Cannabis Branding and Advertising

 

You may have heard of Charlotte's Web, a brand of cannabis made famous because of its near miraculous effect on Charlotte Figi, a young child suffering from severe debilitating epilepsy. Since Charlotte's Web grew into an iconic brand, there have been thousands of brands of cannabis that are available in the legalized market. Before that, there were thousands of brands of cannabis in the black market. They did not come in any fancy packaging but were given names by their growers and sellers, like Malana Cream for example.

Branding for cannabis is similar to branding for wines. But with thousands of varieties of cannabis available worldwide in its natural and bred forms, creating a brand and its associated loyalty will not be easy, especially considering that the plant needs to be first legalized, its unique varieties studied, understood and grown. In places where cannabis is illegal, which is essentially most parts of the world currently, people buy cannabis from a reliable seller whose product they have gotten used to. Cannabis of the preferred variety in a brown paper bag is good enough for many people. The branding essentially comes from the place where the cannabis is grown and that more or less becomes its brand name. E.g. Idukki Gold or Malana Cream.

In the legalized market, however, the number of people now starting to look for a particular brand of cannabis, the discerning cannabis user, is starting to grow. This has been fueled by global cannabis companies, the attractive packaging of the product  as well as the branding of retail outlets among other things making cannabis now as fashionable as any other product. Celebrity endorsements and distribution through popular FMCG channels are fueling the branding of cannabis. Companies are starting to spend large amounts of money on branding and advertising. We have cannabis brands associated with Snoop Dogg, Carlos Santana, Bob Marley, Jerry Garcia, etc.

There are numerous varieties of cannabis all over the world each with their own specific unique qualities, flavor, aroma, etc. The potential of cannabis brands based on different areas in the world where they are grown is immense. Nations must look to leverage this potential, along the lines of Cuban cigars, French wine, Swiss chocolates, Sri Lankan tea, etc by giving the naturally found varieties of cannabis in their countries Geographical Indicator(GI) tags. So we could be seeing various brands of Caribbean, Lebanese and Indian cannabis for example, developed by local communities and farmers cooperatives promoting the unique local aspects of these varieties. This, I think, would be a much desirable evolution of the cannabis industry, and its legal international trade, benefiting local communities and sustaining precious local indigenous varieties.These could become key trade items between nations in the future, hopefully the near future.  

There are still restrictions in terms of advertising since cannabis is not federally legal in the US and world wide and there are age restrictions that say the product should not appear attractive to children and youth. In the US, cannabis currently faces advertising barriers similar to other regulated entities like alcohol and tobacco. Marketing teams in cannabis companies are trying to work around all this by using innovative strategies like internet influencers, celebrities, high end retail outlets, billboards, attractive packaging, cannabis events, social consumption areas and cannabis tourism. There is an amount of hypocrisy associated with this whole approach. On the one hand, cannabis, one of the most safe and medicinal recreational plants faces all these curbs and, in the best cases, the same amount of leeway that regulated harmful drugs like alcohol and tobacco enjoy. On the other hand, harmful synthetic pharma drugs, sugar based soda beverages, fatty fast foods and addictive online gaming enjoy almost no curbs in terms of the nature of advertising that they can adopt.

In spite of all these curbs on cannabis branding and advertising, cannabis was declared an essential service in nearly all US states that have legalized it for recreational purposes during the Covid pandemic lock down of 2020. The cannabis industry employed more than 425,000 full time employees as of 2022. The projected legal cannabis US market for 2025 stands at $100 billion. Cannabis brought in more tax revenues than alcohol in spite of its illegal nature in the federal US. Cannabis is grown in more than 150 countries round the world in spite of its illegal status. Officially, more than 250 million persons are cannabis consumers and the numbers are only growing. In one way. cannabis is an essential, universal commodity and not a product that needs branding and advertising.

Related articles

Listed below are a set of articles related to the branding and advertising aspects of cannabis picked up from various media sources. Words in italics are thoughts and comments of yours truly at the time of reading these articles.   

'Mainstream retail employees often receive perks and bonuses – gadgets and cash are only two possibilities – depending on how much they sell of certain products.

The same holds true in the cannabis industry – at least for some retailers and product manufacturers.

