Category Management Column | Cannabis
GET PREPARED FOR THE POSSIBILITY OF SELLING CANNABIS Growing the CBD category now can put c-stores in prime position to capture cannabis sales if the product becomes legal. Don Burke • MSA
The eventual possibility of selling cannabis is highly appealing to many convenience store retailers. With typical declines in tobacco sales, more fuel-efficient and electric cars impacting fuel volume, and the pandemic impacting foot traffic, this opportunity cannot come fast enough. Currently, the sale of cannabis is fully legal in 17 states and Washington, D.C., and in another 32 states has been decriminalized, meaning there is no possibility of arrest for possessing a small amount of cannabis. Even better, the number of states that are loosening their cannabis laws keeps growing. But none of this matters as convenience retailers will not be able to sell cannabis until it becomes legal at the federal level. There are encouraging signs that the current administration is interested in making this happen, but it’s unlikely to happen soon. So what is the convenience retailer to do? 60
CSTORE DECISIONS •
June 2021
START WITH CBD
One opportunity is to position your outlet as a destination for currently legal cannabidiol (CBD) products produced from hemp. Management Science Associates’ (MSA) research has shown that the cannabis consumer is very similar in profile to the CBD consumer, so building a presence among this target group now with CBD will likely yield stronger cannabis sales when the time comes. Notably, the CBD/cannabis consumer is also very similar to the typical convenience store shopper — younger, male, and either in a blue-collar occupation or a student, making
cstoredecisions.com
