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The call for the legalization of recreational cannabis echoes across 24 states in the United States, with Ohio being the latest addition. Within this expanding cannabis industry, the pre-roll market stands as a crucible of innovation and competition. Distinguishing pre-roll brands has become imperative, given that an analysis of point-of-sale data and our own B2B data shows pre-rolls are the fastest-growing product segment, experiencing a 12% year-over-year growth in the U.S. and an astounding 38% year-over-year surge in Canada. To thrive in this dynamic landscape, cultivating a brand identity that resonates with consumers and helps set you apart from the competition is essential. As co-founder and CEO of a company providing pre-roll packaging and machinery to companies, I see this firsthand with the brands we partner with.
Here are some key strategies to consider for making your pre-roll brand a standout in the crowd:
Diversify Product Offerings
Pre-rolls originally had a less-than-favorable reputation as low-quality products, primarily attributed to the perception that they were made with shake and trim, the byproducts from the harvesting of the good flower buds. However, as supply has increased and wholesale costs decreased, brands are able to put the highest quality flower into their pre-rolls. This has helped consumers’ preferences and perceptions shift, propelling pre-rolls to a fast-growing category in the industry.
Driven by a demand for fast-acting and high-potency experiences, infused pre-rolls have become the largest segment within the pre-roll category, generating nearly $60 million in monthly sales nationally according to my company’s findings. According to insights from BDSA, infused pre-rolls increased from a “29 percent share of total pre-roll sales to a 35 percent share of total pre-roll sales between Q4 2021 and Q4 2022.”For pre-roll brands not making infused pre-rolls, this underscores a missed opportunity.
Brands should consider catering to diverse consumer tiers, ranging from value to mid-tier and luxury. It’s not just about creating multiple lines for each tier; it’s about developing various pre-roll products within each line. These could include multi-packs, mini pre-rolled joints, variety packs with different strains, flavored pre-rolls, and most notably, infused pre-rolled joints.
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The Rise of Flavored and Infused Joints
Terpene-infused joints have become essential in setting apart premium pre-roll offerings. Terpenes are responsible for the flavors, aromas, and therapeutic effects produced in plants, vegetables and fruits. Some everyday known terpenes are produced from plants like lavender, rosemary, sage, mint and, of course, cannabis. Within the last couple of years, as cannabis consumers have become more educated consumers, terpenes have emerged as a sought-after product differentiator for both the cannabis novice and connoisseur.
While natural cannabis-derived terpenes are in low supply and high demand, brands have turned to botanical terpenes from non-cannabis sources to meet this demand. A thoughtful combination of both botanical and cannabis-derived terpenes can offer a diverse and appealing range for consumers. Caution is advised against spraying pre-rolls with terpenes, as this method is volatile and evaporates rapidly. Not all infused pre-rolls are enhanced with terpenes, but usually, all flavored pre-rolls are also infused with some form of concentrate — usually distillate, which is cheap, easy to work with, and lacks natural terpenes.
Packaging Matters
The packaging of a pre-roll should mirror the quality and craftsmanship of the product within. Premium filter tips, such as glass, ceramic or wood, convey a sense of luxury and quality. Pop tops, however, remain the most common due to their cost-effectiveness. With the surge in multi-packs, the packaging most often used, cardboard and metal tin, should include humidifying packs to ensure freshness and quality. Brands should also consider glass tubes, which are gaining popularity for maintaining optimal freshness by acting as an effective barrier against oxygen and moisture. While premium packaging is valuable, educating budtenders on the added benefits of the packaging used is crucial, as they play a pivotal role in influencing consumer choices.
To achieve rolling success, brands must understand their customers, spanning from dispensary managers and budtenders to end consumers. Tailoring messaging to each group, fostering creativity in crafting a unique selling proposition, and above all, ensuring consistency in product quality will foster loyalty and keep consumers coming back. In a thriving industry, becoming a rolling success requires a combination of innovation, customer understanding, and a commitment to excellence and consistency.
