New York Times Article
In Colorado, a Rebranding of Pot Inc.
Step into a Colorado pot dispensary at random, and you’ll long for the luxuries of the D.M.V.
Metal bars cover windows. Vinyl signs are tacked to walls. Guys in hoodie sweatshirts greet you from behind the counter. Even the act of ordering the product itself is borderline absurd. What grown adult can respectfully walk into a store and ask for an eighth of Green Krack and a nub of Big Buddha Cheese, please?
But that experience is changing, thanks to a new breed of entrepreneur in Colorado — young, ambitious and often female — that is trying to reach a more sophisticated clientele in everything from language to packaging to social events.
Colorado became the first of two states to legalize recreational marijuana sales this year, paving the way for millions in tax revenue, and a new kind of consumer. That is why, on a recent weekend, Ms. Mannix and her co-founder, Jennifer DeFalco, were camped out in Aspen for a pot-themed (and pot-induced) brainstorming session.
he gathering was billed as a “writer’s retreat,” but mostly it involved talking. They discussed edible marijuana and flavor pairings over a meal prepared by Melissa Parks, a chef trained at Le Cordon Bleu (THC-infused truffles optional). They contemplated strain hybrids and herbal remedies, with commentary from a self-described “cannabis sommelier,” as well as the “gangapreneurs” who have flocked to Colorado since pot was made legal, not wanting to miss out on the so-called green rush.
And, of course, they talked about branding: How can the pot industry shed its stoner stigma?
Pot has practically gone mainstream. A majority of Americans now supports legalization efforts. There are coming ballot measures in Alaska, Oregon and the District of Columbia. Yet when it comes to pot culture, the industry remains comically rudimentary.
Dispensaries still “look like underground abortion clinics,” Ms. Mannix said. Advertisements are full of “women with whipped cream straddling bongs,” Ms. DeFalco said. And the old stoner stereotype endures: lazy, mostly men, rolling joints in their parents’ basement, covered in Doritos crumbs.
“The average person, when you say the word ‘marijuana,’ they have a visceral reaction,” said Paul Armentano, the deputy director of the National Organization for the Reform of Marijuana Laws, one of the oldest of such groups. “There’s a reason the alcohol industry spends tens of millions of dollars to advertise and market their products. Successful branding pays off.”
So where do branding specialists begin? For starters, they would like to stop calling it pot, thank you very much. Better to call it cannabis, the plant’s scientific name. (Less aggressive.) Rather than “smoke,” one “consumes” the “product.” (Subtler.) For those in the business — or cannabusiness, as it’s known — 9-to-5 chic is crucial, said the Cannabrand owners: no sweats, no tie-dye, no Bob Marley T-shirts.
While smoking (or rather, consuming) on the job seems to be par for the course, it’s not without a certain decorum: a dainty-looking joint or perhaps a vaporizer pen (like an e-cigarette for weed) that slides neatly in a purse or pocket.
Cultural crossover is already well underway in the state. The Colorado Symphony made headlines this summer when it began a series of shows called “Classically Cannabis,” in which free-spirited music lovers were invited to B.Y.O.P.
Throughout Denver, there are monthly cocktail and cannabis events, put on by a local party planner, as well as a weekly painting course called Puff, Pass and Paint, hosted in a charming Victorian studio — an effort to, as Heidi Keyes, the cheerful 28-year-old instructor, put it, blend “Mary Jane and Monet.”
Cannabrand recently rolled out a yoga class called Vape and Vinyasa. The company is working on an app that will allow users to place their pot order online and skip the line (as they describe it, “like an OpenTable for weed”).
“The thing is,” said Ms. DeFalco, who is the duo’s creative director, “baby boomers are smoking, stay-at-home moms are smoking, business executives are smoking. But for so long, they’ve done it behind closed doors. We want to bring them out of the shadows.”
And they want to keep them out there. Meg Sanders, the chief executive of a network of dispensaries called Mindful, recently hired Cannabrand to do an overhaul of her company, formerly called Gaia.
The new name was chosen to reflect the brand philosophy, she said, but also to modernize its look — in everything from logo to the uniforms worn by employees to the dispensaries’ shabby insides. Many of the marketing materials do not even mention the word “cannabis” (or any other word for pot).
“I’ve heard time and time again, ‘I walk into a dispensary and I feel like I’m walking into a stoner’s basement,’ ” said Ms. Sanders during a tour through the expansive factory where her plants are harvested. (It also acts as the company’s headquarters.) “So we really had to think, ‘How do we package our product in a way that wherever we go — whether it’s the most liberal or the most conservative clientele — people look at us and think, “I get it. I’m not offended by this.” ’ It’s not Joey’s weed shop, you know?”
Ms. Mannix and Ms. DeFalco studied together at the University of Colorado at Boulder, though neither has a business background (Ms. Mannix studied communications, Ms. DeFalco advertising). They are young, working overtime trying to project a business savvy, but they’ve also filled a hole in the industry that the mainstream business sector has yet to touch.
For example, the women were among the sponsors of a recent career fair called CannaSearch to recruit for some of the 500 open pot jobs in the state. The jobs included dispensary workers, yes, but also horticulturalists, social media managers and marketing executives. The applicants showed up — among them, C-suite level executives, said Ms. Sanders — but not a single mainstream brand had even a sponsorship presence.
“There is a huge untapped market here,” said Ashley Picillo, a 26-year-old former teacher who runs a cannabis events agency and was the fair’s co-organizer. “It’s about reaching nonconsumers. Women. Young people. Business professionals. Grandmothers and soccer moms. People like me.”
In other words: more Aspen, less Cheech and Chong.
To Keep Business Growing, Vendors Rebrand Pot's Stoner Image
From the outside, Jan Cole's recreational marijuana store in Boulder, Colo., just feels welcoming. Big glass windows let in natural light, and the walls are painted in soothing earth tones. Cole used her background in spa management to build a "warm and inviting" pot shop that puts customers at ease.
In fact, the store's name, The Farm, is so inconspicuous, "we have a lot of people who come in think that we might be an organic food grocer or something," she says.
