A byline by Michael Sassano
Establishing a consistent cannabis product brand is a complicated task. The cannabis industry will always be home to mainstream local brands, craft local brands, large global brands, and craft global brands all co-existing in the same space. The good news is there is room for everyone. The bad news is that supply line issues and the resulting lack of consistency plague the global cannabis industry, affecting players of every size.
When it comes to cannabis branding, it’s not enough to just carry the name from country to country. Owning the quality is the key to success.
Branding & Consistency for Local Cannabis Brands
Even though they operate on relatively small scales, local cannabis brands face massive issues maintaining the consistency necessary to build a strong brand.
White Label Brands Lead A Race to the Bottom
Many local brands are white-label companies shopping from the same pool of white-label suppliers. Many carry the same flower, sourced from someone else’s grow, and the same extracts, sourced from one of a few white-label manufacturers.
Generally, this leads to product consistency becoming an issue among brands that rely on white labeling. To try to gain an edge, many brands resort to shopping for the cheapest price and squeeze suppliers in a race to the bottom.
Ultimately, the best growers and manufacturers will simply form their own brands, leaving white labelers to fend for themselves and further erode quality standards.
Many white-labeled local brands attempt to enter global markets only to find that many other white-label brands look similar, have the same growers, or source from the same manufacturers. Regardless of size, the keys to brand longevity are having good sourcing partners and offering innovative products.
It is easy to chase lower pricing, but the brands that will survive will be the ones that master the supply chain of white-label suppliers and capture opportunities to service many groups.
Craft Brands Drive Innovation & Maintain Consistency at a Small Scale
Craft local brands have an edge in many ways. Their products are generally higher priced but more unique, with offerings like craft rosin vaporizers or craft flower from smaller grows that can not match the demand of larger brands. These craft brands drive innovation, forcing larger brands to get creative and find better suppliers with more unique offerings.
Distribution always becomes an issue for these smaller brands. However, consistency and uniqueness usually remain — good news for the dedicated followings these companies often build.
Though many stay local, some craft producers may find avenues outside their home markets, as there is a niche demand for craft products from other countries. Brands like these can expand to other countries, generally with lower volumes, good pricing, and consistently high-quality products.
Country-Specific Brands Find a Niche
Some countries have their own local grows and manufacturers. These brands generally start by feeding local white-labeled distributors, but eventually transition and create their own brand. Generally, these fall into the category of craft local brands despite the fact that some are quite large. However, it is difficult to compare to — or challenge — the current volume of large white-label distributor and clinic-owned brands. Country-wide brands generally stay in the craft category but are more sustainable than the white-label brands.
Pharmaceutical Cannabis Brands Can Create Conflicts of Interest
Finally, there are also large clinics with white-label internal brands. This model has become normalized despite the inherent conflict of interest. These unproven and not pharmaceutical models have the attention of regulators.
On one side, having access to loyal patients is a key component of maintaining a brand. However, not owning the genetics, growing operations, or manufacturing facilities poses a problem for future consistency and brand integrity.
Global Brands
In the global medical markets, there are basically three types of global brands: brands that own or have created their own genetics, like from the U.S.A.; brands based on influencers; and brands that own their own growing and manufacturing facilities and can export, like brands from Canada and a handful in Europe. In mature markets, the latter is the most prevalent as the owners of the cultivation and manufacturing facilities typically build their own branding rather than others.
The Slow Process of Genetic Ownership on a Global Scale
Early movers into the global markets by groups that own their genetics include Cookies, Sherbinskis, and others, which are all just starting to get their official genetics grown into a consistent flow. It takes time to grow those genetics to provide a country-by-country supply.
Influencer Brands Struggle to Impact Global Markets
Influencer-based brands have not done as well with providing consistent products. These brands have also faced issues entering medical markets where clinics, doctors, and pharmacists still don’t embrace branding without substance.
Canada & EU Cannabrands Entering the International Market
There are not many local EU groups that have invested in becoming global brands. For the EU locals, there are only a few EU-based global brands.
How Cannabis Brands Build Consistency as the Industry Matures
Groups that own their own genetics, growing facilities, and manufacturing plants will always have the edge in terms of consistency — if they do things right. Consistent supply lines form the backbone of any successful cannabis brand, and they take years to build and develop. There are no shortcuts, and those looking for a quick fix will find their investments sink.
Many new white labels and branded products will enter the local and global markets over the next few years. Brands that put their own name on the products they make have to improve and innovate to stay on top and make their investment pay off. The brands that uphold quality standards and pay their growers and manufacturers a little more have the best opportunity to retain brand equity.
Whatever the decisions, building consistent supply lines and maintaining consistent quality will define the success of these brands well into the future.
About the author
Michael Sassano is one of the most respected executives in the pharmaceutical cannabis space today. Currently, Michael serves as Interim CEO and Chairman of the Board for SOMAÍ, a leading EU-GMP vertically integrated Multi-Country Operator (MCO) company with a global distribution footprint for the largest and most advanced EU-GMP-certified cannabinoid-containing pharmaceutical extract portfolio.
Somaí is set to launch multiple versions of Oral Gums from October through January. The lineup will include medical Somaí extract and terpene Oral Gums, Rosin Oral Gums, and fast-acting Oral Gums. In addition, Cookies, Sherbinskis, and Jack Herer-branded Oral Gums will roll out across three countries.
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