2021 Year in Review: The Highs and Lows of Brand Building in the New Era of Cannabis

The new era of cannabis will be driven by data.

This statement is not just a catchy tagline. It also describes the natural progression of a dynamic, diverse industry with unlimited growth potential.

In recent history, we’ve witnessed dramatic shifts in consumer behavior. The disruptions caused by Covid, the evolution of cannabis from illegal to “essential”, and the dismantling of stigmas have all contributed to a transformation of consumers’ relationships with cannabis. As a consumer insights firm, we’ve had the privilege of observing and measuring these monumental changes. Why not take a moment to pause and reflect on the experiences of 2021? This is by no means an exhaustive list of everything that happened in cannabis in 2021, but rather, just a few highlights related to marketing, branding, canna-business and of course, consumer data and insights.

To read our recap of 2020, check out this Ganjapreneur article – What we learned about cannabis consumers during the weirdest year ever.

State markets to watch in 2022

First up, the legal landscape looked a lot different in 2021. In 2020, we saw perceptions of cannabis shift dramatically when dispensaries were deemed essential businesses. In 2021, the momentum continued. A whopping 5 new states came online for adult use in 2021. The most exciting markets we’re watching closely in 2022 include New York, which some say could become the largest U.S. state market. Colorado continues to break sales records and is home to dozens of innovative brands. Of course, we can’t overlook our home state of California, which is developing a robust tourist destination with spas, cannabis agricultural tours and cannabis-friendly lodging.

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The Benefits of Hiring a Partner to Gather Cannabis Consumer Data in Colorado

If you’re reading this, you probably already operate a cannabis business in Colorado or you are considering investing in one.

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Can a Cannabis Market Research Company in California Guide Strategy?

The national cannabis market is on the upswing, and in recent years several states have passed legislation…

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Bud and Booze Sign a Truce

After months of marketing campaigns deriding the effects of alcohol and promoting cannabis as a healthy alternative, Hollywood’s favorite beverage brand, Cann, ended their unofficial war on booze by launching a series of partnerships with alcohol brands. The topic of hangovers was notably absent in Cann’s 2021 holiday ad, featuring Kate Hudson and Kate Hudson’s vodka brand King St.

Why the sudden change?

ISA’s study of beverage consumers from 2021 revealed that consumers are not necessarily looking for an alcohol replacement, and 40% of cannabis beverage consumers say that when they drink cannabis, they’re also drinking alcohol. If you’re a cannabis beverage brand, it makes sense to pivot away from a marketing strategy that could potentially alienate 40% of the market.

Anti-alcohol rhetoric is so 2020.

Celebrities Crowd into the Cannabis
Market - Consumers yawn

Speaking of celebrities…

Seth Rogan, Justin Bieber, Pitbull, DJ Khaled, Lil Kim, Ice Cube, Melissa Etheridge, Drake, Bella Thorne – this is only a partial list of the celebrities who announced their foray into cannabis in 2021. It’s obvious that some partnerships between brands and celebs are a natural fit, and the wave of celebrity entrants is a good indicator of growing cultural acceptance. For most consumers, however, it’s just adding to the clutter. This Twitter user is over it.

How many consumers share this guy’s opinion? A lot. Last year we partnered with mg Magazine to understand the luxury cannabis market and how consumers define luxury for cannabis products. We asked 1,000 cannabis consumers to rate how important a celebrity endorsement is for them when evaluating products. The majority (56%) said it’s of little importance or not important at all.

Read the Article

Clubhouse opens to the public

Marketing professionals have limited options when it comes to promoting cannabis online. Facebook and Instagram are famous for shutting down accounts, often without so much as an explanation. LinkedIn is cannabis-friendly, but the business-forward platform can be a turn off for those who appreciate the subversive, counter-culture characteristics of the industry.

Enter Clubhouse. In 2021, the censorship-free audio-based networking app exploded in popularity and cannabis entrepreneurs found a safe space to promote their products, discuss business, and network.

Learn More about Clubhouse and Cannabis

Cannabis in the Metaverse (Cannaverse?)

In December of 2021, Higher Life CBD grabbed headlines with a promotion that allowed customers to browse and buy cannabis products in the metaverse and then have it delivered to their real-world homes.

Some say it will take years or even decades for the metaverse to reach a point of critical mass, where it really takes off and regular people start to spend their free time shopping, socializing, and gaming on the new platform. However, cannabis people are not regular people. The words pioneer, subculture, experimental and “not risk averse” come to mind. It stands to reason that the same group that was first in line to seize opportunities in cannabis will also be early entrants in the digital “Wild, Wild West.” The cannabis business leaders who survived and thrived through Prohibition, constantly shifting regulations, natural disasters, supply chain issues and a global pandemic are battle-tested, and well poised to gamble on a new platform and win. Also, they know how to throw a party, so there’s that.

