PHOENIX – April 20, or 420, is widely known as a day to celebrate marijuana.
The reason behind that particular date varies, but this year 420 falls on Easter.
The convergence could help an industry that’s in a slump.
Revenue is down in the recreational marijuana market
This is the second year in a row recreational marijuana sales are down.
The competition is higher, the products are cheaper and their ability to market is stifled.
So dispensaries are taking advantage of a 4/20 that falls on Easter to grab new customers.
“We going to go to church, but, of course, we’re going to celebrate 420 too,” said one marijuana shopper at Mint Cannabis.
Significance of 420 to marijuana industry
What we know:
420 – a date known for lighting up, and flying high – falls on Easter Sunday this year and marijuana business owners aren’t going to let the marketing opportunity pass them by.
“We’re capitalizing on 420 and we’re respecting everything about Easter. You got to respect the big guy,” said Raul Molina of Mint Cannabis.
Easter egg giveaways, grab bags and specials; the goal is to grab the attention of new customers because revenue for what was a booming industry just two years ago is down from more than $1.4 billion in 2022 to around $1.2 billion.
What they’re saying:
“We’ve seen the cost of the product come down and down and down,” said Dimitri Downing of the Marijuana Industry Trade Association.
Industry experts say the number of consumers is consistent but what they’re paying for each transaction is less.
“Four years ago it was closer to $68 dollars a basket and right now we’re probably closer to $50, $48, $51,” said Molina.
Now, there are more dispensaries. There are more smoke shops selling illegal marijuana and with state taxes hovering around 40% the margin is especially slim for these small businesses who can’t use traditional marketing.
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“That could be one of the reasons why revenue is stagnant, consumption is stagnant. It’s because the advertising and the marketing restrictions that are on cannabis,” said Downing.
This week, you’ll notice more social media, billboards and fliers encouraging you to get in the Easter spirit and buying some flower, some grass, some green.
“We’re just being very careful. We just want to make sure we don’t insult anybody and we don’t go too far with anything, as far as the Easter part. It will be embedded a little bit, but at the same time, 4/20 is about cannabis. We’re going to be celebrating, we’re going to throw a big giant party. Definitely a chance to get new customers,” said Molina.
