Within two weeks of Constellation Brands, Inc. STZ announcing a $4-billion investment in Canadian cannabis company Canopy Growth Corp CGC, rival alcohol maker Diageo plc (ADR) DEO is reportedly looking for a similar deal of its own.
Diageo, the parent company of alcohol brands including Ketel One vodka, Guinness beer and Captain Morgan rum, has held discussions with at least three Canadian cannabis firms, sources familiar with the matter told BNN Bloomberg. The company is looking to create a marijuana-infused beverage to help boost flat volume growth and would consider a simple partnership or even an equity arrangement, the report said.
A Diageo spokesperson told BNN Bloomberg it won't comment on the specific report but did say it is "monitoring this space closely."
Why It's Important
It is not known how advanced any talks are between Diageo and potential partners, the report said. The alcohol company's corporate relations director was quoted as saying in July it views the North American cannabis sector as still being in "very early stages."
The American cannabis market is somewhat fragmented, with some states "more advanced than others," but the legal cannabis sector is taking share from the illegal segment, the executive said.
One source involved in the discussions told BNN Bloomberg that Diageo is very much "in the mix" for a deal, but it can also "back out of talks at any time if it is not comfortable with the opportunity."
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.