Canopy Growth Forms Another Large Partnership with Seth Rogen’s Houseplant Cannabis Brand

Another large name in entertainment hits the cannabis industry news this week. Seth Rogen shares a new era of the recreational cannabis experience to the public as he releases his product line, Houseplant. The international giant, Canopy Growth, has partnered with Seth to add Houseplant to their line of products in addition to their celebrity-endorsed line, Leafs by Snoop. What differentiates Houseplant from the rest is their top-tier quality products, but even more so, their immersive strain-specific experience.

Founded by Seth Rogen and his childhood friend Evan Goldberg, Houseplant plans to launch in the coming months by selling premium limited-edition product sets that tailor to strain-specific experiences; these sets include smoking utensils, accessories and curated vinyl’s to listen to while you enjoy. According to a public statement by Houseplant, Canopy has acquired 25% of the company and contributed working capital, however, no exact numbers are available at this current time. Canopy commented that through this minority stake, they are very committed to helping Houseplant scale and ensure their long-term success in the North American markets to start.

After five years of hard work, I’m pleased to be launching my cannabis company, Houseplant. Thank you.

— Seth Rogen (@Sethrogen) March 27, 2019

Doesn’t The Cannabis Act Prohibit Endorsements?

However, just as we have seen with Snoop Dog’s brand, it seems when the celebrity is directly involved in the development and ownership of the brand, it is less of an endorsement as it is a clout-driven product launch. Although that seems like a legal loophole, it is a very understandable difference. According to the Canada Press “The Cannabis Act prohibits the promotion of cannabis, cannabis accessories or any service related to cannabis by means of a testimonial or endorsement or by means of the depiction of a person, character or animal, whether real or fictional.” Lastly, and obviously, “any promotion that could be seen as appealing to young people is also forbidden, including appealing to positive and negative emotions.”

Houseplant went on the record to clarify that Seth Rogen and Evan Goldberg’s involvement has existed behind every decision from the inception of the brand. They also further clarify they are owners of the brand, not spokespeople.

“Since inception, the Houseplant team has maintained a strong focus on abiding by Canadian regulations, this is why Seth and Evan have not participated in any cannabis related events or promotions in Canada,” the company stated in an email to CBC News.

Source: Shutterstock

It seems this partnership with Canopy may have been the best move strategically. With Canopy’s production and distribution capabilities, they can ensure they have ample supply of flower, soft-gels, and pre-rolls to supply all of Canada in a few short months.

We are very excited for the rollout of their products, as we know just how much of an enthusiast Seth Rogen is when it comes to the cannabis plant. The marijuana market needs pushes like this to keep the competing brands focused on creating meaningful, fresh and wholesome experiences for the consumer.

Stay connected to the Story & Happy Investing!

Alex S.