Prohibition official ends in Canada on Oct. 17, 2018. That's when Canada becomes the second country to legalize recreational marijuana.
Meantime, top executives at hot cannabis company Canopy Growth Corp. (CGC) - Get Report and its blue-chip partner Constellation Brands (STZ) - Get Report say legal-weed products will eventually be at least a $200 billion segment -- and could even disrupt $500 billion of businesses across multiple sectors.
Constellation, which owns alcoholic-drink brands like Corona beer and Robert Mondavi wines, recently paid $4 billion to boost its stake in Canopy Growth to 38%. The company also purchased warrants giving it the option to increase that to a majority stake in the future.
Among the topics:
- Credibility. Both executives discussed the importance of having credibility and building trust with customers at the early stages of this frontier. Canopy Growth's CEO discussed how their company benefitted from partnering with Snoop Dog
- New Products. The CEO said Canopy Growth could create an alternative to drinks like wine "if we make a beverage with no calories, that has a really rapid onset [of psychoactive effects] and that tastes good." TheStreet's Tony Owusu writes: Canopy Growth and Constellation Brands Say Cannabis Will Be a $200B+ Industry
- Sports Drinks. Cannabis has potential anti-inflammatory properties, "why shouldn't there be a beverage that's going to be absolutely disruptive [to] Gatorade?" Constellation Brands says 'Yes' to Gatorade-like cannabis drink to soothe aches and pains.
- End of Prohibition. It's the end of an era. Canada becomes the second country to legalize marijuana on Oct. 17. So, what does legalization of cannabis look like? Canopy's CEO explains.
- Looking to the Future. Constellation Brands COO says the company realized that cannabis was going to be a potential player in that whole space. They looked carefully at all the players and decided that if they were going to play, They should be playing with the best.
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