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News Constellation Brands acquires minority stake in cannabis company Canopy Growth

Discussion in 'Beer News & Releases' started by jmdrpi, Oct 30, 2017.

  1. jmdrpi

    jmdrpi Poo-Bah (4,434) Dec 11, 2008 Pennsylvania
    Subscriber

    Constellation Brands (Corona, Modela, Ballast Point, Funky Buddha, etc) seems to be hedging against the threat that legal cannabis has on the beer market.

    http://business.financialpost.com/c...-9-9-per-cent-stake-in-canopy-growth-for-245m

    "Constellation will pay about $245 million for a 9.9 per cent stake in Canopy Growth Corp."

    "Constellation will give marketing support and collaborate in the development of cannabis-based drinks"

    Press release from Constellation:
    http://business.financialpost.com/c...-9-9-per-cent-stake-in-canopy-growth-for-245m
     
    StoutElk_92 and DovGibor like this.
  2. MistaRyte

    MistaRyte Disciple (379) Jan 14, 2008 Virginia

    Ballast Joint (bah-dum-kish)
     
  3. jmdrpi

    jmdrpi Poo-Bah (4,434) Dec 11, 2008 Pennsylvania
    Subscriber

    This article has a quote from the Constellation CEO Rob Sands that is clear that this is a hedge against lost beer sales:

    Also, wonder if we'll see a similar move from other large beer companies:
     
  4. zid

    zid Champion (839) Feb 15, 2010 New York
    Beer Trader

    Jeez. I know some people view cannabis like a gold rush, but to put that into perspective, Anchor might have been bought for $85 million and in this deal, Constellation paid $245 million for under 10%...
     
    cjgiant likes this.
  5. HorseheadsHophead

    HorseheadsHophead Meyvn (1,078) Sep 15, 2014 New York

    Huh. Well, this is interesting.
     
    raynmoon likes this.
  6. FatBoyGotSwagger

    FatBoyGotSwagger Savant (998) Apr 4, 2009 Pennsylvania

    it is a gold rush or a green rush lol. If you grow outdoors you have very little cost to operate and they sell it for a lot.

    You all know how craft beer blew up weed will overtake that in the next decade. Smart move for Constellation.

    Want to get your public schools out of the red..how about fix your broken infrastructure tax that shit and sell it.
     
  7. oldbean

    oldbean Aspirant (230) Jun 30, 2005 Massachusetts

    So now that marijuana is just a normal, legit way for corporations to make money, we're going to release all the people currently serving prison sentences for selling it and reimburse them for the time they've lost, right?
     
  8. jmdrpi

    jmdrpi Poo-Bah (4,434) Dec 11, 2008 Pennsylvania
    Subscriber

    I assume the survey referenced was taken from States that have legalized, but those are big numbers:

     
  9. StoutElk_92

    StoutElk_92 Poo-Bah (1,629) Oct 30, 2015 Massachusetts
    Beer Trader

    I could definitely see a Funky Buddha weed beer...
     
  10. jesskidden

    jesskidden Meyvn (1,280) Aug 10, 2005 New Jersey
    Subscriber

  11. zid

    zid Champion (839) Feb 15, 2010 New York
    Beer Trader

    It still seems like a big gamble to my dumb eyes. They are doing this specifically to develop a cannabis drink... and they supposedly only intend to sell the product after national legalization. They are trying to get in early, knowing that the future legality of the concept could backfire. I assume the risk is worth the potential reward to them.
     
  12. Hoppedelic

    Hoppedelic Aspirant (225) Dec 6, 2010 California
    Subscriber Beer Trader

    It will never replace it because they they go so well together.
     
    A2HB and HorseheadsHophead like this.
  13. jmdrpi

    jmdrpi Poo-Bah (4,434) Dec 11, 2008 Pennsylvania
    Subscriber

    Canada is on schedule for national legalization in July 2018, that's less than a year away.

    So the gamble is really just for the national US market. They already distribute alcohol to the whole North American continent, that's got to be a head start.
     
  14. Urk1127

    Urk1127 Meyvn (1,297) Jul 2, 2014 New Jersey
    Beer Trader

    As an avid smoker and supporter of small business, idk who Canopy is but big companies buying out marijuana companies i dont like for the reason of im afraid itll turn into what the cigarette companies are and thats a mess.
     
