Beer and other beverages infused with cannabis -- or marijuana -- stand to become a distinct possibility with the surging expansion of Canopy Growth Corporation, the largest producer of medical marijuana in North America, after a massive $3.8 billion investment by the company that owns Corona Beer.
This recent buy-in by Constellation Brands, Inc. gives this firm based in the state of New York a 38 percent share in Canopy Growth compared to its previous 10 percent. A Fortune 500 company, Constellation Brands is the largest beer import company in the world in terms of sales.
Its beer brands include Corona, Modelo Especial, and Pacífico, among others. Its wines and spirits brands include Black Velvet Canadian Whisky, Noble Tequila, and Svedka Vodka.
Based in Canada, Canopy Growth is the first federally regulated, publicly traded cannabis producer in Canada and the United States. It's been called one of the world's premier exporters of marijuana. It's also Canada's first cannabis exporter. The investment by Constellation Brands saw Canopy Growth's stocks surge by a massive 30 percent.
Cannabis stocks in the Canadian Securities Exchange (CSE) have soared since the investment by Constellation Brands. Investors are betting that Constellation might eventually launch cannabis-based beverages, and other cannabis-infused products, as well. These recreational cannabis products will first be sold in Canada, where the use of marijuana for recreational purposes becomes legal on Oct. 17. On the other hand, the United States federal government prohibits the use of medical and recreational marijuana.
The Canadian rivals to Canopy Growth have also benefited from the latter's good fortune. One of these competitors, Cronos Group, has seen its stock jump more than 40% over the past week. The stock soared 11% on Aug. 21. In its own words, the mission of Cronos Group is to establish the most valuable international cannabis community.
Shares of Tilray (also based in Canada) on the Nasdaq has shot up by more than 60% over the last week. Tilray shares rose 10 percent on Aug. 21. Tilray is one of the largest and most sophisticated producers of premium medical cannabis in the world.
Canopy Growth, Cronos, and Tilray will exploit Canada's legalization of marijuana on Oct. 17 and have made public their plans. Tilray revealed it will supply marijuana for the Ontario Cannabis Retail Corporation (OCRC) through an affiliate, High Park Holdings.
Cronos said its products will also be sold through OCRC. It will sell recreational marijuana in Nova Scotia, British Columbia, and Prince Edward Island.
Canopy Growth also has a deal to sell pre-rolled marijuana cigarettes in Ontario starting Oct. 17. It will also sell cannabis oils, dried flower, and cannabis soft gel capsules.
