Constellation Brands, purveyors of such fine beverages as Corona ‘beer’ have laid a big bet to the tune of $4billion on cannabis. They dished out that money last November to Canopy Growth, a Canadian marijuana producing company, one of the biggest cannabis producers in the world.
With Canada set to make marijuana fully legal on Oct. 17th, marijuana stocks are looking good, with Canopy Growth stock up 285% since the beginning of the year.
Constellation just announced today that that rapid stock price increase has already netted them an unrealised profit of $1.3billion.
With big commercial beer sales fairly flat, and even craft beer sales levelling off, other beer brands are already look to marijuana to boost their bottom line, as they see it being a good fit to their core business of giving people a buzz.
This quote from Bruce Linton of Canopy Growth says it well:
“We believe people should have a choice in how they wish to improve or alter their socialization,” he said.
“Why are you having a beverage on a Friday night? It’s about a social lubricant. I think [Constellation] didn’t view themselves as a beverage company so much as an entity that provides those occasions with some kind of lift if you will — and that’s an easy way to look at cannabis, not as a threat, but as an alternative or additional.”
I must confess I am thirsty to see what kind of cannabis beverages the drinks producers come up with under Canada’s new paradigm.