Cheech and Chong's marijuana business, valued at $100 million, is no laughing matter.
In the late 1970s, America's best-known pothead entertainers, Cheech Marin and Tommy Chong, dropped acid with the infamous Timothy Leary. This psychedelic experience led Cheech Marin to a revelation - that people throughout history share a connection through their shared universe.
Fast forward to 2020, and the duo, along with their business partners, launched Cheech and Chong Cannabis Co. and Cheech and Chong's Global Holding Company. Their business model expanded from pioneers in stoner comedy to selling THC-infused products such as edibles, drinks, and cannabis flower.
Their brand products are now available in around 1,500 dispensaries across 19 states, generating significant revenue. The combined revenue of their companies is expected to reach nearly $100 million in 2025, up from about $50 million in the previous year.
Cheech and Chong's hemp division is a significant contributor to this growth. The hemp division, which operates six hemp shops across Texas, is projected to generate about $60 million in sales by the end of 2021. A significant portion of these sales comes from Cheech and Chong's High & Dry seltzer.
The duo's cannabis products are also making their way into mainstream retail. Cheech and Chong have inked a deal with Circle K for a pilot program to carry their hemp-derived THC-infused beverages in 2,000 stores. Total Wine and More, ABC Fine Wine and Liquors, and Binny's Beverage Depot already carry their THC-infused beverages.
Cheech and Chong's cannabis sales are expected to bring in about $34 million in 2021. The company's nine branded dispensaries, located in Maine, Massachusetts, New Mexico, and New York, with four more under contract, are a testament to their success.
As they continue to grow their empire, Cheech and Chong have a goal of passing the company to their children. However, they would consider selling it if it provides them more time to enjoy their golden years.
The duo's journey from stoner comedy to cannabis entrepreneurs is a testament to their enduring appeal and their ability to adapt to changing times. Whether it's laughing at their classic films like Up In Smoke and Nice Dreams, or enjoying their THC-infused products, Cheech and Chong's impact on popular culture remains undiminished.
In a nod to their psychedelic past, it's worth remembering that Cheech Marin learned a good smuggling trick from Barbara Leary, Timothy Leary's fifth wife, who wrote a phone number and address on a sheet of acid. And while Tommy Chong was sentenced to nine months in prison in 2003 for conspiracy to distribute drug paraphernalia, his cellmate during that time was none other than Jordan Belfort, also known as The Wolf of Wall Street.
Despite these challenges, Cheech and Chong have managed to turn their love for cannabis into a successful business venture. As they look towards the future, it's clear that their impact on the cannabis industry will continue to be felt for years to come.
