JAY-Z’s luxury weed brand, Monogram, is facing financial trouble despite a hefty investment.
- Monogram launched in 2020 with high hopes and premium pricing but hasn’t met financial targets.
- The brand’s parent company, TPCO, reported a massive financial loss in 2022.
- Ownership of Monogram has changed hands, sold to financially struggling Gold Flora.
- JAY-Z remains silent on these setbacks, marking a rare stumble in his successful business career.
Billionaire rapper JAY-Z took a bold step into the cannabis industry with his luxury brand, Monogram. Despite receiving over $575 million in investment, the brand is now facing significant financial challenges. The company marketed its products at a premium price, with joints selling for $50, which is ten times the average price in California.
Initially, expectations were sky-high, predicting $300 million in revenue in the first year. However, TPCO, Monogram’s parent company, reported a net loss of $587 million in 2022. This substantial financial setback was a shock, considering the initial optimism that surrounded the brand.
In a twist of fate, Monogram was sold to Gold Flora, a company also struggling with its finances. Gold Flora disclosed losses amounting to $56 million and debts exceeding its assets by $60 million, putting it in a precarious position.
Additionally, Gold Flora faces a lawsuit for failing to pay a cannabis farm over $200,000, adding to the mounting troubles of the new owners. JAY-Z, who played a central role in Monogram’s high-profile launch, has remained silent amid these financial woes.
Monogram’s struggles come as a rare miss in JAY-Z’s otherwise successful business ventures. His diverse portfolio includes stakes in Uber and plant-based milk company Oatly, along with a significant real estate portfolio. Recently, he even ventured into the luxury watch market with Wristcheck.
While JAY-Z’s weed venture is hitting rocky terrain, it doesn’t overshadow his impressive $2.5 billion net worth, which continues to grow with other successful investments.
Monogram’s financial troubles mark a rare setback in JAY-Z’s otherwise flourishing business empire.