The Birth of Weed Week

Speaking of industry gatherings, 2021 also brought us the return of live, in-person cannabis networking events. After canceling their live event in 2020 (along with the rest of the world) MJBiz Con triumphantly returned to the Las Vegas strip in 2021 for their 10th annual show. This time there was something different. A new event called MJ Unpacked opened up down the street and kicked off the same day that MJBiz Con wrapped up. MJ Unpacked caters exclusively to brands and retailers. Ancillary businesses are not allowed. Is the fragmenting of events a cause for alarm or a natural progression? Some say the addition of MJ Unpacked means we can now look forward to a yearly mega event in Las Vegas – unofficially dubbed Weed Week. See what industry insiders are saying about Weed Week.

Insights Take Center Stage

In the early stages of development as an industry, consumer preferences were often over-looked in the rush to bring products to market. There was a sense that any product would sell, and any product could make it onto retail shelves. Fast forward to 2022 – brands are more deliberate with their planning and attentive to their brand and what it represents. Specific, core audiences and usage occasions are no longer an afterthought in product development and marketing strategies.

In 2021, we saw more leaders embrace the need for insights and level-up their investment in research.

Related article:

There’s still a long way to go before cannabis catches up with major national brands, in terms of analyzing their customers’ behavior to uncover market opportunities. With federal legalization on the horizon, and further consolidation, it’s quickly becoming too risky to ignore fundamental questions related to brand health.

In 2022, more organizations will need to answer questions such as…

  • What are our customers experiencing when they use our products/ visit our locations?
  • How loyal are our current customers?
  • Why have our lapsed customers moved on?
  • How does our product address consumers’ underlying emotional needs?
  • Are we optimizing the use of our customer data?
  • Which product types or new state markets represent the greatest opportunities with minimal risk?
  • How do we stay in front of trends?
  • How can we create a customer feedback loop that informs new product development and/or helps us improve our current offering?

If any of these questions are on your to-do list for 2022, get in touch.

How Professional Cannabis Consumer Insights Can Help Guide Strategic Decisions

States across the country have taken steps in the direction of cannabis legalization and decriminalization. Some states have legalized sales and; depending on the source you trust, as many as two-thirds or up to 68% of Americans believe that cannabis products and their associated consumption should be legalized. Consequently, the legal cannabis industry has consistently grown.

Whether you operate a successful dispensary and have been in business for years or you’re just looking into the financial implications of running one, there is value in cannabis consumer insights. Business leaders base much of their strategic planning around forecasts developed from extensive consumer opinion polling and other objective research.

But how can it benefit your business? Much of it comes down to how well you understand your consumers, what they do, why they do it, and what they want.

When historical sales data is insufficient, sometimes the answer lies with gathering the data proactively. Here are some of the key questions that cannabis consumer insights, consumer polling, and market research can help you answer.

How Do Customers Prefer to Buy?

Though this question, on the surface, looks like a high-level “cash or credit?” type of question, its implications run much deeper. Consider the shifts in purchasing habits that have taken place over the past two years or so.

More and more online and local shoppers are increasingly desirous of free shipping that is also stipulation-free; that is, customers who buy online want free shipping or free local delivery. Is your dispensary prepared to handle that?

For example, our research indicates that 33% of cannabis users in select markets relied heavily on delivery services during coronavirus lockdowns. Is that trend going to continue or will it falter? Past sales figures can’t tell you – only current polling and other research.

The bigger question is: is your dispensary poised to adapt to changing consumer preferences such as these?

What Are Customers Cannabis Consumption Habits?

Does your dispensary sell only flower? Or does it sell a range of different cannabis products, such as edibles, tinctures, concentrates, cannabis drinks or other unique products? More importantly, does this matter to your customers?

If your target buyer smokes flower, then you’re set for success. But what if your buyers only purchase flower incidentally, then decarb it themselves in order to make their own edibles? You might serve them better by expanding your product portfolio. Consumer data can yield insight into this consumer data.

Conversely, a product line expansion might be a wasted expense if it doesn’t result in sales and conversions. How and what your target buyers consume can help you grow strategically, making informed decisions that can justify that growth with sales – not just with a larger, costlier enterprise.

How Frequently Do Your Target Consumers Partake?

The prices you set and the type of buyer you want to attract will both affect and be affected by the consumption habits of your target market. Profitability will be affected by sales, and you might need to adjust prices accordingly to reflect projected sales forecasts.

