Connect with us

Business News

Cannabis retail trends not as high as you’d expect

(BUSINESS NEWS) Cannabis consumption trends during COVID-19 had been predicted to some degree, but data shows they aren’t what you might expect.

Published

on

Cannabis plant grown under pink UV light.

As have nearly all consumer trends, the legal cannabis market has been noticeably affected by the coronavirus pandemic. When the pandemic first started, I heard a lot people in the industry predict sales would skyrocket. These are stressful times for everyone, and people need their vices! Especially since cannabis is considered an essential industry in states where consumption is legal, most predicted an uptick in sales. But the data shows it’s not so cut and dry.

According to a study done by Marijuana Business Daily in late September, which focused on 4 recreational states – California, Colorado, Nevada, and Washington state – it seems that sales are all over the place.

The data shows that while shoppers are spending more on cannabis per visit, they are shopping less in general. In the industry, this is called “basket size”. So yes, basket size is up, but the number of visits and number of baskets sold has generally declined. People are stocking up for safety and/or scheduling reasons, and this trend is certainly not unique to cannabis (Hint: remember toilet paper hoarding?).

One anticipated spike in cannabis sales across the board was on April 13th, when federal stimulus packages went out. For some who don’t have a medical condition alleviated by the effects of the plant, cannabis is not a staple. But if there’s extra cash laying out, you bet your bottom dollar that they’re going to stock up at their local dispensary. Makes sense to me.

Conversely, the lowest sales ever for the industry was in mid-late March, when recreational sales dropped by almost 50%. I’m guessing this was because of the newly implemented shelter-in-place orders, as well as the mass angst and confusion of the early pandemic.

That being said, there was a quick bounce back as cannabis retailers were treated favorably by state governments and were allowed to stay open or provide curbside service. Like other industries, cannabis retailers adapted to the pandemic after some time.

Legal cannabis is a relatively new industry that has grown exponentially since the passing of the 2018 Farm Bill, which removed hemp from the Controlled Substances Act (CSA). Up until the pandemic, cannabis sales have been relatively recession resistant.

This is why I find examining market trends in cannabis so fascinating – it’s a young industry that has only ever been on the up, so it acts as a sort of prism through which we can most accurately detect market trends.

Additionally, there is a new-found appreciation (dare I say, requirement) for mental health and wellness. People are looking for plant-based, not-toxic approaches to combatting their various woes during coronavirus. CBD, hemp, and other non-psychoactive substances are being consumed by new users who were previously uninterested in THC, the active psychoactive compound in the cannabis plant that gets you “high”.

I think if anything, the market will continue to expand into more cannabis-based products, while consumption of the plant will remain relatively steady. But at this point, it’s difficult to predict anything.

Anaïs DerSimonian is a writer, filmmaker, and educator interested in media, culture and the arts. She is Clark University Alumni with a degree in Culture Studies and Screen Studies. She has produced various documentary and narrative projects, including a profile on an NGO in Yerevan, Armenia that provides micro-loans to cottage industries and entrepreneurs based in rural regions to help create jobs, self-sufficiency, and to stimulate the post-Soviet economy. She is currently based in Boston. Besides filmmaking, Anaïs enjoys reading good fiction and watching sketch and stand-up comedy.

Business News

Australia vs Facebook: A conflict of news distribution

(BUSINESS NEWS) Following a contentious battle for news aggregation, Australia works to find agreement with Facebook.

Published

on

News open on laptop, which Australia argues Facebook is taking away from.

Australia has been locked in a legal war against technology giants Google and Facebook with regard to how news content can be consumed by either entity’s platforms.

At its core, the law states that news content being posted on social media is – in effect – stealing away the ability for news outlets to monetize their delivery and aggregate systems. A news organization may see their content shared on Facebook, which means users no longer have to visit their site to access that information. This harms the ability for news production companies – especially smaller ones – from being able to maintain revenue and profit, while also giving power to corporations such as Facebook by allowing them to capitalize on their substantial infrastructure.

