Stewart, a ’90s icon who became a household name through her cooking and lifestyle shows, co-hosts a show with rapper Snoop Dogg, who made headlines last year for smoking pot in front of the White House.
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The deal between Ontario-based Canopy and Sequential Brands Group Inc., which owns the Martha Stewart brand, will seek to leverage Stewart’s knowledge of consumer products in the launch of products based on CBD, the non-psychoactive chemical found in marijuana.
Sequential’s shares surged 51 per cent to $1.81 in early trading.
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“I’m especially looking forward to our first collaboration together, which will offer sensible products for people’s beloved pets,” Stewart said.
The U.S. Food and Drug Administration has prohibited companies from adding CBD to food, but many drinks companies have announced plans to use it.
Corona beer maker Constellation Brands has signed a deal with Canopy to make various pot-infused drinks.
Cannabis companies in Canada have been pouring cash into their businesses to both fend off competition and develop new products, especially after the country approved the use of recreational marijuana.
Canopy has also announced plans to invest between $100 million and $150 million in a hemp industrial park in New York State.