Constellation Brands is on a buying spree. A few months ago, the beverage distributor purchased South Florida’s Funky Buddha Brewery for an undisclosed sum.
Now, Constellation has announced plans to become an active part of the legal cannabis market. The company plans to acquire a minority stake in Canopy Growth Corporation. The Canadian firm is traded on the Toronto stock exchange under the symbol WEED and owns several brands including Tweed, a mega marijuana production company. Constellation confirmed the transaction is expected to close during the third quarter of 2018, resulting in a 9.9 percent ownership interest in Canopy for approximately $245 million.
In a news release, Constellation noted the investment is part of its “long-term strategy to identify, meet, and stay ahead of evolving consumer trends and market dynamics, while maintaining focus on its core total beverage alcohol business.”