  15. Ranbot

    Ranbot Devotee (458) Nov 27, 2006 Pennsylvania

    With Gallup poll show that over 60% of the US agrees with legalizing pot, the gamble is less about if it will happen so much as when. We're also in somewhat weird political times with talks of major tax overhauls that could potentially feed into legalization with taxation. I can imagine a right-leaning state and federal legislatures/administrations fulfill campaign promises of cutting taxes, but filling in the budget gap with a "compromise" to the left :wink: of legalizing of marijuana with a conservative "sin" tax. I'm merely speculating, but it's not unprecedented either, like the end of US Prohibition was in part due to the gov't searching for new tax streams to fund WWII; or more recently states, like PA, legalizing gambling and taxing it to fill budget gaps.
     
  16. HorseheadsHophead

    HorseheadsHophead Meyvn (1,078) Sep 15, 2014 New York

    That's a good point, but you had to know this was going to happen as soon as states started legalizing pot. It is going to be treated like cigarettes.
     
    Urk1127 and ecpho like this.
  17. readyski

    readyski Aspirant (233) Jun 4, 2005 California
    Beer Trader

    Interesting to note the connection between craft beer and cannabis
    Both growth industries and appeal to similar demographics
     
    Hoppedelic and HorseheadsHophead like this.
  18. Hoppedelic

    Hoppedelic Aspirant (225) Dec 6, 2010 California
    Subscriber Beer Trader

    Now we just need bars that serve both. No more going out back to smoke a doob.
     
    A2HB and StoutElk_92 like this.
  19. jmdrpi

    jmdrpi Poo-Bah (4,434) Dec 11, 2008 Pennsylvania
    Subscriber

    Well it certainly ain't happening while Jeff Sessions is Attorney General, considering he wants to go in reverse.

    The arguments for legalization make sense to most educated people, but then you have to remember that Alabama and Mississippi didn't legalize home brewing until 2013, a full 35 years after it was on a federal level.

    And the number of dry counties and municipalities in the Bible Belt that still outlaw alcohol is shockingly high

    https://en.wikipedia.org/wiki/List_of_dry_communities_by_U.S._state?wprov=sfla1
     
  20. rgordon

    rgordon Crusader (725) Apr 26, 2012 North Carolina

    Legalize marijuana completely and target the revenue to rebuilding an aging American infrastructure. Why stand by and let all of these billions of dollars remain illegal and involved in even more illicit enterprises?
     
    Squire123 and readyski like this.
  21. A2HB

    A2HB Initiate (166) Oct 30, 2013 Michigan

    Nailed it
     
  22. drtth

    drtth Poo-Bah (3,197) Nov 25, 2007 Pennsylvania

    cjgiant and DonicBoom like this.
  23. oldbean

    oldbean Aspirant (230) Jun 30, 2005 Massachusetts

    Cory Booker, who's as likely as anyone to be running for president in 2020 and a guy who I think is fairly calculated in his political stances, made a point of attaching his name of marijuana legalization:

    https://www.washingtonpost.com/news...ew-racial-justice-bil/?utm_term=.3c97c33bd2b0

    He's framing it as a social justice issue, which it absolutely is, but I think it's also a pretty clear signal that this issue is now seen as an obvious political winner, and assuming that we don't descend into a full on autocracy in the next few years (wheeeee!), there will likely be legal doobage for all within the next decade.
     
    jmdrpi, Ranbot and drtth like this.
  24. ManBearPat

    ManBearPat Disciple (396) Dec 2, 2014 Colorado

    That’s a slippery slope... next thing you know cocaine and meth will be legal!
     
    Lone_Freighter likes this.
  25. Urk1127

    Urk1127 Meyvn (1,297) Jul 2, 2014 New Jersey
    Beer Trader

    I knew that some will take part is big business. I smoke because i have 3 herniated disks and was told id be in a wheelchair by 22. Im 25 now and walkimg fine. Not that marijuana is the reason but it DOES 100% take the pain away when nothing else will also helps me sleep which is an issue daily. The only downside is ive noticed and its my experience the more i smoke the more i have a stutter. I was born with a mush mouth stutter. Like my grandfather had. And it gets worse with use. I found out marijuana effects short term memory and cognitive functions such as speachif you are under 25 because of brain development, so in that way for me is the only downside and id hate to see it in big business because although theres pros and cons there are far more beneficial effects and like the malaria pills which are 700 a pop i dont want weed to be exploited like that in the wrong hands.
     
    HorseheadsHophead likes this.
  26. EvenMoreJesus

    EvenMoreJesus Devotee (437) Jun 8, 2017 Pennsylvania
    Supporter

    You do know that the DEA seizes billions of dollars in drug money (and billions in actual drugs) each year, right?

