Expunges minor cannabis convictions:

According to the FBI Unified Crime Reporting, more than 545,000 Americans were arrested for marijuana-related crimes in 2019 and more than 90% of those arrested were charged with possession. If passed by the Senate, the MORE Act would expunge the criminal records of convictions for qualifying federal cannabis offenses and related arrests for those no longer incarcerated; meaning that those currently serving a sentence for a federal marijuana charge could petition the courts to resentence as if the marijuana offense did not take place. Additionally, the MORE Act would eliminate the threat of deportation for immigrants accused of minor cannabis infractions or those employed in the legal cannabis industry.

Provides veterans better access to legal cannabis

The Department of Veterans Affairs has long used cannabis’ federal illegality as a reason to not incorporate the plant into patient care. As the laws stand now, veterans looking for alternatives to addictive and dangerous pharmaceuticals are not permitted to use cannabis even if they reside in a state where it is legal. If found to be using cannabis, the consumer is at risk of losing their benefits. If passed, the MORE Act would permit VA doctors to recommend medical cannabis to its patients.

Enables access to Small Business Administration funding

To date, small businesses in the cannabis sector – which create a significant number of jobs that fuel state and local economies – have been unable to access the same federal resources that are available to all small businesses. If passed, the MORE Act would make these cannabis businesses eligible for SBA lending programs as well as give them access to the training and counseling programs offered by SBA resource partners.

Grants companies easier access to banking

If passed, the MORE Act would eliminate the current problems with the 280E tax code (which states that businesses that traffic in controlled substances cannot deduct any expenses incurred in carrying on the production, distribution and sale of controlled substances) and lack of access to banking – hurdles that have plagued the legal cannabis industry since its inception. Additionally, it would impose a federal excise tax of five percent. The act would also create a community reinvestment grant that would fund job training, health education, youth mentoring programs, and legal aid for those impacted most by the war on drugs. 

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In 2012, Washington and Colorado legalized recreational marijuana, sparking an ongoing economic event that will be forever known as the “Green Rush.” Named after the 1848 Gold Rush when miners and treasure hunters flocked to California with promise of gold, the legalization of marijuana had both investors and entrepreneurs scrambling to capitalize on the budding market.

Flash forward eight years and 11 states have adopted legal adult-use, while 33 have medical programs. By late 2019, it seemed like the rush slowed to a slight scurry. However, when the coronavirus pandemic hit the U.S., causing statewide lockdowns, the nation was reminded of the cannabis industry’s resilience. In a time of mass business closures and furloughs, cannabis was deemed an “essential business” by more than 20 states, meaning that retailers can stay open to provide patients with the physical and mental relief they need. As one of the few industries operating at full capacity, a Green Rush 2.0 was born.

According to cannabis analytics company New Frontier Data, the legal cannabis industry set sales records across North America since March, partially due to the market’s growth during the COVID-19 outbreak. E-commerce sales have risen by 43 percent across multiple recreational and medical states, and while consumers are making larger purchases, they are making them less often. However, those sales numbers are spread across the board and do not indicate any loyalty trends in terms of brands, which means cannabis companies still need to capture the attention of their target consumers.  

Before the pandemic, brands relied greatly on budtenders to peddle their products, and they allocated marketing dollars into building these relationships. From “budtender appreciation parties” to free products and branded swag, sales representatives often visited dispensary employees to educate them on their products with the hopes that they would recommend it to their customers. 

However, when budtender/customer face-to-face time is cut short, brands have to utilize more traditional means to get in front of their target demographic, such as print ads, billboards, but most of all, digital ads.   

