a two billion dollar market cap. The corporation’s holdings include Tweed, a massive Ontario retailer; Spectrum Cannabis, a medical marijuana division; and Bedrocan Canada, the offshoot of a famed Dutch medical THC lab and grower. Canopy trades on the Toronto Stock Exchange (TSX) under the symbol WEED.
Constellation is a giant in the booze industry. Their wine portfolio features dozens of brands including Ravens Wood, The Prisoner, Black Box, Ruffino, and Close du Bois. On the beer end, Constellation owns Modelo, Corona, Pacifico, Funky Budha, Ballast Point, Tocayo, and Victoria. Paul Masson, High West, Svedka, and Casa Noble are amongst their liquor holdings. Based in Victor, NY, Constellation is an international corporation employing over 9000 people and trading on the New York Stock Exchange (NYSE) under the symbol STZ.