The pandemic and inflationary pressures have made it difficult for any business to excel, especially in the budding cannabis industry. Despite the federal prohibition on marijuana, rising prices, and increasing competition, five cannabis brands have seen an especially successful 2022 year and continue to see spikes in sales.
Headset recently released a report analyzing five cannabis brands that have been succeeding this year in the two most mature and competitive U.S. cannabis markets: Colorado and Washington. Although sales trends in both states have been declining, it has not prevented these top-performing businesses from finding success within the market. The following companies have grown in their respective categories like flower, vape pens, and edibles, as well as in general sales numbers:
Despite entering the Colorado market less than 12 months ago, Sano Gardens has been experiencing astronomical growth this year. With sales totals of more than $800,000 in August 2022, Sano Gardens had already climbed to the 15th ranked brand in the Vapor Pens category. Their sales are driven almost entirely by the Vapor Pen category, namely their ‘Orchard’ line of flavored live resin ‘All-In-One’ pens.
One of the nation’s most popular edibles brands amassed $100 million in sales in 2021, and is on track to hit $150 million this year. This multi-state mega business has been a major contender in the cannabis edible landscape for a while, but brought their winning formula to Washington’s market in January 2022. The best selling WYLD product in August was their THC/CBN 2:1 Indica Elderberry Gummies, pointing to some increased popularity in CBN items. Beyond their edibles success, the brand continues to attract more fans through its unique packaging and ESG initiatives.
Magnitude, an Infusiasm brand, entered the Colorado market in late 2020. This vapor pen brand performed fairly well through 2021, with more than $500,000 in monthly sales through the summer. By March 2022, Magnitude had achieved more than $700,000 in retail sales, and by August of this year, they had more than doubled that value with more than $1.5 million in monthly sales. There are two clear winners among Magnitude’s product line: their Platinum Jack and Blueberry ‘Live Terps’ 1g cartridges netted a whopping 89 percent of the brand’s total sales in August.
Passion Flower, a multi-category brand from Fairwinds, is all about offering clean, pesticide-free cannabis. They sell products in the Flower, Vapor Pen, Concentrates, Pre-Roll, and Beverage categories. Since their launch in April 2021, sales to Passion Flower have been steadily rising month-over-month. In August 2022, retail sales topped $550,000. This brand is one of the fastest growing in the Washington cannabis market.
Lazercat Cannabis, a concentrate and vapor pen brand out of Colorado, is another steady success story over the past year. With monthly retail sales consistently climbing, sales to this company have risen by more than 160 percent since August 2021. Both cartridges and rosin products contribute to Lazercat Cannabis’s sales, with their Grape Nerds Rosin Cartridge (0.5g) taking the top spot in August 2022.
Cannabis Sales Declining
The reality is that the cannabis market is returning to normal after the mid-pandemic boom and heightened popularity. As more states continue to legalize marijuana, there will always be an initial spike in sales, but then return to normal as shoppers establish regular purchasing patterns.
“Cannabis sales surged early in the pandemic, even in the most mature markets such as Colorado and Washington, due to broad changes in American consumer behavior,” Cooper Ashley, Analytics Manager at Headset, said. “As the COVID-19 pandemic’s impact on American lives lessened, so did demand in 2020 and 2021, meaning that as demand is receding, there is more competition and supply than ever before. This is causing price compression and decreased customer basket sizes. All of these factors combined are leading towards decreased total sales.”
As cannabis businesses across the nation fight to survive in a competitive industry, here are some keys for success to implement in your dispensary:
1. Listen to Your Customers
Consumer preferences are always changing, so be sure to listen to their needs and desires in order to prevent them from going to another business to find what they want. If you notice shoppers are looking for more flower, vape, or accessory options, maybe it is time to restock your inventory.
2. Research What is Trending
One of the things most of these five cannabis brands have in common is their success in selling vapor pens, which means that is the type of product consumers are looking for. Whether it be vape pens, a new flower strain, or a cool new water pipe, always be on the lookout for the latest trends and keep your stock fresh.
3. Be More Sustainable
As customers increasingly turn toward eco-friendly brands, now is the time to show what you are doing to help save the planet. Whether it be through recycling, using more energy-efficient processes, or donating to a charitable cause, let shoppers know just how much you care.
4. Create Exceptional Customer Shopping Experiences
All success boils down to the customer experiences. Especially for smaller brands who rely on those personal connections, make sure your employees are well-trained and know what to do in case problems arise. If you sell online, also be sure that the checkout experience is as seamless as possible.