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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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.

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.

4/20 Celebrations Rebound After Covid

Poll results from ISA indicate significant boosts in dispensary visits, gifting and trying new products for 4/20/2021

There’s a dramatic shift in the way cannabis consumers across the U.S. will be celebrating the 4/20 cannabis holiday this year, according to poll results from insights firm ISA, a Material Company. This year more consumers plan to host friends at home, visit dispensaries and celebrate in public places, such as live events or restaurants. This comparison is based on survey results from another ISA study fielded in April of 2020.

The percentage of cannabis consumers who say they will celebrate the holiday in some way has now outpaced pre-COVID-19 levels. In 2019, 70% of cannabis consumers said they would celebrate the 4/20 holiday. That percentage has jumped to 78% in 2021.

The most significant variance from 2020 poll results has been among people who say they are planning to celebrate 4/20 with friends at home. In 2019, before the pandemic, 58% of consumers who planned to participate in the holiday said they would celebrate at home with friends. That number dipped to 29% in April of 2020, and has now rebounded to 55%, indicating a return to normalcy for cannabis consumers who celebrate by hosting private events.

The findings could indicate the cannabis industry will experience a significant uptick in sales on and around April 20th, with more people venturing out to their local dispensary. The percentage of cannabis consumers who say they will visit a dispensary to celebrate 4/20 rose from 13% in 2020 to 30% in 2021, coming in slightly above the 2019 percentage of 26%. Additionally, more consumers plan to purchase 4/20 gifts for friends and family in 2021, compared to 2020. The 2021 poll revealed that 37% of consumers who celebrate 4/20 plan to buy gifts for others, while 16% reported doing so in 2020. Another positive sign for dispensaries and cannabis brands is that a significant number of consumers (40%) are planning to try a new product as part of their holiday celebration, up from 21% in 2020.

“The cannabis industry grew steadily throughout the pandemic,” said Adriana Hemans, ISA’s VP of Demand. “What’s exciting about the early poll results from 2021 is that cannabis consumers are coming together again for 4/20, seeking novel experiences with new products. Those products could potentially become part of their regular cannabis routines, providing additional growth opportunities for brands.” ISA will continue to gather data and insights from cannabis consumers in the days leading up to April 20th, providing business analysts, industry experts and media outlets with ongoing updates on consumer behaviors related to the 4/20 holiday. Figures presented in this press release are based on three studies – a nationwide poll of 1,001 cannabis consumers fielded April 26th through April 29th of 2019, with a 3% margin of error at a 95% level of confidence; a nationwide poll of 420 cannabis consumers fielded April 18th through April 20th of 2020, with a 5% margin of error at a 95% level of confidence, and a nationwide poll of 420 cannabis consumers with a 5% margin of error at a 95% level of confidence. To qualify for inclusion in all of these studies, participants indicated that they are over 21 years old and had purchased or consumed cannabis in the last 90 days. Participants in the 2021 study were gathered through ISA’s proprietary cannabis research panel – The Green Time.

 

Cannabis Consumers 4/20 Celebration Plans

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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SoapBoxSample Announces Exciting Partnership with WeedWeek

Industry leaders collaborate to provide research and insights in the cannabis space

WeedWeek, the go-to media company for diverse cannabis news, announced a collaborative partnership with market research firm, SoapBoxSample, creating a council consisting of thought leaders and influencers in the cannabis space. The council will provide insight into the fast-evolving landscape allowing followers to keep their fingers on the pulse of the industry.

SoapBoxSample continues to expand its leadership and position within the cannabis space not only as a research provider, but as a collaborative influencer for brands, ancillary businesses and anyone looking to grow and build a cannabis business or brand.

“It’s so exciting working in a space driven by belief and passion. The opportunity to help businesses survive and thrive in such an explosive industry is not only fulfilling, but exhilarating.” said SoapBoxSample COO,  Jacqueline Rosales. “Every day is something new – a new challenge and a new opportunity. It’s exciting to see the immediate impact of our work helping clients.”