And that's exactly who Cole is trying to attract: the tote-bag carrying, socially conscious, natural-food crowd. She advertises her cannabis as pesticide-free, organic and, of course, locally grown.
This all reflects Cole's attempt to break away from the pack. With recreational marijuana use now legal in Colorado, marijuana businesses are finding themselves competing for customers in tight marketplaces.
About 200 recreational marijuana stores have opened in Colorado since Jan. 1. And as the market becomes more and more saturated, everyone is looking for an edge.
Reaching Beyond 'First Adopters'
Jennifer DeFalco is creative director for Cannabrand, a marketing agency named for a mashup of "cannabis" and "branding." DeFalco and her business partner are banking on Colorado's marijuana industry becoming big business — one in need of flashy logos, memorable catchphrases and eye-catching ads.
"Cannabis is here to stay. It's not going anywhere. The industry is just beginning," she says.
Because it's so new, DeFalco says that most people who have already popped into a recreational pot shop are the first adopters — people who have tried marijuana before. But the whole point of marketing is to grow a business by reaching people who are on the fence about trying marijuana.
"So part of the rebranding of cannabis is really just making the dispensaries more inviting and more welcoming," she says.
But when it comes to advertising, it's not as simple as buying ads on the TV or radio. State rules in Colorado forbid shops from advertising on media where more than 30 percent of the intended audience is younger than 21. That kind of audience data is not readily available. If challenged, it could be tough for marijuana businesses to prove kids aren't seeing a particular ad.
"One thing that is interesting and important for the industry is this question of exposure to kids," says Margaret Campbell, a marketing professor at the University of Colorado Boulder. To reach new markets, she says, the industry as a whole needs to strip away the marijuana user stigma.
"[Businesses are] going to try to go beyond their core quote-unquote 'stoner user' to expand and have it be acceptable at cocktail parties," she says.
Losing The Stoner Stigma
At a recent cocktail party at a gallery in Denver's arts district, Amy Dannemiller is trying to do just that: build a new business around removing the stoner stereotype.
Each month, Dannemiller, who uses the alter ego Jane West when planning pot gatherings, throws upscale parties where attendees bring their own marijuana and pay a $95 charge for fancy hors d'oeuvres and an open bar.
"It's just basically a big social event where everyone can enjoy cannabis like they would a glass of wine," she says.
But even the party's attendees say that, culturally and legally, marijuana isn't yet the same as a glass of wine — employers can still drug-test workers. One woman at the party, for example, declines to give her name, saying her job could be at stake.
"That's the hurdle. People can't be associated with it," she says. "Everyone does it, but they can't tell anyone about it."
That's a tricky legal hurdle that'll take a lot more than advertising and branding to overcome.
Weed Marketing Faces High Marketing Hurdles
Denver Post Article
Colorado women making over the image of the cannabis industry
Christie Lunsford used to feel so lonely.
As a medical marijuana caregiver, she would attend cannabis industry meetings and be the only woman in the room.
"The first time I saw another female, I was really excited. That was in 2010," said the 43-year-old Denver wife and mother, who has branched out to cannabis marketing, product development and sales.
These days, she attends some cannabis-industry meetings that are all-women — and all about women. What began several years ago with a trickle of women tiptoeing into the brave, new weed world has turned into a stream in Colorado.
More than two dozen women in the Denver area, ranging in age from late 20s to mid 60s, are running large grow operations, opening storefronts and developing topical products and edible lines. Women are selling marijuana-friendly real estate, creating software for the industry, taking the reins at cannabis testing labs and climbing into leadership roles in the policymaking and legislative arena.
The intent is to tip the statistics that show nearly half of men admit to having tried marijuana but only a third of women have.
They are persuading more women to try to consider cannabis by staging pot-themed events that appeal to the more feminine side of users, including spa and yoga retreats, upscale culinary and art soirees, bachelorette parties and even symphony and marijuana mashups.
"We are encouraging women to come out of the woodwork," said Jane West, owner of Edible Events Co. and founder of Women Grow. "We need their voice in this industry."
Women are not only jumping into an industry built by men and cashing in on the explosion of business opportunities that Colorado's legalization of marijuana has created. They are also gentrifying and gentling pot's testosterone-laden image.
That old stereotype of a woman in skimpy clothing suggestively holding a bong? So yesterday, these women say. They point to their classy websites and ads where women are depicted in business clothes, not bikinis, and the appeal is aimed more at the malbec and tapenade crowd instead of "stoners."
"Women have been more like accessories in the industry. They've been objectified and used to draw in men. No more. Now, we women are saying we enjoy cannabis as well," said Olivia Mannix, who teamed up with Jennifer DeFalco to form the cannabis marketing company Cannabrand.
They recently launched an online "canna-culture" store where women can buy stylish clutches along with artsy pipes and fancy stash boxes.
"Classin' up the joint" is the way Diane Fornbacher describes the female impact on the cannabis industry in "Ladybud," her magazine devoted to women's issues related to weed.
Fornbacher has been one of the pioneers in the pot industry. For about two decades, she was a writer for "High Times" and the pot-growing magazine, "Skunk." In more recent years she has been one of four female members on the 19-member governance board for NORML, a national organization devoted to reforming marijuana laws.
Fornbacher last month moved to Highlands Ranch from New Jersey, drawn by both the legalization and the growing network of female ganjapreneurs. "There is a kind of sisterhood here," Fornbacher said.
That sisterhood has a wide range of women who support each other. They praise each other's products and services and send customers each others' way.
NORML is also carrying out an outreach for women nationally with the NORML Women's Alliance, which is billed as an offshoot organization for women against prohibition.
The Colorado group will be more about women trying to support each other in a business that is complicated because it is new and it falls between conflicting state and federal laws.
"It's a fantastic, exciting industry," Lunsford said, "and we want to be leaders in it."
A look at some of the other women who have emerged in the female network of the cannabis industry:
• Julie Dooley, a Denver mother of three, who turns out healthy infused products like Grown Up Granola and Sensible Seed Mix as president of Julie and Kate Baked Goods.
