The marijuana industry’s first $A1.3 billion “unicorn” startup — now the world’s largest publicly traded cannabis company — is joining forces with a beer industry giant.
On Monday, Constellation Brands, the owners of Corona and Modelo, announced it acquired a 9.9% stake in cannabis holding company Canopy Growth. The beer behemoth paid $A250 million for its stake in Canopy Growth, Canada’s biggest producer of medical marijuana.
Founded in 2014, Canopy Growth likens itself to the Procter & Gamble of pot. Several cannabis brands fall under its umbrella and cater to different user preferences. The company supplies the drug to a
bout a third of the roughly 200,000 medical marijuana customers in Canada.
Canopy Growth grows, trims, processes, packages, and ships marijuana products out of several properties across the Great White North. Take a look inside the company’s headquarters.
Canopy Growth has greenhouses across Canada, but its headquarters are based in a once-abandoned Hershey chocolate factory in the small town of Smiths Falls, Ontario.
The company supplies the drug to about a third of Canada's 200,000 medical marijuana patients. It is the world's largest publicly traded cannabis company.
Bruce Linton, CEO of Canopy Growth, founded the company because he thought a vertically integrated company -- one that grows marijuana in addition to processing it for oils and other products and packaging it for shipment -- would give him better control over quality.
Vertically integrated companies are also able to offer their products more cheaply, since they cut out the middle men in growing and distribution.
The 42-acre chocolate factory located at 1 Hershey Drive was sitting vacant when Canopy Growth scooped it up in January 2916 for $A8.59 million.
Canopy Growth previously ran operations out of the space as a tenant.
Source: Financial Post
There's Tweed, a medical marijuana producer with slick and youthful branding that could be mistaken for a designer jeans company.
Vert Medical allows Canopy to tap into the French-speaking market, while Bedrocan Canada has a distinctly clinical feel that is likely to gain favour among medical patients.
Since 2000, Canadians have enjoyed the ability to possess and grow small amounts of weed for medical use. In 2014, the government began licensing companies like Canopy Growth to produce mass amounts of marijuana for patients suffering from serious illnesses.
The Canadian marijuana industry raked in $1.13 billion in legal sales in 2016 and is expected to reach $A29.4 billion after recreational marijuana sales begin in July 2018.
The manufacturing giant blew past a $A2.6 billion valuation on November 16, 2016, one week after eight US states passed ballot initiatives legalizing marijuana in some form.
Its valuation, along with other publicly-traded marijuana companies that saw their market cap increase after the US election, has since settled to $A2.51 billion US dollars as of October 30.
The company's colossal growth stems from a belief that as more countries legalise weed on a federal level, growers like Canopy Growth will be able to branch into global markets.
Canopy already exports marijuana products to Germany and Brazil.