Publications
Publications
- November 2019 (Revised February 2020)
- HBS Case Collection
Constellation Brands' Investment in Canopy Growth: Aiming High
By: Stuart C. Gilson and Sarah L. Abbott
Abstract
In 2017, Constellation Brands, the U.S.-based beverage company, acquired a 9.9% equity interest in the Canadian marijuana company, Canopy Growth. In 2018, Constellation announced a subsequent investment in Canopy—taking its ownership interest to 37%. However, Canopy’s performance had been volatile and net losses had increased since the investment. In an effort to get into the cannabis market early, had Constellation Brands been too early?
Keywords
Equity Investment; Marijuana; Growth Investing; New Market Development; Beverage Industry; Equity; Investment; Strategy; Consulting Industry; Food and Beverage Industry; Canada; United States
Citation
Gilson, Stuart C., and Sarah L. Abbott. "Constellation Brands' Investment in Canopy Growth: Aiming High." Harvard Business School Case 220-044, November 2019. (Revised February 2020.)