Monogram

JAY-Z Severed Ties With Weed Company Just Before It Suffered $500M Loss

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JAY-Z and his cannabis company, Monogram, reportedly quietly backed out of business with its affiliate, The Parent Company (TPCO), before SFGate reported that it suffered over $500 million in losses in 2022, earlier this week. “JAY-Z stepped away years ago and it just went up in a mess,” a source told TMZ Hip-Hop on Tuesday.

Beginning in 2020, Monogram attempted to sell patrons a luxury cannabis experience and, as cannabis expert Seth Yakatan told SFGate, spent “mind-boggling amounts of money” to do so. The brand had features published in GQ, Vogue, and Vanity Fair. It also worked on marketing campaigns with iconic director Hype Williams. In the overpopulated California market, however, Monogram struggled to sell its pricey $50 pre-rolls. “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,” Yakatan said. As for The Parent Company, it has since been absorbed by another company, Gold Flora. The new company has reportedly suffered losses of $56 million this year.

Read More: Jay-Z’s Luxury Weed Brand In Reported Dire Financial Straits

JAY-Z & Michael Rubin Attend Fanatics Fest NYC

NEW YORK, NEW YORK – AUGUST 18: (L-R) Michael Rubin and JAY-Z enjoying his Iconic The 40/40 Club in partnership with Fanatics Sportsbook at the center of Fanatics Fest NYC at Jacob Javits Center on August 18, 2024, in New York City. (Photo by Kevin Mazur/Getty Images for Fanatics)

When the huge losses were initially reported, they came as a surprise to many fans of the hip-hop mogul who boasts a net worth of over $2.5 billion, according to Forbes. Through his work with Roc Nation, JAY-Z has built an impressive reputation for having great business acumen. He became hip-hop’s first billionaire in 2019.

JAY-Z & Monogram Work With Hype Williams

In other news, JAY-Z announced earlier this week that he’s releasing a coffee table book, The Book of HOV: A Tribute To JAY-Z. Roc Nation and luxury publisher Assouline collaborated on the 432-page project. Check out one of the ad campaigns for Monogram below.

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The post JAY-Z Severed Ties With Weed Company Just Before It Suffered $500M Loss appeared first on HotNewHipHop.

JAY-Z Reportedly Ended Relationship with Monogram Cannabis Co. Before $575M Loss

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Jay Z posing 1392x884

Jay Z posing 1392x884

JAY-Z knows how to avoid a business disaster. The rapper and mogul was once affiliated with Monogram but stepped away from the partnership when he noticed the company was hemorrhaging cash.

According to TMZ, Hov stepped away from the brand years ago, which proved a decent decision, seeing they have blown through $575 million in cash.

An insider stated, “JAY-Z stepped away years ago and it just went up in a mess.” The brand reportedly went to another owner in Dec. 2022.

One cannabis expert noted Hov’s The Parent Company noticed the brand had high campaign cost and the $50 price for a pre-roll was too high in the market.

The post JAY-Z Reportedly Ended Relationship with Monogram Cannabis Co. Before $575M Loss appeared first on The Source Magazine.

Jay-Z’s Luxury Weed Brand In Reported Dire Financial Straits

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Millionaires and billionaires are not going to flawlessly exceed at everything they put their minds to. You can tie that fact to Jay-Z, one of hip-hop’s most successful entrepreneurs. According to HipHopNMore and SFGate, his luxury weed company, Monogram, is in serious peril financially speaking. Hov launched the brand in 2020 and was named the brand’s Chief Brand Strategist. The California-based cannabis supplier was kickstarted in a big and flashy way. Magazines like GQ, Vogue, and Vanity Fair featuring it front and center really helped get the word out.

Moreover, some of the debut promotion included a lavish photoshoot at the Frank Sinatra house in Palm Springs helped get this target audience established pretty quickly. But it turns out that that over $500 million investment was a mistake on the part of its overseer, The Parent Company (ironic name). Both outlets have gathered that Monogram was supposed to make around $300 million in its inaugural year.

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Will Jay-Z Have To Shut Down Monogram’s Operations?

