Corona owner makes $4 billion bet on cannabis

(CNN) – The maker of Corona is betting that consumers want something more than beer and booze.

Constellation Brands is spending $4 billion to boost its stake in cannabis company Canopy Growth. Constellation also owns a big wine business, SVEDKA vodka and Casa Noble tequila.

It first invested in Canopy Growth last year, when it bought a 10% stake. Wednesday’s move upped its holding in Constellation (STZ) to 38%, and leaves open the option to purchase a majority controlling share of more than 50%.

Shares of Canopy (CGC), which trade on both the New York Stock Exchange and Toronto Stock Exchange surged more than 25% on the Constellation news. (Canopy’s TSE ticker is WEED by the way.)

Other publicly traded cannabis companies, such as Cronos (CRON) and MedMen Enterprises (MMNFF), rallied in the United States and Canada.

Constellation’s stock, however, fell nearly 6% after announcing the investment.

Constellation CEO Rob Sands said during Canopy’s earnings conference call Wednesday morning that it was an extremely exciting time to be in the cannabis business.

“This could potentially be one of the most significant global growth opportunities for the next decade,” Sands said.

Canopy Growth CEO Bruce Linton told CNN’s Richard Quest in an interview Wednesday that the deal gives Canopy more credibility.