3rd Biggest Beer Company Spends $191M On Largest Marijuana Producer, Will Make Weed-Based Drinks
Many believed that the legalization of marijuana would make alcohol manufacturers worry because it would take away from their business, which is a very, very lucrative industry. In 2016, the total alcoholic beverage sales in the United States amounted to approximately $223.2 billion. The alcohol industry has enjoyed an increase in sales over the past few years, but as more and more states legalize marijuana, legal weed jeopardizes big alcohol’s profits. One of the biggest alcohol companies in the world has already decided that if you can’t beat them, join them.
Constellation Brands, the third biggest beer company in the United States, acquired a 9.9% stake in Canopy Growth, the largest legal marijuana producer in the world. The beer behemoth paid $191 million for its stake in Canopy Growth, making Constellation the biggest shareholder of the weed giant. “Our company’s success is the result of our focus on identifying early-stage consumer trends, and this is another step in that direction,” Constellation Brands CEO Rob Sands said in a statement. Sands said that it is “highly likely” that marijuana will be legalized nationally in the United States in the coming years. The same sentiment is held by a 64% majority of the U.S. population who wants to legalize weed according to a Gallup poll released last week, and it is the highest percentage since the polling company began asking the question back in 1969. For now, Constellation is said to have no plans to sell cannabis in the U.S. or other markets until it’s legal “at all government levels.”