MillerCoors’ new alcoholic drinks are suitable for consumers looking for a lower-calorie beverage. Credit: Adam Jaime / Unsplash.

US-based alcohol beverage firm Constellation Brands has announced plans to increase its stake in Canadian cannabis company Canopy Growth with an investment of C$5bn ($4bn).

Constellation Brands will purchase 104.5 million shares directly from Canopy Growth,  acquiring a 38% stake.

Constellation Brands CEO Rob Sands said: “Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner.

“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space.

“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space.”

“We look forward to supporting Canopy as they extend their recognised global leadership position in the medical and recreational cannabis space.”

Founded in 2013, Canopy Growth has established itself in Canada’s legal cannabis market. The Canadian cannabis firm currently operates in 11 countries worldwide through its subsidiaries Tweed and Spectrum Cannabis.

Canopy Growth will use the investment to build and acquire key assets and increase scale in nearly 30 countries. The company will also pursue a federally permissible medical cannabis programme, laying a global foundation for new recreational cannabis markets.

Canopy Growth chairman and co-CEO Bruce Linton said: “Our business can now make the strategic investments required to accelerate our market position globally.

“Constellation’s concentration of global cannabis activities exclusively through Canopy, coupled with the investment and its expert capabilities in brand-building, marketing, consumer insights and mergers and acquisitions (M&A) will be a huge benefit as we look to expand our portfolio in Canada, the US and emerging cannabis markets around the globe.

The deal is also expected to benefit Canopy Growth as it will be able to access Constellation’s deep understanding of consumer trends and shifting preferences.

Completion of the deal is subject to close in October this year.