Constellation Brands, a wine, beer, and spirits conglomerate based in NY State, owns the likes of Corona beer, Casa Noble tequila, and many wine brands including Ravenswood and Robert Mondavi. They are now in the cannabis business.
Constellation bought a minority stake in Canopy Growth of Ontario Canada. It's now a medical marijuana company, but that nation is expected to legalize recreational use next year. American companies avoid entanglements with American weed companies because it's still illegal at the federal level.
Canopy Growth is the world's largest publicly traded weed company. The owner plans to use the extra cash to create THC-based drinks. And no doubt use Constellation's distribution network to sell products.
With all the talk about legalized marijuana possibly displacing some sales of the traditional alcoholic beverages this could be seen as Constellation hedging their bet and diversifying. Will weed displace wine? Watch California where recreational marijuana becomes legal in a few weeks.
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