CONSTELLATION MAKES THE MOVE TO MARIJUANA

CONSTELLATION BRANDS is taking the leap and getting into the weed business.  Constellation, which sells Corona and Modelo and is the third-largest beer company in the US – has acquired a 9.9% stake in the Canadian cannabis holding company Canopy Growth.  The beer giant paid $191 million for its stake in the largest legal marijuana producer in the world.  Canopy Growth is one of the biggest names in the legal weed industry, supplying nearly half of Canada’s medical-marijuana patient base.  Canopy was founded in 2O14 and in two short years became the first company in the marijuana industry to achieve the elusive “unicorn” status, blowing past a $2 billion valuation.  While some industry insiders are concerned that legalized marijuana could cannibalize beer sales, the category could certainly use a boost.  Overall beer penetration fell 1% from 2O16 to 2O17 in the US market, while both wine and spirits were unmoved, according to Nielsen ratings.