Are celebrity endorsements good for cannabis business?

Published Jul 24, 2019 11:46 a.m. ET
Who is making money from the celebrity endorsements of cannabis products? iStock / Choreograph

Celebrities like Snoop Dog and Martha Stewart have put their names into the cannabis industry. Are their names providing profits for the big cannabis companies? This is debatable, oh yes, the celebrities are getting rich off using their name, but sales do not show the profits as being exceedingly profitable at present times.

The faces of celebrities are popping up in the cannabis industry, even if they do not smoke joints.

Canadian laws make it illegal to advertise THC or CBD products. Those celebrities that have put their names to the growing cannabis industry will not be able to pose with the products that they are endorsing. Canada adamantly states that celebrity endorsements or lifestyle advertising for legal marijuana products are strictly forbidden and unlawful. For those that like to buy marijuana online, the same restrictions apply.

The current figures on the profits of celebrity-endorsed CBD products and the numbers for those that buy marijuana online are not what was projected or imagined that the celebrity faces would provide. Oh, the famous face, they are making money from their endorsement, but the profits are lagging, there are not riding with the celebrity’s fame.

Country legend Willie Nelson, and noted stoner is by Headsets standards the only celebrity brand that is showing an increase in the overall market. This applies to the states where cannabis is legalized.

BDS Analytics, a popular research company, has found that celebrity brands account for only 0.4% of legal weed sold in California. The legal sales amount to approximately 2.6 Billion dollars for California, Oregon, and Colorado; these figures were comprised of 2018 statistics.

Companies are hoping that with the assistance of PR and using celebrities to help promote and put a known face to their products that sales will increase. The endorsements of stars, like Snoop Dog, Martha Stewart, and Wiz Khalifa will help their particular brand stand out in today's every crowding cannabis industry. The options for purchasing accessories like vape pens and CBD products are numerous. The PR  mindset is that a well-known celebrity endorsement for the product can only help to promote the product.

Celebrities, some who have never participated in marijuana at any level are jumping on the bandwagon putting themselves in line for the money train to happen. Even celebrities who did not agree with smoking marijuana have added their face and voice to the cannabis industry for profit. Kiss band member, Gene Simmons is one of those artists. He did not have a positive word for the cannabis market but has now joined hands with Acreage Holdings.

Martha Steward joined the bandwagon a few years ago by joining Snoop Dog in a cannabis cooking show. She has now moved on from cooking for humans to lending her name and face to CBD products for animals. Her partnership with one of the most significant cannabis industry companies, Canopy Growth, to promote CBD products for pets, followed the announcement of Whoopie Goldberg involvement of promoting cannabis-infused products. Her products claim to aid women’s pain during menstrual cramps.

Miss Stewart's deal with Canopy Inc. is going to be an intriguing deal. As stated earlier, weed is legal in Canada. However, the Cannabis Act does not allow for stars to promote CBD specific products, even if the market they are selling to is our pets.

Some of the other celebrities lending their name to promote the cannabis industry include:

Patrick Stewart: investor

Mike Tyson: the owner of Tyson Ranch a cannabis farm and school for teaching individuals how to grow marijuana and how to invest in the cannabis industry

Jimmy Buffett: owner of Coral Reefer LLC a famous health and wellness company

Mellissa Etheridge: her farm Etheridge Farms will be providing California medical patients with cannabis products

Time will tell if the celebrity endorsements make as much money for the cannabis industry as they do for the celebrities themselves. As Snoop Dog, and many other celebrities, some of whom have never enjoyed the experience of the cannabis plant, make millions of dollars, you and I will continue enjoy.

Author

Related posts