Van Doran Brands Archives - Green Market Report

Leland RadovanovicApril 4, 2022
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9min00

This article is part of an ongoing series from the Green Market Report covering some of the biggest challenges facing the California cannabis market in 2022.

Part 1 – Burdensome Legislation

The first quarter of 2022 has been busy with newly proposed cannabis bills in California, with more than two dozen bills submitted in the California State Assembly and Senate. Lawmakers introduced bills at a dizzying rate addressing a range of issues from insurance (AB-2568) and CEQA (SB-1148) to clearing criminal convictions (AB-1706) and re-felonizing homegrown cannabis (AB-1725).

In the haystack is a needle of a bill, SB-1097, introduced on February 16, 2022, by Senator Pan. SB-1097, which would impose new health warning labeling rules for cannabis packaging and advertising, could drastically change the cannabis brand landscape.

It is an important backdrop to understand that among the many roles Dr. Richard Pan has, he is a pediatrician and chairs the Senate Committee on Health. In the first section of the bill, Senator Pan presents studies of rising adolescent cannabis use, increasing use during pregnancy, and lowered perceptions of health harms with cannabis use, among other stats. It’s his “why.”

The bill would require that by January 1, 2025, in addition to the currently required labels, cannabis and infused products other than topicals include one of a set of warning labels that covers at least 1/3 of the front in 12-point type with a bright yellow background and a pictorial or graphic element. Products must have the rotating warning labels batched and equally divided between the mandated messages. 

While the bill would give operators and brands until 2025 to become compliant, operators with slim margins will still take a bottom-line hit.

Ryan Jennemann, co-founder and CEO of THC Design, a Los Angeles-based cultivator, says that the initial cost of changing out displays is in the tens of thousands of dollars, not including the packaging. “Let’s just say the packaging [cost] increases by 10-20 cents; there’s $5,000-$10,000 a month moving forward conservatively,” Jennemann stated.

Jennemann also makes the case that, in particular, brands with small packaging will need to increase their size to accommodate the proposed health warning labels that “it’s bad for the environment to be pumping out a bunch more plastic packaging.”

Geoff Doran, CEO and founder of Van Doran Brands, a cannabis flower brand headquartered in Los Angeles, points out that “no other industry in the US has warning labels like the ones being proposed.”

“The concerning part is that we are already running out of space on packaging in order to comply with the current regulations,” Goeff Continued.

SB-1097 would also mandate a full-page printed flyer or folded brochure that includes warnings for safer use of cannabis, including starting with small doses, warning of edibles’ delayed effects, and the health warnings required on product packaging mentioned above. All this must be in 12-point type, have no advertisements, use the heading “Health Warning from the State of California,” and be given to a consumer at sale or delivery.

Lastly, the bill would require physical and online advertisements for cannabis or a cannabis brand to include the health warnings that cover at least 15 percent of the ad in the upper right corner and have a bright yellow background. Radio, television, and video advertisements would require the same rotating warnings. 

Tracey Mason, the co-founder and CEO of House of Saka, a California company producing cannabis-infused beverages, thinks the bill is another nail in the coffin of an already struggling industry in California.

“It is punishing and ill-informed in nature, further serving to underscore the outdated and consistently refuted notion that cannabis use is somehow more dangerous or deadly than other intoxicants – like alcohol and prescription drugs – with zero data on which to base those claims,” stated Mason.

The rotating warning label language required on products, brochures, and advertisements is included in SB1097 with additional language for edibles and inhaled products. Only one warning would be required on the packaging at a time.


The ten rotating messages range from telling consumers to buy legal cannabis, not to use cannabis while breastfeeding, or that cannabis is not for kids or teens. 

WHO Guidelines

Eddie Kirby, the communications director for Senator Pan, pointed to the World Health Organization’s (WHO) guidelines for effective packaging and labeling of tobacco products, used in countries like Italy and Mexico, as established best practices that Senator Pan wants in California for cannabis products. 

The WHO guidelines include packaging recommendations such as using pictures or a graphic for the warning label, bright colors and larger font sizes for visibility, and how much space the health warnings should take up.

Kirby also explained that Senator Pan is trying to create new cultural safety norms about cannabis with the label system, similar to what we have in the U.S. for alcohol. 

“You don’t say chug; you say know your limits, and this new industry needs that,” Kirby explained.

Mason argues that the proposed language is ultimately not helpful to consumers, that “they will not have access to real information about how to best use and enjoy our products because the limited space we have to offer a level of education on our packaging will be lost to hyperbolic language not grounded in reality.”

The bill is set for a hearing on April 4, 2022, and the public can currently comment through the California legislative information website.


StaffApril 20, 2021
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2min00

Geoff Doran is a cannabis industry veteran with experience in launching cannabis brands, building cannabis technology and distribution. Geoff’s background is in advertising, marketing and fundraising for educational foundations. He is based in Southern California and currently owns and operates two California cannabis business licenses as well as a suite of cannabis brands. Geoff’s first venture in cannabis was co-founder to the world’s first online wholesale marketplace for the cannabis industry. In his home state of Missouri, he received his bachelor’s degree from Drury University.