Here are three strategies to use when reevaluating and tweaking a cannabis marketing plan:

• 1. Develop a Digital Strategy: The industry has long been stifled by Facebook and Google, which does not allow cannabis or CBD ads regardless of whether or not it’s legal in a targeted state. Because of this, brands are turning to cannabis-specific digital ad targeting companies such as Surfside.io which can target consumers in the same geographic locations as their dispensaries and who have buying habits inline with their offerings. 
• 2. Take Advantage of the Broadened Reach: Because consumers are relying on e-commerce, companies have an opportunity to access a wider demographic of people who would have otherwise not visited their dispensary due to location. Brands should be widening their target audience for digital ads to reach those who would otherwise not be obtainable. 
• 3. Leverage Media Relations: By having a strong public relations plan in place, cannabis brands can differentiate themselves from competitors using earned media coverage in print, broadcast, and digital publications. By doing so, they can avoid the restrictions that come with paid advertising, and educate consumers on their product offers while establishing credibility for their executives as notable thought leaders. 

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On August 11, Democratic presidential candidate Joe Biden announced Senator Kamala Harris as his pick for vice president, and the news was met with both enthusiasm and skepticism from cannabis advocates and entrepreneurs. Historically, the Democratic Party has shown more support for the federal legalization and decriminalization of cannabis than the GOP, yet Biden and Harris’s past sentiments on the issue have left some questions as to what stance they would take during their 2020 campaign and beyond. 

Throughout his political career, Biden has upheld unwavering opposition to adult-use legalization. However, with Harris as his running mate, and with the cannabis industry’s undeniable ability to raise tax revenue — especially now during  pandemic-induced state budget deficits — his views may be more malleable than once thought. 

During a 2019 interview with radio show “The Breakfast Club,” Harris not only discussed her belief that cannabis should be legalized, but endorsed the need for continued research on the health benefits of the plant, its impact on the brain, and backed its medical efficacy. She also voiced her concern for the racial disparity in marijuana arrests and, to the surprise of many, admitted to having smoked cannabis once before. While an advocate today, Harris admittedly has not always had these views. 

In 2010, Harris opposed Proposition 19 — also known as the Regulate, Control & Tax Cannabis Act — a ballot that would have legalized adult-use. Also, during her tenure as district attorney of San Francisco, she was renowned for cracking down on drugs and gangs, seeing more than 1,900 cannabis convictions come through her office. 

It was during her second term as attorney general of California when Harris came out in support of the decriminalization of cannabis. In her remarks during the 2017 Center for American Progress Ideas Conference she said, “While I don’t believe in legalizing all drugs, as a career prosecutor I just don’t, we need to do the smart thing  — the right thing — and finally decriminalize marijuana.” 

Harris has since stuck with this narrative. In 2019, Harris went on to introduce a bill to federally deschedule and legalize marijuana.

Just last month, Harris cosponsored The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, bipartisan legislation that removes marijuana from the Controlled Substances Act, thus decriminalizing the substance at the federal level and enabling states to set their own policies. It also calls for the allocation of federal funds for cannabis entrepreneurs of color and the expungement of marijuana possession charges from offenders’ records.

Biden still does not support federal legalization, but during their first joint interview with ABC News, the duo voiced their shared support for the decriminalization of the plant. Instead, Biden has vowed to change the way in which the country handles drug cases and opted for policies that promote rehabilitation over incarceration. 

The case for legalization is strong, especially in a post-pandemic atmosphere when the country will need to rebuild the economy. For instance, The California Department of Tax and Fee Administration reported that cannabis tax revenues in the second quarter of 2020 soared 32.6 percent from 2019, to another record of $208.4 million, and this does not include revenues collected by cities and counties. Over the first two quarters combined, cannabis tax revenues, at $414 million, were up 44 percent from the same period in 2019 and by 150 percent from the same period in 2018. 

In addition to tax revenue, employment rates and real estate values also increase with the approval of medical and adult-use marijuana. Between cultivation and manufacturing facilities, dispensaries, and countless ancillary businesses that support cannabis, the industry has reportedly created more than 211,000 full-time employment positions in the United States. Cannabis has the ability to help revive the country that, as of July 2020, had an unemployment rate of 10.2 percent. 

