{"id":4486,"date":"2021-09-06T07:00:00","date_gmt":"2021-09-06T07:00:00","guid":{"rendered":"http:\/\/CBMihAFodHRwczovL3d3dy5oYXJ0Zm9yZGJ1c2luZXNzLmNvbS9hcnRpY2xlL3RpZ2h0LWFkdmVydGlzaW5nLXJlc3RyaWN0aW9ucy13aWxsLXBvc2UtY2hhbGxlbmdlcy1mb3ItY3QtcmVjcmVhdGlvbmFsLWNhbm5hYmlzLWJ1c2luZXNzZXPSAQA"},"modified":"2021-09-06T07:00:00","modified_gmt":"2021-09-06T07:00:00","slug":"tight-advertising-restrictions-will-pose-challenges-for-ct-recreational-cannabis-businesses-marketers-hartford-business","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=4486","title":{"rendered":"Tight advertising restrictions will pose challenges for CT recreational cannabis businesses, marketers – Hartford Business"},"content":{"rendered":"
<\/div>\n

Legal recreational cannabis sales are still likely more than a year away and state regulators must adopt a host of rules before the first adult-use pot shop can open its doors to the public.<\/p>\n

But one area where plenty of restrictions already exist is in how cannabis businesses will be able to advertise their products.<\/p>\n

Unsurprisingly, the rules are stringent, which will pose challenges to both cannabis businesses and the marketing firms they hire to craft and sell their brands.<\/p>\n

The regulations, which will be monitored and enforced by the state Department of Consumer Protection, carry a strong focus on shielding cannabis advertisements from anyone under 21 years old.<\/p>\n

For example, cannabis products cannot be advertised in print, television, radio or on the internet or billboards unless there is \u201creliable evidence\u201d that at least 90% of the audience is 21 years or older.<\/p>\n

DCP has already notified billboard advertisers they must take down signs currently promoting Massachusetts cannabis companies, which have been able to operate in the Bay State\u2019s legalized recreational cannabis market since 2018, if the ads don\u2019t comply with the law.<\/p>\n

Those billboards for months have been highly visible to Hartford-area drivers traveling along I-91.<\/p>\n

Other Connecticut regulations include not advertising within 500 feet of an elementary school, library, playground or child-care center. Advertisements also can\u2019t use symbols or imply that a product has any medicinal or therapeutic effects.<\/p>\n

Besides the state restrictions, each municipality can further prohibit cannabis advertisements or even ban them.<\/p>\n

\n
\n

HBJ FILE PHOTO<\/p>\n<\/p><\/div>\n<\/article>\n

\u201cRegulations on what we can say and where we can say it are always a challenge,\u201d said Sean Crane, chief creative officer of Avon ad agency Mintz + Hoke. \u201cBut they can also be an opportunity.\u201d<\/p>\n

\n
\n

Sean Crane<\/p>\n<\/p><\/div>\n<\/article>\n

Mintz + Hoke has decades of experience working with casino brands, another highly-regulated industry. But more recently it began work for Contentious Inc., a Brooklyn-based creative content partnership that works with several cannabis brands, including Pennsylvania-based Harvest House of Cannabis and EVOLAB of Denver.<\/p>\n

\u201cMarketing for cannabis is, in a word, fun,\u201d Crane said. \u201cIt\u2019s a lifestyle category more than anything else. Look, feel and sensibility are a top priority. We\u2019re, of course, selling a consumer product, but we\u2019re also selling a brand image.\u201d<\/p>\n

\u201cWe expect the category to be highly competitive for that reason,\u201d he added.<\/p>\n

Charlie Mason, CEO of Bethany-based brand communications agency Mason Inc., said he is watching the cannabis market as it evolves, and despite the stiff restrictions, is interested in getting involved. The company has years of experience advertising smokeless tobacco \u2014 a similarly-regulated sector.<\/p>\n

\n
\n

Charlie Mason<\/p>\n<\/p><\/div>\n<\/article>\n

\u201cIt\u2019s parallel to what goes on with the tobacco and alcohol industries,\u201d said Mason. \u201cYou learn to work within those boundaries. It\u2019s not always easy, but you learn over time what things will be allowed and what will not.\u201d<\/p>\n

Fast-growing industry<\/h4>\n

Learning to navigate a new industry may come with its fair share of challenges, but there could be a substantial pay off as some experts say the cannabis industry will generate as much, or even more, tax revenue than alcohol in the state.<\/p>\n

