Constellation Brands to buy into Canopy Growth Corporation

By Pouyan Broukhim

New York-based Constellation Brands has announced that it is set to purchase a 10% stake in the world’s largest publicly traded cannabis company, Ontario-based Canopy Growth Corporation.

By acquiring the minority stake in the cannabis producer, Constellation brands is aiming to stay ahead of consumer trends, with the company’s CEO expecting the legalisation of marijuana to continue and, in turn, market growth.

See also:

“Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future,” Sands said. “Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction.”

Canopy Growth currently has a market capitalisation of more than $2bn, largely helped by the legalisation of Cannabis within Canada, with its share price having more than doubled over the past 12 months.

“We are thrilled to have the backing of such a well-established and respected organization such as Constellation Brands,” said Bruce Linton, Chairman and Chief Executive Officer, Canopy Growth Corporation. “We look forward to working with the Constellation Brands team to access their deep knowledge and experience in growing brands as we continue to expand our business.”

The sum of the investment stands at C$245mn (US$191mn), with the transaction expected to complete during the third quarter of fiscal 2018.


Featured Articles

Possibilities endless as generative AI takes centre stage

Generative AI is already playing a pivotal role in the way companies are run; the only question is how quickly it can be integrated into everyday tasks

Why companies should be preparing for scope 3 reporting

With a decision looming on the SEC’s proposed changes to climate-related disclosures, leaders should be examining supplier sustainability credentials

People over profit is steering business in a new direction

An unsettling few years has resulted in more and more companies hiring Chief People Officers to implement a culture that prioritises employee wellbeing

Databricks: The phenomenal rise of a data and AI heavyweight

Technology & AI

Business Chief expands portfolio with new look and coverage

Leadership & Strategy

Google at 25: The remarkable rise of a technology colossus

Technology & AI