There is a new rule that states that the recreational pot will be legal in Canada by summer, but one thing is that it will not be that glamorous. For the producers, they will face the same restriction similar to the sale of cigarettes. For the products labels they will have to show some of the graphics that will warn the consumers about the health issues, warn the consumers to adhere to lettering and they should limit how many colors they use. They will not use a celebrity in endorsing the products, and there will be no consumer testimonies.
It’s a reality check for any upcoming company that has been experiencing the dizzying growth. In the last year, the Share of Canopy Growth Corp has been growing. The company has been exceeding company like grocer empire Co. and the Bombardier because it has a market value of C$7.2 billion. Most investors say that the restriction has been making the stock unpalatable. “There is no way that you will be able to advertise, the packaging is plain, how will the products be differentiated in the market and help in growth?” said Levine, who has a company that is responsible for managing C$650 million.
The officials say the reason why they incorporate the rules is so that they can discourage the criminal deals, not making the product look more fun thus encouraging more drug use. The government marijuana point man Bill Blair stated that the whole process is predicated on the whole public health model and is not concerned with the commercial model. The protection of the kids is the main agenda.
Thou Joe Potter that is the co-founder of the tribe’s craft beer did not like the idea because he said that the whole ban of the marijuana would make a massive impact on the market. He said, “that if the producers are made to park all the same, then the whole package will be boring, and it’s going to be a big issue.” For the marketers like Carol Levine, they will have a challenge that is the chief executive of energy that raises her concerned by saying that if the producers don’t use colors to advertise their pots, it’s going make it so difficult. For the investors to invest in a particular company, they will want to see sales, and that will not happen if advertising does not occur.
The aim of the Trudeau’s Liberals is that by July the marijuana will be legal. An end public comment period on Jan 10 made by the federal health ministry that will propose the regulation of marketing that will be in support of the legislation that will still be working in parliament. Canopy and organization holding had deals that were going on with Snoop Dogg and Trailer Park Boys respectively, but it was made illegal by the federal task force with the fact that they were promoting marijuana by making it look like glamorous, exciting and risk-free.
Greg Engel that is the chief executive of Organigram has not changed the plans that he had, and that is he will tie his brand on the series that are known for drinking, profanity, and smoking. He said, they are not concerned with the celebrity endorsement, but they are going to create a brand of the group. Engel wants rules that will be governing the alcohol not necessarily tobacco, which to him they will be so restrictive. In Canada, the packages of the cigarettes will not leave any space for the brand names because space is occupied by the graphics that feature warning images of diseases that will be caused by smoking.
The co-founder of the North Strategic that is based in Toronto, Justin Creally says that if the manufacturers are concerned with advertising. Then they should focus on the right age group like the middle-aged users who primary concern is having a safe product and try to use the media, and the public events forums can be significant. He added that the companies could take the role of telling stories to the public about the benefits of the marijuana whether being the medical once or recreational.
The suggestion that was given by Duncan McGillivray is that for the producers they have to keep the product on line and target the right audience. “ The main problem is that there are so many strains that are being produced and they will soon start confusing the consumer,” he said. As the major media websites like YouTube, though they have banned the advertising of the drugs, the companies can use smaller forums like the discussion groups that are way better.
For Canada’s recreational market to fully mature then it will take so many years, and the setbacks that will be experienced will not be avoided, according to Caitlin Kealey, CEO of MediaStyle. The advice that she gives is that the manufactures should set long-term strategy the reason being the stigma will be able to lessen with time. Marijuana producers said that the pitch that they focus on is the quality of the product and how reliable it can be, a message resonated with the increasing of the fentanyl-related deaths. “Dogg will not be flying in to do promotions for me,” said Bruce Linton. “Can there be a video of his birthday party? No.