Constellation Brands, the liquor company behind Corona and Ballast Point beer, has bought 9.9 percent share in Canopy Growth, one of Canada’s top cannabis companies. The company issued a press release announcing the decision on Monday. The company’s move will “identify, meet and stay ahead of evolving consumer trends and market dynamics,” the statement said.
Constellation’s CEO Rob Sands, said in an interview with the Wall Street Journal, that the company is looking into brewing non-alcoholic cannabis infused beverages. Might we soon see a beverage called Corona Cannabis, Corona Green, or Coronnabis? Among other things said in the interview, Sands believes it’s “highly likely” that the US will legalize cannabis soon, an opinion shared by many investors. “Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction,” Sands said in another statement.
Many alcohol companies have lamented over the effects that legal cannabis has had over their bottom line; simply put, people are choosing to use cannabis rather than drink. Some companies have tried to fight legalization. Corona is doing the smart thing by choosing to embrace and adapt the change, rather than fight it. Constellation is not the only big name currently investing in the cannabis industry. Scott’s Miracle Gro and GW Pharmaceuticals have also invested. After Constellation made their announcement, their stock went up slightly.
Constellation has said that they will not sell cannabis products in the US until it is fully legalized (liability and all that), but they seem to think that full legalization is coming sooner rather than later. I tend to agree. The potential to make boatloads of money is going to trump any personal prejudice people have towards cannabis.
Source: Investor’s Business Daily
Image Source: Pop Sugar
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