Tag Archive for: cannabis industry

3 Tips for Cannabis Companies New to PR

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Cannabis businesses who are new to PR have a lot of decisions to make. Many of our clients have never hired a cannabis PR agency before and the process can seem daunting.At Avaans we work with a lot of hyper-growth or early stage companies in emerging industries, so we’re pros at guiding ambitious companies to the next stage of growth. Often our clients are CEOs or CMOs who understand why PR is important, but maybe haven’t engaged a professional PR agency before. That’s why we came up with 3 tips for cannabis companies new to PR.

Cannabis Companies New to PR: “Am I Ready for PR?”

 

If you’re new to PR and you’re asking yourself the question, you’re off to a great start.

If you’re new to PR, you might be confused about what to ask an agency. For more strategic PR partnerships, ask the agency whether they think you are ready for PR. That will tell you how prepared they are to work with a company of your PR readiness. If a firm tells you that you aren’t ready for cannabis PR, what they’re saying is “You aren’t ready for our PR services.” We believe it’s important to consider PR from the very first moment.

The next question to ask yourself is how much bandwidth you have for PR. We started our consumer product PR sprints for very early growth companies or companies without huge budgets. Our cannabis PR Sprints are an excellent way to look underneath the hood of working with a PR agency, without a long-term PR contract. The PR Sprints are also great for cannabis product launches.

A full-scale bespoke PR program is more successful when the PR agency has a key contact at the cannabis company. Bespoke programs are for consumer brands committed to strategic PR outcomes like pre-IPO or investment, or attracting top talent. Bespoke programs are for companies and brands that have a long-term vision for the company and can state their 3-year and 5-year goals. B2B PR are also bespoke PR campaigns because every B2B campaign has dependencies as distinctive as the company’s leadership, product, and ambitions.

Naturally, budget comes into play, but working with a cannabis PR firm is like hiring a contractor – you rarely want the cheapest. If you’re new to PR, you’re in the early stages of reputation and branding, and this is a critical time for new cannabis brands. In particular, a cannabis company needs to invest in trust-first positioning and can’t take risks with the brand, because there is less brand equity.

Another way to know whether you’re ready for bespoke PR? Being crystal clear on cannabis public relations goals and outcomes will make choosing a firm, and a time to start cannabis PR much easier.

How Do I Look, Hunny?

Starting a cannabis business means jumping through a lot of hoops, and sometimes branding and marketing seem like it takes a back seat to the regulatory hurdles for cannabis companies. How does your cannabis packaging look on the shelves at a dispensary? How will it look on the pages of a magazine? Are your product images professionally shot? Do you know who your customers really are? If you’re still figuring out your website or tinkering with formulations, then focus on those items first, or at least go with a shorter-term, very focused PR campaign. Starting with a freelancer could also be an option at this stage as well. But in general, bespoke PR firms are worth the investment if you’re clear on your brand, its customers, and the look/feel of your cannabis packaging and product.

What’s the Best Time of Year To Engage a Cannabis PR Agency?

Journalists and editors are planning months in advance. This means your PR pitching should start months in advance, too. This is one aspect of PR that many new-to-PR companies struggle with: the need to plan in advance. For example, PR agencies will want photos and product descriptions months before

Look beyond 420 for cannabis PR. The fall months are a dynamic time for the cannabis industry. There are cannabis industry tradeshows and conferences happening, award winners announced, and of course, Halloween, Thanksgiving, the December holidays, and New Years’ Eve all add up to massive revenue opportunities for cannabis brands. For consumer brands new to PR, the fall can be one of the most valuable times of year to get editorial coverage for consumer brands. In fact, up to 40% of coverage for consumer brands happens during this time of year, so that’s a great time to pack a PR punch. We developed our consumer brand PR Sprints to include fall cannabis PR for this reason.

For B2B cannabis PR, the equation looks a little different. If you’re looking for a feature on a product launch or an executive, planting that story takes planning on behalf of the journalist and editor who have to fit it into regularly scheduled articles. Starting B2B cannabis public relations in the fall may be right for you if you have big plans for the spring. B2B PR, like thought leadership, speaking engagements, and cannabis industry visibility have more dependencies, some of which – like when speaking engagement submissions close, aren’t in your control. If you miss the window for this year at a particular event, there are only a couple of avenues to take, and most of them include spending a considerable sum of money. Campaigns and activations around crucial industry events may take longer to plan and implement, especially cannabis industry events. In short, B2B PR often requires longer lead times.

