The NBA reportedly plans to remove marijuana from its list of banned substances for players and allow them to invest in and promote cannabis companies. This policy change comes as part of the new seven-year collective bargaining agreement, which is also expected to eliminate drug testing requirements for marijuana. This decision would make the NBA particularly progressive on the issue, as other leagues like MLB have only allowed sponsorships with CBD businesses. NBA Commissioner Adam Silver had previously indicated that the league’s temporary cannabis policies could become permanent. While other sports organizations, such as UFC and NFL, have relaxed rules around cannabinoids, the NBA’s policy appears more comprehensive.
Bryan Fields, Eighth Revolution
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As the cannabis industry continues to expand and evolve, companies must develop effective marketing strategies to stay competitive. Social media advertising has become a crucial tool for companies to reach potential customers and promote their products. Cannabis companies can utilize this tool with Twitter adjusting their policies. We’ve seen House of Puff and Trulieve already dive headfirst into the program. It’s inevitable that others aggressively follow and get started with creative and powerful messaging to drive and deliver results.
Kellen Finney, Eighth Revolution
Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.
Cannabis companies have been fighting and are in desperate need of some form of unlocking. While most were echoing their sentiments toward DC to provide a lifeline, someone else heard the call instead. Twitter execs presented at Benzinga Capital Conference with an incredibly powerful statement.
“Twitter Has Your Back”
Those are four simple words, but did anyone else have upsetting flashbacks kick in? It sounds an awful lot like the empty, open promises we have seen in the past from {insert politician name}. Twitter has ALREADY altered its platform policy to support the cannabis industry by relaxing its advertising policy a far cry from Meta’s policy of shutting down Instagram accounts. Paid advertisements are indeed advantageous for Twitter as a new revenue stream, but those with a locked toolbox shouldn’t scoff at a tool that finally breaks out. This is extremely helpful for various businesses in the cannabis space, not just the brands or retailers trying to drive sales.
Before we dive into some of the specifics and benefits, it’s important to understand the following:
The policy is fluid. Cannabis is challenging, and the rules are gray. Twitter will likely need to make ongoing changes and updates to its policy as time goes on. The policy, while straightforward, has some items that may deter some initially. Minimum spending will likely be high, and patience will be critical, something I desperately struggle with as well.
Here is an excerpt from the policy:
“Advertisers may not promote or offer the sale of cannabis (including CBD– cannabinoids) Exception: Ads for topical (non-ingestible) hemp-derived CBD topical products containing equal to or less than the 0.3% THC government-set threshold.”
And other expected restrictions:
Must not appeal to minors in the creative; landing pages must be age-gated, and sales must be age-verified.
Must not make claims of efficacy or health benefits.
Must not make false/misleading claims.
Must not show any depiction of cannabis product use.
Must not depict people using or under the influence.
Must not encourage transport across state lines.
The full policy is linked here.
While the policy may hinder some, spending may be another issue. Here is the hard truth about paid ads. They’re expensive, and it takes time for you to learn which creative aspects and copy resonate with your audience. It also takes time for Twitter algorithms to figure out, too. Time costs money, and you’ll need to make sure you don’t expect instant results.
Now, let’s get into the benefits of spending the money. Please note that these strategies aren’t just for Twitter ads but for theories and examples behind why and how to think, utilizing this as a tool. The one thing about the individuals in the cannabis industry is that they are creative and will constantly seek to find out how to operate in the gray.
Marketing has an old adage about touching points, which are interactions with your brand product, with Salesforce believing it takes “6-8 marketing touches to generate a viable sales lead.”
Currently, brands on dispensary shelves are using price-slashing tactics to drive sales. This tactic is detrimental for all parties as a no-margin product hurts operations and leads the consumer to misalign the value of products. Cannabis companies can now alter their marketing efforts to deliver clever messaging and crafty imaging to capture attention and solidify brand positioning BEFORE they enter the dispensary, which helps to build brand staying power.
