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Corona distributor to buy stake in Canada’s largest licensed cannabis producer

Kirk Smol by Kirk Smol
October 30, 2017
in News
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Corona distributor to buy stake in Canada’s largest licensed cannabis producer

A beer distribution company in the United States is trying to be one step ahead of the curve.

Yesterday, the Wall Street Journal reported that Constellation Brands Inc. will take a 9.9 percent stake worth $245 million in Canopy Growth Corporation, Canada’s largest licensed producer of cannabis.

Canopy, the parent company of brands including Tweed, Spectrum, and Bedrocan; and Constellation, a New York-based distributor of Corona beer, will work in tandem to create infused non-alcoholic beverages intended for countries where cannabis is legal, including Canada—where edibles won’t be part of the legal market until July 2019.

Constellation CEO Rob Sands told the Walls Street Journal in an interview that in light of the number of states already offering legal recreational cannabis—eight plus the District of Columbia—he expects the federal government won’t be far behind.

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The move to obtain part of Canopy was the company’s way of attempting to secure ‘first-mover advantage’ in the American market.

Constellation does not plan to market in the U.S. until cannabis is available recreationally to the entire country, according to Sands.

While other executives in the liquor industry might see cannabis as a threat to their bottom line, Constellation doesn’t seem to share that fear.

Sands told the WSJ that the company had no intention of lobbying for or against legalization in the United States.

Kirk Smol

Kirk Smol

Kirk's journey through the digital realm began with lines of code and algorithms dancing in his dreams. Armed with a keyboard and an insatiable curiosity, he embarked on the path of software engineering. However, fate had a smoky twist in store for him. As the ones and zeros swirled around him, Kirk had an epiphany – he realized that he was more interested in the highs and lows of the cannabis industry than debugging lines of code. With a leap of faith that would make a bungee jumper blush, he bid farewell to the world of semicolons and database queries and embraced the intoxicating allure of cannabis journalism. Now, Kirk finds himself navigating a different kind of network, one that's all about buds, trichomes, and terpenes. Armed with a pen that's mightier than a vaporizer and a keen eye for detail, he's on a mission to unravel the mysteries of the green world.

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