Tag Archive for: crisis communications
Key Takeaways
- Understand Regulatory Processes: Familiarize yourself with your state’s cannabis regulatory body’s recall procedures, including key contacts and requirements. This knowledge will facilitate smoother communication and preparation during a recall.
- Strengthen Industry Relationships: Build strong connections with retail partners, labs, and distributors to ensure coordinated and transparent recall processes. Collaborating on communication strategies enhances overall management and response effectiveness.
- Develop a Crisis Communication Plan: Create a comprehensive plan that outlines external communication steps, identifies designated spokespersons, and prepares statements for different scenarios (whether the brand is at fault or not). Regularly review and rehearse this plan to ensure readiness during a recall.
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 seeing the immeasurable stress a recall puts on a brand is never fun.
Because the cannabis industry is 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.
Key Takeaways:
- Understand Regulatory Processes: It’s essential to familiarize yourself with your state’s cannabis regulatory body’s recall procedures. Knowing the process, key contacts, and requirements will help you prepare effectively and maintain smooth communication during a recall.
- Strengthen Industry Relationships: Build strong relationships with retail partners, labs, and distributors. Understanding their recall processes and collaborating on communication strategies will enhance coordination and transparency, crucial for effective recall management.
- Develop a Crisis Communication Plan: Create a comprehensive crisis communication plan that includes external communication steps, designated spokespersons, and prepared statements. This plan should address both scenarios where your processes are at fault and where they are not, ensuring you are ready to respond effectively to media coverage and public inquiries.
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, but cannabis consumer PR can help. It sends a shiver down everyone’s back. But preparing for a cannabis recall with strategic cannabis PR 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
Key Takeaways
- Cyber insurance alone isn’t enough: Businesses must implement proactive cybersecurity and incident response planning to qualify for coverage and ensure claims are approved.
- Cybersecurity tools reduce—but don’t eliminate—risk: Even strong defenses cannot guarantee immunity from cyberattacks. Cyber insurance provides an important financial and operational safety net.
- Cyber insurance is becoming harder to obtain: As cyber threats increase, insurers are tightening requirements and raising premiums. Companies that plan ahead and demonstrate strong security practices are more likely to secure coverage.
It often starts with a simple mistake. Someone in your company clicks on a phishing link, and suddenly customer data or confidential company information is exposed.
For many businesses, especially outside of large enterprises, the internal expertise needed to manage a cyber incident simply isn’t available. That’s one reason cyber insurance has become such an important layer of protection for organizations ranging from emerging industries and ambitious consumer brands to tech startups.
Cyber insurance helps businesses recover from events such as data breaches, ransomware attacks, cyber theft, and other digital threats. It can cover financial losses, legal costs, and even the communications required to protect your brand.
However, these policies are still relatively new—and widely misunderstood.
Because of the complexity of cyber insurance, several myths have emerged that can leave businesses dangerously exposed.
And as we often remind clients, the best time to manage a crisis is before the crisis happens.
Let’s take a closer look at four common cyber insurance myths.
What Cyber Insurance Typically Covers
Most cyber insurance policies help cover the costs associated with responding to and recovering from an incident. Coverage often includes:
- Data recovery and system restoration
- Legal expenses and regulatory proceedings
- PR crisis management, including notifying customers, partners, or investors
- Identity restoration services for affected individuals
- Extortion or ransomware payments
Given the potential costs of a cyberattack, it’s easy to see why demand for cyber insurance has increased dramatically.
However, these policies also include significant requirements and exclusions. Understanding what is—and isn’t—covered is essential before a crisis occurs.
Myth #1: Cyber Insurance Alone Protects My Business
This is one of the most common misconceptions.
Cyber insurance does not replace strong cybersecurity practices. In fact, most insurers require businesses to demonstrate that specific security measures are already in place before issuing a policy.
Insurers typically require proof that your company has implemented the proactive cyber measures outlined in your policy.
If your organization cannot demonstrate compliance, there is a strong chance your claim will be denied.
Two of the most common requirements include:
- Strong cybersecurity protection
- A clear cyber incident response plan
These response plans are often tested through “table-top exercises,” which simulate how a company would react during a cyber incident.
