Going to my local cannabis dispensary, I’m greeted first by two security guards, one armed with a Kevlar vest over his uniform. Cameras are ubiquitous from the moment I step onto the property. A number of other security measures and protocols, unseen by the customer, are also place.

As I leave, an armored car with more armed guards pulls up to haul away tens of thousands of dollars of cash, a necessity since credit card companies and other electronic payment companies cannot work with federally illegal cannabis businesses. And all of this happens in a safe, low-crime neighborhood three blocks from a police station.

Security has always been top of mind for cannabis dispensaries in California when calling the police simply wasn’t an option. Today, cannabis retailers face a host of security issues to run their business day in and day out while keeping their employees, customers, and merchandise safe.

We saw this most dramatically in November when at least eight cannabis operations in the Bay Area were looted and robbed by armed gangs. Oakland cannabis operators alone estimated $5 million in the product was stolen and millions more damaged. According to police reports, in November, at least 175 shots were fired in the course of over 25 burglaries cannabis business in the Bay Area.

With cannabis operations putting millions of dollars per year into local city government coffers, the expectation of protection from local police has left many enraged. Some industry leaders have floated the idea of a tax strike, not paying cannabis taxes until state and local officials implement an appropriate response to protect and serve local cannabis businesses.

With hundreds of thousands of dollars of merchandise and tens of thousands of dollars in cash on hand, cannabis dispensaries have been targets of armed, sometimes deadly robberies for many years. This has been the biggest impetus for passage of the SAFE Banking Act in Congress (see November issue of the Playbook for more on the SAFE Banking Act). By allowing electronic payment and settlement, which would reduce the huge amounts of cash currently held onsite, the cannabis business can lower the risk of being a target for thieves, gangs, and violent armed robbery.

A proper security system can cost as much as $65,000 in equipment and setup costs for a dispensary and even more for a cultivation facility. The annual cost of private guards, armored cars, monitoring, and maintaining security vigilance can take up as much as 3% a year of the total cost for an average dispensary

Another factor to consider is compliance. States and municipalities can require a variety of security measures, monitoring, and reporting to be in place, sometimes to multiple agencies. In the state of Illinois, for instance, the Illinois State Police and the Department of Agriculture, Public Health, and Financial and Professional Regulation (IDFPR) are all involved in security compliance.

The cannabis industry continues to change and grow as do the security challenges cannabis business owners face. Since most security is outsourced to security companies, it’s critically important to choose a partner and security solution that keeps compliance top of mind and stays in step with the ever-evolving and expanding cannabis market.

CHEEBA CHEWS

WHY WE LOVE THEM:
Clean, well-designed color profiles is what you get with Cheeba Chews. Communicating desired outcomes with products is always a challenge. Utilizing dark colors across the gradient naturally elicits that feel for the Sleep Chews.

Crafting a viral marketing campaign that generates national exposure for a brand launch is a dream goal for all businesses. How does a Cannabis company get free exposure from national platforms such as Jimmy Kimmel Live, TMZ, and others about the launch of their new brand?

Executing and delivering on that goal, or cracking the secret code requires a nearly impossible algorithm. Any marketer will share experiences and perspectives on ideas they were convinced would be a home run and hopefully go “viral”.

What MariMed accomplished last month is one of the best marketing efforts I have ever seen and here’s why:

MariMed is an MSO with strong east coast ties and was getting ready to release their new brand Bubby’s Baked. According to their website, they have grow operations in Delaware, Maryland, Massachusetts, and Nevada and dispensaries in Delaware, Illinois, and Massachusetts.

So how does a Cannabis company successfully introduce a new brand, raise awareness, and drive interest for the launch? Standard marketing strategies would include brand announcements through social media, press release distribution, influencer outreach, vendor days, and so on to generate buzz.

These coordinated efforts have their own challenges and can be capital intensive to deliver a strong CPM (Cost Per Million). While these efforts can certainly work, they don’t usually generate the type of national buzz that can have everyone talking about it like Marimed did.

Check out MariMed 850 Pound pot brownie.

This a monster size edible. Here is media title about the brownie. “A team of bakers in Massachusetts spent weeks planning how to create the grassy goodie, which measures 3 feet wide, 3 feet long and 15 inches tall and contains 20,000mg of THC”(3). They coordinated the announcement of the brand, the release of their massive brownie with National Brownie Day. We weren’t sure this day existed, so naturally we decided to

Google it. December 8th is in fact Brownie Day (2). Timing is also a critical factor to capitalize on potential momentum and ride the wave.

The next variable they correctly mastered was the Guinness book of world records. Society loves to see records broken even when we didn’t know that the previous largest brownie was a 234-pounder made by Alabama Something Sweet Bake Shop in 2013. And always because it’s cannabis-related; Guinness rejected the entry but the usefulness of the challenge of the record had already paid its dividends. How many operators saw this and went, “Why didn’t I think of that?” Here is a marketing tip, the best marketing approaches are the simplest ones. Would this edible work if it was a cake or a cookie?

We don’t believe so, because in my opinion, the relatability of the brownie is the attention to detail that separates these efforts from being popular and going viral. Most of us have personally tried, or know someone who has tried an infused brownie. When marketing connects previous emotional moments with shock and awe efforts, we can’t help ourselves.

Marimed isn’t the first to attempt this type of marketing “stunt”. In November Marijuana-themed sandwich shop Cheba Hut opted to keep it completely legal by sending a replica of Tesla-inspired Cybertruck made from made from Rice Krispies, with no cannabis in sight, to SpaceX near Brownsville, Texas. (4)

The national exposure Marimed received from this effort is worth thousands of dollars in ad value. What they were able to accomplish with 5 people, 20,000 mg of THC and one incredible photo will likely be one of the best performing marketing returns when evaluating Cost per Impression. Viral marketing stunts like this are never usually the first, but they combine all the correct factors at the correct time to get launched.

This Trend Will Only Proliferate as 2022 Progresses…

Kellen Finney, Eighth Revolution

Welcome to 2022, year four of legal CBD and rapidly approaching almost a decade of adult-use THC cannabis in Colorado and Washington. The cannabinoid industry is still in its infancy, with east coast states still sorting out sales of adult-use cannabis and CBD hanging out in limbo with respect to FDA’s lack of nutraceutical ruling. One industry that we believe could be poised for significant growth is the emerging minor cannabinoid market which seems to be blending the cannabis and hemp industries. The use of other cannabinoids such as CBG and CBN is becoming more popular in CPG products made with or without THC. We believe this trend will only proliferate as 2022 progresses and we look forward to being there with you a long way.

Removing the Stigma and Unlocking the Benefits will Take Time

Bryan Fields, Eighth Revolution

We as an industry are figuring everything out on the fly. Doctors are not educated about the ECS system. Politicians don’t understand the complex nuances of the industry and we as consumers barely understand the types of products we are selecting when walking into a dispensary. We must be patient and understand that removing the stigma and unlocking the potential extensive benefits of the plants will take time. We are still very early in the process, and the industry requires pioneers, innovators, and strong leaders to move the needle.