\u201cI see it getting as big as the alcohol industry,\u201d said Benjamin Pomerantz, a partner at Connecticut law firm Carmody Torrance Sandak & Hennessey and managing director of its cannabis practice. \u201cStates where adult use is already allowed, the cannabis industry is starting to rival the alcohol industry.\u201d<\/p>\n

Pomerantz said a good way to measure what\u2019s going to happen in Connecticut is by looking at what\u2019s happening in other states \u2014 like Illinois, Colorado, Michigan and California \u2014 that have already legalized recreational use of the drug.<\/p>\n

For example, in Illinois, 11 months after cannabis sales were legalized in Jan. 2020, the Chicago Sun Times reported that marijuana tax revenues were only about $3 million less than the $25.74 million in taxes collected from alcohol sales.<\/p>\n

Trade publication MJBizDaily in February predicted Connecticut\u2019s recreational marijuana market would generate $250 million in adult-use sales in year one, and $750 million by year seven.<\/p>\n

The state Office of Fiscal Analysis projects the Connecticut cannabis industry will generate $55 million in annual tax revenue by fiscal 2026.<\/p>\n

With an industry that is expected to blossom, Mason said he suspects there will be a surge of advertising agencies competing for business. That will last for a few years before an industry \u201cshake out\u201d leaves only a handful of dominant players.<\/p>\n

\u201cThere will be quite a bit of activity because people want a share of the market,\u201d Mason said. \u201cThis is a giant revenue source for the state. It\u2019s going to be fascinating to see where all this goes.\u201d<\/p>\n

With money comes responsibility<\/h4>\n

Tony Cashman, CEO of Glastonbury-based advertising agency CashmanKatz, said his firm is currently working with a national client that caters to the cannabis industry, which he described as a \u201cnew frontier.\u201d<\/p>\n

Cashman said that in addition to the regulations placed on advertising, there needs to be viable means of education and awareness to the public and stakeholders affiliated with the industry.<\/p>\n

\u201cIt\u2019s a huge responsibility,\u201d he said. \u201cYou\u2019re dealing with people\u2019s lives.\u201d<\/p>\n

While the agency hasn\u2019t made a conscious effort to go after cannabis marketing, it\u2019s not ruling out potential business opportunities.<\/p>\n

\u201cWe are not going to aggressively pursue dispensaries unless we see a good fit with its goals, mission and philosophy,\u201d Cashman said. \u201cIf we were to represent someone, we want to make sure they share the same values we do. It\u2019s a big responsibility and it needs to be done right.\u201d<\/p>\n

Cashman said the best way to develop a successful marketing plan is to partner with a company from the beginning to help them develop a brand and position.<\/p>\n

\u201cWe would want to develop their story and their value proposition,\u201d he said. \u201cWhat is their objective and what makes them unique? Their mission and approach should be unique in a crowded field.\u201d<\/p>\n

According to Cashman, putting a human face behind the cannabis product would be an effective way to market it.<\/p>\n

\u201cTell the story of the people behind the product and how they come up with the best solutions for their customers,\u201d he said.<\/p>\n

Crane, from Mintz & Hoke, said his agency has been advertising cannabis in other states on two primary channels: social media and in-store.<\/p>\n

\u201cThe good news is that social is more often than not the single best channel to tell a highly-targeted story on a daily basis on a local level,\u201d Crane said. \u201cThat discipline has actually made us better advertisers on other, less restrictive brands and has aided, rather than hindered the creative process.\u201d<\/p>\n

\u201cIt sounds counter-intuitive, but it forces us to shift the way we think and aligns with the way most people, not just younger audiences, are consuming media these days,\u201d Crane added.<\/p>\n","protected":false},"excerpt":{"rendered":"

Legal recreational cannabis sales are still likely more than a year away and state regulators must adopt a host of rules before the first adult-use pot shop can open its doors to the public. But one area where plenty of restrictions already exist is in how cannabis businesses will be able to advertise their products. Unsurprisingly, the rules are stringent, which will pose challenges to both cannabis businesses and the marketing firms they hire to craft and sell their brands. The regulations, which will be monitored and enforced by the state Department of Consumer Protection, carry a strong focus on… <\/p>\n","protected":false},"author":1,"featured_media":4487,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post-4486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured"],"jetpack_featured_media_url":"https:\/\/thcinct.com\/wp-content\/uploads\/2022\/02\/tight-advertising-restrictions-will-pose-challenges-for-ct-recreational-cannabis-businesses-marketers-hartford-business-scaled.jpg","_links":{"self":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/4486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4486"}],"version-history":[{"count":0,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/4486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/media\/4487"}],"wp:attachment":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}