    They both have legal pharmaceutic equivalents. You don't have to do anything illegal to get high. You just need the right symptoms and the right doctor.
     
  27. RKP1967

    RKP1967 Aspirant (255) Sep 26, 2010 Virginia

    I don't use any of the three but I'm fine with that.
     
    Hoppedelic likes this.
  28. rgordon

    rgordon Crusader (725) Apr 26, 2012 North Carolina

    Yep. Still, why keep all of that cash in an underground economy? Tax it. Take it away from the current supply chain. I'd bet you that the total would be way more that that from seizures, etc. Do you know where the confiscated cash and drugs end up?
     
  29. rgordon

    rgordon Crusader (725) Apr 26, 2012 North Carolina

    I personally don't think that's likely. Cocaine might be OK for dental procedures and talking real fast, but meth is useless. Please keep them illegal. Marijuana has innumerable applications beyond recreation.
     
  30. EvenMoreJesus

    EvenMoreJesus Devotee (437) Jun 8, 2017 Pennsylvania
    Supporter

    The cash is "invested" in Federal programs of all shapes and sizes. Mostly programs with oddly general sounding names, if you know what I mean. The drugs are supposed to be destroyed, but much of it is resold and makes it back into circulation. Make no mistake, the "War on Drugs" is being won. Just not in the way that everyone thinks that it should be.
     
    rgordon likes this.
  31. EvenMoreJesus

    EvenMoreJesus Devotee (437) Jun 8, 2017 Pennsylvania
    Supporter

    Indeed.
     
  32. jmdrpi

    jmdrpi Poo-Bah (4,434) Dec 11, 2008 Pennsylvania
    Subscriber

    Which is why you should use the term cannabis instead, it's more accurate:
    https://hightimes.com/culture/marij...elated-terms-to-use-and-words-we-should-lose/

    Especially if a state is going to legalize it for medical purposes, something that is easily grown in your backyard should be given the same legality as the similar product produced by big Pharma.

    Just like homebrewing should be (and is) legal as long as you don't sell it. Similar concept.
     
    Urk1127 likes this.
  33. rgordon

    rgordon Crusader (725) Apr 26, 2012 North Carolina

    Cannabis as an ongoing moniker is smart. I'm an old fogey, and I pulled out a term paper I wrote in April 1969 as a senior in high school. The title: The Mythology of Marijuana. I had not experienced weed at that point, but had friends that had, and lots of guys coming back from Viet Nam told us many stories. I still marvel at the language and spirit of The Marihuana Tax Act of 1937. As an 18 year old with no dog in the hunt, I knew the laws affecting so many were awful, mean-spirited, and completely stupid, and racist. Harry J. Anslinger was going to save us from jazz and all of that reefer madness and the people that played it.
     
    jmdrpi likes this.
  34. Urk1127

    Urk1127 Meyvn (1,297) Jul 2, 2014 New Jersey
    Beer Trader

    My gf is from oregon. They can grow there. She says its magical. Must be nice. Unfortunately i live in the dictatorship that is NJ. South nj too. Seemingly forgotten about compared to "west manhattan" up north.
     
  35. rgordon

    rgordon Crusader (725) Apr 26, 2012 North Carolina

    That's a great map you've spun, from Oregon to South Jersey to "West Manhattan". I love South Jersey for being a great link between North and South. Two great friends are from Haddonfield and Egg Harbor.
     
    Urk1127 likes this.
  36. Urk1127

    Urk1127 Meyvn (1,297) Jul 2, 2014 New Jersey
    Beer Trader

    Im 1 exit north of little egg. Used to live there. I go to egg harbor twp to buy beer all the time. Idk if youve been but NJ is very divided amongst north and south. People down here sports the CSA flag which i dont agree with but its crazy. Youd think this is mississippi out here in the pines compared to the overpopulated north.
     
    rgordon likes this.
  37. rgordon

    rgordon Crusader (725) Apr 26, 2012 North Carolina

    I know. My two friends came to colleges in Virginia and North Carolina (where I met them). I would never have known about the rich history over in Haddonfield near Philadelphia, or the geographical, social/cultural/agricultural distinction of the region, back towards the coast. They told me great family stories. The CSA aside, these regions ( New Jersey, Delaware, Virginia, Maryland, parts of Pennsylvania) across old borderlands still remain remarkably alike.
     
    #37 rgordon, Nov 4, 2017
    Last edited: Nov 4, 2017
    Urk1127 likes this.
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