Canopy Growth Corp, a publicly listed medical marijuana company, announced a blockbuster $3.8 billion investment by alcohol giant Constellation Brands Inc, a move that will expand Constellation’s stake in Canopy to 38%, and allow the company to finance its international growth plans, including expansion into the US. Partnership with Constellation, producer of popular brands like Corona, Modelo, and Svedka, now provides Canopy with some very lucrative marijuana overlap in the alcoholic beverage market. And they’re not the first. Craft brewer Lagunitas, which is owned entirely by Dutch beer giant Heineken, has already launched Hi-Fi Hops, a calorie-free sparkling water that swaps out alcohol for high-inducing Tetrahydrocannabinol (THC).
However, Canopy and other publicly traded marijuana-based firms including Tilray and Cronos, are currently stuck operating only north of the border, in Canada. Amid the crackdown from US Attorney General Jeff Sessions, executives from both brands have stated that they will not expand operations in the United States until there is a solid legal framework allowing the sale of their products.
MRP has previously highlighted the booming Canadian Cannabis market, due to full scale legalization and also noted that the US would continue to lag their northern neighbor. However, we may finally be reaching a turning point . . .