HOW A NIKE EXEC VIEWS CANNABIS MARKETING

Craig Lyon, who recently joined California brand Connected Cannabis as head of marketing, spent the early years of his career at Nike. I caught up with him to discuss his impressions of cannabis marketing and his vision for Connected.
WeedWeek       

Connected, and its sister brand Alien Labs, manage to sell out their flower at double the price many of its competitors dare to charge. The brand’s secret sauce draws on its roots in the legacy market, influential fans in the hip-hop world and engineered scarcity. Consciously or not, the formula owes a great deal to Nike.

Coming to the new industry, Lyon has been struck by how so many brands are trying to demystify cannabis: “Everything seems to be about making this easier, simpler,” he said. Weed does the same thing it always did, but Lyon says its new found accessibility has stripped the “intrigue” and “adrenaline rush” of how it was purchased in the past. 

Read the whole thing.

IN THE NEWS — 3/20/21

What else is happening:

WILL BIG BOOZE AND TOBACCO BE GOOD FOR WEED?

Amid an unprecedented push for federal legalization, a new group with members representing alcohol, tobacco, and other industries has raised questions regarding how it plans to influence cannabis policy. I spoke to the Coalition for Cannabis Policy, Education and Regulation’s (CPEAR)  executive director Andrew Freedman about its strategy and policy objectives. 
MG Retailer

  • Freedman says many of the issues surrounding federal legalization, like pesticide testing, quality control and interstate trade, would benefit from a standardized process only the federal government can bring to the table.
  • Freedman was Colorado’s top regulator when it rolled out its REC market.
  • The group has declined to weigh in on the contentious questions surrounding legalization, including those with significant financial implications for both its members and operators in the existing industry.
  • Kris Krane, president of MSO 4Front said that depending on the group’s priorities, CPEAR could be a threat or a boon for existing operators.

Which will it be?

Related: Sen. Majority leader Chuck Schumer (D-N.Y.) said the bill he’s currently drafting with colleagues would specifically restrict the roles of alcohol and tobacco companies in cannabis.
Marijuana Moment

NEW YORK ON THE BRINK OF LEGAL REC

Marijuana Moment reports that a deal is “imminent” to legalize REC in New York. The legislation, which would happen outside the budget review process is said to more closely resemble the progressive bill supported by two key Democratic lawmakers than the more centrist proposal initially supported by Gov. Andrew Cuomo (D). 

IN THE NEWS — 3/17/21

Goings on:

DUTCHIE RAISES $200M AT $1.7B VALUATION

Dutchie, an online ordering platform used by dispensaries, raised $200M at a $1.7B valuation. Tiger Global Management led the new round with participation from Dragoneer and DFJ Growth, two heavy-hitting funds which are new to cannabis investing.
TechCrunch 

Quick Hit

  1. MSO Columbia Care increased Q4 revenue 56% sequentially to $76M.

THE MEXICO OPPORTUNITY

The lower chamber of Mexico’s legislature voted to legalize, paving the way for the world’s largest REC market.
N.Y.Times

  • While the bill’s merits for good governance and the country’s economy are disputed, legalization presents a significant business opportunity for domestic and international firms.
  • I spoke to Emily Paxhia, managing partner at investment firm Poseidon Asset Management, about what to expect as the Mexican industry revs up.
    WeedWeek
  • In a week which brought big news that MSO Curaleaf is expanding into Europe, Mexico is a very different situation. “Europe is a smaller market and we have to think very sensibly about the cost to manufacture and distribute.” Paxhia said. “I’m very interested in Latin America [Columbia and Mexico in particular] and how they can contribute to the global supply chain.”
    WeedWeek

Make a run for the border.

Meanwhile, Politico suggests being sandwiched by legal countries will increase pressure on President Biden to follow suit. Unlike most prominent Democrats, he has not endorsed legalization.

BIG TOBACCO, ALCOHOL, INSURANCE SEEK TO SWAY POT POLICY

A new group which includes representation from the alcohol, tobacco, insurance and security industries has formed to influence cannabis policy. The Coalition for Cannabis Policy, Education, and Regulation, believes federal legalization is inevitable and seeks to shape how it happens.
Politico 

  • The executive director is Andrew Freedman, who served as Colorado’s first cannabis “czar.”
  • The group’s policy priorities aren’t yet clear, and it has created a “center of excellence” which includes several researchers and outside experts.
  • “Where possible, we’re going to consensus build. But when there is significant divergence [on an issue], we’re going to be transparent about that significant divergence,” Freedman said. 

Everyone wants a piece.

Quick Hit

  1. British American Tobacco, maker of Lucky Strikes, invested $176.6M in Canadian operator Organigram. Organigram’s stock soared on the news.
    MarketWatch

IN THE NEWS — 3/13/21

Here’s what’s happening:

WEED USERS ARE THE NEW HOT DEMO

Cannabis users could be an attractive target demographic for mainstream brands, according to a study from market research firm Mintel:
Bloomberg

In 2020, roughly one in three adults in states with legal recreational cannabis had consumed it in the last three months — up from 28% the prior year, according to the study, which drew on polls of 2,000 internet users in states where cannabis is legal.

Cannabis is indirectly affiliated with some lucrative markets, like video streaming and gaming. About two-thirds of respondents said they watched television or movies after using marijuana, Mintel found, while 58% listened to music, 46% had snacks, 29% engaged in creative activities and 28% played video games.

Read the whole thing.

ALSO: Digiday looked at the increased acceptance of cannabis use among corporate executives.