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Jay-Z is known for his business acumen, which has helped him become a billionaire, but one of his most recent investments didn’t seem to work out.
The rapper was among the first celebrities to get into the legal marijuana business when he created his Monogram brand under The Parent Company (TPCO). Still, now, it’s possibly up in smoke.
According to SFGate, Monogram is in financial trouble, having spent most of the $575 million it raised when it initially launched.
However, cannabis investor Seth Yakatan spoke to SFGate about the brand and wasn’t surprised about its downfall, given how much money was invested in it. The product now gets overwhelmingly positive reviews while being touted as such an elite brand.
“Like many other things we’ve seen in cannabis surrounding rappers, the hype hasn’t met the reality,” Yakatan said, adding, “Monogram was supposed to be an ultra-premium product, and I don’t know anyone who tried it and thought it was anything more than mid-tier.”
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Monogram’s advertising itself as a luxury weed brand may have contributed to its downfall, as a single joint was priced at $50.
Specifically, it was the OG handroll with the hefty price tag, but the brand “takes inspiration from the smoke experience of a premium cigar, but implements a proprietary roll technique allowing the flower to burn slowly and evenly for multiple sessions” and has “a sweet, herby smell upfront that transitions to a skunky finish.”
The brand has four strains, with each going for $40 for two grams or $70 for four.
According to Daily Mail, the brand expected to make $334 million in its first year, but in 2022, it had a net loss of $587 million, which it blamed on purchasing hyped brands before eventually getting sold to another weed brand, Gold Flora.
But soon after TPCO announced the major loss, Jay Z cut ties. TMZ reports that “Jay-Z stepped away years ago, and it just went up in a mess.”
See how social media is reacting to Hov’s business moves below.