Both cannabis and hops have terpenes and terpenoids, but that’s not the only overlap between these two plant-derived worlds. In recent years, similarities—in particular between craft cannabis and craft beer—have become more apparent. So, what can the relatively infantile but similarly regulated craft cannabis industry learn from the older craft beer industry? Let’s take a look.
Attention to Quality
It’s easy to see craft cannabis as the “new craft beer.” Historically, they’re both coming back from a period of prohibition—or in the process of doing so, anyway. In both cases, legal issues didn’t fully dampen the production and consumption of beer and cannabis, nor has it dissuaded hobbyists and underground producers.
Considering the modern consumption of both beer and cannabis, it’s easy to consider that they’re appealing to a similar market base and certain kind of customer (read: they appeal to a customer who wants more out of the product). Unlike some of the larger players in the respective industries, craft producers are using cannabis strains and specially-sourced ingredients to appeal to a demand for variety and superior taste.
In addition to taste, consumers look to both craft cannabis and beer producers for potency and purpose. IPAs with higher ABV amounts and cannabis genetics associated with higher quality and better terpene and THC levels are highly sought after in today’s world. Beyond all of that—and consistent with overarching economic trends—consumers want to make purchases that have a deeper positive impact.
The educated consumer wants their beer or bud to be associated with clean production. They want to know who produced their product, and know that they’re supporting a company who gives back.
It’s clear how the parallel industries are similar. Now, here’s how the craft cannabis industry can learn from its craft predecessor.
Distribution Model as a Gatekeeper
With beer and cannabis, the distribution model serves as a gatekeeper. When it comes to the latter, states like California rely heavily on distributors to ensure that products are compliant with regulations, as well as testing and packing requirements. In essence, the cannabis supply chain is designed in such a way to ensure legal compliance—”from testing to taxation.”
While some cannabis brands have used online orders to sell directly to consumers, US law requires the sales to pass through wholesale distributors first. Most beer producers also operate under a similar three-tier system whereby suppliers sell to distributors and distributors sell to retailers. Recent years have loosened some of these distribution pathways but, across the board, it’s the small beer producers, microbreweries, and craft cannabis companies who are impacted mostly by being locked into this gatekeeping distribution model.
Similar Supply Channel Issues
Beyond distribution itself, supply chain issues weigh more heavily on craft beer and cannabis companies. Recently, Ball Corporation—one of the largest US can manufacturers—announced a decision to raise the minimum order requirements for cans. The fivefold increase—from 204,000 to 1,020,000 cans—has an obvious negative impact on small and medium-sized craft brewers, particularly following pandemic-related closures.
Similarly, recent years have brought increases in minimum order quantity (MOQ) for cannabis producers. For obvious reasons, many small companies struggle to meet these increases, which are more easily absorbed by larger producers.
Co-Ops and Collaboration Can Help
Both craft breweries and those involved in cannabis cultivation are left wondering how to compete with the big guys without compromising quality and care. Both industries have realized the benefits of increasing their market share without distilling their mission. Stone Brewing is just one of the breweries that has realized the importance of close-knit relationships with other breweries. Throughout the years they’ve realized the importance of collaboration, not competition.
Where Stone collaborated with other breweries to make blends, small-scale and artisan cannabis producers are also realizing the importance of coming together. If we want to survive in an industry that paves the way for large-scale supplier success, forming a cannabis cooperative is (and was) one of the best decisions we could make. We’re lucky to have found our tribe with Hive Mendocino. Not only does this conscious collaboration extend our friend group, but it also makes navigating the legal world easier, grows our network, helps us conserve resources, and allows us to spend more time with what we find most important—our plants.
Perhaps most importantly, coming together has increased our market share. We’re able to produce quality product, all while meeting the “standard” inventory amount. And this is all for you! By partnering with other conscious craft cannabis cultivators, we can better meet your needs. Sign up for a wholesale account today to see how.