(Bloomberg) -- Constellation Brands Inc. is spending C$5 billion ($3.8 billion) to increase its stake in cannabis grower Canopy Growth Corp. in what the owner of Corona beer described as the biggest investment yet in the burgeoning marijuana industry.

Constellation will raise its stake in Canopy to 38 percent, the Victor, New York-based beverage company said Wednesday in a statement. The deal follows an initial investment in the Canadian company last year, when Constellation acquired a 10 percent stake.

“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space,” Constellation Chief Executive Officer Rob Sands said.

Makers of alcoholic beverages, searching for new sources of growth as their traditional business slows in many developed markets, are looking to cannabis as Canada and some U.S. states ease regulations. Molson Coors Brewing Co. has considered pot investments, people familiar with the matter said in June, while other drinks companies have said they’re watching the sector.

Aurora Cannabis Inc. has announced at least 15 acquisitions in the past two years, according to data compiled by Bloomberg, including Anandia Laboratories Inc. in June for about C$115 million.

Constellation Brands said it’s buying the new shares at C$48.60 a share, a 38 percent premium to Canopy’s five-day volume-weighted average on the Toronto Stock Exchange, and a 51.2 percent premium to the Tuesday close.

To contact the reporter on this story: Eric Pfanner in London at epfanner1@bloomberg.net

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, John Lauerman

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