Constellation Brands, one of the world’s largest wine makers has reportedly invested around USD 4 billion (GBP 3.13 billion) in Canada's top cannabis producing company, Canopy Growth. Sources claim that this deal valuation is apparently one of the largest investments recorded in this industry.
As per an official statement, the investment would allow the Canadian company to expand its business reach in new markets of almost 30 countries, following a legally authorized medical cannabis programme.
According to CNBC, Constellation Brands, reputed for its famous Modelo and Corona beer, has reportedly grabbed 9.9% stake in Canopy Growth. The deal will allow Constellation to make future investments in the company and will give it a strong foothold in the industry.
As per Constellation’s CEO, Rob Sands, the company has gained a better understanding of the cannabis market, its huge growth opportunities, and Canopy’s market-governing capabilities in this sector.
Prior to the new investment, Constellation had poured in USD 200 million in the Canadian cannabis maker to produce non-alcoholic cannabis based drinks. Apparently, the alcohol firm wants to take advantage of the rising demand and legalization of the once illegal drug, which according to sources is expected to be legalized soon in the U.S. as well.
Canopy Growth for the record, is one of the largest legal cannabis producers in the world and is currently developing new cannabis based products including soft gel caps, oils, inhalers, edible bars and pre-rolled items. In addition, the company has also made plans on developing cannabis based medicines that are likely to be a safer alternative for treatments of anxiety, pain, insomnia and psoriasis.
Constellation is reputed for manufacturing and supplying wine, beer and spirits in Canada, U.S., New Zealand, Mexico and Italy.
Reportedly, the Canadian government has passed a bill which would efficiently legalize the production and distribution of cannabis based products in its market. The bill is likely to be effective in October, claim sources.
Ojaswita Kutepatil, a mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. Currently, she works at AlgosOnline. as an Content writer, where she pens down write-ups pertaining to the market research industry. Crafting, reading, and music are some of her other areas of interest.