Can Cannabis Marketing Help Fight Illegal Cannabis Market?
Can cannabis marketing help fight against the illegal cannabis market? It’s an intriguing idea. Industry experts and cannabis producers have argued for years that the government needs to loosen cannabis rules. That includes strict marketing laws for cannabis. Most of the arguments centre around preservation of the industry. There is also the argument that marketing can help reduce cannabis stigma.
Fighting the illegal cannabis market is another angle. Marketing in general attracts new customers – and cannabis marketing could help give the legal cannabis market a leg up over illicit cannabis sources.
However, the Société québécoise du cannabis (SQDC), the provincial wholesaler, doesn’t seem to agree.
“When you look at other Canadian provinces where the legal framework is a little different, you realize, in fact, that the amount of the illegal market captured is quite comparable, with between 50 per cent and 60 per cent of the market absorbed,” said SQDC CEO Jacques Farcy.
Farcy acknowledged a downturn in sales growth, but said that it too was normal.
That being said, Farcy does say that he wants to keep Quebec cannabis customers informed.
“We want to make sure our customers understand the prices that are available at the SQDC today,” Farcy said. “We sell dried cannabis for very little. Our first price is $3.43 per gram.
“We want to make sure that our delivery services are very well known. Today, we have 90-minute delivery. We also have same-evening delivery, in addition to standard Canada Post delivery.”
The difference between cannabis information and cannabis marketing might be slim. But when you start arguing about price and convenience, that sounds an awful lot like cannabis marketing.
Cannabis Marketing Not a Silver Bullet – LPC
There is a compelling argument for cannabis marketing’s ability to undercut the illicit cannabis market. Illegal cannabis stores in BC, for example, didn’t have to live up to the same rules as the legal outlets. That meant they could do whatever cannabis marketing they liked. At least one put up posters on light standards to drum up website business. Let’s zoom out a bit: take any business class, and you’ll learn how marketing helps improve business.
But it’s not a silver bullet. Looking to the US, MedMen is a hugely popular and well-known name. But it too is struggling. The MedMen collapse underlined how difficult the cannabis market is, even though it had much greater cannabis marketing ability. There were of course other factors including rapid growth – which again points to the fact that cannabis market won’t solve all problems.
However, it is another approach we could use in the fight against illegal cannabis markets. We need to loosen rules on marketing and packaging so that consumers can know and understand their choices better. At the very least, we need to allow provincial wholesalers to promote legal cannabis sources, whether it’s through public health announcements or on behalf of provincial cannabis retailers.
In short, cannabis marketing can work to undermine illicit markets. Not as a silver bullet, but as a tool. We just need the political will to implement it.
Read the CTVNews Montreal Story Here
ADD YOUR STORY HERE
Do you have a business in Canada’s legal cannabis market? Are you a craft cannabis producer or own a chain or independent cannabis retail store? Let’s tell your story here! A news article and your approved listing page make great ways to connect your brand with a qualified audience looking for what you are offering. Learn more about submitting your article to LPC.
