A lot of big names have gotten involved in the cannabis industry, with the latest one being Martha Stewart. The popular businesswoman and television personality is joining Canopy Growth Corp (TSX:WEED) (NYSE:CGC) in an advisory role where she is going to help develop cannabidiol (CBD) products. She offered a hint as to what her first project is going to be focusing on:
Pet products aren’t something we’ve seen a lot of hype around when it comes to cannabis, but it’s definitely a segment that could see a lot of growth. However, her expertise is going to be used for more than just pet products as she’ll be looking at different ways to help improve people’s lives as well.
Canopy Co-CEO Bruce Linton is banking on Stewart’s name recognition as a way to help grow the brand:
Just the latest move from Canopy Growth
Since the farm bill passed in the U.S. last year, Canopy Growth has wasted little time in being more aggressive in its plans. Earlier this year, it announced that it will be expanding into New York State and that it’s already secured a license for hemp. Adding a name like Martha Stewart into the fold will only help add some credibility with customers on both sides of the border and it’ll help customers feel more comfortable trusting the products too.
A lot of what we’ve seen from customers, especially from patients looking for CBD products, is the need to have some trust in the products that they’re buying. And with many pot growers out there, having some way to convey safety and reliability is only going to be more important as we see the number of producers rise. The last thing that patients are going to want is a surprise when it comes to the potency of their treatment.
Great branding play
One of the big challenges in Canada has been advertising. Although it has been the second country to legalize cannabis, there’s a lot more red tape in the industry than there is in U.S. States that have legalized marijuana. While you can see colorful and attractive cannabis products in the U.S., north of the border it’s a much different story with plain packaging and big warnings making it very difficult to differentiate one company’s product from another’s.
While it’s not clear if Canopy Growth will try to use Martha Stewart’s name on the products themselves, it’s clear the company is going to try to leverage the popularity of her name to help draw in customers. However, the move is likely focused on the U.S. market where it will be less of an issue, but there too it will be a great way to make the brand more appealing to customers.