The North American legal marijuana market is budding like no other. In just two months recreational weed sales will begin in Canada and currently more than half of the U.S states have legalized medical, recreational, or both forms of weed. Over the next few years, the revenue from the North American legal marijuana is estimated to reach $28.9 billion, 90% of the global market, according to “The State of Legal Marijuana Markets, 6th Edition”.
Yet, many believe this number will be higher as marijuana becomes more mainstream and institutional come into the space. Just today, S&P 500-member Constellation Brands (STZ) announced that it has coughed up an additional $4 billion to increase its stake to 38% in Canopy Growth (CGC).
“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents….” said Rob Sands, Chief Executive Officer of Constellation Brands.
When a multinational corporation depicts its sheer confidence into the growth of an industry, investors alike should be seeking potential opportunities which don’t have to come with a $4 billion-dollar price tag.