"The Owner of Corona Beer Just Made a Bet on Legal Marijuana"

From Bloomberg via Fortune:

Constellation Brands Inc. isn't quite sure whether legal cannabis is friend or foe to the alcohol industry. Either way, it wants in.

The maker of Robert Mondavi wine, Corona beer and Svedka vodka is still waiting for the chips to fall into place after entering the up-and-coming (and turbulent) marijuana industry last year by taking a minority stake in Canada's Canopy Growth. The rapid increase of the cannabis market has caused analysts to question whether drinkers could shift their spending to smoking as prohibitions on the plant's recreational use are removed.

"It's probably not worth getting in a big debate right now about whether it's cannibalistic or complementary," Constellation Chief Executive Rob Sands said on a call with analysts Friday. "There's just not enough information to really say how that's going to effect beverage alcohol generally moving forward. What we do know is it's going to be a big market worldwide."

The Victor, New York-based company's cannabis investment is being closely watched since it's the first time that big alcohol has entered the so-called Green Rush....MORE