For cannabis consumer brands new to PR, there are some advantages to starting PR in the second quarter. But not if you’re planning a big 420 splash or product launch. You really aren’t giving yourself enough time to maximize your 420 if you’re starting in Q2. At that point, the question is really should you do a 420 campaign? On the other hand, if you’re a consumer or CPG cannabis brand who tends to have a summer-based sales cycle, say cannabis beverages, then starting your PR well in advance of the summer is a great idea.

Starting a new PR campaign in January gives most brands a superb runway to plan for everything the year offers, regardless of whether it’s B2B or B2C. We love starting the year off together with new clients, but this isn’t a time of year to start new projects for everyone. If your product does particularly well in February for Valentine’s Day – then starting in January is too late.

Being a cannabis company new to PR doesn’t have to daunting. Contact us with questions about hiring an agency, and what to look for. We love working with cannabis companies in all stages of growth.

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3 Things Startups Focus On as VC Funding Shifts

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As uncertainty rises, funding falls. At least that’s what the news would have you believe. But according to Inc. magazine, seed and angel deals are still trending upward, and early-stage companies with proven product are still getting most of the deals. In fact, 64% of venture funding is early stage, and seed deals through Q2 of 2022 were on par with the entirety of 2019 (Q2 NVCA/PitchBook). That means for hyper-growth or ambitious companies and challenger brands, there is still an opportunity for you. So what should you do when VC funding is down and inflation is still driving uncertainty? I’ve been through every recession since 9/11 and I’ve been working with ambitious brands and companies since then as well. So I’ve seen what successful businesses do during recessions to position themselves for competitive advantage, survival and growth, despite the economic hurdles. Over the years I’ve noticed, startups who focus on looking ahead while being laser-focused, and tend to survive tumultuous times, regardless of whether your a consumer brand or a B2B company. These are the the things startups focus on for VC Funding.

Focus Your Energies and Budget

“Everything you do, do exceptionally well, and if you aren’t exceptional at it, then get rid of it or outsource it.”

Look at everything you’re doing and cut out the things you aren’t doing well. For example, let’s say your internal biz development team is excellent, but your event marketing isn’t producing the results you’d hoped for, take that event marketing budget and focus it on one thing your biz dev team says they need to get to the next level.

Everything you do, do exceptionally well, and if you aren’t exceptional at it, then get rid of it or outsource it. Outsourcing is just more nimble. What you outsource, be exceptionally clear about your goals, so you can maximize your reduced budget. Focusing your time and budget has the additional advantage of clearing out the cobwebs and giving you new insight into operational efficiencies too. Who knows? You might decide that outsourcing certain strategies, like PR, simply works better than doing it in-house, anyway.

Startups should also focus on the long term. Think about ways you can increase efficiencies with agency partners, and where you can maximize the partners you have on board.

 

Bullish on the Future

“Deals are still happening, but they’re more happening on industries and trends which are moving ahead full steam, no matter what happens to the economy,”

What should a startup focus on when thinking about funding? No matter what happens to the economy, innovation rolls forward, and VCs know this. The money isn’t on solving today’s problems, it’s on solving tomorrow’s problems. According to Pitchbook, in Q1 of 2022, VC’s raised more money than in the entirety of 2019. So are coming down? Oh, absolutely, but VC’s know – the future is now.

Even when funding is down, deals are still happening, but they’re more happening on industries and trends which are moving ahead full steam. So do your homework on where your product fits into the biggest challenges or opportunities in the next 5, 10, 15 years. Look at all the challenges the pandemic brought to light – those challenges are still top of mind, and the companies solving those problems will have a head start. Your corporate storytelling should also lean into the future and purpose driven initiatives. These two aspects will allow you to lead against your peers.

FinTech is another area where the gloom and doom may be over-reported – through Q2, FinTech funding was still more than in 2019, but it’s definitely not as frothy as 2021. FinTech founders may wish to focus on thought leadership and tie it into purpose-driven points of view in order to tap into future trends.

