Cannabis

8 Essential PR Components for a Successful IPO

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I was on a webinar presented by Morgan Stanley and PwC about preparing for an IPO – and something struck me – there was optimism, and the organizations were signaling their faith in the return of IPOs, soon. 2023 has been an IPO graveyard, but as one host said, “One thing we know is markets change, and so it will also be for the low point of IPOs.” Their advice? Prepare now. Preparing for an IPO is a daunting task for any startup, and the focus is often on due diligence. Yet communications and PR are critical to public offering preparedness. What do pre-IPO companies need to do from a communication standpoint? 

 

Reputation Building 

Investors know that when you pitch them for your IPO, the company has a verified financial model and total addressable market (TAM). And founders know investors are looking for the next $1 billion brand. This makes your company’s reputation extremely relevant. So when you’re looking to stand out to investors, nothing shows social proof quite as well as media coverage. Media coverage can go on the road with you and helps you stand out to investors. Confident, media savvy CEOs give investors confidence; it shows you can handle a very different role as CEO of a public company. 

Thought leadership is vital to reputation building. During this growth stage, executive visibility is more relevant than ever. Since a solid thought leadership program takes time and strategy, we recommend starting a thought leadership program at least 24 months before a desired IPO. 

Create a Compelling Narrative

Many founders mistake the pitch to investors as the corporate narrative. The two are cousins, but different. The narrative should resonate with key stakeholders, investors, and the public, highlighting the company’s mission, accomplishments, and long-term vision.

Know the Difference Between IR and PR

IR (investor relations) and PR (public relations) have important but slightly different roles in a company’s growth pre-IPO phase. Investor relations focuses almost solely on analysts covering topics your potential investors care about. Meanwhile, PR is targeted towards a broader set of journalists, and the public at large. They can and should work together. For example, both should play a role in any press releases. IR will ensure due diligence is met and ensure the investor messaging is correct, while PR will want to ensure the brand message is consistent and the media targets get the information they need. 

Crisis Planning 

The best time to manage a crisis is before a crisis. Before you go public, and get caught up in all the details of going public, plan for a crisis. How you handle a crisis will affect your brand, and god forbid you to have a crisis during your roadshow or quiet period. Your crisis planning should include many scenarios, from the employee, to property, to product, and, yes, cyber security. Every one of these scenarios could require different stakeholder involvement and point persons. Your crisis planning should include table top exercises and the executive team should review crisis PR plans at least once yearly. 

ESG Planning 

 Investors want to be part of companies with the broadest investor audience, and ESG (environmental, social and governance) is part of that, especially since some brokerage firms and mutual funds are offering investment products that employ ESG strategies. Larry Fink, Blackrock CEO, and co-founder, said ESG is “capitalism, driven by mutually beneficial relationships between you, the employees, customers, suppliers, and communities your company relies on to prosper,”.

From a PR perspective, ESG and even purpose-driven brands have special sensitivities, and it’s important to have a coherent plan and PR strategy for these talking points for all your stakeholders, from investors to customers. ESG is not just for the “woke” – investors see the writing on the wall and have for some time. Also, buyers beyond GenZ see the importance of ESG. 

Audit Your External Communications 

Ensure your website and any owned media meet all regulatory requirements – including executive bios, blog posts, and social media. Look at this moment as your last chance to shower before prom. Your website and social media should also be robust and brand consistent. You want everyone to see you in your best possible light, and the most accessible way for new friends to get to know you is your website. 

Media Training 

The press is not the enemy, but they aren’t here to be your BFF either. Talking to the press live and learning to work with the media under various conditions, including in person with lights and mics, is a skill. While you may have undergone media preparedness before interviews, now is the time to take on a full media training program for your executives and spokespersons, including anyone who attends public events (like trade shows) on your behalf. 

Expect media training to take several days of intense hands-on training and review. Since all relevant stakeholders will be together, it is also a good time to review and practice your crisis plan too. Since media training is a skill, conducting this exercise well before IPO is recommended. 

The Big Show

Your company will never again go public. This is one of the few indisputably great news moments.  Someone (not the CEO) must ensure the moment is documented and promoted. Do not miss this once-in-a-lifetime opportunity. It’s true – not every company makes the front page of the Wall Street Journal when they go public, but it is news – and someone will care. Using this opportunity to connect with journalists is key; it’s a great time to fill up the trust bucket in the eyes of journalists. 