As a very simple, high level, but reasonable example, if your target market only partakes occasionally, you might want to sell in larger or bulk quantities in order to meet that demand and expand profitability at the same time. Selling in smaller quantities might not make sense.

It all comes back to what your buyers do and when they do it – how often do your target consumers use cannabis, and can your dispensary meet that demand?

What Type of Budget Does Your Target Customer Set?

Similarly, you need to understand your target buyers’ budget as closely as possible. Other questions such as those related to price sensitivity are equally important to answer. If your branding appeals to a price-insensitive audience, a price scale or adjustment might be in order. The same could be said if your brand was not well-aligned with the actual visitors that came to your dispensary.

The key takeaway is that your price model might be inefficient, but you wouldn’t know it unless you can answer some key questions about how much your target audience intends to allocate to discretionary purchases of cannabis products.

What Types of Incentives Will Your Target Buyer Respond to?

Another basic but surprisingly relevant question revolves around strategic growth. It’s been shown time and time again that effective loyalty programs can improve customer satisfaction, boost customer engagement and retention, and increase sales. The operative word in that statement is “effective.”

What type of loyalty program will appeal to your target buyer? Why? What other strategic positioning incentives can you undertake in order to reach more consumers more effectively? Our consumer research shows that over 70% of dispensary shoppers would spend more if the dispensary offered a loyalty program.

What other questions about strategic growth do you need to be answered before you can justify the expense associated with rolling out new programs? You may be the only one to be able to ask those strategic questions, but our cannabis consumer insights can help answer them.

Basic Cannabis Consumer Insights: Your Buyer Persona

Reflect on what you’ve read so far. You’ll notice that we used the terms “target audience” and “target buyer” several times throughout this article. Before you can answer any of the other questions we posed with cannabis consumer insights, you need to define your target buyer – surprisingly, target buyers are not just the people that come into your dispensary to purchase. These are just buyers. Target buyers fit a profile defined by habits, preferences, and demographics that you must define in order to launch successful marketing campaigns.

Luckily, cannabis consumer insights can also help you define your target audience. To learn more about how you can get started making wiser marketing moves, visit our pages on Cannabis Market Research and CANNApinion Polling, or get in touch with us directly at 818-989-1044 or at hello@ISACorp.com.

ISA Announces Speaker Lineup for April 29 Edibles Webinar

Industry experts from Undefined Inc, Wana Brands and dreamt will discuss the future of infused edibles

ISA and Vertosa announced today the speaker lineup for their upcoming webinar “Form, Function & Flavor: Edibles for 2021 and Beyond.” Dorian Morris, Founder and CEO of Undefined Inc., Mike Hennesy, Vice President of Innovation at Wana Brands and Carolina Vazquez Mitchell, MS, Chief Science Officer at dreamt will join the live event starting at 2 pm PST on April 29, 2021. This engagement is the second in a series of webinar events stemming from a strategic partnership between ISA and Vertosa, announced in November 2020.

“Our speaker lineup brings together a diverse group of powerful industry leaders, each with their own unique perspective and in-depth knowledge of both the edibles market, and the cannabis industry as a whole,” said Jacqueline Rosales, President of ISA. Jacqueline will moderate the event and lead the conversation about product development in the edibles market and how the products of the future will fit into consumers’ lives. The event is free and open to the public. Attendees can register here.

In 2021, we’ve seen an explosion in new edibles products that address specific needs – sleep, anxiety, creativity, energy, diet support and immune support. Innovative brands are embracing new delivery forms, flavors and functions to meet consumers’ evolving interests.

“With stress at an all-time high, accessibly priced, plant-based solutions are even more important now,” said Dorian Morris, Undefined Beauty Founder and CEO. Morris was recently featured in the Target Takeoff Beauty cohort, in which she discussed her new collection, focused on adaptogenic mushrooms for stressed skin.

MEET THE SPEAKERS
Dorian Morris

Founder and CEO of Undefined Inc. A true champion of inclusivity within wellness, Dorian Morris is a beauty junkie with deep expertise across categories from cosmetics to haircare to skincare to food/wellness. She is the Founder/CEO of Undefined Inc which includes Undefined Beauty, a clean, conscious, inclusive lifestyle brand focused on democratizing wellness and destigmatizing plant magic.

Adriana Hemans

Vice President of Demand at ISA, where she heads up the Cannabis Research Division. She helps cannabis brands build more customer-centric businesses through data and insights. Adriana’s work has been published in numerous industry publications including mg Magazine, Marijuana Venture, and The Cannigma. She has been invited to speak onstage at cannabis events across the country, including NECANN (Northeast Cannabis Business Conference) and the NCIA’s Annual Cannabis Business Conference.

