!-- Global site tag (gtag.js) - Google Analytics --> Marijuana Business Magazine March 2020

Marijuana Business Magazine March 2020

March 2020 | mjbizdaily.com 61 As a result, consumers crave accountability and transparency about where and how hemp-derived CBD products were produced and how clean and sustainable they are. PearlCBD is working on implementing a label that would enable consumers to use their mobile phones to authenticate products by looking up their certificate of analysis, or COA. “When consumers touch their phone on the product, it tells them exactly what is inside, and it authenticates the product immediately,” said Danny Davis, CEO of PearlCBD. With this technology, consumers can quickly receive information about product formulation, videos about the product, how it’s made and how to use or apply it, without using QR codes or hav- ing to download an app, Davis said. The company is looking to patent the process. Louisville, Colorado-based CBD com- pany Bluebird Botanicals, HempFusion and JD Farms allow consumers to look up COAs on their websites by entering their products’ batch or lot numbers. “We have heard from customers that that’s one of the reasons they buy from us—because they know that when they buy our products, they are going to know exactly what’s in them and what’s not in them,” said Michael Harinen, chief brand officer for Bluebird Botanicals. “That’s really a big deal for some customers.” JD Farms’ Dolgin said there is a limit to what consumers really care about, but it’s still helpful to provide a level of transparency that reveals everything about the production process. The company’s next step is blockchain trials. “We sort of open our kimono to say, ‘There’s nothing here to hide—you can look at every aspect of what we do from seed to shelf,” Dolgin said. “We love to get as micro and meta as we can, and we feel good about putting all of that out there.” EDUCATE, DON’T PROMOTE In the currently unregulated CBD market, companies that put in the work to regulate themselves and educate consumers and retailers about their products often see much higher customer return rate and loyalty. Hosting product demonstrations, sampling and consumer lectures in retail stores and other public venues have been effective ways for brands to communicate with consumers and answer questions directly, according to Mitchell of HempFusion. The company also began promoting its products in airports during the holiday season, with advertisements on airport television channels and demonstrations. Training retail associates is among the most effective techniques for promoting consumer education because of their ability to connect and relate with consumers in person and to become a trusted resource, according to Harinen of Bluebird Botanicals. “It gives us an opportunity to educate,” Harinen said. “And that education and being truly honest with people and not trying to hard sell our products but rather just being a good resource ends up being a really good strategy for us.” CBD brand website Cannabis dispensary Online retailer Natural/health food store CBD-speci fi c website Retail store focused on CBD products Other retail store 12% 14% 17% 21% 24% 31% 31% Source: High Yield Insights Copyright 2020 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Current CBD Users' Preferred Purchasing Channels Percent of CBD Users Laura Drotleff is a hemp reporter for Marijuana Business Magazine and Hemp Industry Daily. You can reach her at [email protected] hempindustrydaily.com. CBD brand website Ca nabis dispensary Online retailer Natural/health fo st CBD-speci fi c website Retail store focused on CBD products Other retail store 12% 14% 17% 21% 24% 31% 31% Source: High Yield Insights Copyright 2020 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Current CBD Users' Preferred Purchasing Channels Percent of CBD Users

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