Cannabis companies pushing the boundaries as they promote recreational products that are...

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Two of Canada’s largest cannabis companies have removed content on websites introducing new recreational products after Health Canada warned they ran afoul of regulations prohibiting the advertising of pot.

It’s a sign of the tension between government regulators trying to restrict the promotion of marijuana and greenpreneurs racing to gain exposure for brands that consumers will choose among when they walk into the country’s legal pot stores this fall.

Companies are getting creative and pushing the boundaries. They are operating in a twilight zone as medical marijuana sellers also trying to promote recreational products that aren’t legal yet but will be soon.

At least half a dozen cannabis companies have launched recreational brands. Their messaging offers insight into how products will be marketed. Stoner stereotypes are being thrown out as companies try to bring cannabis into the mainstream and associate it with health, wellness and good times.

Aphria Inc., a cannabis grower in Leamington, Ont., introduced its Solei brand in April with a website featuring soft-focus photographs of happy, attractive people socializing and doing yoga, with the slogan “Find your Light.”

“Whether for ‘me’ time or ‘we’ time, Solei is a natural way to unplug, embrace a slower pace or spark your sense of curiosity,” said the website.

Varieties of cannabis were given names that evoke moods — dream, unwind, soothe, balance, ignite and gather — and shown in glossy jars reminiscent of high-end cosmetics.

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The Solei website illustration of Dream, a dried cannabis product the company described as a way to “rediscover that cozy feeling of getting tucked in.”


All that content was taken down within a few days, however, after Health Canada reminded the company about prohibitions against promoting narcotics contained in the Food and Drugs Act and the Narcotic Control Regulations.

The website now says Solei is “coming this summer” and asks readers to sign up for more information.

Vic Neufeld, the chief executive of Aphria, says the company has a good relationship with Health Canada and immediately complied.

Aphria also cancelled plans to launch another recreational brand at the huge Lift & Co. cannabis expo in Toronto last month, said Neufeld. His company is waiting for more clarity about what will be allowed under the new law.

The Cannabis Act (Bill C-45) bans mass advertising. No billboards, magazine, radio or prime-time TV ads. However, it allows “informational” or “brand preference” promotions as long as they don’t appeal to young people or associate cannabis with “glamour, recreation, excitement, vitality, risk or daring,” among other conditions. Health Canada provided this definition of informational promotions: “factual, accurate information about a cannabis product (e.g. ingredients, THC levels and production methods.)”



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This was the promotional image that was on the Solei website for Ignite, a dried weed product. Is it information or lifestyle promotion?


The law also says companies can only send promotions directly to adult consumers by name, provide it in places where young people aren’t allowed or in a “telecommunication” they have taken reasonable steps to ensure can’t be seen by young people.

How that will apply to social and digital media is another big question.

On the Solei website, readers are asked to confirm they are 19 by clicking on a pop-up box. It’s an honour system. Such “age gating” is commonly used by American cannabis companies as well as by liquor websites.

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Another Canadian company introducing a new recreational brand on Twitter used a similar strategy, stating that “by following, liking, replying or retweeting you confirm you’re 19+.”

Industry insiders expect more guidance will arrive in regulations that will accompany the new law or in bulletins issued by Health Canada as it considers the many ways companies may promote products.

“Ottawa still doesn’t know the true way of interpreting all the advertising, the PR, all those activities,” says Neufeld.

He’s critical of cannabis companies that have made promotional deals with rock stars and celebrities, saying that will clearly be “offside” under the law, which bans “endorsements and testimonials,” sponsorships, and the use of people, characters or animals, real or fictional.

Aphria has been approached by celebrities, but turned them down, he said. “We’ve had that conversation for weeks, and I refuse to get into that game. I want to sleep at night, and don’t want to get into that (aggravation.)

“First of all, I couldn’t see the return on investment, they are very expensive. But more than that, I just didn’t want to lose some of the stripes with Health Canada we’ve earned over the four years (the company has been in business.)”

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Right, Vic Neufeld, CEO of Aphria Inc., says Health Canada will have to enforce the rules or some companies will bend them until they break.


Neufeld said Health Canada will have to act quickly to discipline companies that break promotion restrictions. If they “leave a lot of ambiguity, or leave violators that really bend but not quite break (the rules), and there is no punishment or discipline, guess who is going to do it the very next day?”

He joked that Aphria has a “secret sauce” to promote new brands while abiding by all the advertising restrictions.

“But I’ll tell you, if there are bandits out there that are pushing the envelope, I will not let them get a jump on me, if they go without discipline.”

Another company that was cautioned by Health Canada is MedReleaf, which created a website to publicize its brand San Rafael ’71, which is “inspired by and designed to celebrate the spirit of classic cannabis culture.” The name is a reference to the place and time where the idea of 4-20 originated.
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A promotional image for San Rafael ’71, which is both a beer and the name of a brand for recreational marijuana being promoted by MedReleaf, a Canadian cannabis company.MedReleaf decided to remove most of the content from the San Rafael ’71 website after Health Canada objected to a photograph that showed marijuana, said Darren Karasiuk, MedReleaf’s vice-president of strategy. He said his company also has a good relationship with Health Canada and intends to comply with all rules and regulations.

MedReleaf took a novel approach to the challenge of building a brand before the product is available. It has begun selling two other products “inspired” by cannabis that don’t actually contain any.

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San Rafael ’71 beer is promoted as something to sip while you wait for legal pot.


San Rafael ’71 is also the name of a beer the company sells in conjunction with Amsterdam brewery. It’s called 4:20 Pale Ale. Get it? The beer is being promoted as something consumers can drink while they wait for legal pot.