And although the cannabis industry has been experiencing its share of disruptions as of late, no one thinks that industry is disappearing, the growth is only projected to increase as more states move to legalize cannabis, and states create interstate sales as California has, and many expect the east coast to do. Experts predict the cannabis industry will be $100 billion by the end of the decade. You can learn a lot about the future of cannabis by reviewing the pitch decks from startups that recently secured funding.

CleanTech is another area of hypergrowth, spurred in part by the Inflation Reduction Act which incentivizes green technology businesses. Experts predict growth in this segment for years to come. But VCs have been burned in this area, so it’s vital that companies raising funds in this segment double down on trust.

PR for AI companies is another area likely to continue growing. While the initial buzz that spiked with the launch of ChatGPT has settled, investors still haven’t settled on the market leaders in this segment. If you’re an AI company, PR is best asset right now, especially if you’re a B2B AI company.

There are always areas of growing investments, and if you’re in one of them, strike while the iron is hot.

Plan For Success

“Companies that survive this time focus… on problem-solving,”

Now is the time to think out loud and do your due diligence for tomorrow. Companies that survive this time focus their operations team on problem-solving. For example, if  VC funding doesn’t seem likely for you right now, turn your attention to policy initiatives at the federal and local levels. For example, the last infrastructure project had a lot of opportunities for climate-related startups. And the 2021 infrastructure package held lots of tidbits for infrastructure tech programs, that emerging industries like drones and UOV could take advantage of.

Consumer tech VC funding has taken a sharp nose-dive. Storytelling PR campaigns may not be as attractive as they once were for consumer tech. Now is the time to look at product-based programs which increase awareness but not the budget.

Mental health is still top of mind; that’s part of the reason emerging industries like healthtech, cannabis, and psychedelic treatments remain in the sights of investors. But these industries are not without their challenges and competitors. So brands in these emerging industries need to double down on trust to build more acceptance for the communities they serve.

Direct to Consumer (DTC) funding has radically pulled back because simply having a DTC company isn’t enough to attract investment – today, a DTC strategy is an expectation. But startups can take this time to develop something that can’t easily be replicated, like technology. Or, as investor Caitlin Strandberg said, don’t even ask for investment unless you have an Amazon strategy, because social media isn’t where they see buyers, “if you’re going to be where people buy—people are buying more and more on Amazon—you can expect they’ll search your brand name on Amazon, and you want to be on that search page,” so be looking your sales channels along with SEO and digital PR so your startup is poised for growth.

One of the best ways to stay focused on success is to lay the groundwork for a successful IPO. There is a lot to do, both internally and externally, and getting started earlier will save you money and time as the exit gets closer.

You should take this opportunity to do some scenario planning as well. Now is a great time to plan for a crisis, and create plans for things like cyber breaches ,which will help you secure your future.

 

Tomorrow’s greatest companies and emerging industries aren’t going to allow this uncertainty to derail them. This is where the rubber meets the road, and strategy makes a difference.

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3 Tips for Hiring a Cannabis PR Firm

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The cannabis industry is growing at a rapid rate, and cannabis-related products are being introduced to the market daily. As a result, cannabis PR firms have become increasingly popular for cannabis businesses looking to establish themselves as thought leaders in the cannabis industry. The first step to getting cannabis PR is hiring a cannabis PR agency.  Three considerations when hiring a cannabis PR firm:

 1) Strategic Expertise

For cannabis-focused PR agencies, there’s been unprecedented growth in recent years and it has led to an increase in consolidation and new entrants who may not provide clients with the level of strategic expertise that typically takes much longer to develop. As millennials continue driving change within organizations across all industries, we will see more PR agency consolidation and increased hiring among independently owned cannabis-centric agencies as they need help to build their industry-specific practices.

This means, the team working on your PR may be new to PR even if the agency isn’t. Before you sign on up with any PR firm, get to know the team you will work with on the day-to-day.

 

2) Media Relations Expertise When Hiring a Cannabis PR Firm

The cannabis industry is entering an era of mainstream media coverage like never, meaning cannabis PR firms that don’t show cannabis media relations expertise risk becoming irrelevant. Traditional PR agencies will need to develop cannabis-specific expertise with niche media outlets in order to remain relevant. Cannabis news outlets are a unique subset of the traditional cannabis industry trade press and the next generation cannabis-focused PR agency needs to help clients get into these specific cannabis publications.

