The market for affordable cannabis flower is growing quickly with large cannabis producers introducing competitive “value brands” which boast lower prices.
For some major licensed producers, discount cannabis appears to be driving sales, however it is causing profit margins to decrease.
People involved in the cannabis business expect growth to continue in the coming year, speculating that value brands might eventually comprise as much as half the business, including value brands of Cannabis 2.0 products such as vapes.
One benefit of value cannabis brands is drawing more customers into stores with affordable products which creates an opportunity to upsell them to premium cannabis tiers.
Some of the feedback has been that value brands vary widely in quality and tend to be on the drier side.
Most consumers are able to look past the imperfections when the price is right.
Based on the market, value brands have been the logical response to all the excess inventory that the licensed producers have to contend with right now. More competition in the value space suggests even lower prices to come.
Value brand labeling is different than the Trailer Park Buds branding which recently had to change it’s branding as it was ruled it being too similar to the Traler Park Boys show.