CannabisCMO Week 2
Pro tip: Don't market marijuana to kids. Also, is selling cannabis seeds a trap?
Aloha, my fellow cannabis marketers!
After taking some time to evaluate how this new newsletter is going to fit into my weekly schedule in a sustainable manner, I’m shifting this weekly newsletter to Mondays at 4:20pm (ish) ET going forward.
Between my responsibilities as President of Minority Cannabis Business Association, plus re-starting my own business ThndrStrm Strategies (after a six month hiatus) and being a full-time Dad + husband, it’s important that I settle into a realistic schedule rather than pretending I’m still a single, twenty-something that is able to “survive” on a few hours of sleep.
That being said, I love Mondays and I’m ready to get after it this week.
If you’re struggling a bit this Monday, here’s a two minute rant from Gary Vaynerchuk to help kick it into gear:
A couple of reminders before we get into this week’s headlines:
If you are interested in being a guest on CannabisCMO’s podcast or LinkedIN Live, you can sign up here.
Be sure to share this newsletter with your friends. Every share helps.
Headlines:
#1: Flavored cannabis marketing is criticized for targeting kids - Associated Press
New York’s Office of Cannabis Management has yet to officially adopt rules on labeling, packaging, and advertising that could ban cartoons and neon colors, as well as prohibit depictions of food, candy, soda, drinks, cookies or cereal on packaging. This is concerning health advocates who say it could entice children to partake of products labeled “mad mango,” “loud lemon” and “peach dream.” The state hopes that products bought at licensed dispensaries will help regulate the market and protect minors.
My thoughts:
First off — and this should go without saying — don’t market weed to kids.
Secondly, this line of argument is something that prohibitionists have been using in their continued efforts to blunt (pun intended) the momentum of the legal cannabis movement. They like to point to things that can appeal to youth (but also, frankly, adults with a sweet tooth) as examples of a runaway industry of addiction (like alcohol or tobacco) hellbent on getting your kids hooked on the devil’s lettuce.
This piece of the policy discussion is nuanced because we want rules and regulations that protect underage kids from getting access to the product (childproof packaging, checking ID, etc) and protect brands from intellectual property theft (think: knockoff candies w/ popular names & branding as one example) but we also need to be careful to not over regulate to the point of driving disengagement from the regulated marketplace as unlicensed and unregulated businesses will not follow the rules.
If you haven’t already, New York is soliciting public comments on their packaging/labeling rules right now — you should submit a comment.
Deadline to submit comment is January 30th.
You can see the proposed rules here.
To submit a comment, all you have to do is write an email and send it to regulations@ocm.ny.gov
This AP story was carried across numerous outlets last week, including Fox News — so it’s important that cannabis industry marketers are aware of this discussion and that we are being responsible stewards of our brands and our industry at large.
#2: How marijuana companies are building brand loyalty by selling seeds to consumers - MJBizDaily
Cannabis companies are introducing marijuana seeds as a new product, even though it may seem counterintuitive to have consumers grow their own weed. The move aims to create brand loyalty and share genetics among consumers, as well as being a profitable venture. The change in federal policy, which clarified that it's legal to sell and distribute cannabis seeds throughout the US, has made this option more viable for companies.
My thoughts:
I totally missed this “Seed Letter” from the DEA that announced that all marijuana seeds (which naturally have less than 0.3% of THC) fall outside of the jurisdiction of the Controlled Substances Act because they are considered “hemp”.
It’s important to note that some legal commentators have varying opinions about whether marketing cannabis seeds is ultimately a trap.
Cannabis brands won’t lose money by selling seeds of their most popular strains.
Having hobbyists growing your genetics at home only furthers the power of your brand and their loyalty to your brands genetics.
The cannabis seed market is serious business. One estimate valued the global seed market at $1.3 billion 2021, but expects it to grow to $6.5 billion by 2031.
Well known lifestyle/retail brands like Cookies or other cult(ivation) classic genetics brands or seed banks like DNA Genetics, Aficionado, & Humboldt Seed Company will be in a great position to capitalize on this growth in the coming years.
#3: Marijuana Packaging Searches for Balance Between Safety and Utility - Westword
An interview with Sandra Elkind, co-founder of STO Responsible, a child-resistant cannabis package maker, discusses the challenges of keeping cannabis products away from children. Elkind explains that while making approved cannabis packaging is like crafting a puzzle, the company primarily relies on puzzle-based packaging as it is easy to open once the consumer is over the learning curve, and is more suitable for senior citizens. Elkind believes that there is a 50-50 responsibility for parents or pet owners to keep products out of reach of children and pets, and for cannabis businesses to create packaging that encourages continued use.
My thoughts:
They say that you can’t judge a book by its cover but a lot of consumers are judging cannabis brands on their packaging long before they are ever trying your products.
It’s important to balance not wanting your packaging to appeal to kids while still making them interesting enough for adult consumers.
In addition to child safety and branding, cannabis companies must be mindful about how their packaging is contributing to the sustainability of the cannabis industry.