Prepare for the moment with some notable key messages and brand-worthy must-airs. Run through your must airs and make sure you are prepared to answer questions that might come your way. Have your day meticulously planned with your communications in mind and watch the accolades roll in. 

Effective pre-IPO PR planning is crucial for companies aiming to go public. By crafting an interesting narrative, engaging media and influencers, developing investor communication strategies, building a strong online presence, managing crises, leveraging thought leadership opportunities, and engaging internal stakeholders, companies can establish a positive brand image, attract investors, and generate enthusiasm around their IPO. 

This article has also been submitted by the author to Entrepreneur.com

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Holiday Success: Leveraging Cannabis CPG Brand PR

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The holiday season offers an excellent chance for cannabis consumer packaged goods (CPG) brands. It is an opportunity to increase visibility, connect with customers, and increase sales.

This blog post will discuss how cannabis CPG brands can use public relations strategies to their advantage during the holiday season. Cannabis marketing and PR strategies can help consumer cannabis companies build their brand image, increase sales, and reach new customers. With the right approach, cannabis CPG brands can make the most of the holiday season.

PR can help cannabis brands work around legal restrictions. It can also help them build trust with their target audience. This trust can give them an advantage in the competitive cannabis industry.

Navigating Legal Limitations

The emerging cannabis industry is subject to strict regulations that can pose challenges for CPG brands seeking to promote their products. However, brands can navigate these legal limitations through strategic PR initiatives while generating interest and exposure.

Brands can create compelling brand stories that meet legal requirements. They can also inform consumers about the advantages and safe use of cannabis products during the holiday season.

Cultivating Trust and Credibility

One of the most valuable assets for any cannabis brand is trust. PR allows cannabis CPG brands to establish credibility and build consumer trust.

Brands can build a good reputation and be responsible leaders in their industry. They can share exciting stories, customer testimonials, and expert opinions. They can do this through press releases, media interviews, and social media campaigns. This fosters consumer confidence, encouraging engagement and loyalty during the holiday season.

Engaging Target Audiences

The holidays are a time when consumers are actively seeking unique, thoughtful gift ideas. Cannabis CPG brands can leverage a top-rated cannabis PR agency to engage their target audience and highlight their products’ value. Capitalizing on relationships with journalists, collaborating with influencers, organizing cannabis experiential events, and taking part in cannabis industry trade shows can create buzz and generate media coverage.

Leveraging social media platforms can be a great way to generate excitement for the holidays. Share holiday-themed content and exclusive promotions to engage with your customers. This can help foster a positive relationship with your brand.

Don’t Forget Digital

As technologies like AI revolutionize the way we engage with the internet, now is a great time to invest in your digital presence. Digital media, especially social media, poses a navigational challenge for legal cannabis companies due to its shadow banning. To prepare for the future, it is wise to begin laying the groundwork for better search now.

The way to get around social media’s constantly shifting sands is to invest in your own website. Make sure your cannabis products all have their pages and that the descriptions meet the latest Google PRU qualifications. While we’re at it – leverage PR to secure third-party Google-friendly reviews from credible sites.

Creating Thought Leadership

PR offers cannabis CPG brands the opportunity to position themselves as thought leaders in the cannabis industry. Brands can build trust with their audience by sharing educational content, industry trends, and expert opinions. This can be done by creating thought-provoking articles and blog posts.

Media interest is generated as brands promote cannabis and its positive impact and benefits. This applies not only during the holiday season but also beyond.

Measuring Impact and Adapting

It is essential for cannabis CPG brands to track their PR campaigns’ success. This helps them make adjustments to their strategies as needed.

Brands can use analytics tools and monitor media coverage. This allows them to track key metrics, such as brand mentions, website traffic, and social media engagement.

Insights allow brands to improve their PR strategies. They can fine-tune their messaging and tactics to get the most out of the holiday season. This will leave a lasting impression on consumers.

Conclusion

The holiday season is a special time for cannabis CPG brands. It is a chance to use PR strategies to become more visible, gain trust, and interact with their target audience.

Brands can use PR to stand out in a competitive market. To do this, they must navigate legal limitations, cultivate trust, engage consumers, establish thought leadership, and measure impact. By embracing PR techniques, cannabis CPG brands can unlock new avenues for growth and success during this festive time of year.

