Seth Rogen's pot brand and Canopy Growth are breaking up
Seth Rogen's cannabis brand and Canadian pot producer Canopy Growth (WEED.TO)(CGC) are parting ways, ending one of the most prominent celebrity brand collaborations since the start of the legal industry in Canada.
Houseplant, the cannabis venture Rogen launched with creative partner Evan Goldberg, and Canopy Growth said in a news release on Wednesday that the end of the business relationship was mutual.
Canopy has released cannabis products spanning dried flower, pre-rolled joints, and a line of infused beverages under the Houseplant banner. The brand is available in both Canada and the U.S., but the company's agreement with Canopy did not extend south of the border, where Houseplant sources its cannabis from other suppliers.
"The recent launch of Houseplant in the United States has given us a clear benchmark for what Houseplant stands for, and how we plan to bring the brand to life globally," Michael Mohr, co-Founder and CEO of Houseplant, stated in the release.
In Canada, Houseplant says some of its cannabis products will continue to be available to retailers through the end of September 2021. The company plans to relaunch in the Canadian market in the future with products more consistent with its U.S. offerings.
"Canada is where it all started - for us as people, and for the brand," Rogen stated in the release. "This is not an exit from the Canadian market, but a chance for us to evolve the brand."
"We're proud of our collaboration with Houseplant. Together, we've delivered high quality and innovative products to Canadian consumers and played a critical role in defining the premium cannabis category in Canada," Canopy president Rade Kovacevic added in the release.
Balancing star power against strict Health Canada regulations on endorsements and advertising, Canopy has been the most celebrity-oriented among Canadian licences producers. The Smiths Falls, Ont.-based company has partnered with rapper Snoop Dogg on a cannabis line called LBS, and with food and home decor guru Martha Stewart on a non-intoxicating line of CBD products.
However, Rogen is not the first star to part ways with the cannabis firm. Canopy confirmed in June that it is no longer involved in a pot venture it was pursuing with Canadian rapper Drake called More Life Growth Company. According to regulatory filings, both parties agreed to terminate their sub-licence agreement at the start of March. Canopy recognized a $10.3 million impairment on the investment later that month.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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