Constellation Brands takes stake in marijuana maker Canopy Growth

"This looks a lot like the new normal", Linton said by phone, noting that Canopy and Constellation have a "blank sheet" to create cannabis-infused beverages.

It's a move that's been long anticipated in the cannabis industry.

Canopy Growth is one of the biggest names in the legal weed industry, supplying almost half of Canada's medical marijuana patient base. Falling ROA is nearly always a problem, but investors and analysts should bear in mind that the ROA does not account for outstanding liabilities and may indicate a higher profit level than actually derived.

Constellation, which recorded $7.3 billion in revenue during its last fiscal year, owns liquor and beer brands such as Corona, Mark West, Ballast Point and Svedka. Canopy Growth is based in Smith Falls, Ontario, about 45 miles south of Ottawa.

Constellation is betting on the continued growth of a budding USA cannabis industry that some analysts believe could eventually grow to $50 billion. "We're obviously trying to get first-mover advantage", he said in an interview.

The Journal reported that Constellation plans to work with Canopy Growth to develop cannabis-infused beverages, in anticipation of Canada's adult-use legalization expected by July 2018. Constellation's CEO says that he believes it is "highly likely" that marijuana will be legalized nationally in the USA. He also said in that interview that he believed, like many investors, that full legalization in the USA was "highly likely". The company owns a collection of diverse brands serving customers in Canada and worldwide markets where medicinal cannabis products are legal.

Constellation said it had no immediate plans to sell cannabis products in the US or any other market unless it was legally permissible to do so at both a state and Federal level.

Shares of Canopy Growth rose as high as $15.72 in Toronto in morning trading on Monday, up 22.9 per cent from $12.79 at close on Friday. The company's quarterly revenue was up 3.1% compared to the same quarter past year.

Last month, Canopy made a controversial deal with Alcaliber SA, Spain's opium-producing pharma giant.

Twenty-one additional states allow it for medicinal purposes. As part of the agreement, Canopy Growth will supply Alcaliber with certain strains and seeds to grow at the company's facilities in Spain. Canopy says that its Tweed Farms greenhouse is the largest marijuana greenhouse in the world.

Constellation Brands CEO Rob Sands said: "Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future". Overall beer penetration fell 1% from 2016 to 2017 in the United States market, while both wine and spirits were unmoved, according to Nielsen ratings. More interesting news about Alphabet Inc (NASDAQ:GOOGL) were released by: Investorplace.com and their article: "3 Reasons Alphabet Inc (GOOGL) Needed to Buy into Lyft's Future" published on October 24, 2017 as well as Bloomberg.com's news article titled: "What Wall Street Is Saying About Amazon and Alphabet Results" with publication date: October 27, 2017.

Canopy CEO Bruce Linton told CNNMoney that it's the first time a major alcohol manufacturer is investing in cannabis. Canopy Growth has established partnerships with leading sector names in Canada and overseas, with interests and operations spanning four continents. The company is not yet profitable, "but we don't want to be".