• Jessica Billingsley and Amy Poinsett. They started the MJ Freeway Business Solutions company to develop software for the cannabis industry.
• Genifer Murray who put her microbiology degree to use by starting CannLabs Inc., a THC testing lab, and Heather Depres, the lab director at CannLabs who is lending her expertise to the state Marijuana Enforcement Division.
• Kristi Kelly, who presides over several storefronts and two industiral indoor grow operations with her Good Meds Network.
• Meg Collins, the director of the Cannabis Business Alliance, an industry trade group.
Branding marijuana for a changing market
The market for marijuana is changing, at least in the states where the drug has been legalized. In Colorado and Washington, where recreational marijuana is legal for adults, cannabis sellers are finding new approaches to the way they sell their products. The new business plan, for many, includes advertising and marketing -- a shifting image.
That's where Cannabrand comes in. Olivia Mannix, on of the founders of the marketing company, says that Cannabrand focuses on marketing cannabis products in legal markets. That includes working with a variety of companies, not just dispensaries.
"We take on clients ranging from the tech space to dispensaries, to grow operations," Mannix says. Cannabrand works on branding for these companies, and aims to make the retail experience in the marijuana industry more accessible.
But advertising and selling a product that's largely classified as an illegal drug can be trick. Brands bump into problems with trademarking -- which is not a state issue, but a Federal one. "Trademarks are a problem," Mannix says, "if the name has to do with marijuana/cannabis, it's going to be difficult to have your trademark go through on a Federal level."
Mannix says that the biggest logistical problem for marijuana companies and advertisers is banking. Most banks won't finance companies associated with the drug. "You're not supposed to use credit cards," she says, "and a lot of these companies have bigger holding companies that aren't associated with cannabis so that they can open a bank account."
This workaround can help companies deal with credit, but when banks discover the association, the accounts can be closed, meaning that many marijuana companies deal almost exclusively with cash.
"There are some new banks coming up that are actually FDIC insured for the marijuana industry," Mannix says. She hopes that banking restrictions will ease for her clients, but for now, but of the industry is cash-only -- a model that remains a roadblock to legitimacy.
Mannix's other key role is working on destigmatizing marijuana. She uses the words cannabis and marijuana instead of weed, pot, or grass. She says a lot of the stigma associated with marijuana has to do with old propaganda. Cannabrand touts potential health and social benefits associated with cannabis products -- it's intended to make the plant more accessible to a broader audience, but many people still balk at the idea of recreational marijuana, and advertising related to marijuana.
"It might sound insane, but this is an industry, this is a marketplace, and every industry needs to have some type of branding and marketing and advertising associated with it," Mannix says, "yes, one might think that marijuana sells itself and it doesn't need to be marketed, but now that this is a legal industry it's a competitive marketplace, and companies need to differentiate themselves."
Cannabrand works with about six clients in any given month, and Mannix says they market to a wide range of demographics, including younger people, older people, and an upscale professional market.
Cannabrand stays informed about laws and regulations and works on education when it comes to consumption. Mannix says that one of the biggest gaps in the industry is education about recreation use, including things like where to consume, and how much.
"That's something that we're really trying to promote," Mannix says. When it comes to consuming marijuana she says "it's very important to start low and take it slow."
Changes to the physical spaces where marijuana products are sold are helping with stigma and image, Mannix says. "There actually are a lot of beautiful dispensaries in the Denver and Colorado area that have really been able to change their interior design. Some of them look like Mac stores, some of them just have beautiful woodwork, and a lot of the other dispensaries are evolving their brands and making their space more comfortable for their target market."
Mannix says she hopes the marijuana industry will become more like the liquor industry, where it's easier to advertise and reach a wider audience. Her hopes for the future of marijuana marketing? "I'd really like to see there be more leniency so that marketers and advertisers can do their job for the cannabis industry."
The Daily Beast Article
Ganjapreneurs Flock to Colorado Following Marijuana Legalization
Long a destination for young men answering Greeley’s call to “go West,” Colorado’s status as the first state to legalize recreational marijuana sales has taken its desirability to a new, ahem, high. Mike Maciag, data editor for the state and local government-focused magazine Governing, says an estimated 36,284 people moved to Colorado in 2013, almost 8,000 more than the year before. The number places Colorado in third place as the state with the most domestic in-migration (following North Dakota and Washington, D.C.). With 300 days of sunshine, 54 peaks above 14,000 feet, and a marijuana market poised to bring billions, Colorado is America’s treasure chest—the gold rush gone green.
“Once legalization happened, I knew Colorado was the place to be,” says Max Patton, a 26-year-old Denver newcomer. Weeks after moving from Oklahoma in November 2013, the skiing aficionado launched maxqualityglass.com—a company specializing in high quality, and high priced, glass pipes (still advertised strictly for tobacco). With a love for marijuana, a background in business, and a first-hand knowledge of the glass market, Patton knew he’d be an asset to dispensaries. He was right. Just two months in, the former land management worker says he’s raking in $12,000 a month and then some. “It’s a great job,” he says. “I get to put a smile on people’s faces.”
Nipping at his heels for a whiff of something smokin’ are Jennifer Defalco and Olivia Mannix, two 24-year-old east coasters who met at UC Boulder and have since created the ”first recreational marijuana branding agency”, Cannabrand. Jumping on the phone while racing from one meeting to the next, the best buds are nothing if not enthusiastic. “The world perceives cannabis consumers as deadhead, unemployed people—our mission is to change that,” says Defalco. Representing all things cannabis from clothing stores to parties, they’re now major players in the weed world. “Nothing is certain, but everyone in the industry is so friendly,” says Mannix. “It’s a risk we’re willing to take.”
Stories like these are what Dr. Phyllis Resnick, lead economist for the Colorado Futures Center and co-author of CSU’s Amendment 64 Fiscal Analysis finds exciting. “It’s a really interesting phenomena that’s happening,” Resnick tells The Daily Beast. While the first three months will likely be inflated by pot tourists gunning to “see it first,” the months following will be a better indicator of the overall economic impact.