While many exercises focus primarily on technical response, the reputational impact of a breach is just as important. That’s why Avaans Media has teamed up with Ignite Solutions to help companies prepare for both the technical and brand implications of a cyber incident.
A plan like this can help businesses qualify for cyber insurance, potentially lower premiums, and provide a clear roadmap for responding to both operational and communications challenges during a breach.
Myth #2: Cybersecurity Solutions Make Insurance Unnecessary
Even strong cybersecurity systems cannot eliminate cyber risk entirely.
Yes, modern cybersecurity solutions help organizations detect vulnerabilities and strengthen defenses. Continuous monitoring and regular updates are critical for reducing risk.
However, cyber threats evolve constantly. A single moment of human error—such as clicking on a phishing email—can still create an opening for attackers.
Cyber insurance serves as a financial safety net when prevention measures fail.
For many organizations, combining strong cybersecurity defenses with insurance coverage provides the most balanced protection.
Myth #3: Cyber Insurance Is Easy to Obtain
As cyber incidents become more frequent and costly, insurers have become far more selective.
Small and medium-sized businesses are especially attractive targets for cybercriminals because they often lack enterprise-level security protection.
The result? Many insurers have experienced significant losses from cyber policies, prompting them to tighten underwriting requirements.
Today, policies are often more expensive and harder to secure.
Organizations that take proactive steps—such as strengthening cybersecurity and developing an incident response plan—are far more likely to qualify for coverage.
Preparation also helps companies respond more effectively when a breach occurs.
For example:
- Who decides whether systems should be taken offline?
- Who pauses scheduled emails or social media posts during an incident?
- Who communicates with customers, investors, and the media?
Having answers to these questions ahead of time can significantly reduce both financial and reputational damage.
Myth #4: My Policy Will Automatically Cover Any Incident
Cyber insurance claims are not automatically approved.
In many cases, insurers require detailed proof that policy requirements were followed before coverage applies.
These requirements often include both technical safeguards and operational procedures.
Working with both an IT provider and a PR team to develop a cyber incident response plan helps organizations remain compliant with these requirements—and increases the likelihood that claims will be approved.
Just as importantly, this preparation allows businesses to respond quickly and confidently when a cyber incident occurs.
The best time to prepare for a cyber crisis is before one happens. With the right planning in place, organizations can protect both their data and their reputation.
Partner for Success
Understanding the realities of cyber insurance helps businesses avoid costly misunderstandings and ensures they receive the protection they expect.
At the same time, cyber preparedness requires time, planning, and expertise.
If you’d like to learn more about protecting both your data and your brand, contact us.
Key Takeaways
- Proactive Communication Strategy: Cannabis companies must establish a solid crisis communication plan well in advance, identifying multiple communication channels and designating leaders for specific groups. This preparation is crucial to managing potential crises effectively and ensuring clear messaging both internally and externally.
- Safety as a Priority: In times of crisis, prioritizing consumer and employee safety is essential. Companies should communicate their health protocols transparently, update their websites regularly, and ensure that customers feel safe when interacting with their products and services.
- Engaging Stakeholders: Maintaining open lines of communication with investors, suppliers, and regulatory bodies is vital. Cannabis companies should keep these stakeholders informed about operational changes, challenges, and recovery plans to foster trust and collaboration during crises.
Creating appropriate crisis communications strategies is necessary for any business, but this is especially true for a cannabis crisis. Whether it’s a recall, or a significant event hits the industry, cannabis companies must change how they handle potential problems that could challenge their success. This is especially true for CPG companies like cannabis brands who also have the additional risk of a cannabis recall.
The unexpected can happen at any moment. For example, the COVID-19 outbreak limited business operations and disrupted consumer spending habits. Airlines canceled flights, and hotels stopped accepting reservations. Everyone went into lockdown, and it affected companies in every job industry.
You need to have a solid plan in place before you face a cannabis crisis that can significantly affect the cannabis industry. Adequate preparation could prevent a decline in profitability while you’re dealing with a new normal. You must develop necessary communications to address scenarios you could encounter. Circumstances constantly change, and it’s crucial to be ready for anything.
