The Cannabis Industry is hoping for a green Christmas

When the pandemic started last spring, Mary Jane's Medicinals, which sells CBD and cannabis-infected topical drugs, took a major blow. April was "one of our worst sales months ever," said CEO and founder Dahlia Mertens. However, a recovery soon ensued, and August sales were higher than ever. The company's growth this fall was dramatic, she said, doubling to over $ 100,000 in revenue in November. Now the holidays are approaching. 2020 could be a very green Christmas for the cannabis industry. Mitch Baruchowitz, managing partner at Merida Capital Holdings, a New York-based private equity fund operating in the sector, believes that more cannabis products will be sold this holiday season than ever before. Several different factors contribute to this, he said. Acceptance of cannabis has continued to grow along with legalization, as evidenced by recent electoral victories in both right-wing and left-wing states. This opens up new markets for millions of potential consumers. The production and sale of cannabis were seen as essential businesses in the pandemic, which did not lower sales. And cannabis purchases are somewhat seasonal, with vacation purchases increasing in recent years, according to Headset, an industry research group. Yet the complicated and regulatory burdened industry is not a money printing machine. Customer loyalty and awareness play a big role, so building a strong brand is important, said Mertens. "People want to spend money on a product that they know will work," she said. As "one of the manufacturers of OG topics in the cannabis sector", the company benefited from it. She said the success of her recently launched Super Strength Nano Salve also helped. While brand is important, a strong company needs more than high quality products, good prices and attractive packaging, said Greg James, editor of Marijuana Venture and Sun Grower magazine. The business mechanics - how reliably the company fulfills orders quickly, how efficiently its back office works - are just as important. "It's no different from Proctor and Gamble," he said. Resources also play a role in the health of the company, and some of the newer brands didn't have the funds to highlight the original drop in sales, Mertens said. The holidays are a good time for cannabis companies to experiment with prices, according to headset research. While value shoppers looking for the most “buzz for the buck” are a major year-round customer segment, people are willing to pay more for just the right Christmas present, according to the report.