Austin Stevenson

Chief Innovation Officer at cannabis and hemp infusion technology company Vertosa. Austin plays an integral role in the business development of Vertosa, facilitating partnerships with leading brands to produce top quality cannabinoid-infused beverages, topicals, edibles and more. Prior to joining Vertosa, Austin leveraged his bio-tech experience building the regulatory Hemp/CBD testing program for Eurofins – a world leader in food, environment, and product testing services – where he worked with CVS and Walgreens to test and verify the quality of their retail CBD topicals. Austin and the Vertosa team are also committed to community action and industry leadership. He serves as a Member on the City of Oakland’s Cannabis Regulatory Commission, for which he supports the licensing of equity partners and works to break down financial barriers to entering the industry by championing grant funding. He is also an Advisory Board Member on EAZE’s Momentum Program, a business accelerator designed to support and empower underrepresented founders in the licensed cannabis industry, as well as a founding board member of the Cannabis Beverage Association.

Mike Hennesy

Vice President of Innovation at Wana Brands where he oversees their research and development program, new product design, educational training content and growing partnerships with new cannabis technologies. Hennesy led the team in creating Wana’s new Quick line of gummies and tinctures that use innovative encapsulation techniques to increase the bioavailability of cannabinoids that bypass liver metabolism and take effect quickly. He developed Wana’s online interactive training program for budtenders and employees that covers the science of the endocannabinoid system and directed the development of Wana’s vape line, including the line’s unique proprietary terpene blends.

Carolina Vazquez Mitchell, MS

Founder and Chief Science Officer at dreamt. A gifted academic with deep experience in the developing regulatory standards of the cannabis industry. Carolina’s areas of specialty include organic chemistry and biochemistry research, laboratory testing and laboratory practices, quality assurance, and R&D for cannabis products, pharmaceuticals, foods, and beverages. She has more than 10 years’ experience with organic synthesis and extractions and has extracted DNA, RNA, proteins, terpenes, and other pharmacologically active molecules. Carolina is a nationally recognized cannabis scientist, and has been a featured expert in Rolling Stone, HelloGiggles, mg and Forbes, and was named one of Dope Magazine’s “Outstanding Women in Cannabis.”

ABOUT VERTOSA

Vertosa creates industry-leading active ingredients for infused product makers. Their catalog of patented and patent-pending nano-emulsions are carefully designed  for the specific needs of each customer, with pre-suspended aqueous solutions that create incredibly homogeneous and stable products while maximizing bioavailability, clarity, and taste. Vertosa works closely with their lab partners and clients of all sizes throughout the manufacturing process to achieve target potency and successfully bring consistent, reliable, quality infused products to market.  Learn more about Vertosa at vertosa.com.

ABOUT WANA BRANDS

Wana Brands is the No. 1 edibles brand in North America. Wana leads the industry in quality, consistency and potency, providing a range of different options that enable customers to create the specific cannabis experience they want. Wana products offer diverse product forms, four different CBD/THC ratios as well as a variety of different dosages, onset times and duration of effects. The portfolio is designed so products can be used singly or in combination to address specific health, wellness, and recreational needs. Wana products are available in California, Colorado, Florida, Illinois, Maryland, Michigan, Missouri, Ohio, Arizona, Oregon, and Oklahoma dispensaries, with Massachusetts among the states imminently coming online. Wana Brands is available internationally in Canada. For more information or to subscribe to Wana’s e-newsletter, visit www.wanabrands.com.

ABOUT UNDEFINED INC

Undefined is clean, conscious, inclusive plant magic. We live at the intersection of wellness meets adaptogens (like beautiful CBD) meets purpose-driven conscious capitalism. My mission is to “undefine” and democratize beauty and destigmatize plant-based solutions through an unapologetic, uncompromising, unfiltered approach. Wellness shouldn’t be illusive or exclusive—let’s democratize it.

Undefined Inc partners with BIPOC founded, female-led, LGBTQ+ suppliers from their manufacturing partners to their creative team.

ABOUT DREAMT

dreamt is an award-winning sleep aid made with cannabis. The science-backed formula is a precise blend of THC, CBD, and other sleep-inducing compounds, such as melatonin, valerian root, and L-theanine. This unique formula was created by dreamt’s founder and Chief Scientific Officer, Carolina Vazquez Mitchell, to treat her insomnia during her chemistry PhD at USC.

dreamt is a female and minority-owned social equity business based in Los Angeles.

