Deep Dive: Celebrities in Cannabis Reflect a Modern Era of Marketing

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Celebrities from Seth Rogan to Mike Tyson are trying to make their mark on the cannabis industry with high-profile product launches and collaborations. It’s easy to see why they want in: Pot is expected to become a $45.8 billion market by 2025, according to projections from data firm Headset.

Celebrity Competition

Whether it’s Seth Rogen’s joints & flower, the THC beverage backed by Gwyneth Paltrow, their products face a crowded market that’s struggling with tumbling prices, a thriving black market that’s undercutting the legal one, and a complex patchwork of rules that varies from state to state. 

While celebrity-backed brands have generated a lot of press, most haven’t become top sellers in the highly fragmented and still-nascent cannabis market. Some retailers in states where marijuana has been legal the longest say that celebrity-linked brands have struggled to seriously compete with bigger labels such as Jeeter and Pacific Stone.

Who is Doing Right?

Nonetheless, celebrities have seen some success. When Martha Stewart launched a line of CBD products with Canopy Growth, sales rose swiftly, outselling competitors as well as bringing in new customers.

Mike Tyson’s line of cannabis products, called Tyson 2.0, has also done relatively well: The former heavyweight boxing champion’s brand has recorded $20.7 million in retail sales since launching in November 2021, according to Headset data.

Budtender Influence

Marketing restrictions have pushed brands, such as Snoop Dogg’s Death Row Cannabis, to become more creative in reaching potential customers. Brands have focused marketing efforts on buyers and more specifically at their budtenders,” said Tiffany Chin, who leads Snoop’s cannabis ventures.

Winning over those dispensary retail workers can be “very advantageous” for celebrity brands, according to Headset analyst Cooper Ashley, given they carry an “extraordinary” amount of influence over customers’ purchases. Most, if not all, transactions in the cannabis industry happen between a customer and a budtender, Ashley added.

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Bringing in a shining celebrity endorsement can take a brand to the next level, even with the risks of backlash and interference that come with the territory. Whether spokespeople or the brains behind the products, celebrities in cannabis are changing the game and are here to stay.

Read More: Celebrities in Cannabis Reflect a Modern Era of Marketing [Yahoo]