Marijuana: it’s a good thing.
You may recognize that tagline from when Martha Stewart used it to describe home-spun Christmas wreathes from backyard kindling, Thanksgiving turkey stuffed with herbes de provence grown from window-sill gardens, or mason jars used for anything and everything.
Everyone knows Martha Stewart — she practically invented the “lifestyle consultant” role that has permeated the country these days. I doubt Pinterest or Property Brothers would exist without her…
She took hold of pretty much every mother in America, and dared them to be more creative with their home lives. Personally, I always found her incredibly annoying, mostly based on my mom’s (good-natured) attempts to “spruce up” the house with rustic accoutrement.
Though I can’t deny her selling power. She’s currently worth more than $638 million. She’s written books, hosted TV shows, and licenses her “Martha Stewart Living” brand to a number of businesses.
But she has just used that green thumb of hers to break into a far more lucrative industry than home décor.
And, investor-wise, it could be the biggest shot fired so far in a new and budding industry…
Of course — as usual — I’m talking about cannabis. Martha Stewart is the latest big, mainstream celebrity to back a marijuana company. And it is but a harbinger for the big moves to come.
She just joined Canopy Growth (NYSE: CGC) (TSX: WEED) — the biggest cannabis company in the world, and the best recommendation of my life. They are teaming up for a CBD product that could eventually hit big-time retailers like Walmart.
Martha will be lending her brand power to develop hemp-derived CBD products for Canopy, starting with a line of pet products.
“I am delighted to establish this partnership with Canopy Growth and share with them the knowledge I have gained after years of experience in the subject of living,” said Stewart.
“I’m especially looking forward to our first collaboration together, which will offer sensible products for people’s beloved pets.”
Before you make any jokes about Martha Stewart getting your dog stoned, let me assure you this is serious business…
Pet care is one of the biggest and fastest-growing industries in the country. It’s grown from a $48 billion market in 2010 to an estimated $69 billion market in 2017, according to the American Pet Products Association.
My Crow’s Nest readers are up 3,232% since I recommended Canopy Growth — and I take pride in saying that I was the first newsletter writer to visit. I remember visiting the company in 2015, when it was called Tweed, and recognizing that it was onto something special.
You can watch my early tour of the facility here.
After I asked a silly, toss-away question about selling drugs to stoners, Canopy CEO Bruce Linton told me that this was about far more than people smoking weed. He said that it was a medical and lifestyle company. He also told me to watch the market carefully as it played out, and that our mothers and grandmothers would eventually be customers.
That seemed a bit far-fetched at the time, but after seeing the facilities, I believed him. With a partnership with someone like Martha Stewart, it’s been confirmed. Other large industries will follow shortly…
Canopy isn’t new to these types of cross-marketing deals. It signed Snoop Dogg — Martha’s cooking partner — to a deal years ago.
As far as mainstream cannabis partnerships go, we’ve seen it — and profited from it — time and time again.
The first shot across the bow was Constellation Brands (NYSE: STZ) dropping $4 billion into Canopy Growth Corp. (TSE: WEED) (NYSE: CGC).
We saw it again when tobacco giant Altria Group (NYSE: MO) dropped a C$2.4 billion equity investment in Cronos Group (NASDAQ: CRON).
We’re about to see it again as Big Tobacco, Big Beverage, and Big Pharma start to inject their struggling businesses with some new life.
Make sure you are prepared for the next “Martha Moment.”
Get my report on the next five companies that are primed for a big business buyout right here.
