Since the launch of the recreational cannabis market, Canadian and U.S. cannabis retailers have continuously discounted product prices over the years due to increasing supply in legalized areas. As it stands, cannabis retailers in both countries have forgone revenues worth billions of dollars.

While many find it easy to blame the recent covid pandemic for the price decline, Raymer has a different theory. Krista Raymer is the founder of Vetrina Group, a cannabis consulting company based in Toronto. She believes the current trend of increased discounting prices is a reflection of the growing number of recreational cannabis products and brands available to retailers.

This has made available to retailers numerous product options and an increased stock of unsold goods, especially at a period when adult-use sales have declined in several markets. In reaction to this, retailers are now dishing out various discounts, markdowns, and promotions to increase sales and reduce stock inventories. This is in a period where entire consumer inflation keeps increasing, having surged by an annual 8.3% in April

Raymer strongly believes this current discounting trend will continue until more data and experience is gathered in the industry. Through this, retailers will be able to make better decisions concerning price, inventories, and product management. So far, the discount offered by retailers on adult-use cannabis sales in nine states combined in the United States has doubled in the last five years. The number which was around 7% in 2017 surged to 15% in 2022 according to Headset, an analytic firm based in Seattle.

The nine states include California, Arizona, Colorado, Massachusetts, Illinois, Nevada, Michigan, Washington, and Oregon.

Retail Cannabis Flower Discounts in the Select U.S. States

Discounts offered by retailers vary from one product to the next, but all product categories have witnessed a huge increase since adult-use sales kicked off across Canada and the United States. One of the many products worth mentioning is the cannabis flower which is the top-selling and most popular product in both countries.

In America, cannabis flower has witnessed an increase in discounting which had reached double-digits in April across several states. In Washington, the overall flower discount reached about 20% in November 2021 and so far has increased to 23% in April of 2022.

Similar to Washington, Neva has also recorded a total flower discount of over 20%. Among the states being monitored, only Massachusetts has relatively low discount rates. The total discount in the state is presently at 2.7%. Even though low, this figure has doubled from what it was in 2018.

Retail cannabis flower discounts in Canada

While cannabis users in can add do not enjoy similar discounts as their counterparts in the United States, discount rates in Canada have also increased over the years. According to available data, overall discounts in all provinces across Canada recorded a surge in discounting rate from 1% in 2019 to 3.4$ in 2022. Among the provinces, Ontario experienced the highest discounting rate which was pegged at 4.1% in 2022.

The next province is Alberta which recorded a 3.8% increase in discounting rate, then comes British Columbia and Saskatchewan with a 2.6% and 2.4% surge in discounting rate. This increase in discounting rate cost cannabis retailers in Canada about 5 million Canadian dollars.

Differences in discount rates between Canada and the United States are influenced by the structure of their supply chains.

In Canada, a larger percentage of the discounting cost is absorbed by cannabis retailers. This is because state-established provincial wholesalers regulate the wholesale prices in most provinces. With this structure, retailers buy cannabis products at a standard price from wholesale and sell at the price best comfortable for them. 

In the United States, cannabis retailers have additional options as regards discounting given they can bank on their ears to absorb some of the cost. Cannabis brands ar able to establish programs where distributed or producers absorb some of the discounting cost to promote their products to more customers

Product growth in Canada.

As cannabis discounting continues to increase with the increase in products available to distributors and retailers in the U.S. and Canada.

For instance, the number of available cannabis products to retailers in Colorado, California, Michigan, Oregon, Washington, and Nevada increased by 80% between 2018 and 2022. Presently, there are about 5,000 cannabis brands manufacturing approximately 190,000 products across the states mentioned in the first quarter of 2022.

Meanwhile, in California, the number of available cannabis products quadrupled in the space of four years with about 40,000 products being sold by retailers in the first quarter of the year. In the first quarter of 2022, Canada had about 10,000 available cannabis products produced by 1,400 brands. This isn’t bad for a country that legalized adult-use cannabis sales in 2019, having just 64 brands producing 500 cannabis products.

However, according to Raymer, discounting itself has its dark side in that it is used as a control to boost SKU’s sales velocity. Although, the challenge here is that one needs to adequately increase the velocity to counteract the discounting cost. Ramer added that if such action can’t be executed consistently, discounting becomes very damaging to the cannabis business and the industry at large. Thi means retailers and distributors have to be very specific with discounting.

Ramer suggests that retailers and distributors come to learn the unintended and intended impacts of discounting and establish a better promotion, discounting, and pricing strategies. She added that there have been some massive transitions in discounting. For instance, discounting a whole category. Rather, retailers need to be more precise with their products when discounting, and the number of products available at any given time for the discount.

Conclusion

The current trend of increased discounting prices is a reflection of the growing number of recreational cannabis products and brands available to retailers. This present trend is said to continue until more data and experience is gathered in the industry. Through this, retailers will be able to make better decisions concerning price, inventories, and product management.

