Anybody else catch that football game at the Rihanna concert yesterday?
I know my household was less invested in the outcome of what ended up being an exciting game between Kansas City Chiefs and the Philadelphia Eagles but whether you tuned in for the Ri-Ri, the game, or the ads, I’m sure you were thoroughly entertained.
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The maker of Raw Rolling Papers, HBI International, has been ordered by a US federal court to stop making false claims about its organic hemp line and a nonexistent charitable foundation. The injunction order follows a verdict by a jury that found HBI engaged in unfair competition and violated the Illinois Uniform Deceptive Trade Practices Act through its packaging and promotional activities. HBI must cease manufacturing, ordering, or replenishing its inventory with goods that fail to conform to the court’s order and pivot production by the end of spring to comply/ with the order.
My thoughts:
As a long time customer of RAW, it is super disappointing to see that they have been making false claims in their advertising and even worse, making false claims about a “non existent” charitable foundation.
Given the fact the market dominance of RAW and the fact that some estimates put the rolling paper industry at $1.1 billion by 2032, this could shake things up.
I know I always chose RAW papers based on their marketing around their papers being made from organic hemp and will likely be less willing to buy them when they are next to another brand going forward — but how will consumers react when all of the marketing changes? Will they notice?
My guess is that RAW has done a good enough job building a lifestyle brand image that it might not be that big of a deal for consumers who already enjoy their brand activations and creative smoke devices.
Here is a list of things RAW has been ordered to stop saying:
RAW Organic Hemp rolling papers are “unrefined;”
RAW Organic Hemp rolling papers are made with natural hemp gum, or that the adhesive used in RAW Organic Hemp rolling papers is made from or contains hemp;
RAW Organic Hemp rolling papers are, or ever were, the world’s first or world’s only organic (or organic hemp) rolling papers;
The bulk paper used to make RAW Organic Hemp rolling paper products is made in Spain;
RAW Organic Hemp rolling papers are made using wind power or are powered by wind;
HBI uses or used the center of the hemp stalk for its RAW Organic Hemp rolling papers;
HBI or its founder Joshua Kesselman invented rolling paper pre-rolled cones;
The OCB Organic Hemp papers are knock-offs, “RAWnabees,” copies, or fake versions of RAW.
I remember going to NCIA Lobby Days in Washington D.C. in like 2018-2019 and going over to a friend’s house who ended up calling someone to come deliver us some cannabis. The person ended up showing up with a case full of products that I was used to seeing on the West Coast. I was super surprised and pretty confused but I later learned that people were just using knock-off or discontinued packaging from well known California brands.
I cannot imagine what it must be like to be a random cannabis consumer in New York who isn’t paying attention to the news or to a brand’s latest marketing/packaging. This picture above of the Jetty packaging could have fooled me.
Some estimates put unlicensed shops in New York at around 1,400 while the 3rd and 4th licensed shops prepare to open.
In a smart move, New York is finally starting to go after the landlord’s that are allowing for unlicensed activity in their buildings.
Pioneer Intelligence has released a list of top social media players in the cannabis industry for 2022, divided into two categories: MSOs and non-MSO operators. Ball Family Farms, a minority-owned, vertically integrated social equity company in LA, tops the non-MSO list, followed farther down the list by Seth Rogen's brand at number 14. On the MSO list, CANN is at number 5, and Seattle-based Mfused (also a minority owned brand) is at number 3. These brands have successfully used aesthetically pleasing imagery and engaging video content to attract an engaged social media audience despite strict regulations.
My thoughts:
First off, shout out to Pioneer Intelligence for putting together a data driven methodology to determine the most impactful brands in the cannabis industry.
In addition to breaking the categories down between MSO and non-MSO, they also break the categories down into the best brands on social media and those who are garnering the most earned media.
It makes sense that majority of the brands listed in the non-MSO list are based on the West Coast while many on the MSO-only list trace their ownership back to East Coast based companies like Curaleaf or Trulieve.
I love seeing Ball Family Farms topping the non-MSO list. MJBI pointed out that BFF was the first minority-owned, vertically integrated social equity company in LA — proving that when given a fair shot, social equity companies can compete with the best of them.
A proposed bill to ban most marijuana advertising in Montana has prompted disagreement about whether existing law that prohibits the advertising of “marijuana and marijuana products” applies to a brand’s name and logo. If the bill is passed, Montana's approximately 400 dispensaries’ ability to promote themselves would be restricted and media organizations would be prevented from selling ad space to cannabis businesses. Opponents argue that it would impact customers’ ability to discern between businesses, result in fewer sales statewide, and generate less tax revenue for the state.
My thoughts:
HB 351 would eliminate all advertising except for online listings which would effectively kill the ability of Montana’s 400 dispensaries to market themselves outside of services like WeedMaps, Leafly, etc.
A lot of the confusion currently is around the original intentions of the 2020 legalization initiative and the subsequent framework bill HB 701.
Department of Revenue rules distinguish between advertising a marijuana “brand,” i.e., a dispensary or business name, and advertising specific products. That rule reads: “A licensee may promote its business and market its brand but may not advertise marijuana or marijuana products except in electronic advertising.”
This is a great example of why cannabis marketers will need to be active in cannabis advocacy organizations as well as directly involved in the legislative and rule making process.
If you have any interests in Montana or are interested in lending your expertise, I’m sure Montana Cannabis Guild who is on the frontlines of this issue would welcome the help.
As always, please feel free to leave some comments here on Substack, shoot us a message on our LinkedIn page or reach out directly to kaliko@thndrstrmstrategies.com