Depending on the cannabis market, sales reps carry different titles: budtenders, dispensary associates, in-store sales representatives.

No matter what they go by, there’s no denying that they’re the tip of the spear for cannabis sales and can have a huge impact on a marijuana brand’s success.'

https://mjbizdaily.com/how-marijuana-companies-woo-budtenders-to-increase-sales-promote-brands/

'Social media company Tumblr is throwing open its doors for marijuana companies to advertise products on its platform – but only in California and Colorado for now – and for CBD businesses to do so nationwide.

Though not nearly as popular or widely used as counterparts Facebook, Twitter and Instagram, Tumblr, launched in 2007, has a sizable following among Gen Zers, according to a company news release issued Wednesday.

Tumblr’s decision could provide some companies with viable alternatives to larger social media platforms, which have been regularly shutting down marijuana business accounts for years because of the federal illegality of cannabis.'

https://mjbizdaily.com/tumblr-to-allow-marijuana-cbd-companies-to-advertise-in-california-colorado/

'In this episode of Seed to CEO, Lisa shares:

- How she identified the need for a marketing association and how what she did can be used as a model for other professional groups.
- How her event-driven cannabis group adapted during the COVID-19 pandemic.
- How to strategically scale an organization such as the CMA even as new markets are still getting off the ground.
- Why marketing really matters in cannabis.'

https://mjbizdaily.com/podcast/marketing-mixer-how-a-quest-for-answers-resulted-in-a-new-cannabis-association/

 

 

'Another “sin industry” universities are embracing appears to be cannabis, particularly in states where marijuana has been legalized—19 and counting. The financial crunch caused by the pandemic is a big reason why the University of Colorado dipped its toes into the space this spring, about nine years after the state legalized weed.

“We had to get creative and look at how we could increase our revenues,” said Lance Gerlach, the university’s assistant vice chancellor of advancement.

Colorado became one of the first major universities to add a cannabidiol purveyor as a corporate sponsor in April, signing a multiyear partnership with Synchronicity Full-Spectrum Hemp Oil, a local supplier of CBD products.'

https://www.wsj.com/articles/college-football-beer-gambling-cannabis-sponsorships-11631759264

'The number of hemp product ads tracked by the U.S. Department of Agriculture (USDA)’s Agricultural Marketing Service doubled from an average of 961 in January, to nearly 2,200 in June 2021, reflecting the expansion of legal hemp products across the country.

During that time, the agency tracked retail promotions on four hemp seed oil products, two hemp protein packages, and nine shelled hemp seed packages. The products included a mix of regular and organic varieties.'

https://newfrontierdata.com/cannabis-insights/wide-price-variability-prevails-in-usda-tracked-retail-hemp-promotions/

 

 

'This year’s matchup between the American and National Leagues will mark the first time the All-Star Game has been hosted by a state with a legal recreational marijuana market.

Attitudes and policies in professional sports have become friendlier toward cannabis in recent years.

In late 2019, Major League Baseball (MLB) announced it was removing marijuana and other “natural cannabinoids” from its list of banned substances.

Also, a number of former professional baseball players have embraced cannabis as their preferred anti-inflammatory, pain relief or anti-anxiety medication.'

https://mjbizdaily.com/colorado-cannabis-companies-plan-to-capitalize-on-mlb-all-star-game/

'The United Nations (UN) drug division is urging a global ban on marijuana advertising—but some advocates see that as a sign the prohibitionist body is coming to terms with the fact that widespread legalization is inevitable.

In its 2021 World Drug Report, released on Thursday, the UN Office on Drugs and Crime (UNODC) said that perceptions of the risks of cannabis have decreased substantially among young people as more areas have loosened laws around the plant or legalized it in some form and as THC potency has increased.'

https://www.marijuanamoment.net/united-nations-urges-global-ban-on-marijuana-advertising-in-novel-regulatory-recommendation/

'Hemp food products are appearing more often in major supermarket advertisements in 2021, according to the U.S. Department of Agriculture.

