Business
New Frontier Data Explores How Packaging Affects Consumer Purchasing Habits
A new report from New Frontier Data shows the purchasing habits of consumers when choosing cannabis brands with different packaging.
Cannabis retail marketing must be heavily researched to best catch the eye of potential customers, especially in markets where there is a lot of competition. New Frontier Data provides a fascinating look behind the scenes at what brand packaging says about a product, and how it is perceived by consumers. New Frontier Data uses information collected and published in its recently published Cannabis Consumers in America report, which identifies consumers based on their purchasing behavior and trends in the industry (categorized as Savvy Connoisseurs, Contemporary Lifestylers, Legacy Lifestylers, Medical Lifestylers, Modern Medicinals, Engaged Explorers, Social Nibblers, Holistic Healers, and Infrequent Partakers.)
Fifty-one percent of consumers choose products based on the desired effect, such as sleep, energy, chill or create. While potency is also a contributing factor, New Frontier Data’s newest report explored the end result of popular brand packaging appearances, and shared which ones people tend to prefer the most.
For this product survey, participants were asked if they seek out flower from particular brands or companies: 43% answered “sometimes,” 21% said “always,” 19% said “rarely,” and 17% answered “never.” Overall, 28% added that branding and packaging is “very or extremely important” when considering what to buy.
Six image varieties of flower packaging, with percentages of consumers who most preferred those packaging themes: Black Minimalist Jar (7%), Gold Jar (9%), Craft Paper Jar (14%) Mountain Landscape Jar (16%), Hippie Colorful Jar (17%), and Prescription White Jar (36%).
The Black Minimalist Jar is described as a common choice between a variety of age groups, but often chosen because it was “cool, modern, and masculine.” Those who preferred this jar usually spend between $50-$199 per transaction and are more likely to consume cannabis every day.
The Gold Jar was most popular with consumers over 55, describing it as “cool, natural, or modern.” Some described it as feminine, but it was slightly more preferred by men. Those who were drawn to this jar usually purchase between 3.5 grams to 14 grams per month, and tend to purchase about $50-$99 in a single purchase. This particular consumer is also more likely to consider topicals or transdermal products as their favorite.
The Craft Paper Jar featured a simple brown exterior with black text, which attracted consumers who like to consume cannabis in a social setting because it is “natural, authentic, and cool.” Those who are drawn to this packaging tend to buy $20-$99 worth of product in a single purchase.
The Mountain Landscape Jar attracted younger consumers because it was “cool, natural, and authentic.” They were also the customers most likely to choose vaping as their primary way to consume.
The Hippie Colorful Jar was the most colorful of the bunch, which attracted medical cannabis consumers more than adult-use consumers, describing the jar as “cool, authentic, and modern.” Sixty-four percent of these consumers usually spend between $20-$99 in a single purchase, and prefer edibles over other consumption methods.
Finally, the Prescription White Jar was the most popular of all of these designs, appealing to all age groups and consumer types for its “medicinal, authentic, and natural” approach to design. Those who chose this tend to purchase more than one ounce of cannabis every month, and favored flower over all other product types.
New Frontier Data cites Harvard Professor Gerald Zaltman, an expert on marketing who is also a co-founder of consultant firm Olson Zaltman Associates, which has worked with some of the world’s largest brands. According to Zaltman’s book How Customers Think: Essential Insights into the Mind of the Market, 95% of purchasing decisions are subconscious, and 93% of people will “rely on visual cues when considering new products.”
With this in mind, New Frontier Data recommends a continued thoughtfulness when companies create their brand product identity. “As consumers become increasingly diverse and delineated in both their motives and methods for consumption, brands should aim to directly articulate how a given product suits a consumer’s goals, rather than settle simply for selling flower.
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.
The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).
Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.
Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.
That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.
Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.
Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.
A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.
Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/
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