Constellation Brands, the New York-state based alcohol giant, on Thursday reported a net loss of $525.2 million in its most recent quarter, with most of the loss coming from its 38% stake in cannabis company, Canopy Growth.
The red ink underscores the uncertainties mainstream companies face when partnering with a business involved in the emerging cannabis industry, which is facing uncertainty in the wake of the vaping health crisis as well as marijuana’s illegal status under federal law in the United States.
In 2018, Constellation invested 5 billion in Canadian dollars ($3.8 billion) in Canopy.
Constellation, which controls the board at Canopy, fired Canopy’s former CEO, Bruce Linton, amid frustration at a lack of progress on turning a profit at the Smith Falls, Ontario-based cannabis company.
Constellation, based in Victor, NY, trades on the New York Stock Exchange under STZ.
More details on Constellation’s results can be found here.
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