The number of ads featuring hemp protein, oil and shelled seeds has grown fivefold since this time last year.'

https://hempindustrydaily.com/major-grocers-dedicating-more-ad-space-to-hemp-food-products-in-2021/

'Weed is now making a bet that it can market not only its name but its location at the foot of the slopes of Mount Shasta, a dormant, snow-capped volcano with a passing resemblance to Japan’s Mount Fuji. The city trademarked a logo that would be placed on packaging of its marijuana, a “Made in Weed” appellation akin to those used by Champagne or Parmigiano-Reggiano.'

https://www.nytimes.com/2021/05/18/us/weed-california.html


'“With all the existing restrictions around cannabis advertising, there are few options available for legal companies to gain visibility and compete against the unlicensed market,” said Amy Jenkins, a lobbyist for the California Cannabis Industry Association, which supports AB 1302.

“Billboard advertising is an essential tool for licensed cannabis operators,” she added. “The more tools we have to drive consumers to the licensed market, the more opportunities we have to boost job growth and economic development.”

Closing another marketing option could open up more revenue opportunities for platforms such as Eaze and Weedmaps, which provide both marketing and delivery services. Both companies have frequently used billboards for advertising and educational campaigns.'

https://mjbizdaily.com/billboard-ban-is-latest-marketing-hurdle-for-california-cannabis-firms/

'Even during tough economic times, marijuana consumers are turning to higher-priced flower products – a signal that cannabis users are increasingly willing to spend more money on such merchandise.

The trend could be mirroring the beer and wine sectors, where enthusiasts are turning to higher-priced products as their tastes become more sophisticated.

That would be good news for marijuana brands aiming to offer premium and specialty products that fetch higher price points with better margins.'

https://mjbizdaily.com/premium-priced-cannabis-products-take-larger-share-of-overall-flower-sales

'Pending any compelling evidence about biological differences in the functionality and effectiveness of cannabinoids between men and women, CBD usage between the genders has been demonstrated to differ significantly in the marketplace. Gender is a major determinant of adoption behavior, with men being significantly more likely to become routine consumers than are women. Nearly half (46%) of male CBD consumers use it at least once a week, compared to 36% of women — underscoring the importance of CBD brands’ addressing the significance of gender in shaping product demand. Significantly, 30% of women were more likely to try CBD only once or twice before discontinuing use, compared to 19% of men, suggesting that CBD brands have thus far been less well-aligned to the needs and preferences of women. Discrepancies in consumer behaviors between men and women in the CBD sector are significant, and brands catering to a specific gender would accordingly do well to understand the differences.'

https://newfrontierdata.com/cannabis-insights/fda-investigating-sex-gender-differences-in-cannabinoids/

 

 

'The cooperative farming model is another factor fueling optimism that more farmers will get their own brands.

Under this approach, small farms band together and share the costs of packaging, labeling, manufacturing and other functions needed to get their crops and products to market.

“I strongly believe the co-op model is going to grow in importance and value in coming years, especially for small growers,” said Scott Watkins, a consultant and principal at Buildaberg in Trinity County.

Watkins reckons that co-ops, combined with the appellations program, will provide a great foundation for more farmers to work together to overcome the financial obstacles in California’s current market landscape, such as securing commercial space to package flower or manufacture pre-rolls.'

https://mjbizdaily.com/appellation-program-and-cooperatives-might-boost-small-california-cannabis-farmers/

'To create and maintain brands, small growers must navigate a labyrinthine set of regulations.

And the hurdles are typically so high that most resign themselves to anonymously supplying other companies with raw cannabis material through the wholesale market – instead of showcasing what could be the greatest diversity of marijuana strains in the world.

Many aren’t happy about it because they can’t get any acclaim for the quality product they’re producing and because it will make it that much more difficult to build more profitable companies in the long term.

In short, others get to claim bragging rights.

Distributors usually slap their own company names, logos and strain names on packages of flower, or they just resell the flower to other distributors, extractors or edibles makers who need raw material to make their own cannabis products.

“That’s really the hinge point, that we have to go through distribution,” Steffano said.'

https://mjbizdaily.com/why-california-craft-marijuana-farmers-cannot-offer-own-brands/

 

 

'Brand and product counts began to decline in Washington state in 2016 after two years of skyrocketing growth.

Products per brand, a useful measure to compare the states, has declined in both states, which signals a tightening of the markets.

Each has settled in at 37 products per brand going into the last quarter of 2020. Washington state peaked in 2016 at 56 products per brand and Colorado at 41 just last year.

