It tightens the grip that beer, wine and spirits maker Constellation has on the pot producer, which has been suffering steep losses. Klein was made Canopy Growth chairman in October after Corona beer maker Constellation Brands sustained a big loss on its investment in the Canadian cannabis firm. He will formally take over as Canopy Growth CEO on Jan. 14.
"David is an experienced strategist with a deep understanding of how to build enduring consumer brands while leveraging operational scale across a dispersed production footprint," Canopy Growth said in a news release. "He is a strong leader with a proven track record of developing diverse and high performing teams."
The firm touted the new CEO's consumer packaged goods and alcoholic beverage industry experience, strong financial orientation, and experience operating in highly regulated markets in the U.S., Canada, Mexico and Europe.
Constellation Brands has sunk $4 billion into Canopy. It is looking to secure a position of strength in light of the proposed legalization of recreation marijuana in several countries. So far marijuana stocks have failed to deliver on the hype, with their shares plummeting as a result.