GMR Executive Spotlight Interview Q & A:

Full Birth Name: Geoff Doran

Title: Founder & CEO

Company: Van Doran Brands, Inc.

Years At Current Company: 2 years 

 

Most Successful professional accomplishment before cannabis: Assisted in one of the largest grand openings for the Hardee’s Franchise system in 2008. 

Company’s Most Successful achievement: We finally received the approval for our acquired licenses to begin operations under our name in 2020 during the height of the pandemic. Under unique circumstances, we have been able to grow 30% month over month since getting into market. 

Has the company raised any capital: Yes.

How much: I raised a small friends and family pre-seed round. 

Any plans on raising capital in the future? We are going to remain bootstrapped and self-funded until we expand beyond California. 

Most Important company 5 year goal: 

We would like to be a top 5 cannabis brand in California and operating in 3 other states. 

 


Kaitlin DomangueJune 11, 2020
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6min00
Several cannabis companies aspire to be luxury brands but without the proper creative talent, the marketing can fall flat. In the traditional consumer packaged goods market, the look and feel of a luxury brand are remarkably different from a middle-market brand and that can often be attributed to the hiring of a marketing agency that specializes in luxury brands.
The cannabis industry now has its own creative agency that was launched to specifically market luxury cannabis brands. The new ETHEREAL understands the specific DNA of luxury packaging and marketing. The founders are four creatives with an extensive background in the luxury and lifestyle categories – Creative Director/Designer John Mamus, Photographer/Videographer Pablo Aguilar, Creative Director/Writer Tod Brilliant, and Managing Director Masako DiDio.
“The cannabis industry is growing at lightspeed, but it has yet to firmly establish itself in the luxury marketplace,” says John Mamus. “The opportunity is massive, and we have the passion and experience to help the most forward-thinking brands take full advantage. ETHEREAL is nimble and purpose-built for creative excellence, efficiency, and cost-effectiveness.”
Mamus founded the boutique high-end creative agency MAMUS (mamuscreative.com) in 2007. With a focus on Luxury (automotive, private jets, textiles) and now cannabis, Deep Technology (low-earth-orbit satellites, augmented reality, sovereign identity, the blockchain, and digital assets) and Retail (high-end food, cosmetics). Pablo Aguilar is an award-winning photographer/videographer. Pablo and his team have created iconic images for brands such as Adidas, Fila, Vibe, Complex Mag, Fortune, Sports Illustrated, Snoop, and many more.
Tod Brilliant is a deeply experienced writer and creative director. Over the years, he has developed projects for larger brands like Amazon, Samsung, MTV, Converse, Microsoft, and L’Oreal. Masako Didio has an extensive brand and leadership experience with brands such as Maison Dior and Burberry. She has intellectual property and management experience through her work with MAMUS CREATIVE. No stranger to the cannabis industry, Didio has also worked with Asha, TSO Sonoma, Major, and Seven Vices.
The group will be applying the techniques gained from working with some of the most recognized and successful premium brands in the consumer world. They have worked with Mercedes-Benz, BMW Motorrad, Burberry, Fortune, Adidas, FILA, Dior, Whole Foods Market, Starwood Resorts and Hotels Worldwide, ICON 4×4, Flont, and Richemont.
Luxury branding and marketing aren’t just expensive looking pictures with skinny models. It’s about creating a feeling that emotionally touches the consumer. If successful, the consumer in turn feels like they deserve such a luxury whether their income supports the purchase or not.
Beyond the image work, Ethereal is a thoroughly modern outfit that combines emerging technologies and strategic intelligence with all the usual tools of branding like visuals, brand strategy, and public relations. Beyond the image, cannabis companies are also subjected to onerous restrictions when it comes to presenting themselves to the public. Ethereal brings to its client’s compliance and regulatory insight through their work with global pharmaceutical brands such as Pfizer, Novartis, Innocoll, and Astra Zeneca.
The company’s style is already setting luxury cannabis brands apart from its peers. Some of the agency’s cannabis industry clients include House of Saka, Van Doran, Major Flower, TSO Sonoma, D’Fleur, Seven Vices, Asha and Klaus.
“Ethereal represents the opportunity to augment one-stop solutions to the often vexing cannabis language in a crisp and forthright manner. While launching Klaus Apothecaire, John Mamus is the ringmaster, conceptualizing and solving the most challenging of conundrums in real time. I couldn’t have done it without him and his team,” explained Warren Bobrow, co-founder of Klaus Apothecaire and known globally as the Cocktail Whisperer.

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11min00

So many things have been turned upside down with this pandemic, and saying we live in interesting times would be an understatement. Industries and businesses are being demolished and altered in ways unheard of just a month ago, and a rare few are actually booming. 

For the cannabis industry, one of the biggest changes leading to a boom is that as a whole cannabis is now being considered an “essential” part of life nationwide. The level of legitimacy this brings to the industry would have normally taken another decade. 