Nevada, Oregon and other states experienced a leveling off of products per brand after the initial market launch, but those markets haven’t been around as long as Colorado and Washington state.'

https://mjbizdaily.com/recreational-cannabis-brand-and-product-expansion-slow-in-us-markets/

 

 

'Wine producers have long used appellations to establish reputations for quality and distinct characteristics of products from specific regions as well as to educate consumers about unique flavors and profiles generated by a certain place.

California’s new appellations law, Senate Bill 67, affords marijuana growers similar opportunities.

Legacy cannabis farmers can claim, market and protect the unique character of the marijuana produced in their regions, highlighting flavor, potency and quality differences for each place.

Protecting the reputation of those regions is critical to the success of the wine industry, Stults added, and that can be applied to marijuana as well.'

https://mjbizdaily.com/how-new-california-cannabis-appellations-law-borrows-from-the-wine-industry/

 

'With over 1500 brands on the market, how can retailers know which brands to choose? Here is one retailer’s perspective on the best way to go about stocking your shelves with high-quality hemp CBD brands.'

https://www.supermarketnews.com/organic-natural/6-retailer-tips-stocking-high-quality-hemp-cbd-brands


'Since selling weed is still illegal on a national level, cannabis companies can get federal trademarks on some — but not all — parts of their business. They can’t trademark the marijuana itself, including the wacky and easy-to-remember names that companies have given to various strains, like Alien Bubba, Candyland and Granola Funk.'
https://www.chicagotribune.com/business/ct-biz-chicago-cannabis-trademarks-20190829-rl5pigwcavavjcwfefpv3op22e-story.html


'According to Witte, as the science behind CBD formulation affords more consistency, brands will begin to focus on whatever added value that they may provide beyond CBD itself.

“The way to think about CBD is as a compound no more interesting than caffeine or electrolytes, just a commoditized functional ingredient that’s ultimately going to be added to many types of products,” Witte explained. “The value is in being able to determine the right application to utilize it and being able to build a brand on top of the ingredient.”

Drawing a comparison with both Starbucks coffee and Red Bull energy drinks (“CBD is the caffeine of the 21st century,” he asserted), Witte pointed out how those brands essentially offer products with the same active ingredient; the differences are how the companies brand themselves and what kind of promises they offer their consumers.'
https://newfrontierdata.com/cannabis-insights/webinar-details-the-industry-buzz-about-cbd-infused-food-and-beverages/


'And no matter the outcome, the study will do little to curb people selling CBD products. If the pudding does do something, CBD oil brands will have a paper to add to their marketing arsenal. If the special puddling doesn’t do anything for people with chronic pain, it will be easy to ignore; manufacturers can easily word claims about products’ benefits vaguely enough to avoid out-and-out false advertising. But more importantly, once something is in the public imagination as being useful, it’s hard to oust it. CBD has benefited from early studies that suggest legitimate uses from pain management to anxiety to insomnia. It doesn’t matter much that these are typically small, and often in rodents. There’s also the simple fact that it comes from marijuana; that it would do something positive seems logical, in the same way that buying face creams boasting antioxidants seems logical, even though they may only wind up being present in trace amounts. One only really has to note that a product has CBD in order to sell it. '
https://slate.com/technology/2019/09/unfortunately-the-cbd-horse-is-pretty-definitively-out-of-the-barn-so-to-speak.html


'“This is not a market where there are a dominant couple of companies who are spending large amounts of money on marketing and getting a strong foothold. It’s lots and lots and lots of small to midcap-type companies.”

So, what to do?'
https://mjbizdaily.com/market-and-brand-your-cannabis-business/


'One of the biggest hurdles of branding cannabis is creating a product that stands out. The report says that “overall, 3 in 10 cannabis users feel all cannabis is ‘pretty much the same.’” Medical users are more likely than recreational users to feel this way, and younger people tend to feel this way more than older people. 34% of those who feel this way are between the ages of 18-34, and 40% of those surveyed are medical users. Medical users might be more likely to feel this way because they have a specific problem they are trying to solve from using cannabis. Younger people may be more inclined to feel this way because of the diverse selection of products they have been accustomed to, versus the older generation who smoked illegally for most of their life up until recently. '
https://www.greenmarketreport.com/leafs-by-snoop-is-most-recognizable-brand-says-new-study/


