Canadian-based Canopy Growth, already one of the larger cannabis companies, became arguably the wealthiest cannabis company this week with Constellation’s gobsmacking $3.8 billion investment, for our friends north of the border that is a cool $5 billion.

With this move by Constellation, which already had a decent stake in Canopy Growth after a move last fall, in addition to similar moves in recent months by Southern Glazer, Heineken and Molson Coors, as well as a ringing endorsement of cannabis by one of the industry’s largest trade orgs, it’s clear that the beer and wine industry is betting on a green future. And as we outlined earlier this week, with big alcohol moving into the cannabis sector, their marketing agencies should follow suit.

However, Constellation’s latest move seems like a sea change of sorts. Their $3.8 stake represents a few substantial achievements that potentially will have a rippling effect across the cannabis industry, investment therein and more. Let’s take a look.

Canada Has Strengthened Its Position As A Global Cannabis Leader

We’ll get to what this move means for US banking groups, but this investment by Constellation is further testament to what big alcohol sees in Canada and cannabis. Between the Molson Coors deal, the Southern Glazer one and now this by Constellation, Canadian-based cannabis groups have seen a monstrous injection of cash and equity. They’re not sleeping on their laurels with that money, either. Canopy Growth is expected to use a fair amount of this money to expand into additional medical markets worldwide, with an eye towards strategic acquisitions and operations.

Importantly, Canopy Growth is keeping one eye on its domestic market, but is also eager to grow internationally. This move bodes well for both companies and indicates that Constellation is thinking beyond the US market for now, too. Will the US continue to lose out as Canada and the rest of the globe accelerates legalization? It’s worth asking at this point.

Expect More “Canopy Growth”-sized Moves (We’re Looking At You Anheuser-Busch InBev)

Arguably, Constellation’s initial 10% claim of Canopy back in fall of 2017, which feels like ages ago, was the catalyst for this initial round of investments by big US alcohol houses in Canadian cannabis companies. With this move, expect even larger moves by other players in the game to try and grab more holdings in what’s essentially a corporate land grab. One player that’s stayed on the sidelines thus far has been Anheuser-Busch/InBev. Could this be the investment move that finally gets the giant into the game? Stay tuned.

Location, Location, Location?

It’s more likely a coincidence than anything else, but make no mistake. Constellation’s HQ outside of Rochester being a scant three hours by car or truck to Canopy Growth’s home in Smith Falls, Ontario could pay tremendous benefits in the short-term and long-term. For the immediate future it’s a a short and clear path for operations, logistics, equipment and staff to get to and from the two offices. Down the road, it’s a huge boon for both companies to have such convenient distribution into not only the New York/Tri-State markets, but also Constellation’s location on Interstate 90 means ease of access to distribute across the United States.

Not to be overlooked, the fact that Canopy Growth has sophisticated rendering and extraction tech and methods at their facilities affords Constellation a leg up not only when it comes to making THC or CBD non-beers, but also with regards to other forms of rendered products for medicinal or rec-use (read: edibles).

Wall Street Gets High

Bank of America Merrill Lynch is bankrolling this multibillion dollar move by Constellation. Previously, Wall Street and US-based big banks have held back for fear of retribution due to cannabis still being illegal on the federal level. BoA’s move could be a green light for other Wall Street corporations to begin investing big time green in the Great White North.