So what would the expert get involved in if she wasn’t too busy projecting the future of Colorado’s economy? Edibles. “I think the food side of things is really fascinating to watch,” she says. “The most sustainable impact—assuming there are no hitches legally—will be ancillary things like that.”
Tripp Keber and Chuck Smith know just what she’s talking about, and are already mixing things up in the kitchen with their company Dixie Elixirs. What started four years ago with a single “orange pot soda,” has become an edibles empire in Denver. Now catering to all dispensaries in Colorado, Dixie offers 100 different variations of marijuana-infused products, from tootsie rolls to lotion. “Demand for the product has far exceeded our best expectations,” says Joe Hodas, Dixie’s newly-hired chief marketing officer. “The crew here is working around the clock.”
Less than a month in, it’s impossible to tell whose gambles will actually pay off, especially since many aspects of Amendment 64 are still subject to interpretation— most notably, explicitly banned public consumption. As of the second week of January, the Denver police had cited one person for public pot use every day since recreational dispensaries opened for business. The ban isn’t limited to lighting up at the park; it forbids using cannabis at any location—indoor or outdoor—that’s open to the public. This puts a wrench in the state’s hope to regulate weed the same way it does alcohol. But, for the time being at least, it leaves a void for smoking spaces that certain enterprising marijuana enthusiasts are eager to fill.
Tom Valdez is one of them. The 55-year-old computer technician is panning for green by staking his claim in what he views as the soon-to-be-booming, private smoking club business. In lieu of legally smoke-friendly bars or coffee shops, Valdez and others are creating smoking clubs. By charging membership fees, holding events at private venues, and requiring guests to bring their own cannabis products, these clubs technically—or as far as Valdez and his contemporaries understand it—circumvent the public consumption ban to allow like-minded marijuana lovers to smoke and socialize in a common space.
Save for a few tobacco-shop housed clubs like the iBake lounge, the pot spots that have popped up so far are more like ganja gatherings ranging from live DJ parties to mellow salons. As the law also prohibits purchasing and consuming cannabis in the same place, the clubs are all BYOC, but include some variation of snacks, glassware and other paraphernalia for purchase, along with complimentary bars for vaporizing and or dabbing—the increasingly popular and highly potent method of smoking concentrated butane hash oil. Others, like Cronic Magazine founder Joel Camarena’s Friday night Cronic Cabaret, provide a burlesque show and other entertainment for smokers with their $50 one-night membership.
Valdez’s bluetooth blinks under his shaggy, chin length grey hair as he shows off the wood paneled yoga and T’ai Chi studio he plans to use as a homebase for his club. He springs to attention, planting his white socked and sandaled feet firmly into the hardwood floor, and spreads his bejeweled hands wide, instinctively posing without a beat when asked to take a picture. Membership for a single event, which he initially says are open to every demographic but later clarifies are catered to an older, more mature crowd, is $10. VIP members will get a card, a T-shirt and the ability to organize their own events for just $40 more.
Where Valdez aspires to parlay his decades of stoner experience (he brags that he’s been smoking weed since the ‘70s) and self-proclaimed business savvy into a potentially profitable part of the marijuana industry, Jane West is using her professional event planning skills to carve out her own piece of the pot pie.
After 15 years as an independently contracted event planner, Colorado’s recreational marijuana law inspired West to start her own business combining two of her passions: good weed and good food.
Under the tagline “munchies for foodies,” West’s Edible Events caters to the sophisticated stoner. Her first event last Friday, an end-of-prohibition-themed party at a Denver art gallery, was a major success thanks to a Denver Postpreview. An unnamed Heisman trophy winner, two sixty-year-old women from Kansas and a few groups of six or seven 25-year-olds were among the 140 people who paid the $125 ticket price. Once inside, guests ate gourmet hors d’oeurvres, examined stimulating art, sipped on wine or local craft brews, and socialized with fellow marijuana users, all of whom were enjoying the effects of their own vaporizer pens, hash oils, or marijuana-infused food and drinks from their favorite recreational dispensary. But since Colorado’s Clean Indoor Air Act was amended this year to ban marijuana in addition to cigarette and cigar smoke from most bars and restaurants in the state, West had her guests do any pure puffing in a limo outside.
Ever the seasoned party planner, West considers each minor detail for her events—of which she’s already scheduled one per month for the next year—from what kinds of succulent munchies her dry-mouthed patrons would enjoy to how they’ll get home. She requires that her guests don’t drive to or from her events, partnering with Uber to offer a 20 percent off coupon with every ticket purchase. She’s also equipped herself with a lawyer and liability insurance.
Huff Post Article
Building a Cannabis Brand ... Straight
With all the changes in Colorado and Washington state regarding marijuana smoking and possession, I was guessing there's a veritable hematoma burgeoning of small business and entrepreneurial activity in that industry. I was right (for a change).
One might imagine a small, smoke-filled office full of "Jeff Spicoli's," toking on all manner of spliffs, blunts, bongs, chillums and the like; urgently ordering delivery pizzas, as they plot the rise and dominance of the cannabis sector in America.
Well, though there are certainly those 'budding' entrepreneurs smoking like chimneys, 'one' would be wrong to assume that they are all riding Puff the Magic Dragon's tail.
And now for something completely different: There are two young ladies in Denver, Colorado who are quietly building a small empire especially designed to help the cannabis business sector build their brands and increase business. Though they both admit to smoking weed occasionally, I get the strong impression that Olivia Mannixand Jennifer (Jen) DeFalco spend the preponderance of their waking hours straight and focused on their business goals--which just happen to involve marijuana instead of toothpaste.
Cannabrand is these ladies' real-world extension of what they strongly believe is an enormous opportunity: the rising cannabis industry's need for Branding, Marketing and all the ingredients like strategy, website, graphic and creative development.
As you can certifiably see from the photos above, there's no evidence of toking, Doritos or red eyes in the Cannabrand' workday.
