By Benjie Cooper
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Constellation Brands is a New York-based producer and international distributor of beer, wine, and spirit brands such as Corona, Ballast Point, Black Velvet Whisky, Svedka Vodka, and Raven’s Wood Wine.
Now, nearly a year after Constellation put down their first investment in Canopy Growth, the alcohol giant is significantly upping their stake in the company. Under a new deal signed by the two companies, Constellation will acquire 104.5 million shares at $48.40 per share and become Canopy’s exclusive global cannabis partner, increasing their stake in the business to 37%.
“Our business can make the strategic investments required to accelerate our market position globally,” said Canopy Chairman and co-Chief Executive Bruce Linton in a statement. “Constellation’s concentration of global cannabis activities exclusively through Canopy, coupled with the investment and its expert capabilities in brand-building, marketing, consumer insights and M&A will be a huge benefit as we look to expand our portfolio in Canada, the United States, and emerging cannabis markets around the globe.”
According to a press release, Canopy Growth plans to use the new wealth of funds to begin establishing their brand in the nearly thirty countries that are working to implement federally-approved medicinal cannabis programs as well as prepare for emerging recreational cannabis markets.
Because of the difficulty of operating within the varied patchwork of cannabis-legal American states, neither company has plans to market cannabis in the United States until it is legalized nationwide.
The deal between Constellation Brands and Canopy Growth is expected to close in October.