From Stigma to Support: "Black-Owned" Labels and Expertise Stereotypes in Cannabis and Psychedelics Markets.

This article investigates consumer responses to "Black-owned" labeling on cannabis and psychedelic products within the context of legalized drugs, focusing on the interplay of racial identity, stigma, and expertise stereotypes. Through four studies—including surveys of Black industry professionals, online experiments with Black and White consumers, and field advertising tests—the research finds that while Black entrepreneurs expect in-group support from Black consumers for such labeling, actual consumer responses vary by product category and racial identity. Specifically, White consumers show increased interest in Black-owned cannabis and psychedelics products consistent with positive expertise stereotypes, whereas Black consumers exhibit in-group support only for non-stigmatized products like candy, not for cannabis. The findings highlight that expertise stereotypes influence out-group consumer behavior in high-risk product categories, whereas in-group support may be constrained by stigma, offering nuanced insights into social identity branding and ownership labeling strategies in emerging legalized drug markets.