Note to Reader: I am the father of a daughter and while I will strive for objectivity, my opinions, observations and everything I write here should be viewed in that overarching, helicoptering and loving context. I was not in favor of complete and total legalization. That however, might be changing.
Both 25 years old and filled with the superb, youthful exuberance that entails, these gals met while at the University of Colorado at Boulder. Boulder's a great town to meet and make a friend, they chime chirpily. Jen is the creative mind behind Cannabrand, enjoying the 'imagineering' for clients and Olivia is more strategic and overall business-oriented. They make a highly-complimentary pair of 'entrepreneuresses.'
"Going to college in Boulder," Jen DeFalco told me, "a lot of our friends smoked pot, of course. But we wanted to try and take the stigma away from cannabis. We see cannabis as a healthier alternative to alcohol." Olivia Mannix chimed in, "Most traditional agencies won't associate themselves with cannabis and we wanted to take advantage of that and provide our branding, marketing and website development services." Serving an under-served market seems to be these ladies' clear strategy.
Mannix, who's an unrepentantly passionate skier had a personal, defining, medical moment involving weed or more specifically, cannabis edibles. "I had blown out both knees skiing," she told me painfully, "and the Percocet the doctor gave me didn't help and made me feel worse. When I ate some (cannabis-laced) watermelon tarts, I felt much better and was in less pain."
DeFalco started a newspaper--of all things--in her neighborhood at age 10 and then went hawking it door-to-door. Mannix was selling makeup door-to-door at age 13; both early jobs were harbingers of their entrepreneurial thrust later.
Hailing from Wilton, Connecticut, Mannix told me they're both concerned about this new law working out well for all those concerned. "It's a lot cleaner because people can grow and use it openly and not hide it," Mannix told me. DeFalco concluded, "It'll be handled a lot like alcohol is restricted to prevent kids from getting it or adults getting it for them. We're totally against driving on alcohol, drugs or cannabis. We're really against that."
Alan Katzker is the founder of Boulder Elevated Events and a Cannabrand client. Katzker is really amped up and hard-charging about the Mannix/DeFalco service he's received and seems utterly genuine to me. "I absolutely love Jen and Olivia ... love, love, love," he gushed. "They helped me re-brand and built a great website for me. I'm very impressed with them--they are cutting-edge and real pioneers." In a key supporting act for his satisfaction stated above, Katzker has connected the Cannabrand' ladies with a friend of his who is a very successful "cannabis entrepreneur" and that represents the most powerful form of marketing known to man, WOM (Word of Mouth).
Weedmaps is a local Colorado success story and has been described as the "Yelp for marijuana dispensaries." It started out as a kind of early Internet directory for legal medical marijuana dispensaries for sick patients, which has positioned it well for the new recreational user market. "I met Jen and Olivia at an Edible Events function," Barry Bard, who works at Weedmaps told me, "it's so cool to see other young people starting their own businesses."
And the Cannabrand gals aren't just branding, marketing and promoting their clients' businesses, they're also promoting their own enterprise with policy-type, op-eds on their Cannabrand Tumblr blog.
In an effort to paint a more complete picture of these two young ladies, I asked them a few questions regarding Colorado and the mesmerizing 'gold rush' activity there around cannabis.
1. Do you think Colorado's cannabis legalization will lead to higher drug addiction in CO? Why?
Jennifer DeFalco responded:
"I do not believe in the slightest that Colorado's cannabis legalization will lead to higher drug addiction in Colorado. First off, cannabis is not a physically-addictive substance--it's even reported to be less addictive than caffeine. If you're asking if it's a gateway drug, I'd have to disagree with that theory. People who choose to alter their minds with hard drugs would probably also choose to experiment with marijuana and alcohol, regardless. So, do I think that consuming cannabis influences the average person to use and abuse hard drugs later down the road? No."
2. Do you think Colorado's cannabis legalization will lead to more DUI's and DUI deaths in CO?
Jennifer DeFalco responded: "I do not think that Colorado's cannabis legalization will lead to more deaths or DUI's in CO. Since cannabis is much safer to consume than alcohol (one cannot overdose and die from marijuana), I would argue that if cannabis consumption replaces alcohol consumption, you will see a decline in fatalities - including those related to traffic. A recent study reported by PBS even cites that the rate of traffic-related deaths drops by about 9% in states after they legalize (medical) marijuana."
3. Do you worry about cannabis legalization in CO making it easier for young people to get and start using cannabis?
Olivia Mannix responded: "No, regulating cannabis--if anything, will make it more difficult for young people to get a hold of it, because with regulation comes restriction. My friends who grew up in Boulder said it was easier to get marijuana than to get alcohol in high school, because alcohol is regulated. Now that cannabis is regulated, it will be more difficult for teens to get a hold of it, because it's slowly distancing itself from the 'black market.' Marijuana regulation will also reduce teens' exposure to harder drugs now that it will be off of the illegal market (where hard drugs are found). The federal government has stated that teen marijuana use has decreased since it has been regulated."
4. What do you think of recent reports that CO food stamp cards are being frequently used to withdraw cash from cannabis dispensary ATMs to buy cannabis?
Olivia Mannix responded: "I have heard conflicting reports, and believe that these claims are false. SNAP (Supplemental Nutrition Assistance Program) cards, cannot be used to withdrawal cash, they can only be used when purchasing food from authorized supermarkets."
Of course, this nation's eyes are upon Colorado and Washington state as the forerunners and a bit of an experiment in legalization. Screw-up, and America will be done with the idea perhaps forever. Succeed and most of the USA could look like Amsterdam within a few short years. What I've learned in the writing, research and conversations is this: Colorado is way ahead of Washington state because they had more experience with the medical marijuana legalization first, and, the industry people in Colorado are all aware that a misstep could be 'game over,' so are laser-focused on doing this right.
"State regulations are promoting compliance amongst owners and operators in Colorado. There's no reason to break the rules," said Joe Tremolada, who's a cannabis industry veteran experienced in the creation, financing, growing and distribution areas of this growing field.
