Normally, when a competitor in the market has big financial news, it doesn’t necessarily mean good things for other businesses in the industry. Good news for Apple doesn’t lead to a stock price increase for Samsung and the same for Coca-Cola and Pepsi. With the cannabis industry, a burgeoning industry just starting to gain mainstream traction on the financial markets, Constellation Brands investing nearly $4 billion more into Canadian Cannabis company Canopy Growth, seems to have benefited cannabis businesses across the board, adding legitimacy and bringing new potential investors into the sector. Ezra Weezner writing in Seeking Alpha details how Constellations’ big investment was good news for General Cannabis Corp:

The entire marijuana market has made huge moves this morning since Constellation Brands (STZ) announced that they would increase their stake in Canopy Growth Corp (CGC) by $4B. In the deal, they bought the shares at a 52% premium. The company’s investment brings their stake in the business to 38% and values Canopy Growth quite steeply. Moves like this could spark investment in the marijuana industry and will likely be a positive catalyst for all players involved. This should help not only actual growers, but other cannabis related companies like General Cannabis Corp (OTCQX:CANN) will also benefit greatly.

This added direct investment in the marijuana industry by a massive beverage company shows us something pretty important. Even those who would be hurt by marijuana sales, as it could cannibalize drink sales, understand the tides are changing. This is a direct move that shows that beverage companies understand that cannabis will be a major player in the future. As they say “if you can’t beat ’em, join em” and that is exactly what Constellation did. As they make this move, we may likely see others follow. As a MarketWatch article claims, Molson Coors (TAP) is also making investments in the Canadian marijuana industry.

The U.S. has complicated federal statutes that make marijuana production illegal, which makes direct investment by large companies problematic. This issue has been faced by many companies and Constellation Brands is looking into how it can bring its drinks into the U.S. into places like Nevada and California. This complication makes it hard for investment to make it to the U.S. cannabis industry, however, cannabis companies that don’t grow or sell actual plants don’t face the same scrutiny. This is how companies like Scott’s Miracle Gro (SMG) and General Cannabis Corp can provide the ability to invest in U.S. marijuana without the same federal worries.

Tilray, a competitor to Canopy Growth, has since seen its stock increase in recent days, and it won’t be surprising to see more and more investors, large and small, investing in cannabis businesses. There is still a lot of uncertainty and volatility in the marijuana market, but if companies like Constellation continue to join the industry, the future indeed looks bright.

If you want the latest news and an opportunity to network with the top investors and entrepreneurs in the industry, the International Cannabis Business Conference in Portland this September 27th-28th is the marijuana B2B event for you. Get your early bird tickets by September 12th to save $200!