Oct. 30 (UPI) — International alcohol producing and marking company Constellation Brands acquired a minority stake in Canadian medical cannabis provider Canopy Growth Corporation, the company said Monday.
The company, which owns Corona beer, will pay $191 million for a 9.9 percent ownership interest in Canopy Growth Corporation in addition to warrants giving Constellation Brands the option to purchase additional ownership interest in the future.
“Our company’s success is the result of our focus on identifying early-stage consumer trends, and this is another step in that direction,” Constellation Brands President and Chief Executive Officer Rob Sands said.
Constellation, based in Victor, N.Y., said it has no plans to sell any cannabis products in the United States or other markets until it is legally permissible to do so “at all government levels.”
“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,” Sands said.
Part of the deal includes plans for Constellation and Canopy to collaborate on cannabis-based beverages to be sold in places where such products are legal at the federal level, Bloomberg reported.
“This looks a lot like the new normal,” Canopy CEO Bruce Linton said. “There’s no need to include alcohol, nor is there an intent to include alcohol in how we follow through with things.”
Canopy’s stock rose by 23 percent following the deal, marking the largest jump in stock price for the company within one day since November 2016.
“We are thrilled to have the backing of such a well-established and respected organization such as Constellation Brands,” 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.”