What the Cannabis Industry Can Learn From Top California Brands

A marketing or sales funnel is an illustrated way to examine the path that customers take when selecting products and brands, and includes awareness, consideration, purchase and—the ultimate goal—loyalty. Each phase in the funnel represents an opportunity for companies to attract consumers and encourage them to purchase their products. Brightfield’s U.S. Cannabis Brand Health Study examines brands within specific product types to evaluate where consumers are in the funnel in terms of awareness, purchasing, and repurchasing (loyalty).

Brightfield determined the top brands for each state and category (California and vapes, for example) using distribution data, desk research, social listening trends, and information from previous surveys. The company then surveyed consumers to see if they were first aware of brands, and then if they’ve ever purchased products from those brands and if that purchase was in the past six months. Brands that enter Brightfield’s funnel for tracking are those that have awareness.

The study included 13 adult-use state markets, including the largest market in the U.S.—and the world—California. Trends in the Pacific Coast state revealed some interesting holes that strategic marketers can fill.

Note: Data and insights courtesy of Brightfield’s U.S. Cannabis Brand Health Study, conducted in Q4 2022 with more than 8,500 participants.

Vapes

In the California vapes funnel, one brand dominates—STIIIZY. The company has taken a “branded house” approach to product lines, where all categories are sold under the STIIIZY name rather than sister brands. STIIIZY is also at the top of awareness and purchasing for concentrates, flower, and gummies among consumers in California.

With both closed-loop pods and disposables, 45% of California vape consumers indicate they’ve purchased STIIIZY’s products, and more than 90% of purchasers say they’d buy again.

No vape brand comes close to STIIIZY when considering the marketing funnel. The second-most purchased vape brand has less than half the percentage of purchasing consumers. Most other brands tracked in this study with some consumer awareness are seeing less than 10% of consumers buying their vapes.

With brand recognition so much lower for other California vape brands, there is an opportunity to commit to the category and win over consumers. Vape purchasers in California show a willingness to repurchase. Today, STIIIZY has loyalty. But in an ever-changing landscape, the marketing dollars spent today will influence who’s on top in the future.

Infused Beverages

Examining cannabis-infused beverages, several California brands have caught consumers’ attention enough to encourage them to buy, and buy again. TONIK, Cannabis Quencher, Uncle Arnie’s, Keef, Lagunitas Hi-Fi, Cannavis, and Select are among the top five for one or all of Brightfield’s funnel metrics.

No single brand has yet to pull above the pack in terms of awareness, purchasing, or loyalty. The big opportunity in drinks is awareness—the brand with the most awareness only has 17%. Marketing campaigns to raise consumer awareness would benefit brands playing in the space.

Consumer Opportunities

Looking to California’s concentrates funnel, some brands have drawn in distinct audiences. 710 Labs, for example, has twice as much awareness and recent purchasing among men than women. It’s the brand with the second-most awareness among men in the state (only second to STIIIZY). For women, Raw Garden takes the No. 2 spot in concentrate awareness.

Both brands emphasize their high-quality, premium concentrates. For whatever reason, 710 Labs’ brand is catching the eye of men much more than women.

If 710 Labs’ consumer acquisition strategy is to target men, then it is wildly succeeding. But if this imbalance is unintentional, it provides an opportunity to put marketing dollars toward attracting more women.

California is a market of strong brands that fiercely compete for customers. Brands that understand where they exist in the minds of consumers can use their marketing dollars to outpace the rest and guide aware consumers into loyal fans.

Madeline Scanlon is cannabis insights manager for Brightfield Group.