Marijuana Business Magazine - January 2017

74 • Marijuana Business Magazine • January 2018 Capitalize on the Potential of Hemp-Derived CBD There’s a huge untapped cannabis market out there. It’s for cannabidiol, where few brands have any consumer recognition and there is opportunity galore for new producers. Bethany Gomez – director of research for the cannabis market research firm Brightfield Group – has studied the nation’s hemp-derived CBD market. Her conclusion: No one is yet doing a great job marketing the product. Of the 200 or so brands selling hemp-derived CBD products, none has more than 7% market share.That’s a shame, Gomez said, because there are so many positives to the product. It doesn’t impair users, and 88% of hemp-derived CBD users surveyed by Brightfield classified it as being “very” or "extremely effective" in treating medical conditions. CBD makers might not be permitted to make medical claims, but consum- ers can, and their response level will spread organically, Gomez said.That means getting “earned media,” or coverage from news outlets, which Gomez said CBD makers can do by ensuring customers know how to find them online. Apply Big Ag Techniques to Cannabis Cultivation Marijuana growers would be well- served to learn from Big Agriculture prac- tices, according to Hybrid Tek founder Dan Gustafik, whose Oregon company provides design, engineering and consulting services to cannabis cultivators. Because Big Ag is a giant industry – it represents 5.5% of gross domestic product in the United States – it can, at times, have best-in-class technology, heightened efficiency learned through trial and error, and sustainability practices that cannabis cultiva- tors can apply to their operations. “Commercial agriculture has been advancing for years with innovations in cultivation methods, design and equipment,”Gustafik said. If you’re looking to improve your grow operation, it would be a smart move to capitalize on the experience and innovations developed in traditional agriculture, particularly in the organic herb market.These farmers have gained efficiencies by using: • Affordable and scalable LED lighting. • Vertical farming techniques. Stacking plants saves an enormous amount of space. • Mobile-rack systems can streamline your grow operation and help you scale in small spaces. Be Aware That Particle Size Matters in Extraction A number of factors can influence extraction quality, such as the temperature and pressure used in the process, as well as the time and flow rate. But particle size – or the size of the product put into the extraction system – can also make a difference, said Markus Roggen, vice president of extraction at OutCo, a California cultivation and extraction company. In short, the smaller or finer a cannabis flower, the better, because it flows more smoothly through the extraction machine and results in a preferred product. For that reason, it’s good to mill your flower before putting it into the extraction machine. “Particle size is really important in extraction, and it also helps with packing,”Roggen added. Don’t Give Up on Social Media Cannabis companies can’t market on social media because industry giants such as Google and Facebook have policies blocking industries illegal under federal law, right? Wrong. Natalie Cupps DiBlasi, co-founder of LACED Agency and social media strate- gist in Redondo Beach, California, said there are plenty of ways cannabis compa- nies can get noticed online. Some of her tips: Social media companies, including Instagram and Twitter, remove posts that seem to sell “marijuana” or “cannabis” – sometimes even “hemp.” So, don’t use those words. Instead, think about promotions that might escape censors.What about promoting a “Wellness Wednesday” at your dispen- sary? Or throwing a “Chocolate Week” around Valentine’s Day to move edibles? Get creative with promotions that won’t raise alarms. Don’t use images of the plant. Period. Photos and videos are a must. Show people relaxing, or feeling better or having fun. Don’t show cannabis. Show the effects that cannabis has on people. Don’t stop at Facebook. Pinterest is extremely popular with women, and YouTube reaches more 18-to-49-year-olds than any cable net- work in the United States. Both platforms are slower to block cannabis posts than some other platforms. Even if you’re rejected by Facebook, keep trying to market on the platform. “You can’t miss the chance to market to the world’s largest social media audience.” DeBlasi said it’s also important for cannabis companies to prepare for global legality by establishing brand credibility. So, include language in every single piece of online marketing that your company complies with state and local laws and that cannabis products are intended for adults. “Make it clear that you are a responsible company,” she added. 4 5 6 7