You want more than booze and beer… and Corona wants to make sure you are getting that. Constellation Brands, the maker of Corona, is dropping $4 billion to increase its stake in Canopy Growth, a marijuana company. Their stake increased from 10% to 38%, and they still have the option to purchase a controlling share of over 50%.
Good news for Canopy… because this news sent shares upward by 25%. And yes, this is a legit company listed on the New York Stock Exchange – not just a guy that grows in his backyard shed. However, shares of Constellation Brands were down 6% following the announcement. Nevertheless, Constellation CEO Rob Sands sees this deal as possibly the company’s “most significant growth opportunity” over the next decade (pun intended?).
Not just for smoking… and Constellation will be looking to launch cannabis-based alcoholic beverages. Canopy Growth CEO Bruce Linton envisions cannabis, no-calorie drinks that can fight depression – so a drink that makes you skinny and happy. Regardless, it is widely anticipated that marijuana will eventually be legalized in the United States. With this expectation, Constellation and Canopy will be getting to work now to fuel our bad habits later..