Troy Dayton is the co-founder and CEO of The Arcview Group, a San Francisco-based, membership, investor network. According to Dayton, Arcview is "the Shark Tank of the cannabis industry" and doesn't invest their accredited-investor members' money directly but gives them the parade of potential companies to invest in and offers them deal-flow; investment advice and market research are Arcview's core products. Dayton and Arcview, like the ladies at Cannabrand, are placing big bets that the Colorado legalization--past the pre-existing medical marijuana usage--will succeed. Both have staked their businesses on this industry winning big.
I asked Dayton why he was so sure. "We're not talking about making a new substance available," he told me passionately, "we're talking about a product that already exists and is widely available. It's so much safer than alcohol or pharmaceuticals. There will be a net public-safety benefit out of this. The 'X-Factor' net benefit out of this is, for instance, I'm not a big cannabis consumer, 'but when I do,' I find it really helps me relax and I can see the 'big picture.' I have ideas and wonder about things that are really productive." I have found this too, back in the day, that it's not all "wow ... man" and couch-potato inactivity. Key point: The start-up funding and access to life's-blood capital so climacteric to economic success will have to fast materialize for the cannabis industry or it risks inertia. Arcview alone, seems to be leading the charge in this essential monetary component.
Recently, CNBC did a great documentary entitled, "Marijuana in America: Colorado Pot Rush" which features many of the leading proponents of Colorado's new law.
Mason Tvert is the Director of Communications for the Marijuana Policy Project(MPP) and seems so much more than that. CNBC calls him "the hero" of the push to legalize weed in Colorado and there's much to support that claim. Tvert doesn't come on strong and apparently prefers the 'get more flies with honey' method of discourse. I asked him why he had chosen the life path of pot policy and legalization--did he have some connection with a medical weed user or what? "I was harassed by law enforcement in college and while I'm not a big smoker now, I do enjoy it once in a while. The MPP is the largest marijuana policy organization and my primary concern now are the optics: how legalization is portrayed in the press and by its opponents. For instance, anti-legalization people often claim that teen use is up, when teen use has actually gone down." What about further restrictions for children, parents and so on? "At some point, we need to trust sensible human beings to make the right decisions."
When Tvert tells me that he's focused on other states now that his work in Colorado is done, I ask him what his informed bet would be for the next state to topple and legalize? "It's very likely Alaska will be next," the "Don Draper of pot" said. And he should know.
As I digest all the information, quotes and strategies I've heard and learned, there are some strong pros and cons on both sides of the future possibilities for Colorado, cannabis and ultimately Cannabrand's success:
**The possibility that children might have expanded access to marijuana. This is a potential nobody in their right mind wants and especially for parents, has caused a groundswell of concern.
**If the newly legal users use it in irresponsible ways--and drive--there will be a corresponding and tragic increase in DUI's and DUI-related deaths.
**If the overall ambition of new users and previous users smoking more is horribly reduced and has a smothering effect on the economies of the two states in an already depressed economic environment, then the frequent pro-legalization argument about increased tax revenues and economies of scale goes right out the window. The converse will be true.
**Contrarily to the above point about access by children, sick children (as young as six years old or younger) might now have expanded legal access for much-needed help for their pain and illnesses. This is something the parents, ironically, have been trying to get done for sometime now. So this seems very positive and good.
**If pot users can resist the need to drive and a reverse-correlation can develop, where weed users can just know they shouldn't get into a car and drive when stoned ... this law will be almost home free.
**If it proves true--that the experience both Troy Dayton and I have had--wherein smoking pot actually increases idea generation, a 'thinking-outside-of-the-box' imagination and stimulates a kind of entrepreneurial drive and special zeal, well then, the GDP, small business sector and overall economy of Colorado will certainly soar.
That's a lot of 'ifs,' I know.
So, nobody knows what will prove true; least of all me. But if what I'm hearing from the people I've heard talking is accurate, then I feel strongly that Colorado will succeed and the law will be there to stay. And that's from a guy who was strongly against the idea in the first place.
Meanwhile, Jen & Olivia keep working to expand their cannabis clients' businesses ... and their own. They're always brand-building. This week, they're launching the Cannabrand Shop, a website specially designed to sell their own and their clients' products and merchandise.
In my three decade journey to discover what makes entrepreneurs tick, I'm zeroing in on the old maxim, "Do what you love and love what you do." If this is the essential entrepreneurial element, then Olivia Mannix and Jen DeFalco are on their way.
Who Will Become the Starbucks of Pot? Handful of startups want to be America's favorite marijuana brand
During a typical Fourth of July weekend, 1500 Esperanza St., a whitewashed deco warehouse in the Boyle Heights district of East Los Angeles, is deserted. But this year, a line snakes down the broken sidewalk out front and wraps around the bend of Union Pacific Avenue, as 4,000 people suffer the searing heat for an event called the California Heritage Market.
While many cities boast farmers markets, this one is unique: It’s the first in California—and likely the entire country—devoted exclusively to pot.
Here, some 50 growers proudly peddle their homegrown weed, not only in the form of dried flowers and buds but also the myriad products that can be concocted from them—from cooking oils, tea and candy to ointments, sunscreen, even soft pretzels.
While all the vendors here are expected to bring to market only the finest-quality herb, very few, apparently, showed up having taken Marketing 101. “Growers were coming up to me and asking, ‘How do we make ourselves different? Maybe we should come up with a logo and a name,’” Shuman reports. “The branding of cannabis doesn’t exist yet.”
There is a good reason for that. Since the federal government still classifies pot as a Schedule I controlled substance and only two states (Colorado and Washington) permit its sale on a recreational basis, market conditions are not exactly ripe for branding. “You have 20 states with some form of legalization, a number of them very restrictive, and a small customer base. So there’s not a national opportunity,” explains Taylor West, deputy director of the National Cannabis Industry Association. But, she hastens to add, “I think we’re likely to move in that direction.”
