Could artisan cannabis grow in Canada’s recreational weed industry?
In some areas of society and even business, choosing quantity over quality may be more advantageous but the craft culture is beginning to change that. Over the last decades, there has been rising consumer demand for high quality, locally produced products. These have some health, taste, or environmental benefit and are more about savoring the individual experience, as opposed to made for mass consumption.
The craft phenomenon is most associated with food and drinks that are produced in small quantities but are meticulously crafted to ensure that consumers get the best taste and sensation out of it. Craft beer, for example, has experienced a recent boom among drink enthusiasts, performing quite well despite the fact that beer sales have declined in recent years.
In fact, according to Fortune, craft beers continued the projected five percent increase in volume, the same growth rate last year. This year has been especially good — independent breweries pretty much surpassed production volumes and sales of previous years. The industry is projected to record 26 million barrels this year or a 20 percent increase compared to 2017.
Artisan cannabis
Ever since Canada implemented the full legalization of recreational cannabis use last October, industry players have been scrambling to get a piece of the annual $5 billion annual projection in terms of sales.
And though many companies have entered the market, it’s no secret that Canada is currently experiencing a shortage of supplies. Some companies like National Access Cannabis Corp., have actually stationed “watchers” to keep track of fresh supplies 24/7.
The supply problem may not be going away anytime soon, but this will do little to hamper the young but growing sector of craft cannabis.
Much like craft beer, craft cannabis or artisan cannabis offers more than just products to help people achieve the relaxed sensation associated with the plant. Craft cannabis offers a kind of product that reflects and compliment the lifestyle of people using it.
Some artisanal cannabis is produced in small batches with the environment in mind. These are a line of cannabis products that were produced with the idea of sustainable development, making use of plants that were grown organically and ethically produced.
According to Leafly, these are brands that produce high-quality, hand-picked, cured, trimmed, and produced in limited batch, organic cannabis that was grown the old way to ensure the best experience when using them. California’s Emerald Triangle is one of the best examples of these kinds of craft cannabis brands, and experts believe that this segment of the market will continue to develop.
Getting your product to market is a challenge
It’s tough for any small producer to get their product to market, doubly so for craft cannabis companies. You can’t simply walk to a farmers market to sell your environmentally friendly Kush infused with all-natural ingredients. You need to find a supplier. Canadian law makes it difficult for producers to sell their products directly so they are forced to rely upon retail specialist brands.
In this context, the rise of craft cannabis retailers should come as no surprise. These stores want to offer an exceptional retail experience to discerning customers who are more interested in the quality of the product rather than the price. Think of it as going to an upscale liquor store for an aged scotch, rather than buying Coors light in the local convenience store.
Perhaps the best embodiment of this premium retail experience is Choom Holdings Inc. (CSE:CHOO, OTC:CHOOF). They are a premium cannabis retail that aims to embody the chill lifestyle associated with using cannabis. The group has acquired 78 retail opportunities with the proper permits. This puts Choom in a strategic position to offer cannabis producers with strong retail options as part of its services and at the same time offer cannabis enthusiasts with an idyllic venue to enjoy craft cannabis products. Companies like Choom play an important role in Canada where manufacturers are often not allowed to sell their products directly to consumers.
What’s unique about the brand is that it uses the “Choom Gang” as the brand voice. The brand hopes to give the consumer a feel of a cannabis cafe, elevating the experience of using the products by complementing retail with visual stimuli and even the best sounds. The aim is to cultivate the same high-end feel as an Apple store and mark out products stocked in Choom retail outlets as something special.
Aurora Cannabis has taken note of Choom’s potential. The company has invested $20 million into Choom. Aurora’s investment is designed to ensure that the right retailer has the resources it needs to thrive in a competitive market and ensure that Aurora products reach their customer base.
The relationship between retailer and producer is symbiotic. For producers, artisanal or otherwise, it is essential that their product is shown in the right setting. Retailers like Choom will be able to ensure that their product reaches the right kind of customers and is presented in the best possible light. This customer-facing aspect of the Cannabis industry is set to become one of the most important parts of a sector that is set to be worth $32 billion by 2022.
