Worldwide beverage company Constellation Brands has signed an agreement to acquire a minority stake in Canopy Growth Corporation, a leading Canadian provider of medicinal cannabis products. The move is part of Constellation Brands’ 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. The agreement is worth USD$191 million for a 9.9 percent stake in the company.
“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 CEO Rob Sands. “Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction.”
Cannabis-based consumables are expected to be legalised in Canada in mid-2019, a year after recreational cannabis will be legalised.