Seth Rogen and Evan Goldberg’s cannabis and lifestyle brand Houseplant and cannabis giant Canopy Growth Corp. CGC will terminate their partnership.
The two companies that created a joint venture three years ago and launched in Canada have mutually agreed to end their collaboration. Since the brand’s launch, the Canadian cannabis market has significantly expanded, thus the parties decided it was time for Houseplant to further evolve on its own while Canopy will continue working on its wholly-owned brands.
During their years of working closely together, Houseplant grew to become a popular consumer brand in Canada and is now among the top 10 in the premium cannabis market in Ontario.
Among the most successful products are beverages with Houseplant Grapefruit becoming the top-selling cannabis drink in Canada in its first year. In 2020, more than one million cans of Houseplant beverages were sold in Canada.
"The recent launch of Houseplant in the United States has given us a clear benchmark for what Houseplant stands for, and how we plan to bring the brand to life globally," Michael Mohr, co-founder and CEO of Houseplant said. "While our collaboration with the Canopy team has been fruitful and we continue to hold similar views on the opportunities ahead, we believe the time is right for us to focus on Houseplant independently."
Rade Kovacevic, president and chief product officer at Canopy Growth added that the company is pleased with its Houseplant partnership.
“We've delivered high quality and innovative products to Canadian consumers and played a critical role in defining the premium cannabis category in Canada," Kovacevic said. "As we move forward, Canopy will advance our focus on our wholly-owned brands for the Canadian market and we wish the Houseplant team the best in their future endeavors."
What’s Next – Relaunch In Canada
Some Houseplant-branded cannabis products will still be available across Canada until the end of September 2021. The company plans to relaunch in the Canadian market with products similar to its U.S. offerings.
"Canada is where it all started - for us as people, and for the brand," said Houseplant co-founder Seth Rogen. "This is not an exit from the Canadian market, but a chance for us to evolve the brand."
The collaboration between Houseplant and Canopy Growth did not reach the U.S. which is why termination of the deal does not affect the company’s operations there. Houseplant launched a line of its products in the U.S. this March.
Canopy Growth’s shares were trading 4.84% higher at $19.25 per share at the time of this writing on Wednesday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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