With a mere three months until Election Day, we will likely see the subject of drug reform be touched on in future debates between the two parties. While the impact of a White House takeover by the Democratic candidates is still undetermined, we can expect much more conversation surrounding marijuana reform than seen over the past four years. 

Since his election as commander in chief, President Trump has threatened to ignore Congress’s protection laws for marijuana in each state and, more recently, his administration has proposed removing medical marijuana protections in the 2021 fiscal budget. During the 2020 Republican National Convention, multiple speakers expressed critical views about the cannabis industry and expressed their disdain for dispensaries being deemed “essential businesses” amid the pandemic. Otherwise, the Trump administration has done little to push the industry forward and instead have agreed to leave it up to the states. 

Currently, seven states are posed to have legalization initiatives on their November ballots. Arizona, Montana, New Jersey, and South Dakota have ballot measures for adult-use, and Idaho, Mississippi, Nebraska, and South Dakota ballot measures would allow for a medical cannabis program. For the foreseeable future, we will continue on this path of slow, fragmented adoption. 

No matter the outcome of the election, brands will need to secure a strong presence with a public relations preparation, especially considering how the cannabis industry seems much brighter under a Biden/Harris ticket. At the very least, it will revitalize the conversation surrounding cannabis decriminalization and full legalization, and bring the issue back up to federal consideration.

The post What a Biden/Harris Ticket Means for Cannabis Industry Reform appeared first on N6 Powered by KRMA | Fully Integrated Digital Marketing.

It’s no secret that the North American cannabis industry is flourishing. According to a recent report from cannabis market research firm BDS Analytics, legal adult-use spending reached $7.3 billion in 2019 and is projected to reach $16.2 billion in 2020. The legalization movement is gaining momentum as markets emerge and prosper.

As the cannabis industry grows and dominates the media landscape, the need for traditional communication services tailored to the burgeoning market has become essential. Businesses have long utilized public relations and advertising as complementary vehicles of communication, and while different, each serves mutually beneficial purposes. 

Cannabis businesses should develop a comprehensive understanding of PR and advertising before using the services. Despite the ubiquitous nature of the industries, confusion regarding their purpose persists. People generally view PR and advertising as synonymous, and while they both use targeted messaging to raise awareness about a company or service, they are not one and the same. The difference is quite simple, actually: advertising is a form of paid media, whereas PR is earned media.

Paid media is the strategic and paid placement of content across media channels. It is an effective and measurable, albeit costly, means of driving brand traffic and increasing sales. Earned media refers to the publicity gained through proactive pitching and outreach to media. It is a trusted means of increasing brand visibility.

Photo by Robert Nelson on Unsplash

It isn’t a question of whether a cannabis business should use PR or advertising, but when to use each. These plans should be activated to bolster credibility and enhance profitability depending on a company’s goals and outcome objectives.

When to Use PR

B2B cannabis companies should use PR to protect and strengthen their brand reputation. PR professionals can assist businesses in developing well-conceived messaging aimed at educating consumers while being mindful of issues related to legality. Through the use of PR, cannabis companies can establish their executive teams as thought leaders, as well as increase their credibility amongst industry professionals, investors and clients.

When to Use Advertising

Consumer Packaged Goods (CPG) companies and cannabis retail brands should utilize paid advertising when launching a product or service. Advertisers can assist businesses in promoting content that adheres to social media regulations regarding cannabis, in turn, increase sales and build brand awareness.

A Fusion of Services

Although the cannabis industry is growing exponentially, it is a tricky space to operate within. To avoid crossing into gray areas, businesses should leverage both PR and advertising to develop brand messaging that is reflective of the nuances and regulations shaping the market. By employing PR, cannabis businesses can become reputable leaders in the budding market and, in turn, gain and maintain loyal customers.

The post PR vs. Advertising: Which One is Better for Your Cannabis Business? appeared first on N6 Powered by KRMA | Fully Integrated Digital Marketing.