The recent times have seen an increase in investments in the cannabis related markets. The latest newsmaker in this segment is the famous Constellation Brands, owner of brands such as Corona Beer, Robert Mondavi Wine, and Svedka Vodka, which have invested US$ 4 billion in a publicly traded Canadian cannabis producer called Canopy Growth. This investment strategy is aimed at mitigating the risk of slower growth experienced by the breweries industries for the past few years.

This investment raises Constellation Brands’ stake in Canopy Growth to 38% from the existing 10%. This deal has been finalized after ten months from the time Constellation Brands acquired the initial stake of 10% in Canopy Growth. At present, this massive investment is amongst the biggest deal in the marijuana industry. This deal would help Constellation Brands in producing non-alcoholic cannabis infused drink and other related products in the market.

The big brewers in the industry are gradually trying to expand into related beverage categories such as cider brands of beer, low alcohol beers, no-alcohol beers, and cannabis infused drinks. The industry is also investing in start-ups and acquisition of big brands, thus striving towards accelerated growth in the industry.

This investment follows Molson Coors’ acquisition of Clearly Kombucha earlier in 2018. Heineken even spread its wing into the cold brew coffee and the recently acquired Kombucha business alongside its beer market in order to diversify.

According to ConsumerIntel360, the legalization of marijuana in key developed and growth markets will give an upward thrust to the industry which is expected to reach an estimated US$ 37 billion by 2022. More importantly, there will be increased product innovation across CPG categories with infusion of cannabis.