Corona maker takes another hit, ups stake in cannabis company

Constellation Brands, the maker of Corona and Modelo beers and Svedka vodka, invested $4 billion into Canopy Growth on Wednesday, upping its stake in the cannabis production business.

“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space,” said Constellation Brands CEO Rob Sands. “We look forward to supporting Canopy as they extend their recognized global leadership position in the medical and recreational cannabis space.”

Constellation initially invested in Canopy in October, taking a 9.9 percent stake in the company. That stake will become 38 percent with this new investment.

Constellation’s stock fell by 8.9 percent on Wednesday, while shares of Canopy Growth rose by 23.2 percent.

Canopy Growth the largest medical marijuana producer in Canada. The company’s products include dried, oil and capsule varieties.

Constellation isn’t the only alcohol company dipping its toes in cannabis. Lagunitas Brewing, based in California, previously announced the launch of cannabis-infused sparkling water. Molson Coors also said it was in talks with multiple cannabis companies, CNBC reports.