The owner of Corona beer has announced plans to invest $4 billion (£3.15 billion) into the Canadian marijuana grower Canopy Growth Corp.
Constellation Brands is marking the largest investment in the industry, hoping to capitalise on the increasing legalisation of the cannabis worldwide.
“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 the chief executive of Constellation Brands, Rob Sands.
Following the news, shares in Constellation Brands fell six percent whilst Canopy Growth shares surged 30 percent.
With the investment, Canopy Growth is hoping to expand its business reach “in the nearly 30 countries pursuing a federally permissible medical cannabis programme”.
Currently producing a range of products including cannabis-based oils, the group is hoping to expand into edible bars and inhalers.
Canopy’s chief executive Bruce Linton said: “This [deal] marks the end of the warm-up in our sector… it’s fully go-time.”
“This is rocket fuel… we’re going to be way more global,” he added.
More and more brewers of alcoholic drinks are starting to add cannabis to beverages, to spice up the slowing business.
Molson Coors Brewing Co. (NYSE: TAP) is working with Hydropothecary Corp. to develop non-alcoholic, cannabis-infused drinks.
Shares in Canopy Growth are currently trading up 1.45 percent at 42.81.
Shares in Constellation Brands (NYSE: STZ) are down 1.63 percent at 204.90.