Beer, wine, and liquor seller Constellation Brands is pumping another $4 billion into Canopy Growth, Canada’s top weed producer, in the biggest investment into the industry yet.
Constellation, which owns brands like Corona and Modelo, already invested $191 million into Canopy last October. But with the purchase of 104.5 million Canopy shares at a 51.2% premium to Tuesday’s stock closing price, the most recent deal increases Constellation’s ownership of the cannabis company from 9.9% to 38%.
In an earnings call on Wednesday, Canopy CEO Bruce Linton called Constellation’s new investment “rocket fuel.”
Canada will become the first G7 country to legalize recreational use of cannabis this October, and many beer companies like Constellation see the drug as a way to hedge their bets for the future. While the beer business is stagnating as Millennials increasingly opt for wine and spirits instead, the cannabis