While cannabis industry media coverage is important, you’ll also want a firm who can demonstrate cannabis PR in lifestyle, business, or niche communities to ensure your reach gets to the audiences who are most likely to respond to your brand.

“In addition, cannabis-oriented public relations agencies have popped up everywhere from Colorado to Canada,” says Roger Stonehouse, CEO of Stonehouse Group, a global financial services firm specializing in capital formation for cannabis companies. “Some cannabis-oriented PR agencies have been effective, others less so.”

3) Identifying Target Audience

In order to deliver high enough ROI, cannabis business owners need the ability to identify the target audience and create a message that will resonate. To develop a cannabis PR campaign that is an investment, not an expense, businesses must be able to understand their target audience and deliver a targeted message. Cannabis-focused public relations professionals can help cannabis businesses do just that by developing a cannabis public relations plan that delivers results for your company and the investor community as you establish legitimacy through thought leadership.”

Media outreach efforts should begin with promoting articles promoting brand visibility, positive cannabis industry news, and cannabis company milestones.

“If you’re starting a cannabis-related business and want to reach the cannabis consumer, make sure your cannabis PR firm has established media relationships with leading cannabis publications,” says Stonehouse. “This will increase the likelihood of your press release or client announcement making it into one of these sites and give you access to cannabis consumers.”

Effective cannabis-centric PR firms understand how to develop client messaging that resonates with target audiences and cannabis media outlets. Cannabis-focused PR professionals can also help cannabis businesses secure valuable cannabis media placements that provide high visibility within the niche publication and then leverage this coverage through social content (influencer marketing) and public relations outreach efforts on behalf of the cannabis brand to mainstream media outlets like the Associated Press, Reuters and/or Bloomberg News.

“However, it’s critical cannabis businesses don’t neglect the potential impact of ancillary cannabis industry coverage in publications like Forbes, Fortune, or Inc.,” says Stonehouse. “By elevating cannabis category visibility in leading business publications cannabis businesses can begin to change negative perceptions well outside the cannabis space.”

“Cannabis public relations firms need to focus on building relationships directly with consumers,” says Stonehouse. “After all, without people buying your products or services it doesn’t matter how good your cannabis PR firm is. By focusing on the cannabis media, cannabis influencers, and cannabis consumers, cannabis-centric PR firms can help cannabis brands cut through the noise and provide an interesting story that resonates with their target audience.”

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Preparing for a Cannabis Product Recall

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Is your cannabis brand prepared for a product recall? No one likes to talk about it, but it’s probably not a question of IF, but when. Anyone who has been around consumer products for any period can tell you: product recalls are a fact of life. But for cannabis brands, product recalls are intense because of the regulatory environment and the cost of operating as a cannabis brand. We recently handled crisis communications during a cannabis brand recall. It honored us to be chosen, but it’s never fun to see the immeasurable stress a recall puts on a brand.

Because the cannabis industry is new and highly regulated, and in some locations, a medicinal-only product, cannabis recalls ARE news. A cannabis recall will get local and potentially national media coverage. So, how should cannabis companies prepare for the inevitable recall? In short, these 3 steps will help you tremendously: learn, lean, communicate.

 

Learn the Product Recall Process From Your State Cannabis Regulatory Body

Because the cannabis industry is new, so are the regulatory bodies that oversee them. Keep in mind your cannabis regulation division may not even have staff members who have started a recall. Get ahead of it.

Ask your regulatory body what their process is for recall. Who will be your contact during a call? What will they need and expect from you? How and when will they inform you? What steps will they take to inform the public? What triggers a recall? Who will be audited in a recall (the brand, the testing facility, the retailer)?

Knowing the answers to these questions will help you prepare internally. Plus, having an open and engaging relationship with the regulatory body will ease communications during the recall itself.

