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Cannabis is among us…

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MARIJUANA

Corporate America is embracing cannabis in ways previously unseen. With its unofficial birthday coming up on Saturday, momentum seems to be anything but slowing down.

“Brands that associate themselves with cannabis kind of get that contact high […] cooler by association.”
—Kit Garrow, Golden Gate University consumer psychologist

Canadian-based Canopy Growth, the world’s most valuable cannabis company, is making a big bet on the burgeoning US market in the form of a $3.4 billion purchase of NY-based counterpart, Acreage holdings. The deal has a major contingency:  legalization on a federal level—but its size and timing represent what many see as the inevitable wave of initial consolidation in the space.

“They know the U.S. is the biggest prize of all,”
—Ken Shea, Bloomberg Intelligence

According to Eaze, CBD is growing a new class of cannabis consumers. With the adoption of CBD for wellness and pain relief, women and baby boomers are driving double digit growth in the segment.

4/20 is coming, and businesses are using the special day to roll out products and marketing—looking to convert the former stoner holiday into an annual revenue spike. Increased consumption, however, is putting pressure on the underlying logistics infrastructure.

DTC

DIGIDAY deep-dives into Ro, the DTC erectile dysfunction manufacturer: how it uses its direct access to its customers to glean insights, drive future product innovation, and (importantly) expand in the category. Casper, a mattress company, now makes pillows, night lights, and dog beds. Bombas, a sock company, now sells t-shirts. It’s a launchpad strategy, that, combined with VC-funding, is fueling some impressive growth.

“Ro started with just erectile dysfunction, but this wasn’t going to be an ED company forever. We want to change the healthcare system. That’s our end goal. To get there, you learn from the customer from the beginning and then adjust your roadmap.”

In opening a small-format concept store, IKEA according to a release, may be taking a page from the DTC playbook.

WHIPLASH

The double-digit growth in the cannabis industry need not put pressure on your underlying logistics infrastructure. The merger of Port Logistics Group and Whiplash has resulted in an organization that can scale from 500 to 500,000+ orders per month.

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