Choom™: Laser Focus on Recreational Branding for Legal Cannabis


Ryan Allway

January 25th, 2018

Exclusive, News, Top News


As the legalization of adult use of recreational marijuana approaches this summer in Canada, there have been three phases of growth in the industry. The first phase was medical use only, in which licensed producers (LPs) with medical/pharma brands sold to medical users. In the second phase, LPs planned and financed major expansion projects, upping production levels in anticipation of a supply shortfall this summer when cannabis is expected to be fully legal. This phase is ongoing.

The third and very recent phase is for these companies to invest in consumer oriented brands as opposed to those aimed at medical patients. Marketing to a broad consumer base is a very different prospect than marketing to doctors and their patients. As with the similar alcohol market, success in the recreational cannabis market will likely depend on developing and maintaining brand loyalty through consumer identification with a marijuana lifestyle. In this phase branding and retail distribution will become the key.

In this article, we will cover this third trend and the early mover position taken by Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF). Choom is the Hawaiian slang for marijuana, and the company intends to bring the spirit of aloha and good times to Canadian cannabis consumers. Choom is a late stage applicant under the Access to Cannabis for Medical Purposes Regulations (ACMPR) licensing process, has a letter of intent to acquire another late stage applicant, and recently announced its intention to create its own chain of branded retail dispensaries.

Pure Play Recreational Brand

Choom Holdings began trading in the fall of 2017 on the Canadian Securities Exchange with one thing in mind: develop a recognizable and loved lifestyle brand for the adult use cannabis market. Choom has an interesting documented history: Choom™ was inspired by the Choom Gang, a group of buddies in Honolulu (including President Obama) during the 1970’s who loved to smoke weed—or as the locals called it, choom.

Choom came out of the gate knowing what its mission was with a clear plan to achieve it, while more established companies have had to switch gears from years of focus on medical marijuana, doctor/patient relationships, and effectiveness of strains for different indications.

Recent deals clearly display the medical-to-recreational trend and the value placed on the larger adult use market. Constellation Brands (NYSE: STZ), a large alcohol conglomerate with brands like Corona, bought about 10% of Canopy Growth (TSX: WEED), one of the largest licensed producers in Canada, for around C$245 million. The intent is to develop and market cannabis-based beverages. Aphria (TSX: APH), another of the larger licensed producers, has been very active on this front. The company bought Broken Coast Cannabis, a small producer of premium strains, for C$230 million with an eye on the consumer market. Aphria also chipped in C$12.5 million for a stake in Hiku, the company being formed from the merger of consumer brands DOJA Cannabis Company (CSE: DOJA) and Tokyo Smoke. The value of Tokyo Smoke alone was C$70 million for a brand and retail locations… and they don’t sell marijuana yet.

An interesting aspect of Canada’s legalization is the limitations on the way cannabis can be marketed. Similar to restrictions put on the advertising of tobacco, cannabis will not be advertised where youth can see it. Companies with deeper pockets will not be able to plaster the media (both traditional and social) and the countryside with ads, squeezing out smaller brands through sheer volume and force. Rather, according to experts in the industry, the most successful brands could come from smaller, more nimble companies like Choom. With its strong brand history and retail plans in place, the company is positioned to carve out its niche in the anticipated C$6 billion/year adult use market.

In 2017 Health Canada implemented a streamlined process for the review and approval of ACMPR license applications. This has led to an uptick in approvals as full legalization approaches and supply worries loom. Though nothing is guaranteed, these developments are a good sign for Choom. With one application in the detailed review stage (already been granted security clearance) in Vernon, B.C., and plans to acquire a second applicant company that is even further along on Vancouver Island, B.C., Choom hopes to hit the ground running.

The Upshot

Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) appears primed to take advantage of market and regulatory forces in the pending Canadian adult use cannabis market. Marketing to adult consumers of marijuana is quite a different proposition than marketing to medical patients, a fact that Choom heartily acknowledges and embraces. Stay tuned to this channel for further developments, and say ‘Aloha’ to good times to come.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please see our disclaimer below and follow the link to view our full disclosure outlining compensation: https://www.cannabisfn.com/legal-disclaimer/

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Network Partners

Follow Us on Social Media

About CFN Media

CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.

Learn How Your Company can Be Covered on CFN Media

Learn More About the CFN Media Sponsored Content Program

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © TDM Financial LLC · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading