FDA says no to marketing CBD as dietary supplement, Curaleaf (and Jerry Garcia?!) leave CA, Cannabis Media Council launches "I'm High Right Now" campaign and more!
We are already wrapping up the first month of 2023 and it feels like it was just new years.
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Now that weāve taken care of some housekeeping, letās get into this weekās headlines:
The U.S. Food and Drug Administration (FDA) announced that it will not issue rules to allow cannabidiol (CBD) as dietary supplements or food items, instead passing the responsibility to Congress to regulate the substance. The FDA noted that it has not yet determined the safe use of CBD in food products and that more research is needed to understand its effects on the body. The agency also stated that it will continue to monitor the use of CBD in products and take action against companies that make unproven health claims about their products.
My thoughts:
Continued federal inaction, whether at the regulators/agency level or in Congress is aggravating for business owners.
You often hear the term āmarketplace uncertaintyā in politics and there is no better example of it than what is happening around CBD post farm bill.
The fact that the FDA is kicking the can down the road to Congress means that it could be several more years before we see anything in place for CBD as a dietary supplement or foot items.
This is a very important thing for marketers in the CBD/hemp space to take into consideration as you are planning your brand messaging.
Despite the FDA choosing to defer on CBD/hemp rules, it did recently release guidance for developing cannabis-based drugs.
Massachusetts-based multistate operator Curaleaf Holdings announced that it will close most of its operations in California, Colorado and Oregon, as well as cutting its payroll by 10%. The reductions will save the company $60m in 2023. CEO Matt Darin said the company will focus its efforts on states where oversupply and an unrestrained illicit market are not a problem, and where access to capital is more readily available.
My thoughts:
First off, I feel for the hundreds of workers that were let go last week ā especially if itās true (as reported by Grant Smith Ellis) that many found out via press release.
Secondly, this is part of a larger story about multi-state operators (MSOās) over extending themselves and over relying on congressional action (SAFE, States Act, CAOA, etc) in order to make their hundreds of millions of dollars in bets pan out. Itās also an example of how even large companies can grow too quickly.
Boris Jordan, Founder and Executive Chairman of Curaleaf was recently on a Twitter space where he talks about how this weekās actions were planned ahead of SAFE not passing.
I believe this is a sign of something that many of us in the industry have known for some time ā companies that depend on limited license marketplaces in order to drive enormous valuations would not be as powerful if they were in competitive marketplaces with thriving small businesses.
Expect to see more cost cutting, including layoffs, from overextended businesses in 2023.
The Cannabis Media Council (CMC) is a professional association of around 100 members that has launched an advertising campaign called āIām High Right Nowā. The campaign is designed to educate the public about the cannabis industry and to pave the way for brands to break into mainstream media. The campaign is launching first in the Connecticut Post, a print piece, given that the state recently kicked off its adult-use cannabis sales.
My thoughts:
First off, Iām excited to see the launch of Cannabis Media Council or any other groups that are thinking about how to raise the bar for cannabis marketing.
Here is some more info from their LinkedIN:
The Cannabis Media Council leverages the power of mainstream media to uplift wholehearted, people-centered advertising campaigns that show positive experiences with cannabis in order to normalize consumption across generations. We strive to be the collective voice in cannabis that, similar to the USDAās āGot Milkā campaign, broadens consumer awareness and consideration for this amazing plant.
This is a fun campaign ā and the interesting part is that there isnāt any cannabis in any of the imagery yet it still gives you a vibe.
Here is how Brett Puffenbarger put it:
Although, not everyone was a fan of the roll out ā especially the fact that the campaign was done in partnership with Hearst Media, a massive media conglomerate whoās founder was a chief propagandist in partnership with Harry Anslinger and who played a vital role in cannabis prohibition.
I always appreciate different viewpoints and appreciated this take from Greg Welch from ThankYouForToking (what a killer domain):
Despite the varying opinions on CMCās campaign, if youāve never seen the minds behind the āGot Milkā campaign talk about how it came to be, youāve got to check out their Masterclass. Their entire class is packed with valuable insights.
One last question: have we ānormalizedā weed yet?
Cannabis Marketing/Industry Blogs:
Got a cannabis marketing blog or story youād like us to highlight? You can submit them here.
Meadow: How to Choose a Cannabis Dispensary POS System for 2023
MJBizDaily: Cannabis growers exit California market, helping stabilize prices
Leafly: High Design by LMC: Discover YouTubeās best cannabis documentaries
Rolling Stone: How to Market Your Cannabis Consumption Lounge
Lost Coast Outpost:āWeāre in Crisis Modeā: Collapsing Cannabis Industry Guts Garberville Businesses; Local Leaders Look to Tourism as a Saving Grace
Benzinga: Tilray Brands CFO Talks Cannabis Legalization & Building a Diverse Roster of 'Lifestyle CPG Brands'
The āChief Twitā got himself in some hot water with a tweet back in 2018 where he said he had secured the funding to take Tesla private at $420 per share, now heās defending himself from a shareholder lawsuit.
If you donāt know who Kristen Bell is, you might remember her from Forgetting Sarah Marshall or Bad Momās but if you happen to know who she is, you might still be asking yourself ā Kristen Bell had a CBD skincare brand?! Yup. In partnership with Cronos Group, but not anymore.
You know itās a tough market when one of Californiaās most iconic names isnāt able to successfully market to consumers in the Grateful Deadās backyard.
A super popular Twitch streamer was banned after a January 24th live stream in which he apparently passed out after eating his first cannabis infused edible.
Wrap up:
Thatās a wrap on Week 3 (and the month of January!) here at CannabisCMO.
Iād love to hear your thoughts on this weekās headlines so please make sure you head over to the CannabisCMO LinkedIN page and join the conversation.
As always, if youād like to connect directly, feel free to email me at kaliko@thndrstrmstrategies.com.
