Have No Fear, Recession Weed Is Here (Joints & Buds)
The coronavirus has not only taken many lives, but it has also been the main cause of job loss all over the world. In the US, the record-high, COVID-induced job loss forced many a consumer to budget wisely and spend less on take-outs and clothes, and in some states, on cannabis as well.
In states that have, in fact, legalized cannabis for medical or recreational use, dispensaries are giving out huge discounts and launching brand-new product sizes in the hopes of retaining customers, both old and new.
According to C. Rothschild, senior vice president of Cresco Labs, the current situation is a response to the world we are living in. His company just recently launched a new marijuana product line (in bulk) called — “High Supply.”
What’s more, it’s difficult as it is for the budding cannabis industry to keep up with all the new sales, without having to navigate through cutbacks in discretionary spending and enforce social distancing measures mandated by the state.
In fact, cannabis sales were impressive even before the pandemic hit. Based on data supplied by BDS Analytics, they were up by about 34% in 2019 and were expected to increase by another 32% in 2020. Also, Illinois began 2020 by legalizing marijuana for recreational use, and it seemed like a couple of other states, such as New York, would quickly follow suit.
However, at the moment, cannabis businesses need to figure out a brand-new way of attracting consumers who are cost-conscious.
The High Supply line by Cresco includes several different products like smokable popcorn nuggets and half-gram joints (instead of the typical one gram) that have been pre-rolled. According to Rothschild, Cresco was working hard to expand its brand portfolio to resemble Procter & Gamble, or the PepsiCo of cannabis, before COVID-19 entered the picture.
Rothschild further added that Cresco’s eponymous line, including their Reserve line, was a major hit, yet the company saw a need to have a beginner in the value category. Namely, High Supply runs approximately 20% cheaper than Cresco’s flagship label.
At the end of the day, cannabis loyalists have to be retained in order to sustain the market for legal weed. The emergence of value and discounted options may help prevent customers from reaching out to the illegal, black market.
According to the CEO of Wana Brands, Nancy Whiteman, they do, in fact, see a lot of brand loyalty. As she adds, when consumers find a product they know and love, they tend to stick with it, especially in times of crisis.