Struggling pot company Canopy Growth taps turnaround pro from outside the industry as CEO

MW Struggling pot company Canopy Growth taps turnaround pro from outside the industry as CEO

By Steve Gelsi

Luc Mongeau to succeed David Klein at cannabis company after working in furniture, food, and pet care

Canopy Growth Corp. on Tuesday named a turnaround specialist who has worked at furniture, food and pet-care companies as its next chief executive.

With its stock price down about 19% so far this year and a string of money-losing quarters, Canopy Growth $(CGC.AU)$ (CA:WEED) tapped Luc Mongeau as chief executive, taking over from David Klein on Jan. 6.

Canopy Growth said Mongeau offers a "proven track record of leading and elevating organizations" and led the "transformation" of eSolutions Furniture to "deepen its share of the highly competitive digital commerce furniture industry."

While he's a relative newcomer to the cannabis business, Mongeau has a resume that includes 25 years in consumer packaged goods.

His background bears a resemblance to that of Irwin Simon, Tilray Brands Inc.'s $(TLRY)$ chief executive, who previously led Hain Celestial Group $(HAIN)$, a consumer-goods company, before moving over to lead the Canadian cannabis company.

Mongeau isn't a total neophyte at Canopy Growth. He joined the company's board in 2023 as an observer, became a board member in 2024 and has promoted the company's push to cut costs by shedding assets.

"Having worked with our board for nearly two years, Luc's unique blend of cannabis experience, combined with decades of consumer packaged goods $(CPG.UK)$ expertise, makes him the ideal leader to guide Canopy Growth through its next phase of growth," David Lazzarato, chairman of the board, said in a prepared statement.

Mongeau most recently worked as chief executive and president of eSolutions Furniture, which was formerly called Bestar-Bush. Before that he served as president of bakery company Weston Foods and as president of Mars Petcare North America.

Mongeau said Canopy Growth has "some of the best-known brands in the industry," as well as a "strong" medical-cannabis business around the world and the category-leading vaporizer brand, Storz & Bickel.

Its Canopy USA unit offers "unique exposure" to the U.S. cannabis business, he said.

"Canopy Growth is well positioned for growth," Mongeau said.

Canopy Growth's stock fell 1.2% in premarket trading on Tuesday.

-Steve Gelsi

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November 26, 2024 09:20 ET (14:20 GMT)

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