Martha Stewart, the American businesswoman and television personality, is dipping her toe into the budding cannabis industry with a newly announced advisory role with Canada's Canopy Growth. Focusing on pet product development, the partnership was made with the Sequential Brands Group, which bought Martha Stewart's company in 2015.
CBD is a non-psychoactive ingredient in cannabis that can be derived from hemp and carries trace amounts of THC. It is increasingly being used as pain management treatment for inflammation and stress. Canopy Growth will be incorporating Stewart's knowledge of consumer products with their clinical trials exploring the efficacy of CBD and other cannabinoids in relation to improving the health and wellness of both animals and humans.
After the news broke, Sequential's shares rose by 51% and Canopy Growth's stock rose 4%. In the company's release statement, Stewart was said to be "delighted" with the partnership, and excited to "share with them the knowledge I have gained after years of experience in the subject of living." The first collaboration will focus on offering a product line specially designed for people's pets.
Stewart has already put her brand name on a wide variety of products, including shoes, flowers and home decor. While the terms of the deal were not disclosed, Canopy Growth has been researching the effectiveness of hemp's CBD for treating anxiety in pets for some time. In August, the company received approval from the Veterinary Drug Directorate of Health Canada for its subsidiary, Canopy Animal Health, to commence clinical trials.
Canopy Growth also plans to incorporate the hemp component into drinks, following a $4 billion investment from beer, wine and spirit producer Constellation Brands in late 2018. While the U.S. Food and Drug Administration currently prohibits CBD content in food and beverages, they will be investigating whether to legalize it in April.