Wine giants double down on the dope business

Global wine giant Constellation Brands has increased its stake in cannabis company Canopy Growth, meaning it now owns 38.6% of the business.

Constellation said it had made the investment through its subsidiary company Greenstar Canada Investment, Drinks Business reported.

Bill Newlands, president and CEO of Constellation Brands, said: “While global legalisation of cannabis is still in its infancy, we continue to believe the long-term opportunity in this evolving market is substantial. Canopy is best positioned to win in the emerging cannabis space and we are confident in the strategic direction of the company under David Klein and his team.”

CEO of Canopy Growth, David Klein, added: “This additional investment validates the work our team has done since attracting an initial investment in 2017. It also strengthens our ability to pursue the immense market and product opportunities available to Canopy in Canada, the US and other key global markets.

Constellation first invested in Canopy Growth in 2017. 

The drinks conglomerate's portfolio includes US wine brands Robert Mondavi, Wild Horse Winery, Clos du Bois, Franciscan Estates and Kim Crawford from New Zealand.