SoapBoxSample’s Cannabis Research Featured in MG Magazine

The August 2020 issue of mg magazine features an article co-authored by Adriana Hemans, Director of Demand and Special Projects for SoapBoxSample. In the spring of 2020, two consumer insights companies, SoapBoxSample and KNow Research, joined forces to explore consumer behaviors, needs, and preferences around the gifting and sharing of cannabis products for special occasions, including holidays. They gained rich insights into the category—ones that can provide gifting options at a wide array of holidays and for a variety of recipients. Here they share what they learned about what brands and retailers can do to make their products relevant, appealing, gift-able, and share-able.

Defining A Gift

Throughout the course of the study, we heard many definitions of “gifting” and what constitutes a “gift.” We came across three main cannabis gifting attitudes:

  1. Traditional Gifter: Some define a gift as something presented, typically in a package with a bow. “I got some chocolate-covered cannabis strawberries for Valentine’s Day from my husband,” one participant said. “There weren’t many. I kind of wanted to save them for myself, so he didn’t get any.”
  2. Shared-experience Gifter: Purchasing something to enjoy together was not necessarily a gift, even if the item was purchased with the holiday in mind. Rather, cannabis often can be a component of a shared experience that makes the holiday special. When asked why they wouldn’t consider cannabis a Valentine’s “gift,” one of these gifters clarified: “It’s more routine than a gift, because my husband and I smoke on a regular basis.” For these gifters, experiencing the cannabis gift together is part of the giftgiving experience.
  3. Altruistic Gifter: Some give without an expectation of sharing. Some used cannabis as a “hostess gift,” so the host or hostess could decide whether he or she wanted to share with guests or save the gift for later. Other altruistic gifters gifted with only the recipient’s pleasure in mind. “My friends and I took a road trip and the driver brought some candies for everyone to have, so she kind of gifted us a little bag of hard candies for each of us, for fun,” one participant revealed.

To gain more cannabis gifting insights, download the full issue of mg Magazine.

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COVID-19 May Affect Drivers of US Cannabis Consumption

Research from SoapBoxSample Reveals Cannabis Consumers Willing to Forgo Cannabis if Shortages Arise during COVID-19

March 30, 2020, Los Angeles, CA — Research firm SoapBoxSample released new data today from their ongoing CANNApinion Poll research initiative. The survey of 1,000 US cannabis consumers, fielded March 21 – March 24, 2020, focused on how the recent COVID-19 outbreak may be affecting cannabis consumption habits. While some report that they are consuming more cannabis as a way to relieve stress and anxiety, others say that they are consuming and purchasing less because they want to avoid going out in public to make their purchases (36% of those who report consuming less cannabis).

About half (51%) of those surveyed say they are somewhat or very concerned that their personal supply will run out during the recommended quarantine. A majority of respondents (68%) agreed or strongly agreed with the statement: If I run out during this time, that’s ok, I can live without it. When asked what they would do if their supply ran out, 55% said they will abstain and go without. These stats may indicate that there are a number of recreational cannabis consumers in the US who are not concerned about the possibility of having to forgo cannabis if their supply runs out, suggesting responsible consumption habits overall.

“In an emerging industry like cannabis, consumer habits are still in the beginning stages of development, and the cultural changes caused by COVID-19 are likely to have long lasting, or permanent effects within the cannabis industry.” said Jacqueline Rosales, COO of SoapBoxSample/icanmakeitbetter. “Perceived shortages, disruptions to family life, and changes at the dispensary can all significantly impact the choices consumers make.”

COVID-19 may be impacting consumers’ product choices, spending, and shopping habits, but this research suggests the pandemic may also affect the underlying reasons that drive cannabis consumption. Of those who said they were consuming more cannabis than usual since the pandemic, top reasons include stress relief (60%), to ease anxiety (57%), to ease fear/panic (34%) and as a way to cope with cabin fever (34%).

Among respondents who obtain cannabis through legal dispensaries, 57% have noticed changes in stores. Those who noticed changes reported seeing social distancing practices (50%), dispensaries offering online and pickup orders (41%), budtenders wearing gloves (33%), and hand sanitizing stations (39%). Consumers are also noticing changes to cannabis delivery services. Among respondents who obtain cannabis through legal delivery services, 45% have noticed changes. Of those who noticed changes to delivery services, 41% have experienced longer wait times for deliveries, items out of stock (38%), and delivery drivers wearing masks (38%).

To qualify for participation in this study, respondents must have consumed cannabis in the last 90 days and indicated their awareness of COVID-19. SoapBoxSample conducts bi-monthly surveys of cannabis consumers, designed to measure the cannabis ecosystem, including product preferences, purchasing habits and lifestyle trends. To learn more about cannabis research visit soapboxsample.com/cannabis.

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