Cannabis investors have started taking notice of how crucial branding will be for the competing companies in this space, once the markets change recreational laws.
Observers of the industry have debated the significance of owning a discernible brand will do to engage consumers and favor one company over another.
But, as noted by former Eight Capital analyst Daniel Pearlstein in a research note issued on February, consumers make decisions based on brands in other markets like the tobacco and alcohol industry, and that trend was coming to cannabis as well.
“Soon cannabis and derivative products will go from mostly being defined by the literal description of the product to being described by origin, quality, and experiences,” Pearlstein wrote.
With that in mind, the Investing News Network (INN) takes a closer look at the recent branding efforts from two different types of cannabis operations in the Canadian market.
Organigram reveals brand portfolio
On Tuesday (May 15) Organigram Holdings (TSXV:OGI; OTCQB:OGRMF) offered investors a detailed look into the portfolio of recreational brands the company plans to develop and nurture into recognized names for legal recreational consumers.
Organigram CEO Greg Engel said the recreational brand strategy for his company “incorporates the best of what we know about our current and potential customers.” He added over 18 months of research work was completed in order to create four different brands.
The actual brands themselves, The Edison Cannabis Company, ANKR Organics, Trailer Park Buds and Organigram will attempt to appeal to four different consumer types, from organic demands to premium priced products.
Arguably the most distinct of the four is the brand associated with Trailer Park Productions, associated with the popular Trailer Park Boys television show. According to Organigram, this brand will speak to consumers who “don’t take themselves too seriously.”
Actual product offerings for this brand include pre-rolled and blended cannabis. Despite introducing these brands Organigram’s stock value decreased during the trading sessions on Tuesday and Wednesday (May 16) by 1.04 and 0.21 percent respectively to reach C$4.74.
Canadian operator announces recreational brand will lead retail strategy
National Access Cannabis (TSXV:NAC), an operator in Canada that earned one of the four critical retail licensed in the province of Manitoba, announced on Tuesday the introduction of its own recreational market brand Meta Cannabis Supply.
Meta, the way the company is also referring to the brand, will be tasked with guiding the company’s recreational efforts including serving as the face of the upcoming retail locations, set to be open where NAC has obtained licenses for.
“NAC developed the Meta brand to appeal to health-conscious Canadians who embrace the benefits of quality cannabis products,” Mark Goliger, CEO of the company said in a statement.
The concept images from NAC offer a view into a futuristic version of modern cannabis retail spaces available to consumers in Canada, with tablets offering information on the products displayed.
The company also promised it will be offering cannabis products from CannaRoyalty (CSE: CRZ; OTCQX:CNNRF) a US-focused cannabis operator and Tilray a private medical marijuana licensed producer in B.C.
However, CannaRoyalty is not currently an LP, nor does it hold any late-stage applicant facilities in Canada. Therefore, according to Afzal Hasan, former executive vice president of corporate development and recently appointed president of CannaRoyalty, this partnership between the two companies does not have a timeline on actual production.
“Given the fact that it’s uncertain when we will be able to produce products in Canada, given the fact that it’s uncertain when the regulations are going to come out and what exactly they are going to say about the different product categories, we have taken the pathway of actually trying to secure these distribution channels first,” Hasan told INN.
NAC declined in value 3.75 percent following the announcement by the company. During Wednesday’s ’s trading session the company closed at the same price as its previous close at C$0.76.
Despite an increase in companies in the cannabis space announcing more concrete strategies in regards to the brands they intend to develop, most of these announcements won’t likely cause a huge effect on the stock performance of companies–at least until the market sees the results with legalization.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.