Superstar rapper Drake is jumping into the cannabis game through a cleverly structured deal that marketing experts say could effectively circumvent strict advertising rules that govern the promotion of cannabis.
Cannabis advertising rules in Canada are similar to that of tobacco — any kind of endorsement that glamourizes cannabis or promotes it as a lifestyle is strictly prohibited. Although there are hundreds of different cannabis brands on shelves in legal retail stores, none of the licensed producers associated with those brands are allowed to promote them, or package them in anything other than plain packaging, resulting in weak brand recognition by consumers.
“The issue around sponsorship by a celebrity is whether or not the celebrity is paid consideration for the endorsement of the product,” said Bolivar, who was part of a Canadian Marketing Association team that developed advertising guidelines to help the cannabis industry navigate the tough regulations. Drake commands market access that no cannabis company comes close to having. His Youtube channel has over 13 billion views, and he has almost 53 million followers on Instagram.
Marketing aside, the deal comes at a crucial time for Canopy Growth, which saw revenue decline in its most recent quarter.
Drake doesn’t outsmart anybody.
Yes. I’m sure it was Drake himself that outsmarted them.
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