The era of legal cannabis is creating a once in a lifetime opportunity for prepared cannabis farmers to establish their own brands that’ll stand the test of time and provide multi-generational wealth for cultivators and their families. 

However, establishing a brand requires skills and expertise absent at most cultivation operations. “It makes sense when you think about the history” says Dan Ripoll, co-founder and CEO of Pushr, a cannabis distributor located in Los Angeles. “Until now, cultivators had to master the art of being stealthy to avoid raided by federal and local authorities. They literally had to be experts at NOT being found. As we enter the post prohibition era, the exact opposite skill is required. The new winners will be those who understand the art and science of creating awareness that they exist. The art and science of branding and marketing.”

Here are 5 reasons why establishing your own brand is key to your long term success:

Brands Enjoy Sustained Pricing Power
Currently there are more than 68,000 cannabis farms in California. But only a relative handful are licensed by the BCC. The resulting shortage of legally compliant flower has bolstered wholesale cannabis prices in the short term. But the forces of supply and demand are at play in the cannabis industry as they are in every other industry. At the end of the day, cannabis is a commodity product. All we have to do is look at the declines in the price of wholesale cannabis in states where cannabis has been legal for at least a few years. In Washington, Colorado and Oregon, the price of wholesale cannabis has dropped steadily in the years after it was legalized.

White label producers will be subject to market swings and the overall downward trend in wholesale prices.


The same will happen in California. Without an established brand, there’s nothing protecting a cultivator from being marginalized by well-capitalized “big ag” firms who will drive prices lower with large scale farms and sophisticated big ag techniques and technology. Branded products always cost a bit more than generic brands because consumers value the familiarity and consistency of the experiences enjoyed by those products.

Brands Build Brand Equity
White labeling your product brings in short term cash at the expense of building long term brand equity. Licensing is expensive, and cultivators often need to recoup some of the cash they invested in their legal operations by selling their crop as a white label product. That’s understandable. But longer term, if they’re not creating their own brand, they’ll be marginalized, and forced to compete on price. This becomes a race to the bottom.

Obtaining coveted shelf space in legal dispensaries is key to winning in the long term. The sooner cultivators establishing meaningful shelf space with their own brand, the sooner the brand will become a household name among cannabis consumers. When larger firms begin investing heavily into the cannabis industry, they’ll be looking to acquire established brands with a meaningful shelf presence.

Customer Loyalty Builds Empires
Ever wonder why companies like Budweiser and Miller spend so much money on marketing? They’re investing in long term customer acquisition. A customer who buys Budweiser once or twice is not a profitable investment. But a customer who brings Budweiser beer to every tailgate party, Super Bowl party, or family barbeque is a very profitable customer for Budweiser.

Budweiser knows exactly who their customer is. They understand the age, sex, race, location, income, marital status and how and when to best reach those customers with their message.

With the exception of MedMen and Eaze, that level of marketing sophistication isn’t yet the norm in the cannabis industry. But it will be because the stakes are huge. Once consumers find a few brands who deliver the same product experience consistently, they will patronize those brands disproportionately. To gain customer loyalty, build a profile of your customer, understand the best media for targeting those customers with your message, and price your products for maximum penetration of the market you seek to capture. The result will be a growing base of loyal customers who demand your product at their local dispensary.

Customer Recognition
There’s a good chance that you’re in the cannabis industry because you’re passionate about cannabis. You take pride in the quality of your product. While money is always a motivating factor, so is recognition. You want to be recognized for growing amazing cannabis. And establishing a brand is the only reliable way to achieve the recognition you deserve. At the end of the day, you want consumers to know that the weed their smoking came from your farm, and was only made possible because of the hard working passionate people who work in your employ.

Branding provides a platform for huge growth
It's only a matter of time before cannabis is declassified as a Schedule 1 substance by the U.S federal government. Once cannabis is made legal, it will bring down the borders that currently limit operators to customers within their state.

 

If you are a cultivator interested in establishing your own cannabis brand, click here to send us a message. 

