It is no secret that during the holidays, Americans generally stock up on alcohol in preparation for hosting guests and family. But in what is dubbed as “Danksgiving”, Green Wednesday (the day before Thanksgiving) and “Dankmas”, the cannabis industry sees a surge in sales around the holidays as well. While “Danksgiving” sales soared this past year, more specifically due to the pandemic, this year’s numbers are projected to yield an even higher profit margin (year over year). Because cannabis sales generate profit for the state, this is a great way to help lower debt amidst shutdowns and bailouts.

Cannabis Holiday Sales: An Untapped Economic Boost

The one looming caveat, however, is if the Omicron COVID variant leads to more shutdowns. This could create even bigger supply chain issues for many industries, including the cannabis industry as we have already been seeing over the past nearly two years. One particular industry that has been showing bigger shortages recently is the alcohol industry. “We’re seeing some shortages coming from the large distillers and also the craft distillers are having issues as well. There also is a short supply of glass bottles that hold wine and spirits that has added to the headache.” (Stump, 2021). As alcohol sales may see a dip, the cannabis industry has the potential to rise to the occasion.

For those who imbibe in cannabis recreationally, the natural answer to the alcohol shortage is to just purchase more cannabis. This gives dispensaries the opportunity to boost sales higher than they ever intended since many are stocking up for the holidays and purchasing cannabis as gifts for others. “Dispensaries around the country are taking that advice to heart by unveiling highly anticipated new brands, developing pop-up shops and edutainment, holding raffles, and doling out swag to boost their receipts. The activity goes beyond the more typical buy-one get-one offers, discounts and other seasonal promotions.” (Stanley, 2021).

With these new brands, pop-up shops and the like, dispensaries are targeting advertising to existing customers; those at the bottom of the marketing funnel who have already created a relationship with those dispensaries in their area. Because these holidays aren’t directly correlated with the cannabis industry, unique marketing tactics can drive a bigger impact than say on 420. 

While American consumers are notorious for overspending during the holiday season, it is no surprise that cannabis consumers would be enticed by a good holiday sale as well. “As the industry matures, there are great opportunities to get net-new customers on mainstream holidays, those that aren’t specific to the cannabis industry,” Michael Blanche, co-founder of mar-tech firm Surfside, told Adweek. “This gives dispensaries and brands another reason to communicate with consumers, build awareness and maintain relevance.” Stanley, 2021).

Bigger holiday cannabis spending is one way that can help boost the economy after so many drastic hits that keep coming due to the pandemic. 

“While cannabis companies can’t get enough workers and have supply chain issues just like everyone else, a second shutdown and the massive bills that would come with relief aid and payments would only increase the pressure on the Federal government to find new sources of tax revenue and jobs. At some point bills have to be paid, and the greater the debt becomes the more pressure there is to find new tax revenue and create new jobs, the cannabis industry would be prime picking for Federal legalization not only for tax revenue, but for job creation going forward.” (Baccus, 2021).

One can only hope that as our country sees higher profits from the cannabis industry, the Federal government may begin to bend a little bit more on restricting cannabis sales by legalizing it nationwide. It would make sense as a source of revenue to bailout the economy just as it once was a vital part of our country throughout cannabis history. Perhaps in the holiday seasons to come the government will give us all a little treat via the legalization of cannabis.

Resources:

Baccus, Thom. 2021, November 27. The Omicron COVID Variant and the Marijuana Industry - 5 Key Questions About Another Possible Shutdown. Cannabis.net. https://cannabis.net/blog/opinion/the-omicron-covid-variant-and-the-marijuana-industry-5-key-questions-about-another-possible-shu.

Stanley, T.L. 2021, November 2. How Cannabis Brands Can Make Their Holidays Merry and Profitable in 2021. AdWeek. https://www.adweek.com/commerce/how-cannabis-brands-can-make-their-holidays-merry-and-profitable-in-2021/

Stanley, T.L. 2021, November 23. For Green Wednesday, Cannabis Retailers Are Firing Up the In-Store Experience. AdWeek. https://www.adweek.com/commerce/for-green-wednesday-cannabis-retailers-are-firing-up-the-in-store-experience/?utm_source=daily-carnage&utm_medium=email.

Stump, Scott. 2021, November 24. Buzzkill! Booze is the latest shortage you could face this holiday season. Today. https://www.today.com/food/drinks/wine-spirits-latest-shortage-face-holiday-season-rcna6592?utm_source=daily-carnage&utm_medium=email.