MJBizMagazine September 2021 - 56

Retail Revoution
Product Education Is Key in Arizona
ARIZONA
Legalized medical marijuana: 2010
Projected MMJ dispensary sales for
2021: $1.0 billion to $1.2 billion
Legalized recreational: 2020
Projected recreational retail sales
for 2021: $250 million to $300 million
Source: 2021 MJBizFactbook
Retail Tips
* Research how much store traffic increased
in states that launched adult-use marijuana
markets.
* Educate budtenders about how to serve
customers who are new to cannabis.
* Adjust THC levels in popular medical
products so recreational consumers can
try them.
The staff at two-store Arizona cannabis
company Hana correctly projected state
voters would legalize a recreational market
during the 2020 general election.
Adult-use sales began in January
of this year. Anticipating an influx of
canna-curious customers, Matt Pinchera,
president of the cannabis business
launched in 2015, tried to estimate how
the company's traffic might increase and
staff appropriately.
" We tried to look at other states that
went from med to rec and what their
customer traffic counts were. Today,
every day is different, " Pinchera said,
noting that adult-use customers greatly
outnumber medical customers some
days, but on others, they are more
evenly split.
While Hana's recreational customers
outnumber the business' medical
patients, Pinchera said there are more
than enough patients to justify keeping
medical sales open. The company also
has a 20,000-square-foot grow that it
plans to expand to 60,000 square feet
this fall.
56 MJBizMagazine | September 2021
Adult-use marijuana consumers are more likely to require assistance with product selection than
experienced medical patients. Courtesy Photo
Educating Staff and Consumers
In a market expecting an influx of
inexperienced consumers, it's critical
that staff are thoroughly trained on the
store's products and how to educate
customers about them, Pinchera said.
Hana also invites product vendors
to train staff about their offerings so
that budtenders can present them to
consumers safely and competently.
" We knew there were going to be
some new customers who once were
cannabis users, but perhaps there are
new products on the shelves that they're
not familiar with, " Pinchera said. " It's
kind of a continuation of being able to
educate both the medical patients and
the new adult-use customers. "
Retooling Product Lines
Hana, formerly known as Hana Meds,
also had to reevaluate the products it
offered on each side of the business and
make some adjustments.
In Arizona, where the state mandates
that medical and recreational stores be
co-located if an owner has licenses for
both, the amount of THC allowed in
edibles is capped at 100 milligrams per
package and 10 milligrams per piece.
The amount of THC allowed on the
medical side is higher.
Hana had a 40-milligram lollipop that
was popular with medical patients, but
the product had too many milligrams
of THC to be sold on the recreational
side. To offer the product to adult-use
consumers, Hana started making a
10-milligram version.
" There was an initial R&D cost to
work on the formula, but once it was
dialed in, there is no cost to make the
switch, " Pinchera said.
Predicting Inventory Issues
Another concern was having enough
inventory.
" There were shortages across the
state, across the board, " Pinchera said
of the early days of adult-use sales.
" We followed what the bestselling
products were and just did our best to
have them.
" The most popular items were
flower, but we saw upticks also in (vape
cartridges) and edibles, which were two
categories that adult-use consumers
gravitated toward. "

