Branding pays off for marijuana companies
Published 5 seconds ago | By Andrew Long
As the recreational marijuana industry expands and matures, branding will be a vital strategy for companies vying for market share.
Companies that build identities that resonate with consumers while fulfilling their needs will continue to grow – even once the industry’s rapid expansion eventually slows.
Building brands that connect to buyers takes time. But that work is already paying off for some companies in California, Colorado and Washington state.
Analysis of first-quarter market share data provided by marijuana analytics firm Headset shows some clear winners, particularly in consumer packaged goods categories such as edibles and beverages.
While these segments don’t have the overall market share that flower does, they tended to be dominated by fewer brands when compared to flower in the states analyzed.
Beverage sales are dominated by two or three brands, which are often responsible for 50% or more of the sales in a state.
The top two beverage brands in Washington state make up 77.2% of sales, led by Major, a local brand launched in 2019, which accounted for 50.9% of that state’s beverage sales in the first quarter of 2021.
Stillwater in Colorado led beverage sales in the first quarter with 39.4% of sales, while CANN Social Tonics pulled in 23.4% of sales in California.
Introduced in 2019 as a micro-dosed THC drink blended with CBD, CANN Social Tonics climbed into the top beverage brand spot in California in about a year.