#4: Study: U.S. cannabis advertising policies suffer from a lack of consistency - University of Buffalo
The United States and Canada have a stark contrast when it comes to cannabis regulation and advertising policies, according to a new study from University at Buffalo. The study found that most states in the US do not address many of the cannabis advertising activities that are prohibited in Canada, and that there are 11 illegal advertising tactics that are not specifically addressed in any of the state policies in the US. The study's lead author, Natasha C. Allard, states that the inconsistencies and lack of guidance in the US policies compared to Canada leave young people and other vulnerable populations open to being exposed to cannabis advertising, and that responsible cannabis advertising policies should ensure that marketing messages do not reach a younger demographic. The researchers also recommend that states should strengthen their regulations to ban false claims, especially given the increasing frequency with which cannabis is touted as a “wonder drug”
My thoughts:
Given the difference between the roll out of legalization between Canada and the U.S., it makes sense that they would have more national standards compared to the patchwork of laws and regulations in the U.S.
Despite there not being a national standard, National Cannabis Industry Association (NCIA) put out a white paper in 2019 suggesting consistent regulations across states.
Cannabis marketers need to take an active role in helping to shape rules and regulations in a way that sensibly addresses legitimate policy concerns while not shutting innovation and creativity in our industry.
Cannabis Marketing/Industry Blogs:
Got a marketing blog you’d like us to highlight? You can submit them here.
New Cannabis Ventures - This California Cannabis Company Is Looking to Become a CPG Flower Powerhouse
Harris-Bricken: New York’s Cannabis Retail Dispensary Regulations, Part 4: Advertising and Branding Your Dispensary and Products
CannaBiz Media: The Cannabiz Media Email Success Academy is Now Open
Herb: Cannabis Marketing Through Podcasting
Marijuana Moment: Twitter Stops Suggesting People Who Search For ‘Marijuana’ May Need Drug Treatment
AdCann: Announcing the 2022 ADCANN Awards Winners
Beard Bros Pharms: Uncle Arnie’s: From Local Brand to National Sensation
Mainstream Marketing Chatter:
13 key SEO metrics to track in 2023 - Search Engine Land
More Companies Are Hiring CMOs With Performance-Marketing Backgrounds - Wall Street Journal
From Zero To ChatGPT Hero: How To Harness The Power Of AI In Marketing - Search Engine Journal
AI in marketing: 7 areas where it shines and struggles - MarTech
How to Boost Your Instagram Engagement - Social Media Examiner
Negotiating marketing budgets in 2023 - CMO Alliance
The HubSpot Blog's 2023 Marketing Strategy & Trends Report: Data from 1,200+ Global Marketers - Hubspot
Marketing Job Listings:
Director, Brand Marketing - Lazarus Naturals
Digital Marketing Director - Acreage Holdings
Social Media Manager - Verano
Senior Manager, Marketing - Cresco Labs
Director of Marketing - Grav
Creative Director - Jetty Extracts
Brand Manager - Papa & Barkley
Clio Music & Cannabis Program Coordinator - The Clio Awards
Marketing Manager - Ayr Wellness
Colorado Marketing Manager - Wana Brands
Sales Representative - Cannabis Marketing Association
SEO Specialist - Cannabis Marketing Association
Director of Digital Marketing - Cannabiz Team (recruiter)
Wholesale Marketing Manager - Cannabiz Team (recruiter)
Marketing Manager - FlowerHire (recruiter)
Field Marketing Specialist - FlowerHire (recruiter)
2023 Events:
Here is a look at some exciting events coming up this year…
Future of Cannabis Marketing - February 7 (Virtual)
Revelry Winter Conference - February 25th (New York)
New England Cannabis Convention - March 10 - 12 (Boston)
Cannabis Science Conference - April 19 - 21 (Portland)
MJUnpacked - April 26 - 28 (New York)
Hall of Flowers - May 3 -4 (Santa Rosa)
Vermont Cannabis Convention - May 6 - 7 (Burlington)
Connecticut Cannabis and Hemp Convention - May 20 - 21 (Hartford)
Hall of Flowers - May 31 - June 1 (Toronto)
CWCBExpo - June 1 - 3 (New York City)
Cannabis Conference - August 15 - 17 (Las Vegas)
MJBizCon - November 28 - December 1 (Las Vegas)
Got an event we should list? Submit it here.
Junk Drawer:
Trulieve Launches Highsman Cannabis Products from NFL Legend Ricky Williams in Arizona - Heisman Trophy winner and former NFL running back Ricky Williams has been around the industry for a while now (I remember him leading morning yoga at an Arcview event years ago) but has now teamed up with Trulieve to officially launch his brand Highsman in Arizona.
Tommy Chong Returns with Fellow Cast Members for 'That '70s Show' Sequel - I was cruising Netflix this weekend and ended up watching the first episode of the new "That 90’s Show” sequel and really enjoyed it. Including Tommy’s cameo as Leo.
Former NBA Star Al Harrington and Viola set to open store in downtown St. Louis - As someone who served on the board of Minority Cannabis Business Association with Al and who very much enjoys Viola’s flowers, this is cool to see. Not too many celebrities have managed to do what Viola has done in the cannabis industry.
Minority Cannabis Business Association Continues Growth in New Year; Announces 2023 Board of Directors - As President of the Board of Directors for MCBA, I’m pumped about our new board class and all of the work we’ve got lined up in 2023. If you aren’t a member yet, please consider becoming a member today.
Wrap up:
That’s a wrap on Week 2!
Thank you for subscribing and supporting this new project.
This has been a lot of fun to try and figure out the last few weeks and I appreciate all of the positive feedback I’ve gotten from folks so far.
If you’ve got some feedback or ideas about CannabisCMO or just want to connect one on one, feel free to email me at kaliko@thndrstrmstrategies.com