While many can easily associate paid ads with sales conversion, the area I would AGGRESSIVELY suggest for many others is opening the top of the funnel. Gary Allen, also at the Benzinga Capital Conference, said, “The cannabis industry has a top-of-the-funnel problem.” The top of the funnel is the ability to take current non-consumers or rare cannabis consumers and provide them with educational and valuable content to slowly move them closer to intent and interest. This messaging isn’t price-driven; it’s attention-capturing and helps consumers identify that cannabis can be a potential solution or substitute for another product.
For example, for the boomer who uses a combination of booze and Ambien to go to sleep, are you aware of an alternative? This requires a deeper understanding of who your target customer is and building out all the messaging and efforts around that consumer to ensure that your brand/product speaks to them directly. More importantly, running paid ads is a constant effort of testing, editing, and revising to find the ideal combination. Here are a few ways I’d set up campaigns.
Geographic Targeting (Geofencing)
Geographic targeting allows cannabis companies to focus their advertising efforts on demographic criteria in a specific location. Think of it like an invisible fence. A targeted individual logs onto a Wi-Fi connection in an area and is cookied, which allows the brand to target them more aggressively in the future or more directly now. Using the boomer in our example from before, it may be helpful to serve them a quick, broad ad on plant medicine as they enter a local CVS, Target, or liquor store.
Persuading consumers to enter a dispensary could also be a metric that brands look to leverage for success. For example, let’s say, on average, the dispensary gets 2,000 individuals in the door. If 25% of those individuals spend $80, it’s easy to see how beneficial advertisements are to the top line without having a direct way to attribute ads for ROI.
Here is the math for those who prefer to see it drawn out.
In-store visits
Conversion
Avg Basket Size
Revenue
2,000
25%
$80
$40,000
Now, if you spend $5,000 on paid ads and increase JUST the number of customers coming in the door, you come out ahead after subtracting the spending.
Customers
Conversion
Avg Basket Size
Revenue
3,000
25%
$80
$60,000 —(5,000) =$55,000
By geofencing to target potential customers within a specific radius around their store or dispensary, this strategy allows the retailer to promote special deals, new product arrivals, and other incentives to drive foot traffic and increase sales. Brands have limited capital, so deploying a targeted approach to promote a single SKU or drive interest into a dispensary for a new release can help find others that are not everyday dispensary consumers.
Retargeting
Retargeting is an effective strategy for re-engaging users who have visited a company website, engaged with previous ads, or abandoned shopping carts. Retargeting is also crucial for post-purchase brand loyalty building. If a consumer has purchased your product, you have the chance to build on that messaging and lock in the next step of brand loyalty.
Brands can use retargeting to re-engage users who have shown interest in their products but haven’t made a purchase. By displaying ads, the brand can encourage users to revisit their website and complete their purchase.
A local retailer can use retargeting to remind customers about special deals or promotions they might have missed. This strategy can lead to increased sales and help build customer loyalty through repeated purchases.
An e-commerce platform can use retargeting to remind users about abandoned shopping carts. By displaying ads about the cart, the platform can encourage users to return to the site and complete their transactions, increasing overall sales and revenue.
Demographic and Audience Targeting
Demographic targeting allows cannabis companies to tailor their advertising campaigns to reach specific age groups, genders, or other demographic factors based on product preferences and customer data. Cannabis brands can segment their audiences based on demographic data to create targeted campaigns for different product lines. For example, the brand could target younger consumers with vape products while targeting older users with CBD-infused products for pain relief.
A local cannabis retailer can use demographic targeting to appeal to specific customer segments based on their preferences. For instance, a retailer might target female customers with cannabis-infused beauty products or male customers with cannabis-related accessories. A cannabis industry publication could use demographic targeting to reach potential subscribers interested in the latest news, research, and trends.
For many of you, this is Marketing 101, but for others that are wondering if Twitter ads are worth it or how it will help them, the answer is “it depends.” It’s critical to understand before you engage in any marketing efforts. Before we start any project, I always ask, “What is your goal, and what does success look like?” Most of the time, the goal is an increase in sales, which means awareness-based marketing is not going to deliver the top-line numbers you are likely seeking. For many of you that are looking to build your brand and looking to invest in the growth of your business, experimenting here would be beneficial. We don’t have all the tools utilized from a standard perspective, but we need to be creative with the ones we have. Be patient, and recognize that “learning” is a part of the algorithm that everyone hates.
Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.
Key Take based on the updated wholesale pricing data for the period of January 2022 to May 2023, we can observe the following trends in the U.S. cannabinoid market:
Delta-9 THC (Hemp Derived) Distillate experienced a significant increase of 434% in pricing from April to May 2023, jumping from $1,500.00 to $5,333.33 per kilogram.
Delta-8 THC Distillate observed a 13% increase in pricing, moving from $525.00 to $595.83 per kilogram.
Delta-10 THC Distillate saw an 8% decrease in pricing from April to May 2023, dropping from $1,433.33 to $1,316.67 per kilogram.
CBD Isolate witnessed a 7% decline in pricing, decreasing from $461.67 to $430.00 per kilogram.
CBDA Isolate experienced an 11% increase in pricing, moving from $1,950.00 to $2,168.75 per kilogram.
CBN-O Distillate pricing remained stable at $2,750.00 per kilogram.
CBN Isolate saw a 17% decrease in pricing, dropping from $2,560.00 to $2,125.00 per kilogram.
CBDV Distillate experienced a sharp 71% decline in pricing, decreasing from $2,666.67 to $762.50 per kilogram.
CBGA Isolate witnessed a 28% increase in pricing, moving from $2,025.00 to $2,583.33 per kilogram.
HHC Acetate Distillate observed a 29% increase in pricing, moving from $882.67 to $1,141.50 per kilogram.
THC-O Acetate Distillate saw a 15% decline in pricing, decreasing from $800.00 to $683.75 per kilogram.
The wholesale pricing data for various cannabinoids in the U.S. region from January 2022 to May 2023 displayed diverse trends. While some products experienced price increases (Delta-9 THC Distillate, Delta-8 THC Distillate, CBDA Isolate, CBGA Isolate, and HHC Acetate Distillate), others witnessed price decreases (Delta-10 THC Distillate, CBD Isolate, CBN Isolate, CBDV Distillate, and THC-O Acetate Distillate), and one remained stable (CBN-O Distillate). It is important to consider multiple factors when analyzing these pricing trends, including market demand, regulatory changes, and production costs. The data reveals that the market for cannabinoids is in constant flux, making it essential for businesses to keep a close eye on industry trends and adjust their strategies accordingly.
*Disclaimer some of the text from this analysis was generated with an AI system.
Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.
As you leave the garden, your curiosity about terpenes is sparked. You realize that the captivating scents you experienced don’t just come from cannabis plants but from a variety of other plants as well. You embark on a journey to explore the fascinating world of terpenes and their role in nature.
Terpenes are not exclusive to cannabis plants; they can also be found in a wide range of other plants. They serve various purposes in these plants, such as attracting pollinators, deterring pests, and protecting against environmental stressors.
Imagine wandering through a vibrant, aromatic garden filled with plants that boast an array of colors and scents. You feel a sense of serenity wash over you as you take in the sweet, earthy, and fruity aromas surrounding you. As you stroll along, you come across a section filled with cannabis plants, each with a distinct fragrance contributing to the garden’s enchanting atmosphere. Intrigued, you stop to appreciate the uniqueness of each plant’s aroma and ponder the secrets behind their captivating scents.
Terpenes are a large group of natural compounds found in plants, including cannabis. They help create the fantastic smells and flavors we experience in many plants. There are different types of terpenes, but the ones most important to cannabis are called monoterpenes and sesquiterpenes.
As you explore the garden, you pick a ripe, juicy mango from a nearby tree, savoring its sweet, tropical scent. You then stroll through a grove of pine trees, inhaling the refreshing, crisp aroma that fills the air. These delightful fragrances, created by the terpenes myrcene and pinene, are also part of the unique and alluring scents you encounter in cannabis plants.
Monoterpenes are the simplest kind of terpenes. They create strong, fresh smells in many plants, including cannabis. Some examples of monoterpenes are myrcene, limonene, and pinene. Because they are small, monoterpenes can easily get into our cells and interact with our bodies. This means they might have various health benefits, like helping with inflammation, pain relief, and anxiety.
