In its earnings report Thursday morning, the company behind Corona beer, Svedka vodka, and other alcoholic beverages said its two investments into Canopy Growth Corporation has already netted it more than $1 billion in unrealised gains thanks to the marijuana producers surging stock.
That is nearly R15 billion.
"Reported basis results reflect $639 million unrealized gain for an increase in fair value of the initial investment in Canopy Growth Corporation; $1.3 billion unrealized gain has been recognized since investment in November 2017," Constellation Brands said in its earnings release.
Canopy Growth shares have climbed more than 285% since November, when Constellation first announced an investment into the company. It followed up its initial stake with plans to invest $4 billion more by the end of the this month. When all is said and done, Constellation will own roughly 38% of Canopy Growth.
"Our $4 billion investment in Canopy Growth provides us with a strong foothold in the emerging global cannabis market, which could be one of the most significant growth opportunities of the next decade," Rob Sands, Constellation's chief executive, said in a press release.
Bruce Linton, Canopy Growth's chief executive, explained to Business Insider in July why alcohol brands and cannabis companies were a perfect match.
"We believe people should have a choice in how they wish to improve or alter their socialization," he said.
"Why are you having a beverage on a Friday night? It's about a social lubricant. I think [Constellation] didn't view themselves as a beverage company so much as an entity that provides those occasions with some kind of lift if you will - and that's an easy way to look at cannabis, not as a threat, but as an alternative or additional."
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