The beer baron behind popular brands like Corona and Modelo are now investing millions into legal pot.
Constellation Brands — America’s third-largest alcohol company — announced on Monday a $191 million stake in the Canadian marijuana holding company Canopy Growth, reports Business Insider.
The Victor, N.Y. based beverage company will own a 9.9 percent stake in Canopy, which is publicly traded on the Toronto Stock Exchange under the ticker WEED.
“Our company’s success is the result of our focus on identifying early-stage consumer trends, and this is another step in that direction,” Constellation Brands CEO Rob Sands said in a statement.
Canopy Growth is a major name in the nascent legal cannabis industry, and is currently known as the largest marijuana producer in the world.
The agreement will include a collaboration between the two companies on cannabis-infused beverages that will only be sold where pot products are legal on a federal level, according to Bloomberg.
“There’s no need to include alcohol, nor is there an intent to include alcohol in how we follow through with things,” Canopy CEO Bruce Linton told Bloomberg.
The deal makes Constellation the biggest shareholder in Canopy, which also boasts partnerships with legendary hip hop artist Snoop Dogg and former NBA champion forward John Salley.