Corona Brewer Invests $4 Billion in Cannabis
Constellation Brands, the maker of Corona, thinks that the marijuana industry is a pretty good bet. Last year, Constellation first invested in the cannabis company Canopy Growth, buying in at a 10% stake. Constellation recently decided that they wanted a bigger piece of the pie, so they invested another $4 billion in Canopy Growth, bringing their holdings to 38%. Shares of Canopy (CGC) trade on both the New York Stock Exchange and Toronto Stock Exchange.
OCG shares soared after the news of Constellation’s investment, but Constellation’s stock fell almost 6% after the move. “This could potentially be one of the most significant global growth opportunities for the next decade.” – Rob Sands, Constellation CEO, via CNN Money
Though recreational marijuana isn’t legal federally in the U.S, “there is an expectation that marijuana will eventually be legalized in the U.S.,” according to Wells Fargo analyst, Bonnie Herzog. Many beverage companies are already planning on making cannabis-infused drinks. Perhaps Constellation will be next. “Constellation gets it. This is happening globally.” – Bruce Linton, Canopy Growth CEO, via CNN Money