WeedWeek and SoapBoxSample came together on the heels of NECANN, the largest Cannabis Convention on the East Coast with more than 100 speakers, 300 exhibitors and approximately 10,000 attendees. Jacqueline Rosales’ session entitled, “When Patients Become Customers: How Understanding Consumer Types Can Help Your Cannabis Business Survive the Green Rush”, explained how business owners and decision makers can better understand consumer needs and wants through the use of research.

The WeedWeek Council’s responses and ideas will appear in a dedicated section of the WeedWeek newsletter. The council will be comprised of 25-30 people from various backgrounds and expertise in the green space and members are selected based on a competitive application process.

WeedWeek was founded in 2015 by Alex Halperin when he saw a need for a media company covering the many facets of the cannabis industry. Helperin, a successful journalist who has written for Washington Post, LA Times, Huff Post, Hightimes and Business Insider also runs ReCharge Events as well as a podcast. WeedWeek covers politics, law, culture, health and business as they relate to cannabis.

“WeedWeek Council is an exciting new way WeedWeek will share exclusive insights on the green rush with our thousands of readers,” said Alex Halperin.

SoapBoxSample has been actively conducting cannabis research since 2016 and continues to expand its offerings. Most recently, SoapBoxSample launched the CANNApinon poll, a national bi-weekly survey of cannabis consumers whose insights enable industry-specific details on consumer needs and wants for dispensaries, growers, media companies, food and beverage producers, distributors, and the cannabis beauty industry.

WeedWeek and SoapBoxSample are now accepting applications for membership to the WeekWeed Council. For information on how to join, click here.

To learn more about SoapBoxSample’s cannabis offering, visit SoapBoxSample.com/cannabis

About WeedWeek: Founded by award winning journalist Alex Halperin, WeedWeek’s free newsletters aggregate the latest developments in cannabis politics, business, health and science, law and culture. And the podcast features interviews with the most interesting voices in the space. Smart, credible and free, WeedWeek is the best way to keep up with the green rush. Subscribe at WeedWeek.net.[/vc_column_text][/vc_column][/vc_row]

SoapBoxSample Launches the CANNApinion Poll — A Cannabis Consumer Feedback Offering

To meet the growing needs of cannabis businesses, SoapBoxSample launches bi-monthly poll of cannabis consumers

SoapBoxSample announces its newest research solution for cannabis businesses, the CANNApinion Poll. With the rapid growth of the cannabis marketplace nationwide, brands need reliable consumer feedback to thrive in a crowded market. The CANNApinion Poll meets this need by providing a platform for the cannabis industry to ask their target audience relevant questions, allowing them to discover emerging  trends and areas of growth opportunity.

“As we’ve seen with other emerging industries, the brands who understand consumer segments and how to market to them are the ones who will become legacy brands. The CANNApinion Poll is a way for brands to gain direct access to their target market, and understand the why behind consumer purchasing habits,” said Jacqueline Rosales, SoapBoxSample COO.

Market experts predict that cannabis brands will soon compete for finite retail space in prime locations. Dispensaries and delivery services will be forced to make choices about their inventory. The CANNApinion Poll will help brands respond quickly to the needs of their customers, ensuring that their products are the ones that stay on the shelves.

A new wave of the CANNApinion Poll runs every two weeks to allow clients to get timely answers to their most urgent business questions. With each new wave, clients are given the opportunity to submit questions as they look to gain actionable insights into growing pains and growth barriers that are present within the cannabis consumer experience. Each wave consists of 8-10 questions to ensure cannabis consumers are actively engaged within the poll and contribute robust data. Clients can submit multiple choice questions, open-ended questions, and display product images or videos.

The CANNApinion Poll is the first cannabis-specific service within SoapBoxSample’s portfolio of products. SoapBoxSample is an early thought leader embracing the cannabis space, and has been actively conducting cannabis research since 2016. Clients rely on SoapBoxSample to develop new products, crowdsource ideas, test ads and branding, test products and concepts, track consumer habits online, and gather in-the-moment feedback.