Celebrities rise and fall over time, and regulation of legal cannabis by Health Canada pretty much ensures if they do rise, they won’t be able to get to the stage easily.
That’s happened with Snoop Dogg, Seth Rogan, the Trailer Park Boys, and others.
Those examples have differences between them too as companies try to use popularity to increase sales. $WEED told Seth Rogan that he can’t speak about or promote products. As it is, I understand he’s never once mentioned Houseplant on social media.
Wiz Khalifa is a genuine hip hop star who’d be a natural in the space, but with Supreme unable to lever his brand in Canada and paying royalties for a loose fitting ‘KKE’ label (instead of a straight shot of ‘Wiz’), the deal has been called off.
It was an expensive $10MM. Whether it’s cost versus benefit will be known by one of the parties (it’s almost certain it wasn’t working out for Supreme), but I suspect the new CPG leadership at Supreme were uncomfortable with Wiz at any rate: with respect to broader market appeal……his brand is a thousand miles deep but only a few feet wide. He ain’t no Martha Stewart. Coincidentally(?), they’ve slid their ‘Craft Collective’ thing in to replace their premium KKE line just at the right time.
Perhaps for different reasons (or maybe the same), Canopy’s CEO David Klein just crapped all over the idea of Drake doing anything with $WEED, anytime soon. Just a month ago though, it seemed like nothing was up.
Celebrities will be used by marketers, and Canadians will come across and consume the marketing that spills over our southern border, or the subtler forms that can quietly be pushed at home. Some celebrities will probably do well in the space, others not so much.
Supreme just probably wishes they had their $10MM back.
The preceding is the opinion of the author, and is in no way intended to be a recommendation to buy or sell any security or derivative. The author holds a position in $WEED or $FIRE.