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The Definitive Pre IPO PR Roadmap for Consumer Brands

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Using Cannabis Content Marketing to Connect with the Cannabis Community

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The cannabis industry is rapidly growing, and to stay ahead of the competition, cannabis businesses must use effective content marketing strategies. Cannabis content marketing involves creating and distributing relevant and valuable content to attract and engage a targeted audience. By doing so, cannabis businesses can establish their expertise and credibility while promoting their brand and products. Think owned media doesn’t apply for your cannabis business? Think again – your brand is already online; it’s just a matter of how much you control your presence. And if you’re tired of owing all those listing and delivery sites, content marketing is your best friend.

PR Benefits of Owned Media for the Cannabis Industry

There are several benefits of content marketing for the cannabis industry, including:

  1. Improving Reputation: Consistent content marketing can improve a cannabis business’s reputation by promoting positive messaging and reinforcing the brand’s values.
  2. Increasing Visibility: Content can increase a cannabis business’s visibility by ensuring that their message reaches the right audience through different platforms such as blogs, social media, and email newsletters.
  3. Organic Promotion: Content marketing promotes a cannabis business organically and naturally, which can lead to increased conversions and revenues on both online ordering and in dispensaries.
  4. Cannabis Customer Engagement: By attracting and engaging both new and existing customers, content marketing can help cannabis businesses establish a loyal customer base and increase customer retention.
  5. Establishing Cannabis Industry Leadership: Consistent and high-quality content marketing can establish a cannabis business as an industry leader and help them stand out from competitors.

Effective Cannabis Content

Use content to benefit a cannabis business’s public relations (PR) strategy. PR is all about managing a business’s reputation, and owned content is a powerful tool for doing so. Here are some of the ways content marketing can benefit cannabis PR:

  1. Positive User Experience: By consistently producing high-quality content that is engaging, unique, and beneficial, cannabis businesses can create a positive user experience that strengthens their relationship with customers.
  2. Increased Social Media Popularity: Creating trendy and shareable content on social media can increase brand awareness and help promote a cannabis business’s products and services.
  3. Building Trust: By answering customer queries and complaints through relevant and accurate content, cannabis businesses can build trust with their audience and improve their perception of the brand.
  4. Improving Conversions: By including a call-to-action (CTA) in their content, cannabis businesses can guide their audience towards taking the desired action, which can lead to improved conversions.
  5. Better SEO: By consistently producing high-quality content, cannabis businesses can improve their search engine optimization (SEO) and rank higher on search engine results pages.

Different Types of Content

Cannabis content marketing can take many forms, and businesses should use various content types to keep their audience engaged. Here are some of the most effective types of cannabis content marketing:

  1. Blog Posts: Blogs are a great way to provide valuable information to customers while establishing a cannabis business’s authority in the industry.
  2. Social Media Posts: Social media is a powerful tool for reaching a broad audience and engaging with customers through shareable content.
  3. Infographics: Infographics can convey complex information in a visually appealing way, making them an effective tool for educating customers.
  4. Videos: Videos are highly engaging and can be used to showcase products, educate customers, or provide behind-the-scenes glimpses of a cannabis business.
  5. Podcasts: Podcasts are an increasingly popular form of content that can be used to discuss industry trends, provide insights, and engage with customers.

Creating a Successful Cannabis Content Strategy

To create a successful cannabis content marketing strategy, businesses should follow these steps:

  1. Define Goals: Determine what the business hopes to achieve through content marketing, such as increased brand awareness or improved conversions.
  2. Know the Target Audience: Understand the target audience’s demographics, interests, and pain points to create relevant and engaging content.
  3. Create Engaging Content: Create high-quality content that is valuable, relevant, and unique to attract and retain customers.
  4. Distribute Content Effectively: Share content

Great Examples of Cannabis Content Marketing

There are several impressive examples of cannabis content marketing that have successfully promoted brands and products in the cannabis industry. Here are a few notable ones:

  1. Leafly – The platform has a robust content marketing strategy that includes educational articles, strain reviews, videos, podcasts, and more. Leafly’s content not only helps cannabis consumers make informed decisions but also promotes brands and products available in the market.
  2. Weedmaps – Weedmaps’ content marketing strategy includes blog posts, videos, podcasts, and more, that not only educate cannabis consumers but also promote products and brands available on its platform.
  3. High Times – High Times has been covering cannabis culture since the 1970s – they know content. The magazine’s content marketing strategy includes informative articles, strain reviews, interviews with industry experts, and more that not only inform and educate cannabis consumers but also promote products and cannabis brands in the industry.
  4. Charlotte’s Web – Charlotte’s Web is one of the OG’s. To some extent, its brand strength owes to a strong content marketing strategy that includes educational articles, blog posts, videos, and more, that educate consumers about the benefits of CBD and how it can improve their health and wellness. The brand’s content marketing strategy has been instrumental in its success in the CBD market.
  5. Dosist –  The California cannabis company’s content marketing strategy includes informative articles, social media posts, and videos that educate consumers about the benefits of dose-controlled cannabis products and promote its brand and products.

These are just a few examples of the many successful content marketing strategies in the cannabis industry. Each of these examples demonstrates the importance of creating informative and engaging content that not only educates consumers but also promotes brands and products in the market. With the right content marketing strategy, cannabis companies can establish themselves as industry leaders, build trust with their audience, and ultimately drive sales and revenue.

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How Small Independent CPG Brands Use PR to Compete

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If you’re a smaller consumer brand, it might feel impossible to compete with the big guys. But according to Nielsen, in the United States “manufacturers outside of the top 100 have contributed to 52% of their region’s annual fast moving consumer goods (FMCG) growth,” that’s an incredibly promising trend for any consumer product, from skincare to cannabis. But the challenges to increasing market share aren’t imagined. In some categories, especially consumables, over 50% of consumers have no brand preference. This underscores the importance of small, independent CPG brands to invest in branding with awareness and loyalty strategies. Neilsen IQ has done some fantastic research for small, independent DTC and CPG brands.

Nielsen Chart for Consumer Product Brand Loyalty

 

 

 

 

 

69% of consumers are actively looking for new and trendy CPG products. Tapping into current trends is a key way to appeal to this audience.  Whether the brand is launching, or already launched, there are always PR opportunities to increase sales by driving awareness and loyalty. The key takeaway on all the most recent Neilsen data: premiumization is absolutely key for small, independent CPG brands. 

Driving Awareness for Small Consumer Brands

When Snapple tea was a small independent brand, it relied on PR, including crazy stunts with two ambitions in mind: acquisition and sales. When they were acquired by Quaker Oats, the PR stunts stopped and sales decreased. In fact, PR is often responsible for trends that drive consumers. Before CBD, a wellness ingredient that almost everyone now knows was allowed to advertise, it relied on firms like Avaans Media to create PR campaigns that educated consumers and created awareness for their brands. PR is almost single-handedly responsible for launching CBD into the public’s general knowledge. Other wellness products have benefited from PR, including melatonin.

Independent brands often turn to PR because while PR is an investment, it’s still more affordable than many other branding initiatives such as advertising, especially when you include videography costs. Facebook is famous for launching thousands of new DTC brands, but of late, many independent CPG brands are finding Facebook’s advertising to be less effective. Ambitious consumer product brands are turning to PR in ever greater numbers to reach consumers, and stay in front of buyers. A PR campaign can reach hundreds of billions of annual impressions. Is it any wonder that everyone from new consumer products to old standbys is moving dollars to PR?

New CPG brands can use PR to validate the brand. An upfront burst of PR is a powerful trust indicator. Many consumer brand startups showcase PR wins on their website and in advertising as a way to increase consumer trust. Independent boutique products use PR to nail their launch because they need to appeal directly and immediately to their consumer. As Nielsen notes in small brand, “There is little room for error in small launches. Nailing your activation requires planning and strategic execution. Whatever your differentiation—hitting your target, justifying your premium or communicating a new usage occasion—it must land, and land well,”

 

Driving Loyalty for Independent CPG Brands

If your consumer brand isn’t exactly new, but also isn’t a household name, then using PR to increase loyalty and awareness is effective. 25% of consumers are mainstream followers who sometimes try new products, but don’t seek them. This is a critical audience to penetrate. If you’re broadening your audience to this important but slightly elusive group, you want to make sure your customer product reviews are solid, and that your early PR had at least 1-2 tier 1 press hits so you can use the ever-so-important social proof to lure this audience in.  Good PR also allows existing customers to have their choice validated and is a great opportunity for them to sing your praises to their friends.

