Seth Rogen’s cannabis company Houseplant and Canopy Growth Corporation (NASDAQ: CGC) have decided to end their relationship after three years. It won’t affect the company’s U.S. business and the product is expected to remain on some shelves through September 2021. The relationship between Houseplant and Canopy started in 2018, well ahead of Canadian legalization. The Canadian cannabis market has evolved substantially since those days, and the parties believe the time is right for the Houseplant brand to develop independently while Canopy advances its focus on wholly-owned brands for the Canadian market.
“The recent launch of Houseplant in the United States has given us a clear benchmark for what Houseplant stands for, and how we plan to bring the brand to life globally,” says Michael Mohr, Co-Founder and CEO, Houseplant. “While our collaboration with the Canopy team has been fruitful and we continue to hold similar views on the opportunities ahead, we believe the time is right for us to focus on Houseplant independently.”
During these three years, Houseplant has become a popular consumer brand in Canada and is currently a top 10 brand in the premium cannabis market in Ontario. Beverages are a highlight of the brand’s success, with Houseplant Grapefruit notably attaining the top-selling cannabis beverage spot in Canada (measured by units sold) in its launch year. More than one million cans of Houseplant beverages were sold in Canada within the last year. Houseplant launched a line of premium homewares and cannabis products in the United States in March 2021 and has quickly become a cultural and industry leader.
“Canada is where it all started – for us as people, and for the brand,” says Houseplant Co-Founder Seth Rogen. “This is not an exit from the Canadian market, but a chance for us to evolve the brand.” Houseplant plans to relaunch in the Canadian market in the future with products more consistent with its US offerings.
“We’re proud of our collaboration with Houseplant. Together, we’ve delivered high quality and innovative products to Canadian consumers and played a critical role in defining the premium cannabis category in Canada,” said Rade Kovacevic, President and Chief Product Officer, Canopy Growth. “As we move forward, Canopy will advance our focus on our wholly-owned brands for the Canadian market and we wish the Houseplant team the best in their future endeavors.”
Advertising in the cannabis industry is difficult. In most U.S. states where cannabis is legal, rules regarding cannabis advertising are complicated and extremely restrictive. For example, in California, businesses can only run ads in areas where “71.6 percent of the audience is reasonably expected to be 21 years of age or older.” The advertising landscape online is even far less forgiving. Most online ads platforms, such as Google Ads or Facebook Ads, explicitly prohibit the advertisement of cannabis products.
In the absence of reasonable advertising regulations for the cannabis industry, many business owners have turned to a new and rapidly growing form of advertisement: Social Media Influencers.
What is a Social Media Influencer?
A social media influencer is a person that uses their large social media following (which can range thousands to millions of followers) to promote certain products or services. Outside of the cannabis industry, one of the most successful social media influencers is Kylie Jenner, who companies will often pay hundreds of thousands of dollars for single social media post promoting their product.
Does Influencer Marketing Work?
While some may balk at the idea of paying a person thousands of dollars to promote a product on Instagram, the numbers do not lie – influencer marketing works. Approximately 49% of consumers depend on influencer recommendations. Companies that use influencer marketing earn on average $6.50 for every dollar spent. By 2020, the influencer market is expected to grow to $10 billion.
Why Are Cannabis Companies Turning to Influencers?
As alluded to earlier, advertising in the cannabis industry is difficult. Not only are advertising regulations for cannabis complex, but also traditional means of advertisements are expensive. Buying ad space on television, radio, or a billboard can cost companies thousands of dollars with little guarantee of success. In contrast, influencer marketing is loosely regulated (for now) and less expensive.
It is also easier to target specific demographics by relying on influencers that appeal to your core audience. Cannabis business owners may not know who is going to view their highway billboard, but they do know what kind of person is going to visit Snoop Dogg’s Instagram page.
Who Are The Leading Cannabis Influencers?
The question of who the cannabis industry’s leading influencers are is a topic for debate. Unlike other industries where the practice more prevalent, influencer marketing in the cannabis industry is still relatively new. Consequently, it is difficult to say who is the “top cannabis influencer.” However, there are at least a few cannabis influencers that stand out from the pack. Here’s five cannabis influencer that have turned their social media following into big business:
Comedian Seth Rogen has built a career off of starring in stoner comedies like Pineapple Express and This Is The End, so it is only natural that he would use his talent and fame to spread the word about cannabis. With 6.6 million followers on Instagram, Rogen might not be the world’s most widely followed celebrity, but he has built up a strong and loyal social media following. Hoping to capitalize off of his reputation as a cannabis connoisseur, Rogen and his fried/business partner Evan Goldberg have teamed up with the world’s largest cannabis company, Canopy Growth, to launch a new hemp and cannabis company called Houseplant. Understanding the power of social media, Rogen announced the brand by leaving a cryptic message asking people to follow the Houseplant’s Instagram page.
