April 20 the Making of a Holiday

4/20/2022

Retail and Consumer

0 min read



Image Credit: Mike (Flickr)

April 20 Growing as a Day of Cannabis Recognition

Did you get your significant other a gift for 4/20 this year? Probably not, it isn’t considered a traditional mainstream gift-giving day like Valentines or Christmas. After all, April 20 recognizes, among other things, the counterculture that didn’t care much for the mainstream. So why would it become commercial in that way — the origin has more to do with a push for access and legalization. But there is a huge uptick in sales leading up to this day. And while many mainstreamers, myself included, only heard of the “420 code” a year or two ago, it is getting far more buzz than ever, and undoubtedly this will be even greater in the coming years.

What it Means for the Industry

Commercial cannabis providers would be missing an opportunity if they didn’t leverage the day’s recognition in a “Cinco de Mayo” meets “St. Patty’s Day” marketing effort. And they are. To confirm this I asked Margot Micallef the founder and CEO of GABY Inc. (GABLF) if 4/20 is a big day for dispensaries. She was gracious enough to take some time away from discussions with investors at NobleCon18 to respond. Ms. Micallef quickly said, “It’s Christmas for cannabis consumers!” She explained, “Consumers wait for it with anticipation and retailers love it because it brings consumers into their stores.”

In a recent article, MJBiz.com refers to the day as “As the biggest shopping day of the year for the cannabis industry…” They say, leading up to 4/20/22 businesses were preparing by stocking more of their more perishable items such as rolled leaf.

Many dispensaries are providing discounts and sales this week to bolster even more traffic as the biggest shopping day of the year for the recreational sector of the industry peaks. Part of the preparation includes a focus on selling flower, mainly in the form of pre-rolls.

Just as Mother’s Day and Valentine’s is the high point of the year for selling roses and chocolate, the third week in April, the unofficial April 20 marijuana holiday resembles mainstream retail’s Black Friday shopping day after Thanksgiving in that consumers flock to cannabis stores to stock up on heavily discounted products. Most companies spend months preparing for this period.

The cannabis industry estimates that sales increase by about 30%-50% the week of 4/20. Using data from Headset, sales compared to an average week can be even higher.

Broken out into product categories, the data forecasts week over average week increases of:

Vape Pen +92%
Pre-Rolls + 126%
Edibles +124
Flower +135%
Concentrate 152%

If 4/20 grows as the day to recognize the efforts of the counterculture and all subsequent movements to provide more freedom of choice, it will serve the industry well. Investors should take note, perhaps it could even become a benchmark for the cannabis business similar to Black Friday has for other retailers. I spoke with Justin Dye, Chairman and CEO of Schwazze (SHWZ). Schwazze is the largest cannabis company in Colorado by revenue. Justin was also busy with investors at NobleCon18, but took time to discuss the industry and the opportunity. Dye said, “The cannabis industry is maturing and a terrific growth sector.” He explained, “The industry is countercyclical, and trading at all-time lows. It is just a matter of time before meaningful catalysts such as safe banking regulation and continued legalization buoy the industry.”

Not unlike other industries that maintain their status most of the year, but have one or two celebrations that they “own,” The cannabis industry will certainly be well served by further elevating 4/20 as a day where even those that don’t partake all year long, participate in their own way.

Paul Hoffman

Managing Editor, Channelchek

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