The legalization of marijuana is slowly spreading across North America. The drug is legal in several U.S. states and will be legal across Canada in July 2018. This has opened a lot of opportunities for businesses looking to cash in on the market.
Fortune 500 company Constellation Brands, an American entity that produces and markets alcoholic beverages, is investing in Canada’s biggest licensed marijuana producer, Canopy Growth Corp. Constellation is paying more than $245 million for a 9.9 percent stake in the business, according to the Chicago Tribune. It plans on doubling its stake in the near future.
Constellation sells Corona beer, Svedka vodka, tequila, wine and other products. Chief Executive Officer Rob Sands explained that they won’t sell cannabis-related products until the drug is legal at “all government levels.” Canada will meet those standards in less than one year.
The plan is for Constellation and Canopy to team up on cannabis-based beverages. Whether that’s beer and/or soda is unclear at this point. Canopy is based in Smith Falls, Ontario. CEO Bruce Linton explained that edibles and cannabis-infused beverages will slowly be phased in after marijuana is legalized in the country.
According to Beacon Securities analyst Vahan Ajamian, Constellation’s purchase of Canopy shares is a “game changer” for the company and the industry as a whole. He noted, “We suspect more alcohol companies may look to accelerate plans to enter the industry — as well as pharmaceutical and tobacco companies.”
Meanwhile, a recent study from the Stanford University School of Medicine shows that frequent marijuana users have more sex than those who don’t use the drug. There was a clear connection between the frequency of marijuana use and frequency of sexual intercourse.