On Sunday, October 6, HighBridge held an Executive Team meeting. One of the topics of the meeting was the “Buying Matrix”and how that breaks down into various demographic categories. Statistically we are aware that women buyers of cannabis products exceed men. Our discussion revolved around how HighBridge can take advantage of that by developing products that appeal to women, not just in terms of flavor profiles, but visually and emotionally. Part marketing and part product development, the decision was made to explore this opportunity. After all, it worked for WHITE CLAW, which grew in popularity an astounding 1300% last year!
Two days after our meeting, the National Institute of Cannabis Investors published the following analysis: (From the NICI News Letter October 8, 2019)
Female-Focused Brands Are More than Just a Niche
More women than ever before are using cannabis, and smart companies are ready to sell them products… If a business wants to be all things to all people, it’s got a great chance of failing. It’s just not possible to please everyone. That’s why it’s often better to find a certain segment of the market to target and be the best at making products for that sector. And one of the growing markets in cannabis is for female- focused products. Here are a few quick stats:
- In the United States, 61% of women support marijuana legalization. In 2012, only 44% supported legalization.
- The amount of women who bought cannabis in California doubled from 2017 to 2018, according to cannabis delivery service Eaze.
- According to New Frontier Data, at least 53% of female cannabis consumers use cannabis at least once per week. By 2024, there will be a projected 173 million women in the U.S. compared to 167 million men, so female-focused cannabis products are by no means just going to be a niche segment of cannabis. With women controlling roughly $30 trillion in annual spending, this smart company is going all in on female- focused wellness products…
Female-Focused Cannabis Products
There are a few private companies targeting the female cannabis market. For example, Van der Pop is a cannabis lifestyle brand and blog that aims to educate women. It also sells cannabis products and accessories. We like the approach, as the education angle makes potential consumers feel comfortable with Van der Pop. They will trust their opinions, and in turn, purchase products from the company. But there’s also a publicly traded company that’s trying to reach women. Blissiva, a Maryland-based cannabis company, will bring its products to 11 states thanks to a licensing agreement with iAnthus Capital Holdings Inc. (CSE: IAN, OTC: ITHUF). The next wave of cannabis IPOs is coming. Serial entrepreneur Gina Dubbé launched Blissiva with the goal of making medical cannabis more desirable and accessible to women. Its first product, the Balance Pen, was formulated to help with sleep and stress. In an initial 12-week run at the dispensary Greenhouse Wellness, the Balance Pen sold out in six weeks. As the picture below from Blissiva’s website shows, the product skews female.
Dubbé said Blissiva will most likely roll out products to five additional states this year and five next year. For iAnthus, this move allows the company an opportunity to gain important data on the female sector of the cannabis market that it can utilize in its dispensaries. When it’s opening dispensaries throughout the United States, it will have a better idea of what products sell well to women, as well as if there are any products that are crossover hits between men and women.
HighBridge is a Proud Member of the Cannabis Trade Federation