Hip hop star Drake recently announced that he is launching a new cannabis company called More Life Growth Co. Drake will be the majority shareholder owning 60 percent of the company and Canopy Growth Corp. will have the remaining 40 percent. As a result, Canopy will not own More Life.
While this might seem like a simple merger, the truth is that the action is a clever marketing tactic. Canada has enforced advertising rules for the cannabis industry, including not glamorizing cannabis as an ideal lifestyle choice. This is where Drake comes in.
Because Canopy does not pay Drake to be the face of More Life and he is the primary shareholder of the company, it does not violate any of the cannabis advertising rules. The star can promote it all he wants, using his name and celebrity behind it.
Drake’s superstar status gives him access to millions of fans. His You Tube videos have racked up 13 billion views, and he has around 53 million Instagram followers. When he makes a claim about something or promotes it, literally millions of people hear it. No other cannabis company will ever come close to that kind of exposure.
Drake’s position within the entertainment industry also affects this. Because of the types of followers he has and the ages of his fans, he is an excellent face to put behind the cannabis industry. The companies will be reaching their target market.3 months ago