Legal highs: The drinks companies taking on cannabis

Constellation Brands

Constellation Brands jumped on the weed wagon early, purchasing a 9.9% stake in Canadian marijuana company Canopy Growth Corp for £141 million back in October 2017.

The owner of Corona, Kim Crawford Wines and Ballast Point has plans to make cannabis drinks, and this year increased its stake in Canopy Growth, investing US$4 billion to acquire a 38% share of the business.

Constellation’s confidence in the sector appears to be paying off already, with the value of its shares in the cannabis company already worth an extra $1.3 billion, as reported in its second quarter results.

Since November last year, shares in Canopy Growth have climbed more than 285%, with the producer confirming that “$1.3 billion unrealised gain has been recognised since investment in November 2017.”

“Our $4 billion investment in Canopy Growth provides us with a strong foothold in the emerging global cannabis market, which could be one of the most significant growth opportunities of the next decade,” Rob Sands, Constellation’s CEO said in a statement.

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