Which famous cannabis brands have been the most successful so far?

Through Andrew Ward

In select studies, celebrity endorsements have resulted in an average 4% increase in sales. Currently, this does not appear to be the case in the US cannabis market.

To date, most famous cannabis brands, whether endorsed or owned, leave some doubt as to their market impact. The uneasiness seems justified considering how various celebrities have failed to meet critical metrics crowned by sales, market saturation, and product quality.

Photo by Richard T. Nowitz/Getty Images

Few success stories so far

Success stories are rare at the moment.

As reported in Kate Robertson’s One Weed Please newsletter, one celebrity brand, Seth Rogen’s Houseplant, has cracked California’s Top 100 Sellers of 2021, coming in at #91 with sales of $9.3 million. Brands like Marley Natural (about $4.3 million), B-Real’s Insane ($3.6 million), and Jay-Z’s Monogram ($700,000) didn’t make the list.

Data provided by BDSA from 11 hybrid and drug-only markets highlights two cannabis brands making progress in Q1 2022:

• Willie’s reserve: The Willie Nelson-backed brand was founded in 2015 and is sold in Arizona, California, Colorado and Nevada and was a top 50 seller in the Colorado market. The company is partnered with Holistic Industries.
• Can: The brand had the best-selling THC-infused beverage in California and is backed by a bevy of celebrity investors. These include Gwyneth Paltrow, Baron Davis, Rebel Wilson, Ruby Rose, Darren Criss, Casey Niestat, Tove Lo and Bre-Z.

Consideration of more than financial reports

Various respondents, including Roy Bingham, co-founder and CEO of BDSA, noted that sales and business metrics are just a few qualitative and quantitative items worth evaluating.

“While brand awareness and brand loyalty are emerging among the cannabis consumer base, famous brand status is less important to consumers…than product attributes such as price point, cannabinoid content, and flavor,” Bingham said.

The celebrity’s connection to cannabis and its users is essential. When buyers sense inauthenticity, it can be difficult to generate sales.

“Simply putting a name on a product to attract that person’s fan base can generate initial excitement, but if the connection doesn’t make sense, the excitement won’t last,” said Erika Salgado, CMO of PharmaCann. One of their famous brands is The Allman Brothers’ Chocolate Chunk variety, which is sold in Illinois.

Salgado said consumer connections to The Allman Brothers were a key reason for the partnership.

“Fans can remember their favorite concert moment or hear their favorite music from the band while enjoying the product,” she said.

Photo by Printexstar via Pexels

Holistic’s Barich explained the importance of the connection beyond a celebrity’s fandom. He said product quality is key.

“A celebrity brand must ultimately reach cannabis consumers and enthusiasts beyond fans of the celebrity and appeal to anyone who loves quality, artisanal cannabis,” he said.

Joshua Horn, who heads the cannabis rights group at Fox Rothschild, said finding the right partner is crucial.

“You need the right celebrity that will equate the public with the use of cannabis and that celebrity is connected to the right company that is operating at scale and able to speak up,” said Horn.

Quality and authenticity are key

Successful celebrity brands don’t necessarily need celebrity endorsements. Some of the top names that pop up could come from celebrities in the cannabis community.

The perfect example might be Cookies, a brand that combines celebrity, cannabis legacy, highly rated products, and worldviews that align with the consumer base.

Led by hip-hop artist and entrepreneur Berner, Cookies owns retail stores in 14 states and in Israel. In 2020, cookies stores were one of many brands to be looted. Instead of calling for criminal charges against those involved, Berner earned public praise by emphasizing the importance of social justice.

Cookies is often regarded as one of the most enduring quality manufacturing and lifestyle brands. Cookie bags with a conspicuous light blue background can be found in legal and illegal markets across the United States – with many illegal vendors masquerading as cookies.

Inside each bag are some of the most respected strains of plants in the industry – something many celebrity brands fail to deliver, either by growing sub-par produce or white-labeling the strains of a well-known cannabis brand.

“Berner has become a celebrity largely through the growth of his cannabis and fashion brands,” said Brandon Dorsky, CEO and Attorney at Fruit Slabs.

Dorsky also singled out System of a Down bassist Shavo Odadijian’s 22Red for their quality products and lifestyle brand.

In 2020, 22Red partnered with Curaleaf to expand product availability in the California medical market. The Company’s products are currently available at various dispensaries in Nevada and Arizona.

Chad Bronstein, president and chairman of Mike Tyson’s Tyson 2.0 brand, credited Berner’s record label boss Wiz Khalifa for achieving similar success in cannabis with his Khalifa Kush brand and through lobbying. The brand is available in several western US markets and in Michigan.

“Wiz is a longtime cannabis advocate whose brand is supported by a seasoned leadership team with deep expertise in product quality, marketing and innovation,” said Bronstein. In February 2022, the artist announced an exclusive production deal with Trulieve Cannabis Corp, making MSO his partner in the Florida and Northeast US markets.

This article originally appeared on Benzinga and has been republished with permission.