Cannabis producer Cronos Group jumps after appointing a Mondelez veteran as its chief innovation officer
- Cronos Group announced that Dr. Todd Abraham would join as its chief innovation officer in a statement Tuesday.
- Abraham previously worked at Mondelez International, Nabisco Foods Company, and The Pillsbury Company.
- Shares of Cronos jumped more than 3% premarket on the news. It's the latest move by a cannabis company to join forces with a counterpart in traditional packaged foods and beverages.
- Watch Cronos Group trade live on Markets Insider.
The Canadian cannabis company Cronos Group announced Tuesday that Dr. Todd Abraham would join as its chief innovation officer after spending 17 years at Mondelez International, the company behind brands such as Oreo cookies.
It's the latest move by a cannabis company to join forces with a counterpart in the traditional packaged foods and beverages industry. Shares of Cronos gained as much as 3.31% premarket on the news.
"With Cronos Group, I have an exciting opportunity to join a company committed to innovation to create a new market and shape a new industry. The work Cronos Group has underway with Ginkgo Bioworks and Cronos Device Labs is just the beginning," Abraham said in a company statement.
At Mondelez, Abraham served as the senior vice president of research and nutrition. Prior to his time at Mondelez, he held various leadership positions at Nabisco Foods Company and The Pillsbury Company.
At Cronos, Abraham will be responsible for advancing research and development initiatives, as well as adopting "best practices and innovations from adjacent consumer goods industries," the company said. He will report to Mike Gorenstein, CEO of Cronos.
Other cannabis companies have also teamed up with food packaging and beverage companies. Constellation Brands, the company behind Modelo and Corona beer, recently invested $4 billion dollars for a 38% stake in Canopy Growth, a large Canadian cannabis company. Tilray, another Canadian cannabis company, also has a joint venture with Anheuser-Busch InBev to research cannabis infused beverages.
The stakes are high for cannabis companies to develop and bring to market new products for medical and recreational consumers. It's estimated that the cannabis industry could grow to be more than $200 billion globally. Large packaged food and beverage companies have also teamed up to get in on the growing industry, as consumer tastes are shifting.
Cronos is moving fast to enter the US CBD market - it announced that it plans to enter the US in the next six to 12 months. Cannabidiol, or CBD, is currently a $1 billion market in the US, and analysts think it could soar to as much as $16 billion by 2025.
Cronos also has a partnership with Altria Group, one of the largest tobacco producers and marketers. The partnership will likely help Cronos source hemp in the US.
Shares of Cronos are up 35% year to date.
