With Cannabis Investment, Constellation Bets on the Big Unknown
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Constellation Brands Inc. isn’t quite sure whether legal cannabis is friend or foe to the alcohol industry. Either way, it wants in.
The maker of Robert Mondavi wine, Corona beer and Svedka vodka is still waiting for the chips to fall into place after entering the up-and-coming (and turbulent) marijuana industry last year by taking a minority stake in Canada’s Canopy Growth. The rapid increase of the cannabis market has caused analysts to question whether drinkers could shift their spending to smoking as prohibitions on the plant’s recreational use are removed.