The Canadian cannabis industry has been growing fast following the legalization of Marijuana. Last year Canada legalized recreational use and most recently they legalized cannabis derivatives that will hit shelves in mid-December. This is an industry laden with opportunities for the cannabis industry in Canada and every player wants to take a piece of the cake.
Canopy Growth partnering with celebrities
The cannabis craze is attracting all sorts of investors including celebrities and musicians. The celebrities are partnering with various licensed marijuana producers and other businesses to get a piece of the cake. For instance, Canopy Growth Corp (NYSE:CGC) has a partnership with lifestyle celebrity Martha Stewart, comedian Seth Rogan, and musician Snoop Dogg. The latest celebrity to join the trend of celebrities investing in the growing cannabis industry is rap musician Drake.
On Thursday canopy growth which is the largest cannabis producer globally in terms of the market value indicated that it was partnering with the musician. The partnership will see Drake through More Life Growth Company sell recreational marijuana and accessories. According to terms of the agreement, Drake will own a 60% stake in More Life Growth while Canopy Growth will hold the rest.
Speaking about the deal Drake expressed his delight about partnering with one of the world’s leading cannabis companies. He added that the opportunity to venture into the cannabis industry was something amazing and inspiring. More Life Growth will be based in Drake’s home town of Toronto.
Drake’s popularity to promote cannabis industry
The joint venture will focus on wellness and personal growth to enhance shared experiences as well as connections across the globe. More Life hopes to leverage the budding cannabis following the legalization of both recreational and cannabis derivatives in Canada. The company is ready to compete with other cannabis enterprises such as Supreme Cannabis Company (OTCMKTS:SPRWF) in the wellness and CBD infused product space.
The entry of celebrities is likely to promote the cannabis sector in terms of popularity. For instance, Drake has some exclusive rights on particular brands and intellectual property related to More Life’s sales in Canada and globally. Drake’s popularity will help elevate Canopy Growth’s stature and the legal marijuana sector. There are strict guidelines regarding the promotion of cannabis products by Health Canada. According to the regulator, no type of branding involving a person should evoke positive or negative sentiment about the feel of cannabis.
Canopy Growth has been looking to diversify its operations after its main stakeholder Constellation Brands (NYSE:STZ) recently questioned the company’s financial performance.
Celebrities joining the cannabis craze
The entry of celebrities in the cannabis sector comes at a time when marijuana is increasingly becoming legalized in various jurisdictions. In the US where the market is expected to hit $77 billion in the next three years, more celebrities are entering the cannabis industry. Chris Rock, DJ Mark Ronson and Miley Cyrus are among the investors in Lopwell Farms. This is the first marijuana café in the US that opened in West Hollywood. Actor Charlie Sheen has also got into the sector with a line of cannabis vapes.