Cannabis beverage challenge: Can cannabis beverages overcome the tobaccoization of cannabis?

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Although infused beverages have been predicted to shake things up in the legal market, Canada’s cannabis companies are experiencing yet another regulatory bottleneck.

Challenged to create brand identity in the flower market, the promise of many big cannabis companies resides in the ability of their cannabis beverages (HEXO with TRUSS, Canopy with Tweed and Houseplant, Tilray with Fluent, and Aphria with SweetWater Brewing, etc.) to win over the non-cannabis consumer. For this to happen, cannabis beverage companies must escape the ‘tobaccoization’ of cannabis.

Canada’s rules governing cannabis advertising and branding are based on governments’ regulation of the tobacco industry and tobacco advertising. I first encountered the ‘tobaccoization’ of cannabis in the fall of 2017. Working for a Quebec-based licensed producer, I was informed that health department officials tasked with creating Quebec’s cannabis law would not engage with the cannabis industry. Cannabis was like tobacco and Santé Québec did not talk to tobacco companies.

The “tobacco is cannabis” approach was not limited to the province of Quebec. Faced with the challenge of regulating cannabis advertising, branding, and retailing, our governments, both federal and provincial, dusted off their tobacco rules and used the “Find” and “Replace” functions to create the regulatory framework for adult-use cannabis. Ontario’s response to cannabis was no different — look at the Smoke Free Ontario Act.

The ‘tobaccoization’ of cannabis poses significant challenges for cannabis beverages. If any cannabis product is going to connect with the non-cannabis consumer, it will be cannabis beverages. Beverages do not have the stigma or health baggage associated with smoking and vaping (e.g. smoking causes cancer, chronic smoking of high THC cannabis can lead to psychoses, etc.). A beverage containing 2 mg of THC has a subtle effect, comparable to a single serving of alcohol. Yet, without the ability to market to the non-cannabis consumer, cannabis beverage companies will struggle to make the leap into the beverage mainstream.

Cannabis beverages are the industry’s best chance at a sensible approach to cannabis advertising and branding. To escape the ‘tobaccoization’ of cannabis beverages, Canada’s cannabis beverage companies will need to focus on the public’s understanding and perception of their products. This could involve building on the health and wellness benefits of CBD. This could involve drawing comparisons between the social occasions for THC beverages and alcohol-based beverages. One thing is for sure — this will involve distancing cannabis beverages from cannabis products that are smoked or vaped.

Pierre Killeen is the Executive Director of the Institute on Cannabis. Prior to this, he served as a public affairs executive with one of Canada’s largest publicly traded licensed producers.

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