Corona Maker President Rob Sands resigns, an insider replaces him

(Reuters) – Constellation Brands Inc. Brands (STZ.NRob Sands leaves his position as CEO, ending an era in which the family-owned liquor producer became one of the largest beer brewers in the United States and placed a multi-billion dollar bet dollars on the cannabis industry.

Constellation, the maker of Corona beer and Svedka vodka, said Bill Newlands, a veteran of the industry and current president of Constellation, will succeed Sands as CEO. Newlands will become the first person outside the Sands family to assume this role.

Sands, 60, will become executive chairman in March, replacing his brother Richard.

Sands, who became CEO in 2007, led Constellation in some of her most transformative years, where she bought US rights to sell Mexican-made Corona beer and saw her shares grow by almost a decade. .

New York-based Victor, one of the first major liquor companies to invest in the marijuana industry, has wagered an additional $ 4 billion on Canadian cannabis producer Canopy Growth Inc. (WEED.TO) in August of this year.

As president, Sands will focus on Constellation's investment in Canopy Growth, he told the Wall Street Journal.

This investment comes two months before Canada becomes the first industrialized country to legalize cannabis for recreational purposes, a booming industry that many believe has significant growth potential.

Wall Street analysts have largely not been surprised by Sands' decision.

Consumer Edge's Brett Cooper said the move was part of Constellation's more global strategy of being controlled by the Sands family and managed by outsiders, a plan also adopted by other producers in the United States. Alcohol, including whiskey maker Jack Daniels, Brown-FormanBFb.N).

"The Street may welcome a non-family CEO, although that marks the end of an incredibly successful term for Rob Sands," Macquarie Research analysts said in a customer report . "Newlands has a strong team reporting to him, so we do not expect any change in Constellation's strategy."

The Constellation shares were slightly higher at $ 228.57 in protracted trading on Wednesday.