Cannabis as a commodity is not a bad thing for the world's majority who are not economically well off. Branding with its associated marketing strategies add costs and can cater to higher income groups...
'As Philip Kotler, professor of international marketing at the Kellogg School of Management at Northwestern University once wrote, “If you are not a brand, you are a commodity. Then price is everything and the low-cost producer is the only winner.”'
https://www.forbes.com/sites/paultalbot/2018/07/13/the-cannabis-branding-battle-ahead/#7bc01a997857


'If recent moves by the supplier community are any indication, that growth will come both from new brands entering the market, as well as household names, such as Jelly Belly, Garden of Life and Martha Stewart, all of which have expressed their intentions to bring CBD-infused products to market.

In fact, New Hope Network, a company offering insights and information for businesses in the natural-products industry, predicts 60% of all consumer brands will feature a CBD product in coming years.'
https://www.cspdailynews.com/cannabis/cbds-opportunity-uncertainty


'All across retail industries, we are seeing a market demand for products that have a more “natural” approach. From clean ingredients to plant-based everything, it’s impossible to avoid this trend. As the OG natural product, cannabis brands have a real opportunity to take advantage of today’s more discerning shoppers. Tell your story, explain your growing practices, show us your social responsibility… It’s all part of the package, literally and figuratively.'
https://thecannabisindustry.org/committee-blog-progression-in-packaging-challenges-opportunities-for-cannabis-brands/


'With its emphasis on aspirational but relatable lifestyle, the spot has all the makings of a beer campaign or an ad for a clothing line—until the end, when the screen flashes the words “Fireside Cannabis.” What you’ve just witnessed is an ad for a weed product—and with the cannabis industry booming and showing no signs of slowing, there will be much more where this came from.'
https://www.adweek.com/agencies/smoke-signals-marketers-make-their-move-as-cannabis-industry-ignites/


Yep..spinach for Popeyes..

'"Cronos Group's first priority is responsible distribution so we made sure to select a brand name that we felt would not appeal to kids," said Mike Gorenstein, CEO of Cronos Group. "Spinach™ has been carefully curated to deliver on our promise to provide high-quality products to fun-loving mature adults who are sick of hearing about kale."'
https://www.prnewswire.com/news-releases/cronos-group-inc-launches-new-recreational-brand-spinach-300711937.html


'“On a daily basis, we’re just trying to not get our posts reported and our account shut down,” Lipman said. “It’s not legal for MedMen to pay influencers to post. We can’t even give away stuff for free.”

The company can discount the price it charges influencers to buy its products without violating any rules. But compared to what’s possible for most companies, that’s a big crimp on what MedMen and its competitors can do in leveraging the giant world of influencers. So what’s left?

“Organic social, email, digital programmatic,” Lipman said. Sometimes, those channels can still pay off big, even without the usual influencer deals and other marketing techniques that most industries can employ, thanks in part to the brand image that MedMen is trying to build.'
https://www.tubefilter.com/2018/12/19/medmen-cannabis-marijuana-influencer-marketing-regulations/


'For marketing agencies and companies selling cannabis products, influencers have been a boon – a creative way to get around regulations, with the added impression of authenticity. Typically, the more people that are looking at your product, or your posts, the better. But as public and legal attitudes to cannabis have shifted, the subcultures immersed in it are being subject to more scrutiny than before.

For some, that could cause a huge dent – from revenue, to followers, to brand recognition. But cannabis influencers have taken on educational roles too, giving people information about how to avoid sketchy companies, or how to best ease into trying different products or strains. That information is often difficult to find elsewhere – government guidance barely scratches the surface of what the regular consumer wants to know. If the purges of cannabis influencers continue for much longer, that could be bad news for the rest of us.
https://www.wired.co.uk/article/cannabis-weed-instagram-influencers-social-media


'A new billboard put up by the app company Weedmaps on Interstate 91 is announcing that “weed is legal 60 miles away.”

