Marijuana Business Factbook 2019

208 Marijuana Business Factbook 2019 Chapter 4 | Financial & Operational Data: Cannabis Product Manufacturers © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. CHART 4.02: Cannabis Products: Specialty Goods Vs. Commodities Cannabis products can be broken down by subcategory along a spectrum, from specialty goods to commodities. On the specialty goods end of the spectrum are edibles, beverages and topicals, which are merchandised and sold much like any other consumer packaged good (CPG) found at a drugstore or supermarket. As with CPGs, branding is a major component of success, used to differentiate one product from another. Products with similar characteristics ― such as an infused chocolate bar ― can be marketed toward different segments of consumers based on the cannabis characteristics that appeal most to these consumers, including THC content or THC-to-CBD ratio, as well as characteristics of the chocolate itself, such as ingredient sourcing and production information. Dabbable concentrates are on the other end of the spectrum. Though there are many different types of dabbable concentrates, the differences between them are largely a function of how they are manufactured ― using pressure, heat or solvents to achieve the desired finished product. Similar to raw flower ― and unlike infused products such as edibles ― dabbable concentrates are typically sold by retailers without special packaging. Consumers shopping in this segment are looking for a good mix of THC potency and price and are less concerned about brands and production information. Vape pens fall in the middle of the spectrum. As with specialty goods, vape pens are frequently sold in manufacturer-provided packaging that communicates some information about the brand, but overall there is less room for differentiation than with infused products. Some vape cartridges are made with proprietary technology, meaning the vape cartridge can be used only with a specific vape pen. Other cartridges are universal ― they can be used with multiple types or brands of vape pens.