This is a complex subject that can be viewed from a number of angles, but it essentially asks the question of who should be in control of information on a potentially global scale, and how the ability to share such data should be handled when it passes through a variety of mediums and avenues. Put shortly: Australia thinks royalties should be paid to those who supply the news.

Australia has maintained that under the proposed laws, corporations must reach content distribution deals in order to allow news to be spread through – as one example – posts on Facebook. In retaliation, Facebook completely removed the ability for users to post news articles and stories. This in turn led to a proliferation of false and misleading information to fill the void, magnifying the considerable confusion that Australian citizens were confronted with once the change had been made.

“In just a few days, we saw the damage that taking news out can cause,” said Sree Sreenivasan, a professor at the Stony Brook School of Communication and Journalism. “Misinformation and disinformation, already a problem on the platform, rushed to fill the vacuum.”

Facebook’s stance is that it provides value to the publishers because shared news content will drive users to their sites, thereby allowing them to provide advertising and thus leading to revenue.

Australia has been working on this bill since last year, and has said that it is meant to equalize the potential imbalance of content and who can display and benefit from it. This is meant to try and create conditions between publishers and the large technology platforms so that there is a clearer understanding of how payment should be done in exchange for news and information.

Google was initially defiant (threatening to go as far as to shut off their service entirely), but began to make deals recently in order to restore its own access. Facebook has been the strongest holdout, and has shown that it can leverage its considerable audience and reach to force a more amenable deal. Australia has since provided some amendments to give Facebook time to seek similar deals obtained by Google.

One large portion of the law is that Australia is reserving the right to allow final arbitration, which it says would allow a mediator to set prices if no deal could be reached. This might be considered the strongest piece of the law, as it means that Facebook cannot freely exercise its considerable weight with impunity. Facebook’s position is that this allows government interference between private companies.

In the last week – with the new agreements on the table – it’s difficult to say who blinked first. There is also the question of how this might have a ripple effect through the tech industry and between governments who might try to follow suit.

Continue Reading

Business News

Plant-based milk company Oatly is going public in the U.S.

(BUSINESS NEWS) With the growing popularity of plant-based goods, it is unsurprising to see Oatly going to market, but how much the investment pays off remains to be seen.

Published

on

Plant-based milk Oatly on store shelves, two different varieties.

On Tuesday, the plant-based milk company, Oatly, filed for an initial public offering (IPO) in the U.S., which could value the company between $5 billion and $10 billion.

The IPO will take place after the United States Securities and Exchange Commission (SEC) completes its review process and is subject to market conditions. Additional details of the planned sale were not offered in the confidential filing. The price and number of shares available to purchase are yet to be determined.

The Sweden-based vegan food and drink maker was founded in the 1990s by brothers Rickard and Björn Öste. The company sells its products online and in more than 50,000 retail stores in 20 countries across Europe and Asia. The company entered the U.S. in 2017 and has also partnered with cafes, such as Starbucks.

Last July, Oatly raised $200 million in investment equity. The company is backed by former Starbucks CEO Howard Schultz and celebrity investors like Oprah Winfrey, Natalie Portman, and Jay-Z. According to PitchBook, the company was valued at around $2 billion at that time.

In 2019, the company generated about $200 million in revenue, which is almost double the year before. Figures for 2020 haven’t been released yet, but the company planned on doubling them again.

Although the numbers haven’t been made public, it isn’t a far-off stretch to say the company could have done just that. Demand for plant-based products has been high. In just the first week of March last year, Nielsen statistics showed the sales of oat milk were up 347.3%.

This rise is due to consumers seeking alternatives to animal products and healthier food options. Already, fast-food chains, casual, and upscale restaurants have entered the plant-based food sector by adding new plant-based items to their menus.

Burger King has its Impossible Whopper with a plant-based patty. Baskin-Robbins offers three vegan ice cream flavors. Starbucks also announced in December that it would now serve oat milk at all its locations nationwide starting in the spring.

Oatly already has a large following. As more health and environment-conscious consumers are willing to seek and pay for these types of products, it seems like their following will only continue to grow.