Lean into Industry Relationships

Ask your retail partners what their internal product recall processes are. The more you know about how they handle and store products, how they prepare their budtenders for product recalls, the better off you’ll be. Find out if you can collaborate with them on budtender communication and customer notification. Be transparent with your retailers about your process too. You should do the same for any other 3rd party in the supply chain: labs and distributors as well. If your product includes any 3rd party ingredients, then communicate with them too. Tell them who they can contact about questions if they’re doing internal planning.

Create a Crisis Communication Plan

Based on how a cannabis recall happens, preparing your internal steps is critical because you can either take the lead or be pummeled. At the very least, define the first 3 external communication steps your brand will take the moment it knows of a potential or actual recall. You should have a single spokesperson identified, while your supporting cast should know their roles and how you will handle the situation internally.

Create plans for at least two scenarios: one for if your processes and/or procedures are at fault, and one plan for if your processes and procedures are not in question.

At the minimum, you should have a statement to your retailers drafted already, as well as a social media post, an email to customers, and a statement for your website. Your spokesperson should undergo crisis communication training, in front of a camera. You can also have a shortlist of local and industry media outlets you will proactively reach out to during the recall to provide a media statement. Be prepared to be nimble during your crisis process and consider what you might do if there is very little coverage vs. a lot of coverage. Review this plan annually, and make sure everyone knows their role during a cannabis product recall.

 

No one likes to talk about cannabis product recalls. It sends a shiver down everyone’s back. But preparing for a recall helps take the sting out it. Contact us, we’re experts in cannabis PR firm if you need help creating a plan for a cannabis product recall.

Download our special report: Preparing for a Cannabis Recall

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9 Reasons Every Cannabis Company Needs PR

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Public relations isn’t new, but cannabis PR hasn’t been around very long, relative to PR. You’ve probably heard that PR is an excellent investment in your company, particularly because of limited advertising options. But maybe you’re still wondering what you should expect from cannabis PR.

Here are 9 reasons every cannabis company should invest in cannabis PR. 

  1. Great content inspires trust, creates credibility, and increases brand value. 
    There is no greater content than an unpaid third party. Cannabis consumers today are hip to the fact that influencers, affiliates, and advertising are all getting paid to say what you want them to say. But journalists remain independent and adhere to a code of ethics and that’s exactly what makes their content so trusted and valuable.
  2. Allows a company to own its own story.
    Cannabis companies who fail to invest in cannabis PR are basically allowing everyone else, from media to competitors to customers, to create your brand story. Why not author your own brand’s story? That’s what PR allows you to do.

    “PR is not something a CEO can do herself.  PR is a highly specialized vertical with a distinctive set of talents, relationships and experience, plus, it takes an exceptional amount of time away from running the company. An agency allows CEOs to get back to their highest and best use of time. – Tara Coomans, CEO, Avaans Media 

  3. Cannabis PR outlasts advertising and social media.
    Unlike advertising which turns off the minute you finish paying, PR sticks around indefinitely. We’ve placed pieces which continued to drive traffic and conversation 3-4 years later. What advertising or social media has that kind of longevity?
  4. Amplify and maximize your cannabis message.
    A strong cannabis PR program typically involves media relations. Media relations means your PR team is working with journalists who are interested in the verticals your brand best fits into. For example, if you’re a cannabis beauty brand, you’ll have stories you want to tell to each vertical.
  5. Building community capital. 
    As we’ve discussed previously, crisis and downturns happen. Having relationships in the media is particularly important when you need support. An ongoing media relations campaign provides trust both with journalists and the public which you can put in the bank and earn interest on for a rainy day. Plus, if you have a crisis, which is all too common in the cannabis industry, then you having a PR firm on retainer could save you hundreds of thousands of dollars in brand value, wasted time, and crisis PR fees. A PR agency you’re already working with knows you best, and knows how to handle your crisis in a brand consistent way.