Not content to be the World Heavy Champion of Boxing, sports legend Mike Tyson has dived headfirst into the cannabis industry. Like Seth Rogen, Tyson has leveraged his fame to turn himself into one of the industry’s leading advocate. Tyson has partnered with the upscale cannabis dispensary Planet 13 to be the exclusive launch partner of his 40-acre cannabis resort, dubbed Tyson Ranch. In addition to Tyson’s 7.6 million Instagram followers, Tyson has a popular cannabis podcast called Hotboxin’ with Mike Tyson, which has close to 90,000 followers.
“Tyson Ranch, consists of a team with 100+ years of industry experience focusing on quality to make premium cannabis products. We are all about going the extra step to offer truly great cannabis. The Planet 13 Cannabis Entertainment Complex offers customers an ultra-premium cannabis experience that dovetails perfectly with Tyson Ranch’s belief that not all cannabis is created equally,” said MikeTyson.
Dan Bilzerian, owner of the cannabis brand Ignite, is perhaps one of the biggest influencers in the cannabis industry. Often a polarizing figure within the industry, Bilzerian’s social media pages are filled with bikini-clad models in various states of undress, exotic locations, and more often than naught firearms. While some may characterize his social media presence as the epitome of toxic masculinity, with more than 26 million followers on Instagram, it’s hard to argue that he doesn’t have a strong following.
Bilzerian became one of the world’s most successful professional poker players, winning over $50 million in a single year. Despite not adhering to any social norms — and continuing to be unapologetically himself — he developed a reputation within the gambling community for always doing what he said he would do, a mindset that he’s carried with him into numerous investment opportunities, business ventures, and personal pursuits — creating an empire. Now, he’s dedicated to building a brand in the cannabis industry to live the Ignite lifestyle.
Michael Straumietis, also known as Big Mike, is the CEO of the cannabis fertilizer company Advanced Nutrients. Straumietis has built a career off of developing cannabis-specific nutrients and has leveraged that fame into an Instagram following of almost 3 million. Unlike Dan Bilzerian, Straumietis positions himself more as a cannabis thought leader than a globe-trotting playboy.
In 1996, BigMike took $25,000 he’d made from a small illegal grow in Temecula, California, snuck into Canada with a fake passport and built a growing organization 200 people strong. He then used his growing and business expertise to start his company, Advanced Nutrients. Today, Advanced Nutrients is the maker of the #1 selling cannabis-specific nutrient line in the world, with over $110 million a year in sales from 93 countries. Advanced Nutrients also lends seed money to individuals in developing countries who dream of starting a small business, but lack the means to do so. BigMike‘s charity Holiday Heroes feeds over 30 thousand people in need, each Thanksgiving and Christmas.
Charlo Greene is a former journalist turned cannabis entrepreneur that gained overnight fame after she announced live on television that she was quitting her job to pursue a career in cannabis. Greene is a somewhat controversial figure in the cannabis industry after running afoul of regulators in Alaska for launching eponymously named Alaska Cannabis Club. With approximately 214,000 followers on Instagram, Greene is what is called a “Micro-Influencer,” which is someone that has a small but dedicated social media following. Nevertheless, Greene has carved out a niche for herself in both the cannabis industry and the wider entrepreneurial community.
The world of cannabis influencers may still be new, but it is rapidly developing. Even if cannabis advertising regulations relax over the coming years, don’t expect cannabis influencers to go away. Influencer marketing is an incredibly powerful form of advertising, regardless of the industry.
“Houseplant is a passion we’ve brought to life through drive and dedication,” said Seth Rogen, Co-Founder of Houseplant. “Every decision we’ve made for the business reflects the years of education, first-hand experience and respect we have for cannabis.” Rogen was born in Vancouver and starred in the stoner film Pineapple Express.
The statement said that Houseplant will be dedicated to product quality and consumer education; delivering only the highest quality cannabis product for Canadians. Houseplant said that its strains are designed to satisfy both expert and new users. Houseplant will be launching three strains over the coming months, each with a straightforward name—Houseplant Sativa, Houseplant Hybrid and Houseplant Indica—and an easily identifiable design.
Canopy Growth will be contributing its expertise to support Houseplant’s creativity and vision through its cutting-edge research, state-of-the-art manufacturing capabilities and infrastructure. This isn’t the first celebrity teaming for Canopy Growth. The company has established partnerships with cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few.
“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,” said Mark Zekulin, President and Co-CEO of Canopy Growth. “We could not be more excited to partner with them and work towards our shared goal of making Houseplant one of the largest cannabis brands in the world.”
“We are so proud to be launching in Canada, our home,” said Evan Goldberg, Co-Founder of Houseplant. “After spending five years diligently preparing for the launch of this company, we’re excited to be able to share our passion for cannabis with Canadians in this way.”
The statement said that the first strain, Houseplant Sativa, will be available for purchase in early April 2019 through provincially regulated retailers and online in British Columbia. The Houseplant Hybrid and Houseplant Indica strains along with softgels and pre-rolled joints will follow throughout the year, and will soon be available across all of Canada.
Rogen has established himself as a stoner celebrity and has smoked quite a bit in several movies. Knocked Up and Pineapple Express both featured extensive unashamed marijuana smoking.
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