How Celebrities & Politicians Help Build Cannabis Brands
May 31st, 2019
App, Exclusive, News, Top News
There’s no doubt that celebrities can have a significant influence on a brand, particularly when it comes to Gen Z and Millennial demographics. At the same time, politicians can lend an air of credibility and provide valuable insights into the regulatory future of a market. These attributes have made them invaluable to cannabis companies that aim to set their products apart from the competition and gain a competitive edge.
Let’s take a look at why celebrity endorsements work, how politicians influence brands, and how innovative cannabis companies are leveraging both of them.
Why Celebrity Endorsements Work
A Taiwanese study found that consumers better recall products that have been endorsed by celebrities, regardless of whether they are actual fans. The reason is that the human brain recognizes celebrities like it recognizes someone that they know and trust. At the same time the brain subconsciously believe that purchasing a product promoted by a celebrity will enable them to emulate that celebrity’s desired traits.
There are many examples of this success in action:
- Chanel’s decision to sign Nicole Kidman in 2003 helped global sales of its promoted perfume by 30%.
- Nike’s decision to sign Tiger Woods in 2000 helped its market share rise from 0.9% to 4% in just six months.
Not surprisingly, Wall Street has also caught on to these trends and investors have started to pay attention. MarketWatch reported that a simple announcement from a brand singing a celebrity or athlete can cause the stock price to rise slightly and increase sales by four percent on average. These bottom line improvements mean that investors should keep an eye on brands that are drawing the attention of celebrities.
Critical to Cannabis
The cannabis industry has turned to celebrity and political endorsements for a variety of reasons, including the lack of consistency for consumers, advertising limitations for brands, and even the expertise that can be offered to ancillary service providers. In other cases, celebrity endorsements have become critical for promoting medical cannabis legalization, including in the U.S. market where federal legislation is absent.
The lack of consistency and reliability when it comes to cannabis brands has made endorsements one of the only reliable quality metrics for consumers looking for products on dispensary or retail shelves. If a celebrity is willing to put their name on it, many consumers reason that the product is better than lesser known brands on the shelf.
For example, Chemesis International Inc. (CSE: CSI) signed Jay and Silent Bob last year to help create a new brand and endorse its products in the United States. The exclusive licensing deal helps set apart its products by associating the company’s products with two of the most famous faces in the industry. Consumers that see these endorsements could prefer its products over competing and lesser known products on the shelves.
Some cannabis markets also have branding restrictions that make celebrity endorsements one of the only ways to stick out. Canada’s nascent cannabis industry, for example, permits only plain packaging and doesn’t permit any outright marketing campaigns for cannabis products. Celebrities provide a valuable way to differentiate products with these kinds of restrictions and build trust among customers.
Finally, celebrities have been critical in advancing cannabis legalization. Gabriella’s Kitchen Inc. (CSE: GABY) sponsored the documentary Weed the People, which featured celebrity talk show host Ricki Lake. The critically-acclaimed documentary sought to show how medical cannabis has made a positive impact on the lives of several families in an effort to promote the beneficial effects of medical cannabis and support broader legalization.
Since its debut in Oregon, the documentary has expanded its distribution onto Netflix, Amazon Prime, iTunes, Google Play, Vimeo on Demand and Vudu. The documentary also secured a 100% rating among ten critics on Rotten Tomatoes.
Celebrity and political endorsements play an important role in the cannabis industry. Given the proven impact they have on revenue, investors may want to pay close attention to companies that are actively seeking out endorsements and secure some of the most prolific tastemakers.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.