Lessons the recreational cannabis industry can learn from Big Tobacco

Given the rapid rate at which the recreational cannabis market has been growing, it’s only natural to wonder what, if anything, might be slowing that growth. To find out what some potential roadblocks to recreational marijuana might be, look no further than great tobacco.

While not yet legalized nationwide, there are many similarities between recreational cannabis companies and companies in the tobacco industry. As the legal cannabis industry continues to grow, it’s imperative that it doesn’t make the same mistakes tobacco did in the early 1900s.

Here are some insights into the biggest lessons the cannabis industry can learn from Big Tobacco.

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Create transparency about product risks

One of the most costly mistakes the tobacco industry made in the early days was not being completely honest about the risks associated with tobacco use. In fact, that was not uncommon in the 1930s find ads with doctors of cigarette consumption. Unfortunately, dishonest news from major tobacco companies continued to surface over the decades, such as: Tobacco executives only claimed in 1994 that cigarettes are not addictive. In order for the cannabis industry to maintain the trust of its consumers and remain in the good graces of regulators, it is of the utmost importance to be honest and open about the risks associated with the use of certain cannabis products.

Pay attention to marketing best practices

Keeping cannabis products out of the hands of children is a key responsibility of recreational cannabis companies. Tobacco companies also have this responsibility, so recreational cannabis companies can learn from the marketing tactics employed by large tobacco companies.

John Hudak, associate director of the Brookings Institution’s Center for Effective Public Management, believes that part of the responsibility for ensuring responsible marketing practices rests with regulators.

“Left unchecked, a product like cannabis can lead business owners to engage in predatory behavior. These predatory behaviors disproportionately affected younger people and people of color and continue to do so today,” he says.

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With many business owners instinctively directing their marketing efforts toward their bottom line, entrepreneurs in the recreational cannabis industry need to be much more mindful of how they approach promotional methods.

Prepare for the change in sales regulations

Another area where the recreational cannabis industry can learn from Big Tobacco is distribution and sales. Take the advent of cigarette vending machines, for example. Ever since her was banned in most places In 2010, cigarette sales were down. In fact, cigarette sales had actually experienced 20 consecutive years of declining sales before 2020. For recreational cannabis companies to avoid this kind of sales slump, the industry needs to be more adaptable when it comes to sales regulations.

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In spite of Cannabis Vending Machines increasingly popular, who can say if they don’t fall victim to stricter regulations at some point? In order for the cannabis industry to consistently achieve and sustain high sales volume, it needs to be more flexible and prepared for change than the tobacco industry was originally.