CLEVELAND, OHIO – OCTOBER 30: Inductee Jay-Z speaks onstage during the 36th Annual Rock & Roll Hall Of Fame Induction Ceremony at Rocket Mortgage Fieldhouse on October 30, 2021 in Cleveland, Ohio. (Photo by Kevin Mazur/Getty Images for The Rock and Roll Hall of Fame )

However, Jay-Z and his partners were nowhere near that mark. In fact, TPCO had a net loss of $587 million. Obviously, they had to move on from the New York rapping legend’s project. They did, and Gold Flora decided to give Jay-Z a chance. However, that also backfired, as the newer parent company was also struggling mightily. They were also losing return on their investment, losing around $56 million.

Additionally, Gold Flora’s debts were well over their assets at $60 million. Since Monogram’s inception, they have accused of smuggling, allegedly failing to pay invoices, as well as allegedly owing a weed farm around $200,000. Overall, Monogram’s faults were expected by those in the cannabis industry. Seth Yakatan, an investor in this field, told SFGate that general reviews are uninspiring. “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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Jay-Z’s Cannabis Company Accused Of Weed Smuggling In New Lawsuit: Report

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Jay-Z’s cannabis company Monogram is accused of weed smuggling and inaccurate financial reports. According to a report from Lester Black for SF Gate, Cathi Clay, the former president of The Parent Company (TPCO), who produces Monogram products, made the allegations last month in a lawsuit filed in Santa Clara County Superior Court. Clay accused TPCO of harassment and gender discrimination before going after her for exposing their alleged violations. TPCO currently owns 11 retail stores with over 650 employees, per SEC.

Clay claimed TPCO violated cannabis regulations and filed inaccurate financial reports. However, she claimed the executives eventually began to treat her worse. She said once she warned them that the 2021 and 2022 financial filings submitted to the SEC contains “outright inaccuracies in the financial records.” She accused TPCO of illegally shipping cannabis from California to New York for Jay-Z. Clay said the TPCO executives shipped marijuana “to New York for a Monogram event with Shawn Carter.” Though California and New York have established legal markets, it’s a federal felony to move cannabis across state lines. Additionally, California strictly restricts cannabis companies from shipping marijuana outside of the state. 

Jay-Z’s Monogram Lawsuit

So far, a representative for Jay-Z nor Roc Nation issued a response to the lawsuit. However, a spokesperson for TPCO denied that Clay’s allegations contained any truth to them. “The company does not comment on active litigation and plans to defend itself strongly against the false accusations,” the spokesperson said. However, Clay’s attorney said that “have concrete irrefutable proof of each allegation in the Complaint,” though they said they were “not comfortable sharing evidence at the early stage of this litigation.”

Jay-Z’ announced the Monogram brand in 2020, marking his first release since he partnered with Caliva the year before. The high-end cannabis company leaned heavily into hip-hop, as he tapped N.O.R.E., 2 Chainz, Curren$y, Tinashe, and more for its unveiling. However, Jay also used the company as a means to raise awareness surrounding outdated cannabis laws that have left many people incarcerated for years. The luxe brand boasts flower and pre-rolls that range from $40-$70. We’ll keep you posted on anymore updates surrounding the lawsuit. 

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Jay-Z’s The Parent Company Hires The First Black CEO To Lead A Major Public Cannabis Company In The US

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This year has been quite a big one for Jay-Z and his business moves, but the rapper’s latest deal finds him making history. The Parent Company, which is based in California and which houses Jay’s cannabis brand Monogram, announced that executive Tory Datcher will become the company’s newest chief executive officer. Datcher, who previously worked as the senior vice president and chief customer officer of Clorox, will begin the role next month, and according to a press release from Monogram, he’ll become the first Black CEO to lead a major public cannabis company in the United States.

Datcher spoke with Insider following the announcement and said that The Parent Company has a “unique opportunity to disrupt a sector that has disproportionately impacted communities of color — including my own — for far too long.” He added, “This is a chance to partner with cultural powerhouses like JAY-Z and Desiree Perez to rectify the wrongs of prohibition, eradicate antiquated laws and create a new cannabis infrastructure rooted in diversity, equity, and justice for our communities.” He concluded, “Together, we can shape a legal cannabis industry that is reflective of our entire culture in California and beyond.”

The newly-appointed CEO will work beside Jay-Z — who is currently the company’s chief visionary officer — andDesiree Perez, Roc Nation CEO and chief social equity officer of The Parent Company. “Troy’s business acumen, strategic thinking, and leadership skills are invaluable qualities that will be critical to our organization’s growth,” Perez said. “He understands and embraces the unique responsibility we have to redefine the cannabis industry and establish a new precedent for cannabis entrepreneurs to build successful businesses.”