By now, most of the market is aware that Bruce Linton has stepped down from his role as Chief Executive Officer of Canopy Growth after having co-founded the company in 2013. And if you know that, you're also aware that CGC stock initially tumbled on the news. But what do the companies with ties to Linton and Canopy Growth think of the news? To figure this out, we turn to Constellation Brands (NYSE:STZ).
Constellation Brands Comments on Bruce Linton Departure
Not only is Constellation Brands the maker of Corona beer, but it also invested $5 billion in Canopy Growth (TSX:WEED) (NYSE:CGC) last August; this means the New York company has reason to follow along with what's happening inside the walls of Canopy Growth. And what's happening is that Linton is leaving and Mark Zekulin is becoming the company's only CEO; Constellation Brands is OK with that decision, which, in some ways, is surprising. Why? Because STZ has not been happy with Canopy Growth as of late. According to the company, it was not "pleased with Canopy's recent reported year-end results."
>> CGC Stock Tumbles on Surprise Exit of Bruce Linton
That was last week, though. This week, Constellation Brands "fully supports" the company's decision to make Zekulin the only CEO. “Mark has played an integral role in the company’s success since its inception, including managing all aspects of the company’s day-to-day operations,” the company explained. "He is committed to helping ensure a successful transition, as Canopy begins a process to identify a leader to drive the company’s vision going forward.”
Similar to how Constellation supports Canopy Growth's decision, investors seem to be doing the same for the alcohol giant.
At the time of writing, STZ stock is trading at $199.35; this means STZ stock is up 0.37%.
Takeaway
What do you think about Bruce Linton leaving Canopy Growth? Do you think Constellation Brands was right to support the decision?
Let us know your thoughts in the comments below.
Featured image: PixaBay
