Beer, wine and spirits producer Constellation Brands expects to lose more than $54 million in the current quarter from its nearly $4 billion investment in Canopy Growth, a Canadian-based weed company, according to the Chicago Tribune.
Constellation said in its security filing today that its six-month loss will be $132.5 million.
Constellation made an initial investment in Canopy in 2017 and then raised its stake to 38 percent in August 2018. Constellation wrote down $160 million of its investment in Canopy earlier this year.
Constellation’s Chicago-based beer division imports Corona and Modelo beers.
Constellation Brands is headquartered in Victor, N.Y., but CEO Bill Newlands is based out of its Loop office.
The decision by Constellation in 2017 to buy a minority stake in Canopy marked the first major foray of an alcohol brand into the nascent weed industry, Bloomberg reported at the time.
„With the taboo now broken, other purveyors of beer, wine and spirits may look for similar opportunities in the expanding world of legal pot,” Bloomberg wrote.