Venturing into a dense forest, you find yourself surrounded by towering conifer trees. The fresh, resinous scent that fills the air is primarily due to the presence of the terpene pinene. Pinene not only contributes to the enticing aroma but also helps protect the trees from fungal and bacterial infections.
As you continue exploring the garden, you come across a spice garden filled with cinnamon and black pepper plants. The warm, spicy scent of cinnamon and the sharp, invigorating aroma of black pepper capture your attention. The terpene caryophyllene is responsible for these enticing fragrances and offers potential health benefits related to inflammation and immune function.
As you continue your journey, you stumble upon a field of wildflowers, each with its own unique scent profile. You can’t help but notice the harmonious balance of nature at work, where terpenes serve as the key ingredient that connects plants to their environment and helps them thrive.
Terpenes also play a role in the way plants communicate with one another. Some plants release certain terpenes into the air when they are damaged or under stress, which can act as a signal to nearby plants to activate their defense mechanisms.
In a lavender field, you find the terpene linalool emitting a calming, floral scent that is often used in aromatherapy to help people relax and reduce anxiety. In the plant itself, linalool helps attract pollinators while repelling harmful insects and pests.
As the sun begins to set, you take one last look at the garden, marveling at the intricate tapestry of scents and flavors woven by nature. You leave with a newfound appreciation for the mysterious world of terpenes and their potential to enhance our lives through their captivating aromas and potential health benefits.
In summary, terpenes are a diverse group of natural compounds found in many plants, including cannabis. They create the unique scents and flavors we experience and serve various important functions, such as attracting pollinators, repelling pests, protecting against environmental stress, and facilitating communication between plants. This rich diversity of terpenes not only contributes to the incredible scents and flavors we enjoy in nature but also provides valuable insights into the complex world of plant ecology. Moreover, research suggests that terpenes might also have health benefits.
Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.
In September 2021 German voters elevated a coalition of three political parties, colloquially known as the Stop Light Coalition, into power in Berlin. They were elected by voters to implement a wide range of progressive issues. Included among them was creating Europe’s first legal recreational cannabis market. Cannabis activists, businesses, and aspiring entrepreneurs have been fixated on Germany ever since. With good reason. A wealthy population of 84 million and a leader in the EU with the largest medical cannabis market in Europe. A multi-billion-dollar market rivaling California was just a few years away. Pitchdecks were created, business plans developed, and deals were made. Breadcrumbs from politicians and political insiders suggested the Coalition would propose legislation that would create a market similar in structure and intent to Canada. Not ideal but not bad either.
This all changed in late March when word began to get out that the Coalition was toning down its plans for cannabis quite dramatically. An official announcement in early April revealed a plan more in line with Malta or Catalonia than Canada.
Instead of a nationwide commercial market, the coalition draft legislation sets up:
Non-profit social clubs that can grow and sell for up to 500 registered members;
Personal possession of 25 grams of cannabis will become legal;
Home grow of 3 plants;
A Swiss-style experiment with a licensed store able to sell to a limited number of consumers to be trialed in some cities;
Why the sudden change of heart? The reason cited most often are international treaty obligations and pushback from the European Commission. Some even cite the failures of the California recreational market.
But it’s not Brussels or California that’s made the coalition change their tune. All politics is local they say and that’s true in Germany as anywhere else. The Coalition is facing discontent and a surge in the polls for the conservative opposition. Opinion polls are favorable to cannabis legalization but not overwhelming as in the US.
Just as politics, personal agendas, and issues completely unrelated to cannabis derail Congressional legislation like SAFE Banking in the US so too does Germany. Canada and Uruguay have navigated UN Treaties and Germany as its most important member could have pushed the EU Commission into accepting a broader, more ambitious plan.
Regardless of your opinion on the new legislation, it’s a major step forward for cannabis reform in the EU’s biggest and most powerful country. Just as California led the nation in the early Prop. 215 days with a non-profit model Germany can still lead the EU to brighter days for cannabis consumers and eventually businesses.
Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.
