Big Cannabis took a Big Hit with the “largest cannabis company in the world’s” CEO getting fired. Canopy Growth is the big, publicly traded giant that is partially owned by Corona parent Constellation Brands.
The company (like most) was hemorrhaging money so (former) CEO Bruce Hinton got the axe:
Last month, Canopy reported net revenue of CA$94.1 million and a net loss of CA$323.4 million for the fiscal quarter ended March 31, 2019. Annual net revenue, meanwhile, totaled CA$226.3 million, with a net loss of CA$670.1 million.
“He was spending a fortune. There was no plan to make money under Bruce,” Jim Cramer, the host of CNBC’s “Mad Money,” told the financial news network. [MJ Biz Daily]
When you are losing over half a billion dollars a year, then you’re probably doing something wrong. Cannabis is definitely a long-term play (see: no one makes real money just yet), but that is too big of a hole to climb out of.
Growing weed is hard. Selling weed has its challenges. The larger a company gets in uncharted territory, the more organizational holes will surface. This firing is just further proof of that fact.
Big cannabis will exist, but don’t be surprised if MedMen is next and other similarly large companies with mounting losses reevaluate how they spend their money and who spends it for them.
Suits will never understand what the consumer wants. And that’s why I’m always betting on small cannabis.