FDBusiness.com

Constellation Brands to Invest $4 Billion to Develop Canabis Market

 Breaking News
  • UK Shoppers Set to Spend £21.6 Billion on Food and Groceries This Christmas The UK grocery market is set to experience 2.4% growth this Christmas, with shoppers predicted to spend £21.6 billion over the festive period, according to the latest forecast from research organisation IGD. With nearly half (48%) of shoppers agreeing that food and drink is the most important part of Christmas Day, grocery has a key role to [...]...
  • Europastry Broadens its Portfolio Europastry, a family-owned business specialising in frozen bread and patisserie products, has completed its purchase of Confeitaria Torres, a Portuguese bakery company. Based in Trofa near Porto, Confeitaria Torres supplies fresh and deep-frozen bakery and pastry products. With the acquisition, Europastry adds another craft baker to its production capacity, further consolidating its range of high quality [...]...
  • Quality is King in China’s Infant Formula Market Chinese parents care much more about the quality and nutritional value of infant formula than its price, new research by Advanced Lipids has shown. China accounts for almost half of all infant formula sales globally. To gain new market insights, Advanced Lipids, manufacturer of the fat ingredient INFAT®, surveyed 211 urban Chinese parents. All fed their children [...]...
  • Austrian Meat Manufacturers Turn to FlatSkin® System by SEALPAC Food retailers in Austria, like in many other European countries, are increasingly choosing vacuum skin packaging. This technology can be found in a growing number of varieties across the retail shelves, owing to its obvious benefits: securely sealed under deep vacuum, food products have a significantly longer shelf life and can be presented in a [...]...
  • FrieslandCampina Strengthens US Presence Royal FrieslandCampina, the global dairy group, has acquired US-based importer and distributor Jana Foods. The acquisition will further strengthen FrieslandCampina’s position in supplying Dutch specialty cheese to the US market. Jana Foods will be integrated in the FrieslandCampina Consumer Dairy USA business. “This acquisition supports our strategy of investing for growth. This investment is in line [...]...

Constellation Brands to Invest $4 Billion to Develop Canabis Market

Constellation Brands to Invest $4 Billion to Develop Canabis Market
August 17
11:45 2018

Constellation Brands, the North American and international alcoholic drinks group, is investing US$4 billion (C$5 billion) to increase its stake in Canopy Growth Corporation, a leading diversified cannabis company, to 38%. The significantly expanded strategic partnership will position Canopy Growth as the global leader in cannabis production, branding, intellectual property and retailing.

As a result of the new shares Constellation is acquiring, Canopy Growth will immediately upon closing have proceeds of approximately C$5 billion (US$4 billion) to bolster its leadership position in the global cannabis industry. This investment, the largest to date in the cannabis space, will provide funds which Canopy Growth will deploy to strategically build and acquire key assets needed to establish global scale in the nearly 30 countries pursuing a federally permissible medical cannabis program, while also rapidly laying the global foundation needed for new recreational cannabis markets. Canopy Growth’s Canadian platform does not require additional cannabis cultivation assets, and management views other jurisdictions, including the United States, as strategic priorities requiring significant capital.

“Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner,” says Rob Sands, chief executive of Constellation Brands. “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. We look forward to supporting Canopy as they extend their recognized global leadership position in the medical and recreational cannabis space.”

Canopy Growth will benefit from Constellation’s deep understanding of consumer trends and shifting preferences, and proven ability to translate those insights into distinct brand positionings that build strong connections with consumers and foster brand loyalty. Constellation’s disciplined approach and capabilities in areas such as mergers and acquisitions, finance, large-scale production, marketing and sales as a leading Fortune 500 company, combined with Canopy’s entrepreneurial approach and best-in-class knowledge and expertise within the emerging cannabis sector create a powerful combination that will ensure Canopy Growth is set up for sustainable, long-term success as the company and sector evolve.

Founded in 2013, Canopy Growth has cemented itself as the industry leader in Canada’s legal cannabis market. Through its subsidiaries Tweed and Spectrum Cannabis, Canopy Growth has established a global presence in 11 countries which is driven by product innovation, a robust intellectual property portfolio, and clinical research programs targeting both human and animal health. In Canada, Canopy Growth has established sophisticated operations to support recreational sales by raising capital and making the strategic investments required to maintain and accelerate its market leadership position at a critical time in the company’s evolution. Substantial capital is required to fully capitalize on Canopy Growth’s market-leading position in Canada and establish similar leading positions in markets around the globe.

“Our business can now make the strategic investments required to accelerate our market position globally,” says Bruce Linton, chairman and co-chief executive of Canopy Growth. “Constellation’s concentration of global cannabis activities exclusively through Canopy, coupled with the investment and its expert capabilities in brand-building, marketing, consumer insights and M&A will be a huge benefit as we look to expand our portfolio in Canada, the United States and emerging cannabis markets around the globe. We view this investment in our business as an endorsement of our execution since forming our initial strategic relationship in October 2017.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements