Why Jay Z wants to be a big shot in the cannabis industry

He has never been a big advocate for cannabis on the air. You can barely count the number of sentences he’s said about weed, as in Feelin’ It : «I'm so confused, OK, I'm getting high right now.» But now that his music career is (almost) over, Jay Z wants to become a major player in the cannabis industry.

In just a few months, Hova – as he calls himself – makes two major announcements. In October, he Monogram collection, his cannabis brand, in collaboration with the California-based company Caliva. What sets Monogram apart? Its price. Expect to pay $50 for the «OG handroll«, the flagship product, It's meant to be smoked like a fine cigar. As a fan of Cuban cigars, Jay Z wants to attract a luxury clientele.

A month later, in January, the Brooklyn rapper announced that he would be joining The Parent Company. This massive organization, dedicated to the sale of weed, is the result of a merger of several companies. The California-based cannabis retail platform Caliva, the hemp-focused investment fund Left Coast Ventures, and the music and entertainment agency Roc Nation (founded by Jay Z) are joining forces to create a behemoth.

Jay Z takes on the grand title of Chief Visionary officer, or «chief visionary.» He will also head an investment fund, The Parent Company Social Equity Ventures, with $10 million in capital. The goal is to use this money to support cannabis businesses owned by minorities, particularly Black people. «We were the ones most affected by the war on drugs", the rapper told the Wall Street Journal. »And now, all of a sudden, the United States has changed its mind and created an industry worth millions of dollars."

Those 10 million are a drop in the bucket when you consider that the holding company has $575 million in funds. But it’s not just a matter of fairness. With this fund, managed by an international superstar like Jay Z, The Parent Company (TPC) aims to cultivate a positive brand image that prioritizes fairness.

Dominate the California market… and then the U.S. market

Shawn Carter, known as Jay Z, is therefore involved in a (very) ambitious venture. His plan is twofold. First, he wants to establish a foothold in the California market. In this western U.S. state—home to Hollywood and Silicon Valley—, the weed has been legal since January 2018. But no single company dominates this market. According to Steve Allan—the CEO of The Parent Company—no player holds more than 30 % of market share. And guess who he thinks will take over the market? His own company, of course.

Next, The Parent Company wants to stay one step ahead. It anticipates the legalization of cannabis throughout the United States within one to two years. For now, the company is publicly traded in Canada. But it will return home as soon as cannabis is legalized in the United States.

At that point, the company could, for example, set up operations in New York… where Jay Z is very influential. «The relationship with Jay Z and Roc Nation could help expand the company's footprint into markets such as New York and New Jersey"«, as he rightly notes New Cannabis Ventures, who spoke with the CEO of The Parent Company.

Jay Z will also be able to build bridges between his various businesses. The founder of Roc Nation intends to use this gem to boost TPC’s revenue—and, by extension, his own. Founded in 2008, Roc Nation was initially «just» a music label. Now, it’s also a marketing, image, sports, and television agency. Proof of this convergence: Rihanna, who releases her albums through Roc Nation, has invested her money in The Parent Company. And when you visit the Monogram website, a Bob Marley song is played by a banner from Tidal, the streaming site Hova.