You might need to establish multiple communications channels. You should create a hub and assign specific people to lead each group. Allow your chosen leaders to review and approve statements and consistently provide updates to executives.
Each staff member within the groups should have scripts they use to answer external and internal inquiries. They should also have a list of updated contacts, so they have access to people they need to communicate with.
In a Crisis: Prioritize Safety
Consumers want to know they’re safe whenever a crisis hits. During the coronavirus pandemic, companies put safety measures in place to protect their employees and customers from unnecessary exposure. When you run a cannabis business, you should ensure everyone’s safety at all times. Anyone walking into your store or buying your product needs to know they’re in an environment that won’t make them sick.
Your communications should address safety concerns. Anyone overseeing an internal employee should work with HR and legal teams to develop policies regarding sick leave, working shifts, office health, and telecommuting options during a crisis. You should also create a plan to approach conversations between managers and employees, so information flows seamlessly throughout the company.
Instruct groups handling communication with consumers to advise the protocols you follow regarding cleaning and health. Your customers should be aware of the maximum capacity in your stores and how your workers handle cannabis deliveries without putting others at risk.
Your website is essential for communicating with the public during a crisis. Update your page frequently to inform others of your company’s policies. Advise them of the steps you’re taking to address current issues and prevent further problems from arising.
Your customers should know you take their health and safety seriously during this challenging time. You’re not willing to place them in harm’s way when there’s a crisis. All the safety precautions you take are meant to protect you, your employees, and the public.
The team you designate to handle regulatory affairs will play a valuable role in your company. They can liaise with federal and state health officials to keep your business up to date on evolving safety protocols. The team should communicate regularly with officials and share accurate and detailed information with management and staff. They should also notify officials of what your company is doing to comply with the required regulations.
Impact of Cannabis as an Essential Business
Many states see the cannabis industry as essential. Instead of shutting down with other businesses when there’s a crisis, these companies can remain open. However, acquiring and maintaining the status of an essential business isn’t a guarantee for success. You must have a plan to respond to the local government’s regulatory agendas and address their concerns if you want to continue operating.
You can plan how you’ll communicate the essential nature of your product by discussing the medical needs of cannabis. Lobby for an essential status designation from the leaders in your area. Taking action now could prevent a crisis from negatively affecting your company in the future.
Employees in your PR and marketing groups can explain the medical and social benefits of cannabis to a large audience. They can show the public the importance of the cannabis industry and how it can help people navigate a crippling crisis, such as the Covid-19 pandemic.
Your media team can also inform reporters of your company’s philanthropic efforts. Some businesses donated hand sanitizer to healthcare workers to keep them safe and prevent the further spread of the virus. Journalists and news outlets can get the word out about your industry’s dedication to the well-being of residents within the community.
Don’t Forget About Your Investors
You must maintain frequent and ongoing crisis communications with anyone with financial interests in your company, such as investors and suppliers. Instruct your team to communicate with your suppliers regarding retail challenges and inventory shortages they might face. Try to come up with solutions to the problem before they happen, so you protect your retailer’s and supplier’s bottom lines.
Any investors you formed a relationship with should be aware of the steps you’re taking to resume normal business operations. Your team must identify essential business functions, such as supply chain services and critical jobs, that are necessary to continued operations with limited disruptions.
Your spokespeople must warn investors of potential disruptions to operating procedures. Your investors should also know about your plans for an emergency and how you’re going to recover once the crisis is over.
Streamlining your crisis communications strategy means you can successfully navigate any crisis you face. Review statements you make before releasing them to determine whether they reflect your company culture and the impact you have on your customers. The cannabis industry can overcome complex obstacles and thrive with strategic and effective communication plans.
Contact Us
Avaans Media is a top cannabis PR agency you can depend on to effectively manage your company’s brand and implement the appropriate strategies to gain new customers and grow your business.
Since 2014, our PR team has provided comprehensive services to clients the cannabis industry. The cannabis business is unique but expanding rapidly. You need to keep up with your competitors, so they don’t leave you behind. Our team can spearhead your campaigns to improve your credibility and reputation within the market.
Contact us right now if you’re interested in discussing your needs with a trusted and knowledgeable PR firm with years of experience.
