Jimmy Buffett and billionaire William “Beau” Wrigley Jr. are partnering with a US marijuana startup as they join a plethora of companies getting into the extremely oversaturated Mary Jane industry.
The “Margaritaville” singer, who has long sat atop his wicker throne as the king of beach bums, will license his Coral Reefer brand to Surterra Holdings Inc. for a line of cannabis products including vape pens, gel caps, edibles and lotions.
According to MarketWatch, the deal happened a month after Mr. Wrigley, the former CEO of the Wrigley gum and candy company, joined Surterra as chairman after his family investment firm led a $65m Series C funding round.
Surterra is based in Atlanta but is also licensed to operate in Florida and Texas. It grows marijuana, manufactures medical cannabis products, and has raised more than $100m since 2015.
Buffett’s business partner, John Cohlan, said Mr. Buffett would receive royalties from the deal, but not a stake in the startup.
Since 1977, JB has built a licensing empire that includes Margaritaville-branded restaurants, hotels, casinos, a Broadway musical, and a retirement community for people aged “55 and better” — cuz let’s face it, Parrotheads aren’t gettin’ any younger.
But, that doesn’t mean they’ve have stopped investing in the brand, which earned $1.5B in sales in 2016 alone.
Because everyone and their stoney baloney mothers are looking to slang the legit good-good. And, if there’s one thing Buffett has an ear for, it’s a business opportunity.
According to WSJ, more than 60 cannabis startups have raised at least $5m from VC or private equity in the US over the past 5 years.
Meanwhile, other companies like Corona brewing giant Constellation Brands have announced big investments north of the border in Canadian cannabis, where recreational tokin’ is set to become legal in October.