Biggest drinks trade acquisitions of 2018

Constellation seals $4bn deal with Canopy Growth

Canopy Growth CEO Bruce Linton

One of the biggest trends of the year was cannabis, with a number of drinks companies making in roads into this burgeoning sector, but none more so than Constellation Brands.

In 2017, the company announced a $114m investment in Canada’s Canopy Growth with plans to make cannabis-infused drinks.

Canopy Growth is a world-leading cannabis and hemp company offering distinct brands and curated cannabis varieties in dried, oil and capsule forms. The firm has operations in 12 countries across five continents.

Then, in 2018, Constellation came back with a further investment to dwarf its first, ploughing $4 billion into the company.

“The global cannabis market presents a significant growth opportunity and Canopy Growth is well-positioned to establish a strong leadership position in this fast-evolving category,” Rob Sands, chief executive of Constellation said at the time.

“With this investment, Constellation Brands increases its ownership interest in Canopy Growth to approximately 37% of outstanding common shares of Canopy Growth and has appointed two members of its executive team, as well as two independent directors, to the board of directors of Canopy Growth.”

Sands is due to step down as CEO on 1 March but will stay on at Constellation Brands in the role of executive chair.

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