Gwyneth Paltrow, actress and founder and CEO of wellness brand Goop, has invested in cannabis beverage company, Cann, CNBC reports. Cann founder Luke Anderson called her endorsement “a sign that Cann (and microdose beverages more broadly) are a viable answer to that very common consumer pain point.”
He added that when people think of Paltrow, “they don’t think of ‘weed’ – they think of cutting-edge solutions for today’s health and wellness needs.”
Cann is not the first cannabis company Paltrow has invested in but financial terms of the deal were not disclosed. The fundraising round also included investments from former National Basketball Association player Baron Davis and singer Tove Lo.
“There’s a whole sober-curious movement that’s going on and the cannabis-curious movement that’s going on, this is kind of at the intersection of those things in a way. … We’re very clearly and definitively moving in the direction of cannabis being legalized, and I think it should be. I’m actually not a big personal user of it. But I do think that there are amazing medicinal qualities to it and it is really helpful for a lot of people.” – Paltrow to CNBC
Cann products are currently available in California and Nevada and the company said it would use the funds – along with $5 million it raised in January – to expand into four more legal states within the next six months.
Paltrow’s Goop has come under fire in the past for making false and misleading health claims about its products, most recently in February from nonprofit advertising watchdog Truth in Advertising Inc. In 2018, the company reached a settlement with 10 California District Attorneys barring it from making such claims, Ars Technica reports.
Analytics firm Headset estimates the U.S. cannabinoid-infused drinks market in legal states doubled over the last two years from $4.2 million in September 2018 to $8.3 million last September.