Valentine's Day Gives Weed Brands A Loving Boost, With More Lucrative Years Ahead
Valentine's Day allows couples to get high on more than just love. Weed-infused items are often gifted on Feb. 14, giving marijuana brands a sweet sales spike.
For example, Green Dragon co-CEO Alex Levine saw his company get a 25% to 30% sales increase on the romantic holiday compared to the previous week.
"Ahead of Valentine's Day, we would expect to see a spike in edibles like chocolates, candy, and other THC-infused versions of Valentine's Day treats non-cannabis consumers buy," Levine says.
February sales data shows that Green Dragon customers' prefer edibles and topicals during the holiday. The Colorado-based company responded to the sales trend by selling products in special themed bundles.
The decision helped increase customer product discovery as well.
"We try to give consumers new ideas to please that special someone beyond the typical flower and concentrate options," Levine adds.
2020 data from the National Retail Federation found that consumers' average Valentine's Day purchases totaled over $196. That's up 21% from the previous year.
Recent years indicate that the cannabis sector is benefitting from that bump.
In 2019, Alaska, Colorado and Oregon markets saw a 7% sales jump on Feb. 14 compared to other Thursdays in the year. Weekend spending for the day increased 3% compared to 2019 sales totals that reached $3.15 million.
Positive Returns Could Improve
Some brands report gains around Valentine's Day. However, the increases in consumer activity tend to fall short of other notable days.
Outside of 420 and 710 Day, sources varied on the most significant holiday sales bumps. Mentions of Christmas, Halloween, Thanksgiving and July 4th rounded out a varied pool of responses.
"Any Holiday where families and friends are gathering, we see a spike in sales," Planet 13 Holdings Inc.'s (OTCQX:PLNHF) VP of Sales and Marketing David Farris says.
Nick Kovacevich, CEO and co-founder of KushCo Holdings Inc. (OTCQX:KSHB), believes that companies are starting to see a spike due to cannabis gifting.
Pot products will continue to find a spot in the holiday as the stigma wanes away, he says.
However, "there is still a long way to go before" cannabis reaches the likes of Valentine's staples like wine, alcohol or chocolates, he added.
Jeff Ragovin, Chief Commercial Officer for compliance cloud brand Fyllo, stated that the spike is brought on by couples. He noted that through Q4 2020, single consumers were 13% less engaged with advertising than consumers in a relationship.
Edibles And Topicals Dominate The Day
"Rather than a large spike in overall sales, the larger change in consumer behavior will have to do with product category purchasing shifts," said Ragovin.
Sources indicate that buyers aren't looking to reinvent the gifting wheel. Instead, customers want to inject a bit of cannabis into already tried and true Valentine's Day items.
Ragovin said that products that tend to do well often align with non-THC infused snacks seasonal CPG products.
In Las Vegas, Planet 13 uses Valentine's Day to highlight applicable products. Farris mentioned products such as the 10:1 THC:CBD Arouse option from Dosist as a popular choice.
"The Arouse products are meant to help awaken the senses and stimulate the mind naturally," he said of their appeal.
Planet 13 sees its share of interest in topicals and edibles, but Farris noted that other items geared towards relaxation were also popular.
CBD bath bombs from Planet M, for example, were a top choice for those looking to "escape and invigorate the body and soul together."
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