Winmo

5 Cannabis Brands Sparking Up Marketing Spend - Winmo

Five cannabis brands—Curaleaf, cbdMD, Charlotte’s Web, and two others—are significantly increasing their marketing spend and digital efforts, targeting homebound consumers during the COVID-19 pandemic with strategies including vertical integration, athlete partnerships, enhanced e-commerce platforms, and diversified digital advertising to capitalize on rising demand among GenZ, Millennials, and Gen-X demographics.

Cannabis and CBD brands are currently increasing their marketing efforts to reach homebound consumers, especially as these products have been deemed essential services in most states. The industry predicts an increase in consumption amid the coronavirus pandemic, particularly among GenZ and Millennial consumers. Here’s an overview of five cannabis brands signaling rising marketing spend and partnership potential:

1. Curaleaf

Earlier this year, Curaleaf acquired Cura Cannabis Solutions and Arrow Alternative Care, achieving vertical integration and expanding opportunities in eligible markets. Jason White of Cura became Curaleaf’s CMO, suggesting the potential for a new agency hire. Curaleaf’s dispensaries remain open, offering express pickup and soon launching curbside service. Products are not available via eCommerce due to legal restrictions. Curaleaf targets markets in FL, CT, MA, NJ, OR, AZ, ME, MD, and NY, with a primary demographic of Gen-X.

2. cbdMD

cbdMD has reported increased online sales due to enhanced marketing tactics. The North Carolina-based company expanded into major league athlete partnerships and affiliate programs, pushing their direct marketing budget above $2 million in FY 2019. With the shift away from events and trade shows, cbdMD has focused on digital channels such as display, paid social, and influencer initiatives. Their social and digital spend is expected to increase into Summer 2020.

3. Charlotte’s Web

Charlotte’s Web (CW), a hemp-based goods company, launched its e-Commerce platform late last year. CW recently transformed its earned media model, improved its online experience, and launched the “Trust the Earth” marketing campaign. In Q4 2019, its D2C channel reached its highest conversion rates. The company will continue to focus on D2C and phase its marketing spend more evenly. CW is primarily focused on earned media channels but is likely interested in digital display, paid social, OTT, and podcast ad space. The brand targets consumers in CO and CA, especially millennial and Gen-Z parents. CW has also set up a donation to support service dog training and raised local support for Children’s Hospital CO. Studio Number One worked with Charlotte’s Web on the “Trust The Earth” campaign, with potential for additional project work.

4. Wana Brands

Wana Brands has expanded into Missouri and hired a new CMO, Joe Hodas, in March. The cannabis-infused edibles brand will be available for MO medical dispensaries in Q4 2020. Wana Brands already has a strong presence in Midwest to West states like IL, MI, OH, AZ, CA, CO, OR, and OK, but has not expanded to the Southeast or Northeast. New CMOs often trigger agency reviews, so outreach is recommended.

5. Aurora

Aurora, an affordable medical cannabis company based in Canada, is looking to drive growth through increased marketing initiatives. Aurora has raised a total of $429 million in funding, with the most recent round in September 2019. Aurora has previously placed ads programmatically via Google and is expected to return to this channel, focusing on younger consumers. Paid social and hyper-localized ad dollars may be the easiest to secure. Medical cannabis goods are available in 33 states and DC, and Aurora’s products are primarily available online.

If you’re interested in contact details and sales tips for reaching out to these brands, Winmo offers a trial. For other prospecting categories during the COVID-19 pandemic, see posts about brands boosting eCommerce and advertisers increasing digital spend.