Constellation brands takes stake in marijuana maker Canopy Growth Corporation
Constellation Brands has announced that it has agreed to buy a near 10% stake in Canopy Growth Corporation, the world’s largest publicly traded cannabis company.
The US$191mn deal will allow the alcoholic beverage giant and Canopy to develop cannabis-infused drinks and “stay ahead of evolving consumer trends.”
- The US chocolate market could soon be overtaken by sales of legal cannabis
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Canopy Growth is the world’s largest publicly traded cannabis company with a market value of about C$2.4bn.
The acquisition is seen as a head-start in an industry which Constellation President and CEO Rob Sands expects will be legalized soon.
“Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future,” Sands added in a press release.
“Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction.”
Speaking to The Wall Street Journal, Street said that Constellation doesn’t intend to sell marijuana-based drinks in the US before the substance is legalised nationwide.
However, Sands said that it could potentially sell in Canada - where edible and drinkable cannabis-based products are predicted to be legalised by 2019 – as well as other nations which allow recreational use.
The transaction is expected to close by early November and as part of this, Constellation has the opportunity to raise its stake to nearly 20%.
Starbucks to open 10,000 sustainable stores in bid to save US$50mn
The plans come under an initiative called the “Starbucks G...
Starbucks has announced plans to open 10,000 “greener stores” around the world by 2025
The plans come under an initiative called the “Starbucks Greener Stores Framework”, which the coffee company will develop with experts in the field such as SCS Global Services, and the World Wildlife Fund.
Kevin Johnson, Starbucks’ CEO, said in a company statement that Starbucks has a responsibility to promote environmental sustainability.
“We are a company in [sic] that believes, in the fabric of mission and values, that the pursuit of profit is not in conflict with the pursuit of doing good”.
The announcement aligns with Starbucks’ efforts over the past decade to create sustainable buildings, working in partnership with the US Green Building Council.
The company has said it will go beyond the Leadership in Energy and Environmental Design (LEED) sustainable building criteria, which it developed alongside the US Green Building Council, to focus on powering its stores in the US and Canada with 100% renewable energy.
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Starbucks plans to introduce technology to both new buildings and in renovations of existing stores that will save 25-30% on energy and water use.
Marketing Magazine said this could save Starbucks around US$50mn incrementally over the next decade.
This year, Starbucks committed to eliminate its reliance on single-use straws in 28,000 stores by 2020, and also said that it is developing compostable paper cups.