Why Is Branding So Important? Key Takeaways From BZ Cannabis Hour

Author: Anthony Noto | August 07, 2020 01:51pm

This week's Benzinga Cannabis Hour featured the leaders of Dixie Brands and BR Brands — two companies that agreed to a $43-million reverse takeover deal just as the Covid-19 pandemic was beginning to devastate the US.

"We were admiring them as a brand [house]," BR Brands chair Andrew Schweibold said at the top of the show. "Ultimately the opportuity arose for us to combine our platforms, to maximize synergies and value for all shareholders."

Benzinga's Patrick Lane posed a question: Why are brands so important in this space? When it comes to storytelling and moving the market forward... what does it mean to create a brand in this market?

Dixie Brands, President and CEO, Chuck Smith also took the what does it mean to create oined on the this week's Benzinga Cannabis Hour.

"It's important to remember this industry is still in its nascent stages," Smith said. "Over the last couple of years, we've certainly seen the demographic of the consumer expand exponentially."

The market share for an infused product is starting to climb while flower products decline, Smith explained. Because there's this whole new set of consumers, companies like Dixie and BR have to figure out the criteria that they want,

These new consumers are coming into the market with "a broad specturm of preferences," said Smith, citing how some prefer the mom-and-pop businesses.

"They're also looking for consistency, trust, quality, confidence," Smith added. "That's even more prevalent as they tavel across the country. When you walk into that store, the dispensary, you might try something else, but your're going to come back to the brand that works for you. We're seeing that at Dixie. Revenue numbers have gone up during Covid time and people are really sticking with the tried and true things. So we believe that brands play an incredibly important role going forward in this ever-evolving cannabis industry."

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