The U.S. distributor of Corona beer is chasing a new type of buzz.
Constellation Brands Inc. STZ, +0.08% has agreed to take a 9.9% stake in Canopy Growth Corp., a Canadian marijuana company, and plans to work with the grower to develop and market cannabis-infused beverages.
Canopy Growth WEED, -1.24% is the world’s largest publicly traded cannabis company, with a market valuation of 2.2 billion Canadian dollars on the Toronto Stock Exchange. The C$245 million (US$191 million) deal gives Constellation a toehold in an industry that the brewer expects to be legalized nationwide in the U.S. in the coming years.
Constellation — flush with cash after posting a 13% increase in beer sales in its latest quarter — is interested in developing drinkable cannabis products that don’t contain alcohol, he said. Products currently on the market in U.S. states where they are legal include buzz-inducing sodas, coffees and fruit elixirs.
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