10.30.2017  
 

Constellation invests in Canadian cannabis

Victor, N.Y.—Constellation Brands is making a $245 million (Canadian) investment in the Ontario-based cannabis company Canopy Growth Corp. The investment represents a 10% equity share in the Canadian company that produces dried, oil and capsule medicinal cannabis products and manages a 500,000-square-foot greenhouse production facility.

According to a statement by Constellation — one of the largest wine, beer and spirits companies in the world— the deal reflects the company’s “long-term strategy to identify, meet and stay ahead of evolving consumer trends and market dynamics, while maintaining focus on its core total beverage alcohol business.”

“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 in the statement announcing the investment. “Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction.”

The company added it “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.”

Canadian lawmakers at the national and provincial level are still working on laws to legalize the recreational use of cannabis by 2018. While medicinal and recreational cannabis is legal in several U.S. states, all uses of the plant remain illegal under federal law. 
 

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