The Importance of Branding in the Cannabis Industry
September 10th, 2018
News, Top News
Valuations in the cannabis industry have largely been driven to this point by production capacity, with Canadian licensed producers leading the way in the ramp-up to full legalization there. With major markets now legalizing adult use cannabis, much of the investment focus is moving to retail distribution, marketing, and sales. The question has shifted from ‘How much flower can you grow?’ to ‘How are you going to sell your products to vast new markets of cannabis consumers?’ Retail branding is taking over, and investors might be wise to review corporate brand strategies in search of those that can differentiate a company in the fast-growing industry.
Rubicon Organics™, a private company poised to go public in the very near future, believes it has the strategy, brands, distribution, and products in place to be at the forefront of the retail cannabis wave. Certified organic cannabis products are a rarity, while consumer preferences are trending towards organics. That in itself is a differentiator, but there is much more to Rubicon’s brand strategy.
As the industry shifts from a strictly medical focus to one that includes the larger adult use market, the requirements for effective marketing are changing dramatically. Educating a medical patient about the effects of various strains and active ingredients is a very different task than getting your products to stand out on increasingly crowded dispensary shelves. Canadian licensed producers with established medical operations are recognizing this reality, as evidenced by the wave of partnerships with, and investments in, retail-oriented companies.
In a recent Forbes article discussing the present and future of cannabis branding, Olivia Mannix of the Cannabrand agency said (regarding recreational cannabis), “Products that are marketed for the effect or mood have stood out from the crowd. Also using marketing that is lifestyle based has been successful.” John Kagia of the analytics firm New Frontier Data noted, “Brands which have been able to effectively identify specific consumer segments and tailor their branding and marketing strategies to reflect the priorities and preferences of those groups are best positioned to compete as the market matures.
Rubicon Organics’ flagship brand is 1964 Supply Co.™ (the name is a nod to the year in which Dr. Raphael Mechoulam discovered the THC molecule), currently produced, branded, and distributed throughout the state of California. The brand projects a hip, relaxed California beach vibe, an image and lifestyle that has proven eminently exportable in many industries including movies, music, and natural foods.
1964 Supply Co.™ artwork
The brand works with world-renowned artists to create visually engaging artistic packaging inspired by the artist’s experience with a particular strain, differentiating the products and attracting the eyes of curious consumers. 1964 Supply Co.™ was also recently a major sponsor of the 2018 International Surf Festival in the Los Angeles area, a long-running celebration of California beach lifestyle featuring lifeguard relays, beach volleyball, and surfing competitions.
In California, Rubicon has multiple contract supply partners across the production sector who provide high quality greenhouse grown cannabis for their 1964 Artist Collection. Due to the tremendous reception by retailers for 1964, Rubicon is set to expand their portfolio offering this September with the launch of both their mainstream vape pen line-up and their ultra-premium category offering, the Black Box series featuring connoisseur grade, exotic cannabis strains which will be available in limited releases. Rubicon plans to bring the brand to Canada upon its anticipated receipt of of a producer’s license there. By 2020, the company expects to produce 67,000 kg/year of certified organic cannabis out of its hybrid greenhouse facility in Delta, BC.
The certified organic angle is important, and incredibly rare in the cannabis world. Upon licensing, Rubicon would become only the third organic Canadian licensed producer. Recent research by Hill+Knowlton Strategies found that 57% of medical cannabis users and 43% of recreational cannabis users prefer organic cannabis. Considering that only 2 out of 115 currently licensed producers in Canada are certified organic, the opportunity to grab significant market share with organic products is obvious and appealing.
Overall, Rubicon is combining the Southern California beach lifestyle with certified organic products to create a brand of cannabis products to reach far beyond Los Angeles. Already available throughout California and coming soon to Canada, Rubicon plans to spread the 1964 Supply Co.™ brand far beyond those markets. Utilizing Canada’s unique early mover position in the global industry as an exporter of approved products, and capitalizing on the combination of California cool, ‘BC Bud’, and certified organic, Rubicon is planning to become a major cannabis brand. Don’t say you weren’t warned.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://www.cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
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/.