Wiz Khalifa is arguably one of the most famous consumers of Cannabis just short of Snoop Dogg. In 2015 Wiz took his passion for Cannabis, and his entrepreneurial vision and started his company, Khalifa Kush Enterprise (KKE). Wiz has since moved to work with some great companies out of California, to develop what many think is one of the most exciting strains of premium Cannabis in the U.S. Taking a look at Nevada, his product sells at a 50 -100% premium to the average market prices. Cannabis is no different than wine, in the sense that it boils down to a mix of science and art to create a truly premium product. It seems Wiz knows a lot more than just how to roll one up.
This past December The Supreme Cannabis Company (TSX: FIRE) (OTCQX: SPRWF) released news of their partnership with Wiz Khalifa, as they hope to knowledge share. The end goal is to bring the musician’s premium pot brand to Canada with plans to tweak the incoming product to avoid running afoul of Health Canada’s marijuana marketing restrictions. Supreme Cannabis will pay Khalifa, the stage name of Cameron Jibril Thomaz, $1 million in cash in addition to just over 5.7 million shares in the Toronto-based pot producer in return for exclusive rights to distribute the musician’s “Khalifa Kush” cannabis brand and provide consulting services for the next three years.
“Our belief is that to have long-term success as a brand, you need to have a technically superior product,” said John Fowler, president of Supreme Cannabis, in a phone interview with BNN Bloomberg. “The only evidence of the power of a brand is premium price mobility and we really saw that with Khalifa Kush … It really aligns with our premium strategy.” Khalifa is a well-known user of cannabis and has previously bragged about spending US$10,000 a month on the drug before he developed his own strain of pot, which he now receives for free.
“Canada is a very important place to me with the idea for ‘Kush & Orange Juice’ (a mixtape released in 2010) being created in Toronto,” Khalifa said in a statement. “It’s the perfect start for the international expansion of Khalifa Kush.”
However, Khalifa Kush will be rebranded as “KK” in Canada when it’s available for sale next year, in order to abide by Health Canada regulations on how cannabis is marketed in Canada, Fowler said. According to the Cannabis Act, which took effect on Oct. 17, it is prohibited to promote cannabis through testimonials or endorsements.
“We’re not looking for any promotion. We’re mainly looking for knowledge share from Khalifa Kush Enterprises to create genetics, develop products and market them in a compliant manner,” Fowler said.
With Canada’s legal market still in its infancy, aligning with a major celebrity like Wiz Khalifa is an effective way of accelerating brand awareness in a limited media environment. The industry sits in a bizarre situation where you have 60 brands launching simultaneously, and traditional marketing strategies that don’t cut it.
We are excited to see what the future holds for Khalifa Kush and wish Wiz the very best in his cannabis business ventures.
Stay informed and happy investing!
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