Smoke Signals
ADWEEK|October 1, 2018

Marketers test different approaches as mainstream brands size up cannabis potential.

Lindsay Rittenhouse

The ad opens to a group of millennials wandering through the woods, the sun glistening through the trees as they blissfully stroll to a field of flowers.

Upon their arrival, a montage reveals the idyllic day ahead of them: They laugh, picnic, play chess, take pictures and later huddle around a campfire to cap off the night.

With its emphasis on aspirational but relatable lifestyle, the spot has all the makings of a beer campaign or an ad for a clothing line—until the end, when the screen flashes the words “Fireside Cannabis.” What you’ve just witnessed is an ad for a weed product— and with the cannabis industry booming and showing no signs of slowing, there will be much more where this came from.

Constellation Brands, the beverage giant behind Corona, Ballast Point and Svedka, among other labels, last month invested $4 billion in Canopy Growth, a leading publicly traded Canadian cannabis company. “Fundamentally, we think this is going to be a big business worldwide,” said President and chief operating officer Bill Newlands during a Barclays investor conference. (Constellation declined to comment for this story.)

Newlands estimates cannabis will become a $200 billion industry, with $100 billion of that eventually concentrated in the U.S., once legalization hits the federal level. Canada, he notes, is “one of the early movers.”

But to fulfill that prediction, the industry will first have to clear some significant hurdles. Cannabis is now legal for medicinal use in 30 states and Washington, D.C., but it’s classified by the U.S. government as Schedule 1 under the Controlled Substances Act, reserved for drugs deemed to have absolutely no “accepted medical use.” Examples of drugs that fall under the next classification (Schedule 2, meaning they carry a high potential for abuse but are accepted for medical use) include methamphetamine, morphine, fentanyl, oxycodone and carfentanil, which is an opioid said to be tremendously more potent than fentanyl, heroin and morphine. Meanwhile, only nine states and Washington, D.C., have legalized marijuana for recreational use.

Although “it’s a plant,” Jason DeLand, Anomaly founding partner and board member of dosist (formerly hmbldt), the therapeutical cannabis startup that the agency invested in and helped bring to market in 2016, says he’s pessimistic that federal legalization of cannabis is on the near horizon. Attorney General JeffSessions is a steadfast opponent of marijuana. In January, he rescinded an Obama-era policy leaving legalization up to the states, paving a path for federal authorities to go after marijuana businesses, which is why banks won’t serve cannabis-related companies.

A bipartisan bill, Strengthening the Tenth Amendment Through Entrusting States Act, was introduced in June that would give states back the authority to determine their own marijuana legalization laws. President Donald Trump mentioned he “probably” would support it.

“There’s a certain hypocrisy in the current regulatory regime,” DeLand says. “The government is not just going to come out and say you were right and we were wrong; let’s change it. What would they do with all the inmates in the federal prison system who are there for low-level cannabis crimes? Say, ‘I’m so sorry. Here’s your five years back?’”

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