Delivery services and curb side pick-up have been implemented across the country also erasing years of necessary effort overnight. But overall, the complete change in cannabis consumer behavior has been one of the most interesting developments to witness for many of us.

As reported by Vice, politics and current events are major sources of anxiety for many in the United States and this leads to an increase of unhealthy behaviors like drinking alcohol, smoking, or eating poorly to cope with what is termed as “headlines distress disorder”.

In times of great stress, the sale of alcoholic beverages has proven to surge without fail. With legal cannabis now implemented around the country, the same is now proving to be true. According to Headset, during this current Coronavirus crisis, US adult use cannabis markets show average daily sales at large increase by 10%.

Sue Bachorski, formerly with Constellation Brands for 30 years and currently with the House of Saka, explained that “historically, alcohol sales frequently rise during times of economic downturn, regional disasters, etc. There is no reason to believe that cannabis sales would be any different and there will likely be a prolonged upswing for the foreseeable future.”

The Numbers Say It All

As of April 2, 2020, Headset released data that shows how the landscape of preferred cannabis products and consumption methods has proven to alter completely.  In the analysis, Headset compares the average daily sales of each product category before the COVID-19 sales bump began (January 1st through March 6th) to the COVID-19 crisis time period (March 7th through March 31st).

Cannabis infused beverage sales have increased by 14% while edibles accounted for a 28% increase. With infused beverages previously only accounting for 1% of the market, this is a big jump for the category. The reasoning for this change in consumer sales makes sense considering the virus attacks your respiratory system, so people would rather eat or drink their cannabis instead of smoking or vaping it. Pre-rolls and topicals have actually fallen by 13%.

I reached out to some key players in these categories to find out why they feel these increases have occurred. Warren Bobrow, co-founder of cannabis infused beverage brand Klaus Apothicaire and a Vices writer for Forbes, told Green Market Report that he felt that “while being quarantined in our homes, it makes perfect sense to further expand our inner space with high quality cannabis beverages and edibles. Smokable products could prove tricky with this particular virus.”

Ben Larson, CEO of Vertosa, said that “in these uncertain and challenging times, it’s an encouraging silver lining to see cannabis consumers increasingly seeking out infused beverages. There are likely several factors affecting the recent rise in sales, but an important takeaway is that infused beverages are typically designed for individual consumption and can be consumed discreetly, which is ideal during social distancing. They are also an approachable, familiar way to consume cannabis for less experienced users and those looking to avoid smoking during this time.”

The Women Stepped Up Their Spending

Beyond the types of products surging, the Headset data showed that even gender sales show a change in behavior during this crisis. While both genders saw significant increases in cannabis spending, females had more than double the sales growth of males. As Headset previously reported, males make up roughly two thirds of cannabis spending on any given day. Therefore, it could be speculated that females were less likely to have cannabis products on hand and more likely to feel a sense of urgency to stock up.

Tracey Mason, CEO of House of Saka, explains that she believes females could be a major driver in these increased category surges because “there is a triangulation of needs that beverages and edibles meet specifically for the female consumer: They offer precise dosing which provides a safe and controlled means by which to experiment, they offer a subtle means of consumption which removes the stigma associated with smoking and vaping and they are multi-use which drives sociability and expands usage occasions. Safe, Subtle and Social, those are the benefits of infused beverages in a nutshell.”

It remains to be seen as to whether these changes will become market altering over the long term, or if it was truly just a panic surge with no real impact. But as far as the change in gender sales, if this pattern continues, brands will need to evolve their marketing campaigns to appeal more to women.  

“Women are often seeking a healthier alternative to alcohol, but want an elevated social experience. To do this with cannabis is ideal. In addition, women want a product that has relatable packaging, tastes amazing, and feels safe. This tends to be achieved with an edible or an infused beverage, so I am not surprised that when their sales surged during the panic buys, they gravitated toward these products. The cannabis consumable sector has come a long way. The existing products have nailed the experience for the female consumer, so this demographic will continue to grow in the coming years,” says founder & president of Viv & Oak, Alana Burstein.
Will It Last?
If the patterns remain the same for edibles and beverages for the duration of the pandemic’s hold on our behavior, which could affect our lives for up to 18 months, it is safe to say that habits may have altered indefinitely with far reaching consequences for the foreseeable future. 

Understandably, edible and beverage brands are predicting continued growth. “We’ve seen exponential growth in our edibles sales at Garden Society and expect that as these shelter in place orders remain in place, we will continue to see growth. We believe this will have an impact on the overall market and consumer trends over the next year,” said Karli Warner, co-founder of The Garden Society

Geoff Doran, founder and CEO of Van Doran Brands, stated that “right now we are watching this trend very closely as edible and infused beverage companies. We aren’t too surprised that there is a current spike with these categories. We think the current spike has a lot to do with the “newbies” that are bored at home and giving cannabis a shot because of easy access they have through delivery, and quite frankly because they have nothing else to do with their days. A lot of the new cannabis buyers tend to gravitate toward a method of consumption that is familiar to them, which is obviously through eating and drinking. We’re excited about this spike because we know people will realize that edibles and cannabis beverages are a great cannabis experience!”


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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