Constellation Brands, the beer, wine and spirits company, has agreed to buy a minority stake in a medicinal marijuana company.
Constellation, whose beer division is based in Chicago, intends to pay about $191 million for 9.9 percent of Canopy Growth Corp., which trades on the Toronto Stock Exchange under the symbol WEED. Constellation also gets an option to increase its stake.
Constellation said the investment is part of its “long-term strategy to identify, meet and stay ahead of evolving consumer trends and market dynamics.”
At the same time, the company said it has no plans to sell any cannabis products in the U.S. or any other market unless it legal at all levels of government.
“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,” Constellation President and CEO Rob Sands said in a news release.
“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, based in Ontario, Canada, was founded in 2014. It owns several brands and grow operations and counts Snoop Dogg among its business partners.
“We are thrilled to have the backing of such a well-established and respected organization such as Constellation Brands,” said Bruce Linton, Canopy Growth chairman and CEO. “We look forward to working with the team to access their deep knowledge and experience in growing brands as we continue to expand our business.”