Budding Opportunities for Cannabis Licensing

Brand licensing in the new and expanding world of legalized cannabis began with the entry of musicians, chefs, and marijuana-related brands into the field. Now, as more states and countries decriminalize the substance, even, in some cases, for recreational use, licensing is starting to expand into additional areas, with celebrities leading the way:

  • New territories. Each country that permits marijuana sales and usage becomes ripe with potential for licensing deals. A case in point: Canada, which is making cannabis legal in 2018. In December 2017, the actors known as Jay and Silent Bob (Kevin Smith and Jason Mewes) partnered with Beleave to create licensed strains of marijuana for the recreational market in that country.
  • Health and wellness. Most marijuana-related licensing has been aimed more at the recreational than the wellness or medical side of the industry, but Kathy Ireland Worldwide’s Level Brands paired earlier this year with Isodiol International for cannabis-derived functional beverages, nano-mist, skincare, body balm, and tincture under the Kathy Ireland Health & Wellness and I’M1 brands. (The latter is a lifestyle brand for men.) The products are made from hemp and are free from THC, the primary psychoactive ingredient in marijuana. Previously, singer and cancer survivor Melissa Etheridge was an early entrant into the wellness space, creating cannabis-infused wines and other products for cancer patients.
  • Mainstream marketing. The authorization of recreational marijuana in some states has opened up opportunities for promotions with consumer goods and services beyond the cannabis industry. The quick-service restaurant chain Jack in the Box marked California’s move into legalized recreational pot with a co-branded Merry Munchie Meal, in collaboration with Snoop Dogg’s cannabis-related media company, Merry Jane. The box featured the latter’s logo and the contents included a wide variety of munchies, from tacos to chicken strips, of the sort pot users might crave.

Thirty states and the District of Columbia have sanctioned marijuana to some degree, with eight states plus D.C. making recreational use legal. A number of countries outside the U.S. also have permitted the sale, use, and/or growing of marijuana, with 20 in recent years having expanded the circumstances in which pot is legal. The rules vary significantly from country to country.

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