That’s actually happening fairly quickly. Industry watchers predict that 14 states are likely to adopt some level of legalization in the next five years. (The New York Times over the weekend even came out in favor of legalization.) They have powerful incentives to do so. Not only do most Americans favor legalization (58 percent, according to a 2013 Gallup Poll), but legal cannabis amounts to tax revenue for cash-starved municipalities. Colorado, for example, is on track to collect $134 million from its first year of legal pot sales. And while the DEA still publicly pledges to eradicate marijuana, a growing number of elected officials, including President Obama, are of the belief that the feds have better things to do than go after stoners. If the legalization trend continues at a pace many expect it to, the legal marijuana market—worth an estimated $2.57 billion today—will hit $10.2 billion by 2019.
It translates to a veritable gold rush for pot startups (“ganjapreneurs,” as they’ve been called)—companies that market everything from vaporizers to fashion-forward receptacles for your stash. But feeder brands that exist for pot are justifiably separate from actual brands of weed, which are still pretty rare. As Joe Hodas, CMO of the edible cannabis brand Dixie Elixirs, observes: “The closer you get to the plant, the fewer the people involved.”
That said, there are a handful of brands out there, and they’re growing. And that has raised some questions among traditional marketers. We all know that every category, from European imports to beauty products, has its leading brands, so which are the brands shaping up to dominate cannabis? Is the day coming when we could see a Marlboro (or Starbucks, or Mercedes-Benz) of pot?
Ron Throgmartin thinks so, and believes his company is a contender. “We saw the opportunity to come into this because there are no specialty brands in the market,” says the CEO of Kirkland, Wash.-based Diego Pellicer. Named after a legendary hemp grower in the colonial-era Philippines, the brand is sold through dispensaries, though its ambitions go well beyond that. “We’re hoping to create the Apple of marijuana,” Throgmartin boasts.
It’s not a surprise that some of the best, brightest and most ambitious entrepreneurs have designs on the space—Diego Pellicer’s seed money comes from Jamen Shively, a former corporate strategist at Microsoft. But building a cannabis brand isn’t as easy as throwing money at it.
That’s because most consumers of cannabis don’t think in terms of brands just yet. The majority of legal pot is sold through dispensaries—storefronts grafted onto large cultivation spaces. While it comes in assorted varieties (indica, sativa, ruderalis), it’s mostly sold as a commodity.
Throgmartin thinks the market will quickly evolve to the point where consumers will shop for their favorite pot brands just like they shop for a preferred brand of beer or sneakers. But getting there will mean convincing buyers that branded pot is worth paying more for—a leap that will require not only the highest quality product but also some slick marketing.
Diego Pellicer’s packaging, which features a 19th-century rendering of Señor Pellicer and a wood-grain design, has the look and feel of a box of pricey Cuban cigars. “We’re going to deliver an experience unlike anything that exists now,” says Throgmartin, whose plans call for boutiques in Seattle and Las Vegas sporting lots of glass, lots of light and plenty of parking. “It’s going to be a beautiful store, not a typical head shop or dispensary with bulletproof glass,” says the CEO.
Despite their insistence that they are selling medicine, these cannabis dispensaries look more like pawn shops than pharmacies, with their bright neon baggies of Bubba Kush and armed security guards. Seattle’s The Green Skunk, for example, advertises “Free Gram Friday” and features a heavy-lidded, thoroughly baked Pepe Le Pew as its mascot.
Any marijuana brand with serious ambitions will have to move beyond such whacky-tabacky tactics, says Olivia Mannix, co-founder of the marketing agency Cannabrand, whose mission, she explains, “is to rebrand cannabis and debunk myths and stereotypes associated with the plant.” Mannix thinks the wholesale legalization of pot for recreational use in the U.S. may be as soon as a decade away, and only the “more tasteful” brands will stand a chance of capturing major market share when that day arrives.
Cannabrand’s clients include Bold Harvest, an edibles maker that expects to enter the market by early next year. Its founder, Jonathan Umbel, a 30-year veteran of the restaurant industry, hopes to differentiate his purees, mints and energy drinks in part by linking up with a celebrity chef to endorse the products.
Umbel and other startups will find themselves going up against the 800-lb. gorilla of the space, Dixie Elixirs, which dominates the edibles market.
“Not only do we have the potential to be a national brand, we’re intent on making that happen,” says Hodas. Billing itself as “the future of cannabis,” Dixie Elixirs has 30 products on the market, ranging from blueberry soda to chocolate chews. With its brushed stainless-steel bottles and clean, minimalist design, Dixie’s packaging would not look out of place on the shelves of Whole Foods (which, for the record, does not carry the products). In short, the brand profile is more Scandinavian than skunk.
“One of the reasons you see so few brands is because of the regulations,” says Hodas, citing the scores of state laws that govern products containing THC. In fact, since no cannabis product can be transported across state lines, brands like Dixie Elixirs cannot rely on the traditional hub-and-spoke distribution system most brands take for granted. To get around that, the company recently formed Dixie Brands Inc., which is licensing the brand name to growers in other states.
Like many in the trade, Hodas likens cannabis marketing to that of alcohol. “You could say that all bourbon is bourbon—it’s the same proof, so what’s a brand matter? But it doesmatter,” he says. “We know people have an affinity for product quality and consistency, which is what we offer.”
It follows that if a consumer will reach for a name brand of pot, some will prefer a luxury brand. When they do, Shuman will be waiting.
Her presence at the East L.A. farmers market was a bit of an anomaly. She usually rubs elbows with fancier folks. Until recently, you’d have to be invited to a celebrity bash in Bel Air to sample pot from her Beverly Hills Cannabis Club, whose premium bud fetches $700 an ounce. But seeing an opening in the market for high-end weed, Shuman recently decided to “crank it up,” as she says.
“Up to this point, our product was never available to anyone outside of our club members, but because of the success we’ve had, I’m doing more grow operations,” she says. Shuman is partnering with select growers in Denver and Seattle, where high-end outlets are also being planned.