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Despite the risks of cigarette smoking being so well-known, it’s surprising to see that so many people are still smoking these nasty sticks.

According to the CDC, almost 13 in every 100 adults in the United States are current cigarette smokers, which translates to some 30.8 million adults. The illnesses associated with cigarette smoking are all preventable, most especially lung cancer. Tobacco smoking kills 8 million people each year, so why aren’t more people quitting cigarettes?

Well, to be blunt, quitting cigarettes is by no means easy. It contains nicotine, an extremely addictive substance which makes tossing cigarettes out much easier said than done. In fact, many people compare the difficulty quitting cigarettes as the same to an addiction to heroin or cocaine. On top of that, when you do get to quit, the withdrawal symptoms are hellish at best: from headaches to mood swings, irritability, high blood pressure, difficulty sleeping, and extreme urges to smoke, everything about cigarettes is just so difficult to stop.

But are hemp CBD cigarettes the answer?

What Are Hemp Cigarettes?

Hemp cigarettes are just like your regular cigarette, except that it doesn’t contain any nicotine nor tobacco. Instead, it’s made with high CBD strains or industrial hemp. Hemp that is made from the cannabis sativa plant with less than 0.3% THC is legal in the United States, which makes them easy to obtain and it won’t get you high.

CBD or hemp cigarettes are excellent for quitting tobacco because they give you a nicotine-free alternative which will make you feel like you’re smoking a regular cigarette. It also helps to address the oral fixation that accompanies cigarette smoking. But more than simply the oral fixation, there have been numerous studies documenting the success of CBD in treating nicotine addictions among cigarette smokers.

Many find that smoking hemp cigarettes is a fantastic cessation tool – maybe even the best there is out there. In a 2015 study, 24 cigarette smokers were asked to take CBD via inhalation whenever they felt the urge to smoke while a group was given placebo. This went on for one week, after which the researchers found that the people who consumed CBD ended up consuming around 40% less tobacco cigarettes. Given the low success rate of other cessation tools, this was great news after just one week. Meanwhile, those who were given placebo didn’t have any difference in the quantity of cigarettes smoked. Because of this, the study’s authors suggest that CBD is a good candidate for treating nicotine addiction, and is worth a further investigation.

Then in 2020, a 700-person study revealed that 42% of subjects were successful in abstaining from cigarettes when they used CBD. Furthermore, they found that both long and short-term CBD use was effective in stopping especially for those aged 25 to 35. “CBD it seems is 1.2 more effective on young adults than their older counterparts. While around 47% of the participants, aged between 25 and 35, readily abstained from smoking after using CBD for a month,” writes Dr. Ivan Green.

CBD Cuts Cigarette Cues & Addictive Behaviors

One of the hardest parts about quitting cigarettes is the cigarette cues, which are things you find around you that stimulate the trigger to smoke. This can be the urge to smoke a cigarette whenever you normally would, such as first thing in the morning, after a meal, or when you see someone smoking.

In a 2018 study, consuming CBD orally may be successful for helping cigarette smokers experience less triggers since it neutralizes the response to the cues. The study involved 30 tobacco smokers, who were then told that they shouldn’t smoke for 12 hours. They were then given one dose of 800mg CBD oil, while others were given a placebo. After 12 hours, the researchers found that cigarette cues were reduced among those who took the CBD oils. They also had reduced systolic blood pressure.

CBD is also well-known for its relaxing properties, which are effective in treating the anxiety that comes with quitting cigarettes. As it can help calm you down, reaching for a puff is healthier than ever and you can use as much as you need in order to get off the tobacco.

Quit Smoking Today with Hemp CBD Cigarettes

If you’re open to giving it a try, you might be surprised how powerfully effective hemp CBD cigarettes are in quitting tobacco.

This solution might not be what everyone wants or needs, but if the oral fixation and addictive cues is what you struggle with when it comes to quitting, this might help. Hemp cigarettes not only provide you with an authentic cigarette experience, but they are also already rolled for you professionally. They are a natural source of CBD and all its therapeutic properties, plus it isn’t harmful nor addictive.

There are dozens of different hemp cigarettes in the market to choose from. Most of them will likely be made with industrial hemp, but don’t expect the delicious dank smell that marijuana is known for. Before you buy a pack, look for a Certificate of Analysis (COA) from the manufacturer so that you know exactly what goes into each cigarette. Read reviews online, do your research on the ingredients based on the COA report, and buy from reputable brands. There are varying potencies and purities out there, as well as an array of flavors and brands that you may enjoy.

On top of being able to quit smoking cigarettes, hemp cigarettes can also improve your overall mood, sleep, focus, and suppress your cravings.

There’s no reason you shouldn’t try hemp cigarettes today to kick the nasty habit once and for all.

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