The cannabis industry is one of the fastest-growing sectors in the world, and a number of alcohol giants are choosing to invest in legal pot rather than get pushed aside by potential competition. Constellation Brands, the U.S. distributor of Corona, Modelo, Svedka, and other imported beers, wines, and liquors, snapped up a 9.9% share in Canadian cannabis giant Canopy Growth Corp. last year for the cost of $191 million. This week, the company vastly increased their commitment to legal weed, announcing an additional $4 billion investment in Canopy.
Last year, Constellation said they would be working with Canopy to develop a range of non-alcoholic cannabis-infused beverages. However Constellation CEO Rob Sands told investors Wednesday that the two companies will now be working on “a full suite of products,” according to the Wall Street Journal, but these new offerings will not be introduced in the U.S. until the federal government gets around to legalizing weed. Sands also told analysts that around 30 countries were considering legalizing medical marijuana in the near future, creating what could become “one of the most significant global growth opportunities of this decade.”
Constellation will now own 38% of Canopy, and will nominate four directors to the canna-company's board. The massive investment caused Canopy's stock to surge by 28%, but the expanded partnership is but one of many factors shaping the Canadian company's recent growth. Canopy's sales grew 63% in the first quarter of this year, to a total of $25.9 million. Nearly $4 million of this revenue came from exports to Germany, where medical marijuana was legalized last year.