How independently run cannabis producers can get their products front and center into new retail stores

By Nicolas Guarino

The landscape for licensed adult-use cannabis markets across the United States is constantly shifting, with rocky highs and lows as markets navigate and overcome a range of issues in real time.

For instance, New York initially had a limited opening of retail stores and an issue of significant overproduction in 2023 due to extended lawsuits against the state’s well-intentioned social equity licensing program. Now that we’re well into 2024, the market is picking up steam, with sales on the rise, more retail stores opening, and more licenses being issued across the supply chain.

That said, cannabis producers throughout the country are confronted with challenging markets, both new and mature. These potential hurdles to gaining and maintaining market share include balancing regulatory and supply chain challenges in a new market, or price compression due to an abundance of competition from both licensed and unlicensed operators in mature markets. It can also be an especially difficult situation for bootstrapped independent companies vying for sales alongside moneyed multi-state operators – a true David and Goliath scenario.

How can independently run cannabis producers in emerging markets compete, and get their products front and center in retail stores so their brands can thrive? It definitely takes a lot of hard work, but the strategies are fairly simple. Here are three powerful tactics to seize the spotlight:

1. Low-cost manufacturing of high-quality products:

It sounds obvious but everything starts with the product itself, from how it’s made to how it’s branded. With Naturae, we got our start in 2017 in the hemp-derived CBD sector, where we faced incredibly sharp price compression and were forced to stay focused on high-quality extract production at high volumes to maintain low costs.

We were able to transition this ethos within the THC space, where it’s even more crucial to set prices that can compete with the unlicensed market, which is still thriving in all large legal markets. That way, producers can offer dispensary partners products at an economical price point that appeal to and deliver value to legacy consumers. In addition, Naturae focuses exclusively on extract-based products, which represent around 50% of the market in New York, and this focus allows us to create attractive products while maintaining a competitive cost structure for our partners.

But like with other consumer packaged goods, beyond offering affordable, high-quality products that are above-board safe, consistent, taste great and deliver their as-promised effects, branding matters. Identify and understand your target audience, pick a name that resonates, and finalize an aesthetic; deliver on your products’ intended look, feel and packaging design. This is all easier said than done, but with quality inputs and a focused product line, it is easier to achieve. There are an abundance of thorough marketing resources (often available for free) to help with this as well. What I’ll ultimately leave you with here is: don’t skip or skimp on this step! A great quality product will only carry you so far in new markets, and will not likely carry you far at all in mature ones.

2. Nimbleness and speed-to-market capabilities

Thanks to a long history in the saturated CBD market, and a dedicated team at Naturae, our philosophy has long been that we must get to market as quickly as possible with new branding concepts and product lines. And on top of that, we’ve found a way to position ourselves to be able to improve on these early versions as needed, also as quickly as possible. Dispensary partners and consumers will appreciate product updates and enhancements that take their feedback into account too.

I’d strongly recommend this modus operandi to other producers: set up your production infrastructure in a manner that enables you to release and test new product lines fast, while still maintaining the utmost quality. This can help to secure a loyal customer base, power consistent monthly sales and increase your brands’ market share.

Adaptability also means responding to demand, and being able to shift your output and distribution if, say, certain SKUs are performing better than others. Quickly assess the products you’re offering retailers as point of sale data and feedback continue to roll in, and pivot as needed. Ideally you will be able to create certain rules of thumb: for example, if a product in X line or category does not generate X in sales after 90-180 days of release, pull it and replace it with something new. To determine what to replace it with, utilize data platforms such as Headset and AlpineIQ. These are incredible resources for product development, as they provide historical performance of entire categories as well as specific products in each market.

This strategy can also be effective for markets that remain influx. It’s important to remain agile and adjust to changing market conditions rather than resting on laurels and having tunnel vision.

3. Buyers and Budtenders are your best assets

Whether you’re looking to get your products into dispensaries run by independent legacy entrepreneurs, or dispensaries opened by multi-state operating corporations, it’s all about fostering impactful relationships with both buyers and budtenders. Wholesale buyers and budtenders are the gatekeepers for getting your brand to the consumers, whose purchases will drive growth. Buyers and budtenders determine if your products will be featured in stores in the first place, as well as their shelf placements and of course, if budtenders will recommend your products verbally to consumers when prompted.

That leads us to actually establishing relationships with these crucial human links in the supply chain so they will support your brand. Aside from following the aforementioned steps to provide quality products at an affordable price, seek to form a genuine connection with these folks and treat them as partners with nearly as much of a stake in your brand as you have. Communicate early and often, and check in for feedback about what they’re looking for in the store, their store’s audience, and always deliver on-time (if you use a third party distributor, make sure they are even more reliable than you are). And beyond verbal communication, it really makes a difference to show up in person and offer in-store opportunities. These can include sampling, product demos, among other events that are engaging for employees and customers alike. Hosting events at your partner dispensaries can be a win-win and solidify a reciprocal relationship, as it can help to attract customers to a store while providing your brand with an opportunity to get directly in front of both the budtenders and the patrons.

Additionally, make sure that store managers and budtenders are well-versed on your product so they can best describe it to potential customers. Keep in mind, retail store owners and employees are dealing with an array of brands, so help your brand stand out by keeping the messaging top-line and to-the-point – brevity is key. Tell the story behind your brand and what makes the product appealing, in 30 seconds or less. Make the concept concise and memorable for buyers and budtenders, and that should translate to them communicating your brand and products’ messaging effectively to consumers.

The cannabis industry may seem unpredictable, but producers can assume a fair amount of control with regards to how their brands and products are received by retailers, and ultimately, maximize their chances for their SKUs being a hit with consumers.