Marijuana Business Magazine May-June 2019

Marijuana Business Magazine | May-June 2019 76 put a product into market, build a brand and find and engage with consumers will need to formulate their plans around understanding the market and their potential customers. Market data in consumer preferences and behaviors are essential to understanding who their consumer is and how they’re using cannabis. When edibles and concentrates become legal later this year, and supply and demand level out, understanding the data around who buys products and how much they’re spending will be critically important in Canada, where brands can’t easily interact directly with consumers. Third, in lieu of traditional marketing, consumer education is the key. Canadian cannabis is an emerging, multibillion-dollar CPG industry that cannot market like any other CPG because of strict regulations that create significant marketing inefficiencies and a disconnect between consumers, producers and retailers. Consumer education, particularly through the brick-and-mortar retail system, will be of utmost importance to driving consumer purchase decisions and early brand differentiation. What’s the critical business opportunity for infused product manufacturers in Canada? Canada is the largest federally legal market in the world with early evidence of strong consumer demand, based on early consumer trends and the size of the illicit market. Statistics Canada released data in March showing that Canadian household spending on cannabis totaled $4.4 billion (CA$5.9 billion) in the fourth quarter; however, $3.5 billion (CA$4.7 billion) of that was with illegal cannabis. When cannabis edibles become legal in late 2019, there will be a first-mover advantage to get in front of budtenders who influence purchase decisions, as well as to develop an early brand relationship with consumers through compliant marketing strategies. Thinking more broadly, this is the first federal legalization of this category. While the dollar size of the addressable market is smaller than the U.S., this is a major opportunity for manufacturers operating in Canada to take the lead globally by setting a standard of excellence for product quality and operating procedures that can then be exported internationally. Find strategic ancillary partners and gather the data on what works. Otherwise, you’re blind. This interview was edited for length and clarity. “This is a major opportunity for manufacturers operating in Canada to take the lead globally by setting a standard of excellence for product quality and operating procedures that can then be exported internationally.” Matei Olaru Lift & Co. Products