MJBizMagazine September 2021

Table of Contents for the Digital Edition of MJBizMagazine September 2021

MJBizMagazine September 2021 - 1
MJBizMagazine September 2021 - 2
MJBizMagazine September 2021 - 3
MJBizMagazine September 2021 - 4
MJBizMagazine September 2021 - 5
MJBizMagazine September 2021 - 6
MJBizMagazine September 2021 - 7
MJBizMagazine September 2021 - 8
MJBizMagazine September 2021 - 9
MJBizMagazine September 2021 - 10
MJBizMagazine September 2021 - 11
MJBizMagazine September 2021 - 12
MJBizMagazine September 2021 - 13
MJBizMagazine September 2021 - 14
MJBizMagazine September 2021 - 15
MJBizMagazine September 2021 - 16
MJBizMagazine September 2021 - 17
MJBizMagazine September 2021 - 18
MJBizMagazine September 2021 - 19
MJBizMagazine September 2021 - 20
MJBizMagazine September 2021 - 21
MJBizMagazine September 2021 - 22
MJBizMagazine September 2021 - 23
MJBizMagazine September 2021 - 24
MJBizMagazine September 2021 - 25
MJBizMagazine September 2021 - 26
MJBizMagazine September 2021 - 27
MJBizMagazine September 2021 - 28
MJBizMagazine September 2021 - 29
MJBizMagazine September 2021 - 30
MJBizMagazine September 2021 - 31
MJBizMagazine September 2021 - 32
MJBizMagazine September 2021 - 33
MJBizMagazine September 2021 - 34
MJBizMagazine September 2021 - 35
MJBizMagazine September 2021 - 36
MJBizMagazine September 2021 - 37
MJBizMagazine September 2021 - 38
MJBizMagazine September 2021 - 39
MJBizMagazine September 2021 - 40
MJBizMagazine September 2021 - 41
MJBizMagazine September 2021 - 42
MJBizMagazine September 2021 - 43
MJBizMagazine September 2021 - 44
MJBizMagazine September 2021 - 45
MJBizMagazine September 2021 - 46
MJBizMagazine September 2021 - 47
MJBizMagazine September 2021 - 48
MJBizMagazine September 2021 - 49
MJBizMagazine September 2021 - 50
MJBizMagazine September 2021 - 51
MJBizMagazine September 2021 - 52
MJBizMagazine September 2021 - 53
MJBizMagazine September 2021 - 54
MJBizMagazine September 2021 - 55
MJBizMagazine September 2021 - 56
MJBizMagazine September 2021 - 57
MJBizMagazine September 2021 - 58
MJBizMagazine September 2021 - 59
MJBizMagazine September 2021 - 60
MJBizMagazine September 2021 - 61
MJBizMagazine September 2021 - 62
MJBizMagazine September 2021 - 63
MJBizMagazine September 2021 - 64
MJBizMagazine September 2021 - 65
MJBizMagazine September 2021 - 66
MJBizMagazine September 2021 - 67
MJBizMagazine September 2021 - 68
MJBizMagazine September 2021 - 69
MJBizMagazine September 2021 - 70
MJBizMagazine September 2021 - 71
MJBizMagazine September 2021 - 72
MJBizMagazine September 2021 - 73
MJBizMagazine September 2021 - 74
MJBizMagazine September 2021 - 75
MJBizMagazine September 2021 - 76
MJBizMagazine September 2021 - 77
MJBizMagazine September 2021 - 78
MJBizMagazine September 2021 - 79
MJBizMagazine September 2021 - 80
MJBizMagazine September 2021 - 81
MJBizMagazine September 2021 - 82
MJBizMagazine September 2021 - 83
MJBizMagazine September 2021 - 84
https://www.nxtbook.com/emerald/MJBizMag/mjbiz-may-june-2024
https://www.nxtbook.com/emerald/MJBizMag/20240304
https://www.nxtbook.com/emerald/MJBizMag/20240102
https://www.nxtbook.com/emerald/MJBizMag/20231112
https://www.nxtbook.com/emerald/MJBizMag/202310
https://www.nxtbook.com/emerald/MJBizMag/mjbiz-buyers-guide-cannabis-packaging-23
https://www.nxtbook.com/emerald/MJBizMag/202309
https://www.nxtbook.com/emerald/MJBizMag/202308
https://www.nxtbook.com/emerald/MJBizMag/202307
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-may-june-2023
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-april-2023
https://www.nxtbook.com/emerald/MJBizMag/mjbiz-buyers-guide-retail-strategy-23
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-march-2023
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-february-2023
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-january-2023
https://www.nxtbook.com/emerald/MJBizMag/mjbiz-buyers-guide-lighting-23
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-november-december-2022
https://www.nxtbook.com/emerald/MJBizMag/202210
https://www.nxtbook.com/emerald/MJBizMag/mjbiz-buyers-guide-sustainability
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-march-2022
https://www.nxtbook.com/emerald/MJBizMag/mjbiz-buyers-guide-cannabis-retail
https://www.nxtbook.com/emerald/MJBizMag/202204
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-february-2022
https://www.nxtbook.com/emerald/MJBizMag/mjbiz-buyers-guide-cannabis-security
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag
https://www.nxtbook.com/emerald/MJBizMag/202208
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-july-2022
https://www.nxtbook.com/emerald/MJBizMag/2022-buyers-guide-indoor-grow
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-may-june-2022
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-packaging-automation-buyers-guide-january-2022
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-november-december-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-october-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmagazine-september-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmagazine-september-2021-lighting-buyers-guide
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-august-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-july-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-may-june-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-april-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-march-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-february-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-january-2022
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-january-2021
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-november-december-2020
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-october-2020
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-september-2020
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-august-2020
https://www.nxtbook.com/emerald/MJBizMag/mjbizmag-july-2020
https://www.nxtbookmedia.com