As more US states move toward decriminalizing cannabis, with Canada legalizing nationwide and suggestions cannabis be included in NAFTA, the cannabis markets are expanding within North America. The increasing number of jurisdictions permitting medical and recreational cannabis drives diversity of cannabis products and differing types of cannabis company.
Medical marijuana is perhaps the most common type of legal company today. For a drug that is often derided as being a gateway drug, legal medical usage tends to precede recreational usage. Medical marijuana companies center their products on treating conditions via controlled, accurate dosing using delivery methods that achieve this such as drops, vape cartridges, patches and even suppositories. Licensed medical dispensaries provide the main outlet for these products.
Alternatively, recreational marijuana companies focus less on specific dosages (though this is sometimes seen on edibles) and instead look to match a cannabis strain or product to a desired mood, experience or health benefit. Smokable products such as joints are the preferred delivery method for cannabis strains, with a rising desire for secondary smokable products such as dabs and extracts like BHO or Shatter. Edibles are also more recreationally focused given their variable strength and delivery time with people preferring sweet treats to salty.
If medical marijuana companies target ailments and recreational marijuana companies target mood, then a health cannabis company focuses on general wellbeing. Using cannabis, and particularly CBD oil as the basis for hygiene products such as soaps, bath bombs, skincare, and essential oils. These products do not contain THC so do not provoke the stoned symptoms of cannabis use.
A cannabis lifestyle company or brand takes in facets of all medical, recreational, and health companies and presents an all round approach where cannabis and cannabis products have multiple touch points with users within their day to day lives. Whereas the other three companies will seek to have their products stocked in a store, a lifestyle company has the additional option of its own branded store through which it sells products. This difference between stores with brands and a brand with a store is that the brand with a store is controlling the product line, the retail environment and the customer experience.
As each of these companies offers different things to consumers, they offer different opportunities for investment. Health, recreation and medical companies will all have their individual product victories but a lifestyle company can breed long term customer loyalty through branded stores with a retail experience that drives customer loyalty.
A cannabis company such as Green Growth Brands is notably taking this approach. They’ve several brands targeting different sectors of the market and are backed by a c-level team of retail veterans who have guided market leading companies through retail change. Ensuring the success of those companies by growing customer loyalty through exceptional retail experiences.