    “When we discuss the value of PR, we often forget about the sales, M&A and partnerships that come more easily because PR drives trust and shortens the sales cycle,” – Tara Coomans, CEO Avaans Media 

  6. Compliments sales efforts. 
    Ask any salesperson, distributor, or business development executive what happens when they can reference a piece in major industry or national publications. Suddenly, people start paying attention. Adding your coverage on your website, sales materials, and other external communications amplify your cannabis PR.
  7. Creates an opportunity to consider your cannabis company’s impact.
    Ongoing PR makes a company and it’s stakeholders consistently aware of its impact on people. This is important because it’s those same people who have perceptions that shape the company’s values and builds (or damages) its reputation.
  8. PR IS content. Content is a big buzzword today, but PR has always been about content, the only thing that’s changed is that there are more avenues to share content. That’s why so many cannabis PR firms also offer social media and/or event marketing services. PR’s perspective provides a well-rounded point of view that makes content more accessible, shareable, and timely.
  9. Enhances digital efforts like SEO. 
    Online earned media is usually chock full of relevant keywords and known publications have strong SEO signals. Consistent media placement helps with organic search results and the best part is, the efforts pay increasing dividends over time.If you’re ready to invest in PR to get all these benefits and more, why not find out more about whether you’re a good fit for Primo PR’s services? 
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Questions to Ask Top Cannabis PR Firms

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You may be at the beginning of your search, or you may have narrowed down your choices, but wherever you are in your cannabis PR firm search, you should know that the top cannabis PR firms should all have these skills. Notice these skills may differ from PR services and that’s because what separates an outstanding PR firm from the average PR firm is the ability to understand how social, cultural, and business changes will affect their clients. We’re providing you with 3 questions to ask your top cannabis PR firms to help you differentiate them from one another.

Emotional Intelligence

We’re living in dynamic times. Top cannabis PR firms can understand your company, its goals, and how media shifts will change your reputation and media outreach strategies. That’s right, outstanding PR means you have a team who has their pulse on the big picture – they know when to raise the red flag and when to take a breath and let the moment pass. Emotional intelligence also means your PR team continues to learn from itself. You’ll find emotionally intelligent teams hold themselves accountable, they are solution-oriented, and they are easy to collaborate with. Emotional intelligence isn’t necessarily a feature of maturity, but the two do often go hand in hand. Be sure you meet your team and understand who you will be working with before you sign on the bottom line. To get a sense of your PR team’s emotional intelligence, ask your top cannabis PR firm: what advice would they give you at the beginning of the COVID pandemic? 

Digitally Forward Perspective

Social media has been a sub-section of PR for a decade, and yet, many PR professionals don’t consider social media part of the PR landscape. Ask yourself why you’d want a PR agency that doesn’t concern itself with your most visible and accessible communication channel? No doubt about it – social media is an important player in your cannabis company’s reputation. You may not choose to have your PR DO your social media, but a top cannabis PR firm should absolutely provide guidance and oversight. This is also true for choosing influencers. Ask your cannabis PR firm for their perspective on cannabis influencers. It will tell you something about how they approach your media strategy. Ask your top cannabis PR firm: what’s your perspective on social media for my cannabis company? 

Cannabis PR Specialty or Specialization?

The cannabis industry, though still an emerging industry, is past its most nascent stages. Cannabis PR firms that only work in cannabis have advantages and disadvantages. The advantage is extreme specialization; the disadvantage is their perspectives might be myopic. Ask yourself which is more important for your business objectives? You want a top cannabis PR firm that can provide content and insights into the industry, but is it also important that your strategy reflects audiences that aren’t specific to the cannabis industry? For example, if you’re looking to attract an untapped market of cannabis customers, then having a cannabis PR agency that has a broad perspective on consumer PR might be helpful. If you’re a cannabis B2B company, then you may want a PR agency that’s able to cross over into national media outlets, besides cannabis-focused publications for your cannabis business stories. A top cannabis PR firm should be able to review with you how your competitors are doing in the media and recommend some strategies to position your company based on your stated cannabis business goals. Ask your top cannabis PR agency: what advice do they have for a company at your stage of growth?

What Is Your PR Plan?

Every top PR cannabis agency has a distinct approach to achieving your business goals. It’s important for you to know whether that approach suits the rest of your overall strategy. Many PR firms provide you with a plan based on one or two conversations. But is that realistic? This is the exact reason Avaans Media offers a proprietary approach to working together. Ask us about our discovery process and what it means to your PR campaign.

Since 2015, Avaans Media is one of the top cannabis PR firms (previously Primo PR). We’re based in Los Angeles and we work with emerging industries like cannabis. If you’d like to ask US these questions, please reach out.

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