The Canadian government announced the legalization of Cannabis 2.0 products, including vapes and edibles, beginning October 20th. As Tilray's best-selling adult-use brand, Canaca needed to enter the market strategically. However, the new vape category was fraught with risk – how should the company place its bets, and what would be the right approach for Canaca to enter the space?
The vape category was expected to follow similar patterns as other cannabis categories, with the majority of sales volume going to providers offering the highest potency at the lowest price. Instead of entering the market with a high-risk bet, it was crucial to limit risks by targeting the known demand – potency and price. By keeping things simple, Canaca could lay the foundation for future innovations.
Develop a ruthlessly pragmatic v1.0 vape product aimed at the potency-for-price shopper. Keep all aspects of the vape simple and streamlined to maximize operational efficiency and ensure a timely launch with the required volume. Starting with a simple product would set the stage for future innovation, including the possibility of strain-specific or even higher potency distillate versions.
- Initiated the project, wrote and submitted the initial project business case, advocating for a pragmatic approach targeting the potency-conscious consumer.
- The original concept was maintained through development, commercialization, and launch.
- Created the product launch marketing communication centered on a 400mg+ per unit messaging strategy
- Managed aspects of product design, from hardware to packaging and labels, and trade marketing
- Named the product, opting for a generic name that would appeal to pragmatic, value-seeking consumers
- Canaca THC Distillate Vapes became one of the Top 3 best-selling vape carts and pens of all time, continuing to achieve high sales volumes despite limited product updates or modifications since launch
- Both vape products were fully manufactured and ready for launch, along with a trade marketing communication campaign, establishing them as top-selling Cannabis 2.0 products from the outset
- The original strategy and consumer insight regarding a $/potency market proved accurate, and Tilray's readiness to target this low-hanging fruit resulted in significant market value, as evidenced by the product's continued sales performance
Aaron Buchholts (R&D)
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