The message likely refers to the recent opening of the New England Treatment Access adult-use cannabis sales store in Northampton, Mass. — about an hour’s drive from the New Haven area.'
https://www.nhregister.com/local/article/Legal-weed-billboard-creating-a-buzz-on-I-91-13551658.php


'Marvin Washington, former Super Bowl champion turned cannabis entrepreneur, investor and advocate with Athletes For Care, told Entrepreneur that “Acreage made a nice play for the industry and the future, and cannabis will be commercialized. Even in being denied, they showed the nation the future of cannabis. It will be mainstream.”

Harris Damashek, chief marketing officer for Acreage Holdings, said the decision was hypocritical. “You will see countless ads (during the Super Bowl) for beer and erectile dysfunction medications but our ad with an educational goal to help people who are suffering is rejected. That is the irony we are looking to highlight.’’'
https://www.greenentrepreneur.com/article/326859


'Imagine you’ve just applied the finishing touches to a marketing campaign for a cannabis product.

Before you find which media outlets will run it, you submit creative to state regulators for approval.

And the ambiguity exercises begin.'
https://www.forbes.com/sites/paultalbot/2018/08/27/cannabis-marketers-try-to-crack-the-compliance-code/


'A number of trade publications cater directly to the marijuana industry, like High Times and Marijuana Business Magazine. But broader online, television or radio restrictions often relegate marijuana advertising to outlets like billboards, said Mark Bartholomew, a professor at the University at Buffalo who focuses on advertising law.'
https://www.washingtonpost.com/news/business/wp/2018/04/05/even-where-its-legal-to-sell-marijuana-its-hard-to-advertise-it/


'While deep-pocketed producers ink contracts with celebrities, other marijuana companies are exploring creative tactics to generate brand buzz, such as the use of augmented reality, branded mindfulness sessions, mobile promotional campaigns and cannabis-flavoured products — minus the active drugs (for now).'
https://www.theglobeandmail.com/business/article-marijuana-firms-use-creative-marketing-tactics-to-skirt-strict/


'As marketers work to counter the perception that marijuana is only for potheads, there’s a similar battle being fought on the CBD front—even though the product doesn’t get users high.'
https://www.adweek.com/agencies/cbd-marketers-are-high-on-endorsements-to-get-their-message-out/


'“That word can be used to negatively stereotype people,” said Daniel Yi, senior vice president of communications at MedMen, which operates 14 retail pot stores, including one in San Diego. “We want to take that stigma away. We want to make marijuana mainstream.”'
http://www.latimes.com/local/lanow/la-me-marijuana-pot-stoner-20180917-story.html


The world is just starting to get a feel of the many strains of marijuana that exist. It's a time for people to try out various strains, brands and products before settling on their personal preferences.

'Analysts say cannabis branding — the art of getting people to associate a corporation with a plant that gets you high — will determine who ultimately prevails in a still-messy legalized recreational marijuana industry. But as legal sales boom and investors jump in, researchers and executives say few consumers have heard of even the most well-known cannabis products in the U.S. or Canada. To stand out, top marijuana companies are turning to sleek packaging, cute names and even celebrities like Martha Stewart.

"One of the things that we've known for quite some time is that consumers right now in this industry don't have any loyalty or preference for specific product brands," Zeeshan Hyder, chief corporate development officer of U.S. pot retailer MedMen, said on an earnings call in late February.'
https://www.investors.com/news/marijuana-stocks-brand-cannabis-marijuana-legalization-marijuana-industry/


'The federal prohibition on buying and selling marijuana puts radio and television ads out of reach, which is why sellers rely on social media to boost their brand. But Facebook and Instagram don’t allow the promotion of marijuana sales regardless of state or country.

That means no advertising discounts or listing prices, nor mentioning there is product for sale. The platforms prohibit marijuana dispensaries from providing their phone numbers or street addresses.'
https://www.washingtonpost.com/local/md-politics/marijuana-education-or-illegal-drug-selling-instagrams-not-sure/2018/12/07/a0f55a4e-f96e-11e8-8c9a-860ce2a8148f_story.html


'The ads, paid for by prohibitionist committee Healthy and Productive Michigan (HAPM), attempted to stoke fears about legalization, incorrectly claiming that the initiative would allow for “unlimited potency” cannabis products.'
https://www.marijuanamoment.net/tv-stations-pulled-anti-legalization-ads-ahead-of-midterm-marijuana-votes-advocates-say/