But that’s not the only way PR helps early and mid-stage CPG brands. PR helps your customers see you understand who they really are. Bob’s Red Mill used PR to improve its already stellar reputation through purpose-driven storytelling. Not only does PR help new consumers find your product, but it also reinforces the good choice your current customers have made. A good PR firm will help you identify ways to differentiate and to secure brand-improving earned media.

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Why Hiring a Cannabis PR Firm Matters

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Ask anyone who works in the cannabis industry: it’s different from any other industry. It’s not “just another CPG” product. It’s a highly regulated, heavily watched, extremely volatile industry. Our firm handled the first cannabis product recall in California, and we can tell you it’s not like other product recalls. We’re deeply engaged in the cannabis industry through our NCIA leadership and we proudly spearheaded the Best of 420 Clio Cannabis last year. The cannabis industry, which started in 2012 when Colorado and Washington legalized recreational use, has a history and patchwork of regulations even though it’s an emerging industry. Navigating these waters takes strategy, foresight, and the ability to read the tea leaves, which only comes from experience – that’s why hiring a cannabis PR firm matters.

 

The Cannabis Industry is Not The Green Rush

The ACTUAL gold rush was famously unregulated; it was a bonanza of rebels who swarmed government lands with impunity. Or the tech industry, whose ground-breaking innovations in media, medicine, and technology happened without major government oversight for decades, giving time for some of the world’s most profitable companies to take root.

The cannabis industry is on fragile ground. Even the most basic of business tools, the bank account, is challenging to secure for plant-touching cannabis brands. Unlike the surge of other emerging industries which merged into hypergrowth businesses, from the very first, the cannabis industry has been highly regulated. No startup industry has managed so many regulations, taxes, and hurdles early in its growth.

Why does this matter when hiring a cannabis PR agency? Because there is a more significant responsibility to consider and more to lose for cannabis brands. Anytime a bad actor lands in the cannabis industry, legislators can point to the irresponsibility of that single company as representative of the entire sector – fair or not. Cannabis brands must take the reputation of the whole cannabis sector seriously. Cannabis owners have the opportunity to be cultural leaders, and that’s a heady but consequential task that a cannabis PR agency knows how to handle.

If the cannabis industry is to change its federal legalization situation, then it must take the reputation of the cannabis industry seriously; that’s why hiring a cannabis PR firm matters.

 

Building a Brand Matters More in Cannabis

There are only a few ways for cannabis brands to differentiate because of the limitations on cannabis brands. Therefore, cannabis brands must use the marketing and communication tactics that are open to them, strategically.

While a cannabis connoisseur may be able to detect the subtleties of your flower’s terpene profile, the average U.S. consumer is still blissfully unaware of what a terpene is. It’s essential to meet your consumer where they are and celebrate their lives through the articulation of your brand. People are rarely drawn to a brand because it educates them; educational content has its purpose, but as a cannabis brand, you must know its purpose and place more than other consumer brands. And when I say brand, I mean every touch point from cannabis packaging to website. If your website looks amateur, then it doesn’t scream luxury or lifestyle; it screams “cheap, and uncommitted.”

Don’t kid yourself into thinking your digital presence doesn’t matter because traditional e-commerce isn’t available to cannabis brands. The fact is, search is one of the most powerful marketing tools you can leverage, and PR and content are critical to successful cannabis SEO.

It’s more important than ever that brands articulate clearly WHO their customer is. This is true of all consumer brands – but for the cannabis industry, where it’s even more challenging for the consumer to differentiate between brands, it’s even more critical that you tell them. No successful brand is everything to everyone right away. It took decades for Coca-Cola to be a brand that crosses generations and lifestyles, and even with that, Coca-Cola is continuously adding new products and new campaigns to reinforce its connection to segments of its audience. No cannabis brand has the history or the budget to operate the way the world’s biggest brands do – and that’s OK. You can’t be ubiquitous, but you can be niche.

But being a cannabis company doesn’t make you a cannabis brand-a brand you must build. And PR is a vital tool for emerging industries and ambitious brands for a reason.

Today’s cannabis brands have a multitude of strategies for their future. Some want to create generational family businesses, some want to be acquired, and some want nothing less than world domination. All those things are possible when you build a cannabis brand and that’s why hiring a cannabis firm matters.

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