One way Canopy Growth Corp (TSX:WEED)(NYSE:CGC) has been able to help differentiate itself and grow its brand has been by adding some big names into the mix. Recently, The Company brought Martha Stewart on board and has worked with rapper Snoop Dogg as well. This week, we learned of another big name that it’s going to be working with: Seth Rogen.
The actor has played a pothead in movies many times and is now launching a cannabis brand, Houseplant. He and Evan Goldberg will be working with Canopy Growth, who has acquired 25% of the company. In a report from the Canadian Press, Rogen says that this has been in the works for some time:
Rogen has been careful to follow cannabis laws and ensure that Houseplant is doing things the right way and it has paid off, getting a big cannabis company to jump onboard. Canopy Growth saw good reason to invest in the company in what could turn out to be a great deal for both sides.
We have been getting to know the Houseplant team for quite a while now and continue to be impressed by their understanding of the cannabis consumer, attention to detail, and drive towards their vision
– Canopy Growth Co-CEO Mark Zekulin
Why this is a good move for Canopy Growth
While we have limited details about Houseplant’s operations, it’s a safe assumption to say that Canopy Growth didn’t make this move to add capacity. In fact, Houseplant will actually grow its strains at Canopy Growth’s facilities. I
nstead, I see this as a move by Canopy Growth to cleverly grow its brand in a very restrictive cannabis market. By partnering with Rogen, it’s a way to gain more notoriety and credibility with consumers. Even if customers aren’t familiar with Canopy Growth’s products, they might be aware of Seth Rogen’s brand, and those sales will help Canopy Growth gain exposure while also benefitting from the incremental revenue.
By creating all these partnerships and agreements, Canopy Growth is arming itself with effectively a lot of big names that could help grow the brand. And that has a lot of value in an industry where brand and name recognition is paramount. In Rogen’s case, he’s a very popular actor that would have a lot of appeal around the world.
Although Houseplant is being very careful to stay within the law and is not planning to move into the U.S. market, it does have an interest in expanding beyond just Canada and into international markets. Rogen would have a lot of credibility with cannabis customers and using him to advertise (in markets where it is legal to do so) could be an easy way to promote the product and generate sales.
For now, however, it appears both Houseplant and Canopy Growth are keeping their plans sealed on just how they will work together. But there’s a lot of potential here and it could be the start of great partnership.