Earlier in the month, on August 15th, one of the leading alcohol beverage companies in the world struck a big deal with one of the front-runners for the Canadian cannabis market. The total investment made by Constellation Brands (NYSE:STZ) comes in at $4 billion USD. Other alcohol giants such as Molson Coors Brewing Co. have entered the space as well.
Now that big names are starting to make early moves, like Constellation Brands, other big names in the alcohol industry are looking for deals of their own. The deal that Constellation Brands struck with Canopy Growth Corporation (NYSE:CGC) is one of the largest deals to go down in the legal cannabis space. This is no surprise because many economists affirm that the legal cannabis market will reach $57 billion worldwide by the year 2027, proving to be a potential cash-cow.
As new and existing brands are looking to get a share of the pie, Diageo Plc (NYSE:DEO) has announced they are looking for a Canadian cannabis company deal of their own.
BNN Bloomberg has reported that Diageo Plc (NYSE:DEO) are very much serious about entering the space through an existing competitor, noting that they are “holding serious discussions with at least three major producers” currently. Although no names have been released, but BNN reported someone involved in the discussions mentioned that the company he is with has “very close ties to the top of the [Diageo] decision-making tree.”
Diageo Plc (NYSE:DEO) just turned “legal drinking age” after being founded in 1997. Diageo Plc is one of the largest alcohol beverage companies in the world, with their headquarters in London, UK. The company is responsible for alcohol brands we’ve all heard of or enjoyed such as Cîroc, Guinness, Don Julio, and Crown Royal.