Global liquor giant Constellation Brands plans to significantly increase its ownership in Canopy Growth by investing an industry-record 5 billion Canadian dollars ($3.8 billion) to make the marijuana titan its exclusive global MJ partner.
“When Canopy did the original deal with Constellation, that set off a domino effect of others looking to do beverage deals, so it wouldn’t surprise me if this also sets off another round of companies looking for investment outside the LP (licensed producer) sphere, whether it’s beverage, pharma or tobacco,” said Matt Maurer of Toronto-based Torkin Manes’ cannabis law group.
“As the big players get bigger, other players will look to keep pace. Medium size LP will be looking to get together to merge and maintain where they are in the food chain,” he said.
This article was originally published in Marijuana Business Daily.