Stuck in quarantine for weeks on end, consumers made their Covid-19 purchasing preferences extremely clear: toilet paper, frozen pizza, puzzles and hand sanitizer. For some consumers, cannabis – once considered a discretionary purchase – has also been added to this list, fueling an unprecedented green rush with record sales since the lockdown went into effect in March.
“Storage is the new norm,” said Roy Bingham, co-founder and CEO of analytics company BDSA, with Brightfield Group finding that 57% of cannabis consumers say they have already stored cannabis, or are considering doing so.
While this increase is good news for the industry, it doesn’t solve some of the problems endemic to cannabis. Heavily taxed but still federally illegal, U.S. cannabis businesses currently receive no government-backed bailouts or wage protection under the small business stimulus package (though lobbyists and a few lawmakers are trying to change that for future rounds of pandemic relief).
Yet cannabis brands are finding reasons to be optimistic. Virtual events were a big hit on 4/20, boosting sales and strengthening the community, and key industry players are sharing the lessons they’ve learned so far during the Covid-19 crisis.
Buying cannabis has probably changed forever
The first major hurdle for the Covid-19 pandemic was obtaining “essential business” designation, which has happened in the majority of the 33 states where cannabis sales are legal for medical patients and some of the 11 adult-use markets. The move, which put dispensaries on par with supermarkets and pharmacies, was revolutionary, say industry insiders.
A variety of edible and infused beverages are ready to go mainstream. Edible and THC-infused beverages are becoming popular much sooner than industry experts predicted.
Cannabis now drives content and events
Laura Albers of Oasis Intelligence believes it’s vital for industry brands to find new (virtual) ways to connect with consumers. “Cannabis has long been known for its sharing and community practices,” she said. “Finding online platforms to engage is more important than ever.”
And there’s evidence across the board that brands are really tapping into this in a big way. April 20th wasn’t just a party, it was a testing ground for original content, virtual events and digital activations. And the results are solid, according to industry experts, including Weedmaps, who reported attracting an audience of 300,000 viewers in its superior package: Sessions from Home.
The five-hour livestream, featuring performances by Wiz Khalifa, Billy Ray Cyrus, Berner and other artists, garnered 2.3 million media impressions and attracted 20,000 new subscribers to the delivery platform. Weedmaps recorded five times the number of orders on 4/20 compared to the previous year, 3,000 of which came directly from people watching the entertainment.
Alongside these virtual events, which have benefited non-profit organizations, brands and dispensaries are stepping up their content game; developing it as an important pillar of their marketing strategy and a means of speaking authentically to consumers in a highly regulated advertising environment.
“Original content will be a huge driver for cannabis advertising,” said CMO Sam Boyer. “It’s definitely more engaging at a time when people are looking for information and want to hear about health and wellness. Authentic voices will really stand out. “
