Marijuana Business Magazine March 2020

Marijuana Business Magazine | March 2020 8 House Branded CannabisbytheNumbers | Maggie Cowee Branding Cannabis to Compete I n a highly competitive landscape such as cannabis, branding is one way businesses differentiate themselves and their products. A well-perceived brand can earn price premiums over the competition. The number of brands competing in any given cannabis market is partially dictated by state regulations. For example, states that allow vertical integration will typically feature “house brand” products that compete with external brands. Market maturity also has an impact, as the number of brands will increase as a market develops and decrease as companies consolidate or cease operations. Within a state market, brand competition varies across categories, too, with less competition among emerging categories and less-popular products. 13% Decrease in the number of brands selling flower in Washington state between the first quarter of 2018 (787 brands) and the first quarter of 2019 (681 brands). Number of partnerships Canada’s Canopy Growth has entered into with celebrity brands in recent years, including Snoop Dogg (LBS, originally Leafs by Snoop), Seth Rogen (Houseplant), Martha Stewart (a yet-to-be-named pet product line) and musician Drake (More Life Growth Co.). Source: Motley Fool 38.7% Percentage premium on the average price per gram (equivalized price) of branded flower products in Colorado in 2019. The average price per gram of branded flower products was $4.87, compared with $3.51 for “house brand” flower. 239 Number of distinct brands selling flower in California in the fourth quarter of 2019. The state had 159 pre-roll brands and 149 vapor pen brands. On the less competitive end of the spectrum, 25 brands were selling beverages and 19 were selling capsules in California during the same period. Source: Headset Source: Headset Source: Headset