Seth Rogen’s Houseplant brand is leaving Canada and it’s our own damn fault
It’s been a week since Seth Rogen left the Canadian cannabis industry and took his Houseplant brand with him.
Seth Rogen’s split from Canopy Growth doesn’t mean the end of celebrity-backed weed in Canada. But lately it feels like a revolving door in Canada to watch celebrities like Rogen, Drake, and others leave our cannabis industry for greener pastures.
The good news? In the case of Houseplant, it can only be temporary.
Houseplant is planning a relaunch on the Canadian market in the future with products that better match the US offerings.
“It all started in Canada – for us as people and for the brand,” said Rogen in last week’s press release. “This is not an exit from the Canadian market, but an opportunity for us to develop the brand further.”
Rye’s (temporary?) Move away from Canadian cannabis, however, suggests a bigger industry problem with brands in general.
Not all breakups have to be “superbad”
Canopy and Houseplant worked together for over three years. Both parties believe that this latest decision was amicable. The relationship was fruitful, the couple drove amicably on the legalization train. And now – as with any separation – both parties will pursue other options alone.
“Our partnership with Houseplant began before legalization and we are proud of what we have delivered to consumers,” Rade Kovacevic, Canopy’s chief product officer, told Leafly. That includes, says Kovacevic, “the role this collaboration has played in defining what premium means in the Canadian market.”
Houseplant US vs Houseplant CAD
Houseplant made its US debut earlier this year, an announcement that was so popular it almost broke the internet.
The excitement was palpable, vaguely reminiscent of the lavish release in Canada, complete with vinyl records and some of the finest branded items of the time. Since March, the demand in the USA has gone through the roof – with corresponding sales.
Houseplant’s success in the States highlighted the cracks in the brand’s Canadian presence. The weed itself receives rave reviews – fragrant, hot, and loud.
For almost ten years I imagined having my own cannabis company. And today I can say that Houseplant’s weed will be available in California next week! Houseplant also makes beautiful housewares such as ashtrays, lighters and even ceramics. https://t.co/TNjpWFhbWB pic.twitter.com/00xR8QKNH3
– Seth Rogen (@Sethrogen) March 1, 2021
Consumers in Canada have not been kind to the Houseplant brand. When asked on Twitter why roe left the Canadian market, consumers toasted the brand with responses like, “That means he finally tried something?” and ‘nothing, nobody cares anyway’.
It seems that the brand’s success in the United States has led company representatives to rethink their Canadian presence.
“The recent launch of Houseplant in the US has given us a clear measure of what Houseplant stands for and how we want to bring the brand to life around the world,” said Michael Mohr, Co-Founder and CEO of Houseplant.
“While our collaboration with the Canopy team has been successful and we continue to have similar views on the opportunities ahead, we believe the time is right for us to focus independently on Houseplant.”
According to the press release, beverages remain the culmination of the brand’s success – namely the grapefruit-flavored sparkling water from Houseplant. Despite being the best-selling beverage in Canada, with over a million cans sold, consumers have to say goodbye to Houseplant’s full range of products.
If you’re a fan of their products, now is the time to grab the leftovers on the shelves. In Canada, some houseplant cannabis products will be available to retailers until the end of September 2021.
Celebrity and the cannabis law
If Houseplant explodes in the US while the Canadian presence remains stable but unspectacular, could our restrictive advertising laws be to blame?
Marketing regulations are very strict in Canada. Brands cannot represent anything that could be associated with promoting a particular lifestyle. Legally, in Canada, Seth Rogen couldn’t even say “Smoke my weed, it’s good” on social media without breaking cannabis law.
Trina Fraser, attorney and partner at Brazeau Seller Law and a leading Canadian authority on cannabis law, is unsurprisingly at how difficult it is to capitalize on a famous name in cannabis.
“Everyone knew what the rules were when we kind of moved into legalization in 2018,” she told Leafly. “No testimonials or recommendations, no depictions of a person or a lifestyle, all that stuff, it was always there [in the regulations]. “
These restrictions have always not prescribed endorsements from celebrities.
Fraser, who is not involved in the case, stated the original intent of the law: “The fear is that if we allow all these kinds of ‘sexy’ celebrity associations and glamorous displays, it will affect consumers and normalize itself [cannabis use]. “
Because of these limitations, “it becomes very difficult to build brands around personalities,” added Fraser. “If you look at places like Colorado and California, they’re years ahead of us in cannabis trending.”
While it was set in the regulations from the start, there was hope that a prominent owner alone would increase sales. Fraser explains that the real surprise for the producers with celebrity was that their presence didn’t matter that much.
“Seth Rogen, or really any other celebrity, doesn’t have to be on the product or advertisement for customers to know it’s their brand,” said Fraser. “Whatever their commitment to the brand or the products was inherently there.”
“The surprise for the producers was that [being associated] having someone famous just didn’t have the inherent worth they thought. “
Celebrity partners aren’t that influential in Canada
Houseplant’s experience in the US is fundamentally different from the introduction in Canada. Consumers in the United States, and California in particular, seem to prefer celebrity-endorsed brands.
Who wouldn’t want to ignite the same cannabis as Seth Rogen, Snoop Dog or Willie Nelson? As fans, it’s exciting to smoke the same pot as your favorite celebrity.
In Canada, this trend doesn’t seem to be as pronounced. “Less than 1% of consumers asked me about a particular celebrity’s cannabis brand,” said Brian Kierans, a Canadian budget tender and cannabis consultant.
Kierans said few customers ever ask about “Seth Rogen Pot” or “Drake’s Weed”.
“I’m not sure what value celebrities attach to cannabis brands and products,” he said. “In my experience, consumers buy primarily according to format and type”
“I’ve heard more buzz about Houseplant from budget tenders than from customers,” added Kierans. “Houseplant had a few loyal customers who talked about Seth when they bought the cannabis. But it was never a selling point or a point of discussion for a new buyer. “
Brand loyalty almost impossible in the current market
Celebrity departures like this one are a symptom of a bigger problem – brands have no distinguishable identity in the Canadian cannabis market.
“Brands are struggling to distinguish themselves under current regulations,” said Fraser. “I would even take it beyond a ‘celebrity’ branding theme to brands in general.”
“There are really no naturally super-powerful, high-value cannabis brands in the regulated market in Canada,” she added. “Not to say that it never will. I just think we’re not there yet. “
It is almost impossible to establish a strong brand identity under the cannabis law’s restrictions on advertising and endorsement. And that has put cannabis companies in a difficult position. Without brand identity, it is extremely difficult to achieve brand recognition or a lot of customer loyalty.
“The split speaks to where the cannabis industry is now,” said Kierans. “Many celebrity deals were closed early on in the belief that giveaways would help sales. It is now clear that this is not the case. “
“I don’t think customers really care about celebrity brands. I think they see through it, ”added Kierans. “Brands need to think about what they are offering to consumers – besides their name.”
Ashley Keenan
Ashley Keenan is a Leafly Canada Editor and a freelance journalist, consultant, and patient advocate in the cannabis industry. Since 2018, Ashley has served the cannabis industry by covering cannabis industry news, advocating for medical cannabis and the patient perspective, and creating lifestyle content that matters. Their byylines include Leafly, The GrowthOp, StratCann, The Her (B) Life, Vancouver Sun, Ottawa Citizen, National Post, and more.
View article by Ashley Keenan
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