The era of legal cannabis is creating a once in a lifetime opportunity for prepared cannabis farmers to establish their own brands that’ll stand the test of time and provide multi-generational wealth for cultivators and their families. 

However, establishing a brand requires skills and expertise absent at most cultivation operations. “It makes sense when you think about the history” says Dan Ripoll, co-founder and CEO of Pushr, a cannabis distributor located in Los Angeles. “Until now, cultivators had to master the art of being stealthy to avoid raided by federal and local authorities. They literally had to be experts at NOT being found. As we enter the post prohibition era, the exact opposite skill is required. The new winners will be those who understand the art and science of creating awareness that they exist. The art and science of branding and marketing.”

Here are 5 reasons why establishing your own brand is key to your long term success:

Brands Enjoy Sustained Pricing Power
Currently there are more than 68,000 cannabis farms in California. But only a relative handful are licensed by the BCC. The resulting shortage of legally compliant flower has bolstered wholesale cannabis prices in the short term. But the forces of supply and demand are at play in the cannabis industry as they are in every other industry. At the end of the day, cannabis is a commodity product. All we have to do is look at the declines in the price of wholesale cannabis in states where cannabis has been legal for at least a few years. In Washington, Colorado and Oregon, the price of wholesale cannabis has dropped steadily in the years after it was legalized.

White label producers will be subject to market swings and the overall downward trend in wholesale prices.


The same will happen in California. Without an established brand, there’s nothing protecting a cultivator from being marginalized by well-capitalized “big ag” firms who will drive prices lower with large scale farms and sophisticated big ag techniques and technology. Branded products always cost a bit more than generic brands because consumers value the familiarity and consistency of the experiences enjoyed by those products.

Brands Build Brand Equity
White labeling your product brings in short term cash at the expense of building long term brand equity. Licensing is expensive, and cultivators often need to recoup some of the cash they invested in their legal operations by selling their crop as a white label product. That’s understandable. But longer term, if they’re not creating their own brand, they’ll be marginalized, and forced to compete on price. This becomes a race to the bottom.

Obtaining coveted shelf space in legal dispensaries is key to winning in the long term. The sooner cultivators establishing meaningful shelf space with their own brand, the sooner the brand will become a household name among cannabis consumers. When larger firms begin investing heavily into the cannabis industry, they’ll be looking to acquire established brands with a meaningful shelf presence.

Customer Loyalty Builds Empires
Ever wonder why companies like Budweiser and Miller spend so much money on marketing? They’re investing in long term customer acquisition. A customer who buys Budweiser once or twice is not a profitable investment. But a customer who brings Budweiser beer to every tailgate party, Super Bowl party, or family barbeque is a very profitable customer for Budweiser.

Budweiser knows exactly who their customer is. They understand the age, sex, race, location, income, marital status and how and when to best reach those customers with their message.

With the exception of MedMen and Eaze, that level of marketing sophistication isn’t yet the norm in the cannabis industry. But it will be because the stakes are huge. Once consumers find a few brands who deliver the same product experience consistently, they will patronize those brands disproportionately. To gain customer loyalty, build a profile of your customer, understand the best media for targeting those customers with your message, and price your products for maximum penetration of the market you seek to capture. The result will be a growing base of loyal customers who demand your product at their local dispensary.

Customer Recognition
There’s a good chance that you’re in the cannabis industry because you’re passionate about cannabis. You take pride in the quality of your product. While money is always a motivating factor, so is recognition. You want to be recognized for growing amazing cannabis. And establishing a brand is the only reliable way to achieve the recognition you deserve. At the end of the day, you want consumers to know that the weed their smoking came from your farm, and was only made possible because of the hard working passionate people who work in your employ.

Branding provides a platform for huge growth
It's only a matter of time before cannabis is declassified as a Schedule 1 substance by the U.S federal government. Once cannabis is made legal, it will bring down the borders that currently limit operators to customers within their state.

 

If you are a cultivator interested in establishing your own cannabis brand, click here to send us a message.