Continue Reading

Business News

Fake news? Well, what about fake reviews?

(BUSINESS NEWS) Amazon is swamped with fake reviews, making it harder than ever to trust whether or not a product is legit. How can you spot them and avoid falling victim to this shady practice?

Published

on

Person shopping online with credit card, but are they reading fake reviews?

These days, most of us have turned to online shopping in lieu of brick-and-mortar establishments to get our favorite items shipped directly to our front door. With many retailers still closed, and many more of us understandably wary of exposing ourselves to the risk of COVID-19, it’s easier to just click “buy” and then spend the next two days with our noses pressed to our windows in anticipation of the arrival of our new toy or garment. But are we at risk of being tricked by fake reviews?

If you’re like most people, you probably depend on product reviews to make a purchasing decision. Honestly, it’s perfectly reasonable to see what others thought of the item before you buy it. These online reviews are almost like your neighbor, who whipped out his lawnmower and bragged how it goes from 0 to 4 mph in less than thirty seconds. Obviously — obviously — you had to run out to your nearest garden center to pick up one of your own after his glowing review of it, right?

That’s kinda like online reviews, too. You can’t just knock on the purchaser’s door and ask them what they thought of it, which is why you carefully peruse those reviews and weigh those pros and cons. Okay, this shirt fits loose. Fine, these kitchen shears broke after three uses. Whoa, this brand of potato chips puts hair on your chest…? Sweet! And you also probably looked at those 3-star reviews, too, to see what was merely “meh” about the product. With this assortment of mixed reviews, you can be confident that you’re making a rock-solid choice.

Uh, sadly, nope.

Unfortunately, Amazon (as well as other major retailers, such as Walmart) are often fraught with a glut of fake reviews. In fact, there are numerous Facebook pages dedicated to the purchase of these reviews, and many of the reviewers are compensated with a monetary reward (usually the cost of the item, plus a few extra dollars for their work) for posting the glowing 5-star rave.

So what can you do to help protect yourself for falling for these seemingly harmless lies?

Well, first and foremost — a fake review isn’t necessarily harmless. If a defective or dangerous product is boosted by a false review, it can seriously harm you. Sure, there’s a good chance the fake reviews are benign, and the worst you’ll be in for it is losing a few bucks on a crap item. But if something is using counterfeit or unsafe ingredients (such as minoxidil in potato chips because, real talk, chips aren’t supposed to put hair on your chest), then yes, you need to be informed of it so you can make an educated decision about whether or not that item is coming home with you.

So, the question remains: How can you, intrepid shopper extraordinaire, avoid purchasing a lemon? (Unless, of course, your goal was to buy an actual lemon in the first place. Margaritas, anyone?) The good news is that there are a couple things you can do. For starters, common sense goes a long way. Do the reviews offer any context, or is it just line after line of, “Loved it!” without any actual feedback on the item? That’s why those 3-star reviews are so priceless. Usually the reviewer actually used the item and had a valid reason for their tepid review, allowing you to make an educated decision about it.

Finally, there are a couple of websites you can use to help you out. First, there’s Fakespot. This web extension will cull out all the fake reviews, allowing you to see at-a-glance the remaining genuine reviews. It then reviews the item for its credibility, letting you know if the seller was trying to pull a fast one on you. Then there’s ReviewMeta. Unlike Fakespot, this website goes through the views and instead of grading the seller, it actually grades the item based on the average score of the remaining real reviews. And by using both of these websites together to check those reviews? You’ve now got yourself a pretty decent idea if the product is actually worth your hard-earned dollars.

It’s far too easy to get scammed these days. However, by staying alert and remaining mindful about your online purchases (and avoiding the temptation to give into those stress-motivated impulse buys), you can avoid being bilked, too. And hey, instead of looking at online reviews, maybe you should go back to the old-fashioned way of doing it: By asking your neighbor for their opinions of items. Just, y’know, do it from at least six feet away, while wearing a face mask.

Continue Reading

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!