A leading beverage alcohol company has announced it has signed an agreement to acquire a minority stake in a Canopy Growth Corporation.
“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,” says Constellation Brands president and chief executive officer, Rob Sands. “Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction.”
The investment and relationship is consistent with Constellation Brands’ long-term strategy to identity, meet and stay ahead of evolving consumer trends and market dynamics, according to a news release.
The release also says that Constellation Brands has no plans to sell any cannabis products in the U.S. or any other market unless or until it is legal to do so.
“We are thrilled to have the backing of such a well-established and respected organization such as Constellation Brands,” says 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 investment is anticipated to approximate $245 million. The transaction will close the company’s third quarter of fiscal year 2018.