Find Out How Data and Current Marijuana Facts Can Place Your Business Ahead in the Emerging Cannabis Industry
Oct 15th, 2018
As cannabis start-ups venture into regional and international markets, it is important to keep in mind data that drives successful innovations. By paying attention to market trends, cannabis can be a great industry to explore different ideas all under the same brand.
Sourced through Scoop.it from: marijuanapackaginglaws.com
Want to know how to take most of the guess work out of business decisions especially in the Canabis industry? Cy Scott analyzes marijuana facts and industry trends in Washington state and how these trends could be applied to other markets such as Canada. He touches on key data metrics for start-ups to utilize before venturing into the industry.
Noelle Abbott sits down with CEO and co- founder of Headset, Cy Scott. Cy is one of the original co-founders of the website Leafly. The company, Headset, is a data and analytics company with the mission of helping cannabis operators take a lot of guess work out of business decisions, by leveraging data to generate better marijuana facts. They are able to obtain the data by working closely with retailers. They provide retailers with business intelligence and a good sense of internal data sales trends to help them better understand what inventory they need to be carrying.
Additionally, this information better educates budtenders and consumers in the process. They are able to provide a benchmark of marijuana facts against the market averages so the companies know how they are performing in comparison. The focus of the interview is on Washington state data with talks about the Canadian and California market. Washington publishes license data, so they get a decent sense of the total number of licensee holders since initial launch of the market. The state has over 500 retailers and 1,000 producer/processors, closer to 1,400 since the beginning.
License holders often will have multiple brands underneath their processing license. The brands that have been sold to retailers in 2018 amount roughly to 900. So, one is looking at about 1,400 licenses. Scott mentions, “looking at 2017 versus 2016, it’s dipped down to about 33% year-over-year growth;” this is because of the saturation of brands in the market. While this saturation is still the case, the top 10 brands are taking 20% of the market. In Washington, with $1 billion in sales each year, that is a substantial amount of the market.
Basic marijuana facts contest that a large majority of the saturation is in the flower category. Scott states, “with an edible you have to have not only the packaging and processing, but some sort of recipe…you need a commercial-grade kitchen facility that’s licensed to be able to produce, so it is harder to do.” Some of the successful factors that Scott mentions are having a solid distribution channel.
“If you’re strictly a flower producer, while flowers command such a large majority of the market, the growth rates aren’t there.”
He states companies should produce multiple products to position themselves against others when new trends come about. He also mentions that, people will continue to purchase from brands they trust rather than venturing out to competing brands.
Headset helps to optimize the distributors inventory and helps them make the decision to discontinue certain brands. They also help with curating marijuana facts and share the data back to vendors. They assist companies by analyzing which products are selling and why; as well as, what the margins look like. Scott recommends: “categories like the capsules, the tinctures and topicals that have very high growth rates, but have very small market share right now, you know, 1-2% of the market maybe that’s where you want to be.” To find out more about the importance of data for businesses in the cannabis industry visit the original source at the Ganjapreneur website.
Learn how Cannjoin’s innovative practices as a cannabis accelerator provides start-ups with the mentorship and financial support to take advantage of data trends. Contact us at info(at)cannjoin.com for more information