Cannabis Briefs for September 12, 2023
September 12, 2023•Cresco Labs has partnered with Spotify to launch ads for the company’s cannabis retail brand Sunnyside on the music streaming platform. The relationship comes with the news that Spotify has adjusted its policies to allow cannabis advertising. The ad campaign, which aims to communicate the benefits of shopping at Sunnyside dispensary, includes 30-second audio and in-app digital banners that drive consumers to the retailer’s e-commerce platform. Advertising is supported by a paid media campaign that includes programmatic buying and native ads. “Audio streaming services represent a major opportunity for brands to reach large audiences in a targeted manner,” said Cory Rothschild, Cresco Labs’ national retail president.
•California’s state Senate overwhelmingly approved a bill to legalize cannabis cafes. The bill, already passed by the state Assembly, cruised through the Senate on a vote of 33-3. It would allow cannabis retailers to sell regular, non-infused food and drink. On the face of it this doesn’t sound like much, but it has the potential to create a new class of cannabis businesses that present to the customer as a coffee shop first and that just so happen to sell cannabis products, rather than as a store meant for making a purchase and then leaving. The ability to sell non-cannabis items opens up a massive revenue stream that could be a game-changer for an industry operating on incredibly thin margins. The legislation would also authorize live music and other performances on the premises, with the ability to sell tickets to them.
•Lifetime cannabis sales in Massachusetts reached $5 billion since sales began in November 2018. The milestone marks the fastest billion-dollar leap after the state reached $4 billion only this January. Massachusetts regulators said sales have not slowed as surrounding states have launched legal sales as well. “Massachusetts continues to hit record sales even as other states have come online,” said Shawn Collins, executive director of the Cannabis Control Commission. “In fact, our neighboring states Maine, Rhode Island, and Connecticut also had record sales this summer.”
•New Jersey regulators will begin accepting applications at the end of this month for cannabis delivery business licenses. The same day, September 27, the state’s Cannabis Regulatory Commission will also start taking applications for cannabis wholesale and distribution licenses in another move that will further help the cannabis market resemble the three-tier system of beverage alcohol. There will be an initial period of priority given to designated social equity applicants, with the process opening to the general public next March.
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