Constellation Brands already has their own corner of the liquor market, with Corona, Black Velvet Whiskey and Casa Noble Tequila already under their belt. Now this Fortune 500 company is ready to get their slice of the cannabis pie as well.
Beverages are still the method of consumption, Constellation plans on making cannabis infused drinks, and there is plenty of reason to do so. They are going in this direction while results are starting to come in that people reduce their alcohol consumption when utilizing cannabis. Those used to arm curling Coronas may soon be spending the night in with a six pack of cannabinoids.
Their newly acquired 9.9 percent stake in Canopy Growth Corporation puts them in a good position to move ahead with their cannabeverage plans. Canopy Growth was the first federally regulated, publicly traded cannabis producer in North America (Smith Falls, Ontario).
President and CEO of Constellation Brands Rob Sands is banking on the government legalizing at the federal level in the coming years, considering “what’s happening at the state level.” And regardless, Canada is set to legalize in the next two years, so there will be a market for cannabis infused drinks in North America.
Though it is a shift in branding, Constellation has their finger on the pulse of the market and is taking into consideration the reduction in alcohol use when there’s marijuana available instead or with.
“We believe alcohol could be under pressure for the next decade,” said investigators for Cowen Inc., led by Viven Azer, Fortune reported. “Consumer survey work suggests [around] 80% of consumers reduce their alcohol consumption with cannabis in the mix.”
This is definitely a stock to keep your eye on, however, it also means that if you’re in a legal or medical state to keep an eye out for other craft cannabeverages as well. There are mom and pop brewers already waiting for you to sip their wares from California to Maine.
As of now, 29 states and the District of Columbia have some form of legal cannabis laws, ranging from CBD to medical to decrim to legalized. It’s hard not to be optimistic along with Sands, even if players like Jeff Sessions would have it all recriminalized. Maybe if he’d just try a new Constellation beverage… Cheers!
