Building cannabis brands that reach across markets

(This is a contributed guest column. To be considered as an MJBizDaily guest columnist, please submit your request here.)

Consumers can be a perplexing group – and even contradictory – especially in an industry as new and complex as cannabis.

This makes the task of building cannabis brands that resonate across geographical areas a significant challenge.

The best brands find ways to connect, knowing their audience will react to brands that help them feel good about themselves, their community and the decisions they make.

As former Starbucks CEO Howard Shultz said, “If people believe they share values with a company, they will stay loyal to the brand.”

Consumer appeal and connection

For marijuana businesses, consumer nuances pose a unique challenge: How can a brand create mass appeal while still providing the connection their audience desires?

The answer: Cannabis operators must cater to local audiences and expectations while still delivering a consistent and universal brand message.

The marijuana industry demands that companies simultaneously think nationally and act locally, embracing market uniqueness while staying true to a brand identity that creates social contracts with customers.

One of the primary challenges of scaling cannabis brands across markets is the different regulatory environments.

Nearly all aspects of products needed for consistency and brand awareness (ingredients, product formulation, packaging, labeling, colors, logo, etc.) are at the mercy of inconsistent state regulations.

In the early days, these challenges were less critical.

But as legalization expands and new consumers begin to investigate products, creating brand recognition across state lines is increasingly important.

No one size fits all

To the dismay of many operators, what works in California might not be possible in Florida because of differences in packaging, potency limits and even the types of products that are approved by state regulators.

In a mature market such as Colorado, consumers might be more knowledgeable about specific strains, sustainability practices or cultivation methods.

However, in emerging markets such as New York, where adult-use sales are just beginning, the focus might be more on accessibility, convenience and product education.

Brands need to tailor their messaging, product offerings and tactics accordingly.

For example, although Starbucks is an international brand, the company works to keep a personal feel through its practice of baristas writing names and messages on cups.

In the marijuana industry, Wana Brands and Grön have created well-known names for edibles products through a focus on quality and consistency – combined with extensive localized outreach in the markets they enter. (Editor’s note: Proud’s iAnthus Capital Holdings and Grön entered a strategic partnership in January 2024.)

When you look at these companies, there are a number of common strategies and tactics that become apparent in their approach toward brand awareness, including:

1. Know the customer

Starbucks, Wana Brands and Grön each maintain a keen and laser-focused understanding of their brand’s core audience.

In the case of the coffee consumer, Starbucks understands its customers all possess a universal need for top-notch service, a desire for high quality and a consistent experience.

With some of the widest edibles distribution in the industry, Wana Brands and Grön have recognized these similar traits in customers: a desire for quality as well as a need for consistency and reliability.

All three companies work to adhere to these attributes diligently in order to meet customer expectations.

Other cannabis companies attempting to create compelling brands should follow suit.

2. Leverage data to win across markets

Building brands that resonate with multiple markets also requires a deep understanding of data sources to inform customer preferences.

While marijuana data can be hard to come by because of various restrictions, successful brands invest in gathering consumer insights, often working with third-party partners to track trends and preferences.

Some of the largest multistate operators use data to understand consumer needs at the local level while working to build brands that have a national identity.

Often, this data allows operators to fit products in both medical and recreational marijuana markets, while rooting products in wellness-focused messaging.

By consistently analyzing consumer data, operators ensure their products remain relevant regardless of location.

3. Craft a customizable message that resonates across audiences

Starbucks, Wana Brands and Grön rely on overarching messaging that connects with each company’s core customer base.

However, this messaging is cleverly constructed to be pliable enough to connect with audiences through localized marketing and outreach campaigns.

Before the 1990s, most office workers either sipped a cup of coffee at home or waited until they arrived at the office to get their morning caffeine fix.

Starbucks changed all that with messaging that created a “third place” beyond home and work where people can gather, relax and talk.

The messaging is universal, yet the experience is local – with locations right in customers’ neighborhoods.

Today’s cannabis industry faces what might be an even more challenging messaging task.

With a rapidly expanding universe of cannabis consumers, brand messaging can no longer be confined to the core marijuana connoisseur (i.e., “stoner”) crowd.

In order to create lasting, recognizable brands that resonate across markets and audiences, the industry must reach the hearts, minds (and wallets) of an increasingly diverse group of consumers.

Great marijuana brand messaging must identify the intersections among these groups while acknowledging the differences in order to be vital and robust across markets.

4. ‘Local relevance, universal appeal’

Building cannabis brands that reach across markets is a balancing act between local relevance and universal appeal.

Successful brands understand the importance of creating products and messaging to the unique needs of each market – while maintaining values that resonate with consumers everywhere.

By focusing on the customer, leveraging data and building universal appeal, marijuana companies can grow their influence across diverse markets, creating meaningful connections with consumers.

As Sir Richard Branson, founder of the Virgin Group, reminds us, “Branding demands commitment, commitment to continual re-invention, striking chords with people to stir their emotions and a commitment to imagination.”

Although it might be difficult to define, the reality is that consumers know a great brand when they see one.

Richard Proud is the CEO of iAnthus Capital Holdings, which has offices in New York and Toronto and owns and operates licensed cannabis cultivation, processing and retail facilities throughout the United States. He can be reached at richard.proud@ianthus.com.