The global drinks company Constellation Brands has increased its exposure to legal pot.
In August of 2018, Constellation Brands invested $4 billion in the Canadian-based cannabis company Canopy Growth. This week, Constellation Brands announced an additional purchase of a 5.1% stake in the Canadian company, bringing the total stake to 38.6%.
“While global legalization of cannabis is still in its infancy, we continue to believe the long-term opportunity in this evolving market is substantial,” says Bill Newlands, president and chief executive officer, Constellation Brands. “Canopy is best positioned to win in the emerging cannabis space and we are confident in the strategic direction of the company under David Klein and his team.”
Constellation Brands has the right to purchase up to 55.8% of Canopy Growth.
“This additional investment validates the work our team has done since attracting the initial investment in 2017,” says David Klein, chief executive officer, Canopy Growth. “It also strengthens our ability to pursue the immense market and product opportunities available to Canopy in Canada, the U.S. and other key global markets.”