Canopy Growth (NYSE:CGC) announced today that it was making two major changes to its board of directors. Judy Schmeling, who currently sits on the Constellation Brands (NYSE:STZ) board of directors, will be stepping up as Canopy's new board chair while a senior marketing executive from Constellation, Jim Sabia, will be joining Canopy's board as well.
Schmeling has already been serving on Canopy's board since late 2018, as well as being the chair of the audit committee. In addition to serving on the board of Casey's General Stores, she also used to work as the Chief Operating Officer for the digital retailer HSN.
Jim Sabia, on the other hand, is a new addition to Canopy's board. Currently, he is an Executive Vice President and Chief Marketing Officer with Constellation Brands. Prior to working with Constellation, Sabia held senior marketing positions with Molson Coors.
Looking at the bigger picture
These new board appointments are further outward signs of the growing influence that Constellation Brands, one of Canopy's biggest investors, has on the company. Canopy's new CEO, David Klein, was previously the Chief Financial Officer for Constellation as well.
Constellation had invested over CA$4 billion into Canopy growth back in August 2018. However, as the cannabis giant continued to post financial losses, Constellation ended up removing founder Bruce Linton from the chief executive position. Since then, Constellation has been doing its best to turn things around and prevent further losses.
Canopy also recently announced that it was postponing the launch of its CBD-beverage product lineup, although management has said that this delay won't meaningfully affect the company's 2020 revenue figures.