The brand’s image is already well established. BHCC comes wrapped in 14-carat gold leaf and its logo is a clever riff on the famous Beverly Hills municipal signs seen throughout the neighborhood and designed by Warner Bros. in the ’30s. “It was the best thing I’ve ever done, making the decision to go with graphics and product design,” Shuman says.
Given the projected growth of the cannabis trade (forecast at 68 percent in the next year alone, according to ArcView research), why aren’t there more contender brands out there? Part of it has to do with the seedy—and dangerous—nature of the business.
Dispensaries have bulletproof glass and heat-packing security guards because banks and credit card companies refuse to do business with them, which makes them cash-only enterprises—as well as targets for thieves. Such a Fort Knox-style atmosphere is the reason “there’s nobody doing any amount of in-store or point-of-sale marketing,” as Hodas explains.
Thus, as Diego Pellicer’s Throgmartin notes, pot brands don’t have any sort of model for expansion. “Federally, with the semi-legal environment we’re in as producers and growers, there’s hardly any experience in how to move forward,” he says.
Shuman is more blunt. “If you put your head out of that little cannabis closet, you risk arrest and prison,” she says.
What’s more, traditional print and broadcast media will not accept ads for weed, nor will Facebook, Twitter or Google AdWords.
“Until cannabis is off Schedule I federally, that’s the reality,” says cannabis entrepreneur Vincent Mehdizadeh (see sidebar). “It’s Prohibition-era alcohol what you’re seeing with cannabis right now.” There’s nothing, meanwhile, stopping a marijuana marketer from setting up a website (“search is the Holy Grail,” as one seller puts it), but cannabis brands will largely be confined to obscurity as long as they are ignored by major media organizations and agencies.
Ad agencies seem as wary as anyone about doing business with marijuana brands. Take Eric Schiffer, CEO of DigitalMarketing.com, who has plotted digital strategy for Fortune 500 corporations but remains unwilling to take on cannabis. “We’d have to sort of wait and see if it’s a fit for us,” he says. “If you get into advertising this stuff, you’re basically telling kids it’s OK to start smoking pot young, and I don’t agree. We’re only as good a country as the next generation of young people, and we have a duty to send the right messages to them.”
Then, there’s the fear that big pharma or big tobacco—which already have limitless production capacity and rich marketing budgets—are simply waiting for weed to become legal everywhere, then step in and wipe the smaller brands off the map.
Just ask Todd (who asks that his last name not be used), a California entrepreneur who runs a boutique pot-distribution network called MarijuanaMarket.com. Todd delivers “top quality” flower and edibles to members of his collective, and though business is good, he doesn’t expect it to last. “We’re all really small companies,” he says. “When the big boys—Monsanto, Pfizer—come in, none of us will be needed here. I expect massacres when they really know the real money [involved].”
Pfizer did not respond to Adweek’s queries about the prospects of it getting into the pot game, but a spokesperson for Monsanto said: “Rumors like this have been circulating online. Monsanto has not and is not working on cultivating cannabis. We also have not and are not working on GMO marijuana. That allegation, if you happen to come across it while writing your article, is also an Internet rumor and lie.”
Still, entrepreneurs remain wary about getting clipped by bigger players down the road. “I’d be naive to think that [industries like] big tobacco would never come into the industry,” says Umbel of Bold Harvest. “A lot of them are already way ahead. I’ve heard of large-scale production facilities regulated by one producer. I’ve heard of all kinds of things. I’m pretty sure this is going to happen.”
Ditto for DigitalMarketing.com’s Schiffer, who believes that before long “you’ll find smart operators and maybe even a tier-two pharmaceutical company that decides there’s too much money to be made not to participate.” That company, he says, “will put together a far more professional, quality-focused brand, backed by the marketing talent that has driven an Apple or a Starbucks or even a Pfizer. And all that’s coming.”
For now, the relative handful of pioneering pot brands have the market all to themselves. Beverly Hills Cannabis Club recently signed a development deal with Fremantle Media and filmmaker Morgan Spurlock for a show—working title: High Society—that will follow the adventures of Shuman and her daughter Aimee as they build their brand.
As Shuman sees it, “Someone has to take center stage.”
Fast Company Article
The Key to Rebranding Cannabis is more soccer mom and less Bob Marley
Despite the recent dramatic changes in the world of marijuana—hello, THC-infused lemonade legally sold in L.A. dispensaries—there is one holdover from the past that won’t go away. Ask most people who is using and profiting off the cannabis industry and they’ll describe a Harold and Kumar-type or Bob Marley-wannabe. Regardless of what studies, polls, and legislators say, many resist the notion that soccer moms are lighting up in large numbers or that the industry—from dispensaries to hemp home accessories—is in the hands of a growing group of savvy entrepreneurs. Enter Olivia Mannix and Jennifer DeFalco, two twenty-somethings who, in their heels and sheath dresses, seem decidedly more Condé Nast than Cheech and Chong. And with their full-service branding company Cannabrand, they are introducing the world to the modern cannabis entrepreneur.
"Our clients range from small startups to international public companies," Mannix says. For these businesses, they do everything from logo creation to websites to social media management. "Jennifer is the creative director and was able to create all of the artwork for our company, including website design, logos, marketing materials, as well as direct creative strategy. I am the strategic director with a strong PR and marketing background who leads strategic aspects," she explains, calling them a "dynamic duo" who financially bootstrapped the venture as soon as they saw that the legal tide was turning in favor of the cannabis entrepreneur.
As innovative as it may be to venture into newly legalized terrain, it is also risky. Laws can always change and public sentiment can turn against legalization. To Teflon-proof their business, Cannabrand is thinking outside of the box, offering brand extensions to show off their business creativity and simultaneously raise public support of cannabis legalization. They have the blog CannaBuzz, with its tagline "Covering cannabis culture and the recreational movement" with posts like the one titled "What it’s like to be a mother in the cannabis industry," written by a woman on their creative team. It also means that they are looking beyond Colorado. "We envision opening branches across the nation, and we will continue to influence policy and the federal legalization of cannabis," says Mannix. In other words, they are way more Fortune 500 forward-thinking than High Times laissez-faire.