“Beer today, bong tomorrow,” says one ad for the beer.

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A promotion for San Rafael ’71beer, which doesn’t contain cannabis but is inspired by it.


MedReleaf also sells a “cannabis crunch” chocolate bar at health food stores under the brand name AltaVie. The bar will introduce “new or lapsed consumers to the complexity and depth of cannabis flavours,” says the company.

The cannabis products that will be sold under the AltaVie brand haven’t been determined yet, says Karasiuk.

Like other cannabis company executives, he says it’s unfair that advertising rules for his industry will be more restrictive than those applied to alcohol, even though cannabis is acknowledged by health authorities to cause fewer health and social problems. Cannabis companies need responsible branding and marketing to compete with the massive black market and to help inform consumers about products, he said.

Public health advocates don’t buy those arguments, saying there’s no evidence that advertising is needed to lure customers into the legal market. People now buying their pot from dispensaries and dealers will choose legal stores if the prices are competitive and there are a variety of high-quality products, says David Hammond, a professor of public health at the University of Waterloo. The government has a chance with this new industry to control promotion that will fuel consumption of pot, he says.

Even under the restrictions in the new law, cannabis companies will find creative ways to promote their brands, says Atul Sabharwal, CEO of Toronto promotions company Snipp Interactive. He created a cannabis marketing resource centre to advise companies and has received dozens of requests for help.

The first thing he tells clients, says Sabharwal, is “don’t freak out.” He advises them to learn from the heavily-regulated tobacco, alcohol and pharmaceutical industries. Alcohol ads use the power of association, for instance, by showing people having a great time without depicting them actually drinking.

The key is getting a brand name known by the public, says Sabharwal. “The name creates awareness, which creates recall, which creates purchases.”

The Cannabis Act: What’s not allowed

Under the Cannabis Act (Bill C-45), companies are prohibited from mass advertising. The restrictions are in some cases more stringent than the rules for medical marijuana now.

Endorsements and testimonials are prohibited, for instance, as will sponsorships involving people, events, entities, activities and facilities. Staging games, draws, lotteries and contests are also banned. That will mark a change for medical cannabis companies, which have sponsored everything from music festivals to fashion shows.

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Tweed Marijuana in Smiths Falls sponsored a runway show at Mens Fashion Week in Toronto this spring featuring duds designed with tweed or inspired by cannabis.


Promotions that appeal to young people, depict people, characters or animals or associate cannabis with an emotion such as “glamour, recreation, excitement, vitality, risk or daring”are out, too.

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This is an example of the packaging being proposed by Health Canada for cannabis products when pot becomes legal in Canada. The picture with the THC symbol and the yellow warning label is the front of the package. 0324 packages


The federal government has also proposed that cannabis be sold in single-colour packages dominated by health warnings and a THC symbol inside a red stop sign. Companies would be allowed a small logo or name.

Name that brand

Here are some of the recreational brands unveiled by Canadian cannabis companies, and how they describe them:

Solei: A line of products designed to demystify cannabis and “complement a range of experiences from moments of mindful self-reflection to shard social experiences,” according to producer Aphria Inc. The brand was created for consumers “defined not by age, gender or geography, but rather by a shared mindset and attitude. Their motivations are not driven by a desire to alter their state of mind, but rather by a desire to open themselves up to new experiences.”

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Aphria’s Solei brand aims to educate consumers and demystify cannabis by naming products not after strains but based on the moods they will create.


Alta Vie: Producer MedReleaf says the brand is for the “higher end, wellness focused consumer” who is “curious, discerning about life in general and searching for physical, mental and emotional enrichment.” The brand “aims to help make mindfulness more attainable.” The products haven’t been determined yet, but in the meantime the company is selling a “cannabis crunch” chocolate bar under the label that contains no cannabis.

San Rafael ’71: The brand is aimed at “classic” consumers who are already “discerning and knowledgeable about cannabis products and those who value quality and an authentic experience,” says producer MedReleaf. The brand name is a reference to the beginnings of the annual 4-20 pot celebrations, and was “inspired by and designed to celebrate the spirit of classic cannabis culture.” The company is selling a beer, 4:20 Pale Ale, under the same brand that does not contain cannabis.

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The logos for two of the Canntrust brands, which will be sold in dried flower and pre-rolled joints, the company says.


Liiv: Designed for the “educated and experienced consumer” who “does not require all the bells and whistles, just quality products.” From CannTrust Holdings.

Synr.g: CannTrust says this variety is for consumers “who look forward to a break from their busy lives,” and is advertising the product as perfect for a dinner party, a night out, or connecting with friends.

Xscape: This CannTrust brand will include strains such as “Fix n Chill” and “Walk the Dog.”

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This is the logo for a new cannabis brand, Trailer Park Buds, introduced by Moncton-based cannabis company OrganiGram.


Trailer Park Buds: New Brunswick’s OrganiGram, which has a licensing deal with the actors who play the Trailer Park Boys in the hit TV show and movies, says the brand is aimed at “value conscious” consumers who appreciate quality products, “appreciate a sense of humour and don’t take themselves too seriously.”

Edison Cannabis Company: OrganiGram’s premium line, with a sub-brand called Edison Reserve that will feature “top bud, hand manicured and craft cured.”

Ankr Organics: Also from OrganiGram, this line is organic.

HEXO: Gatineau’s Hydropothecary says its recreational brand will “help bring people together to share enjoyable and life affirming experiences, while breaking through the stigma that still surrounds cannabis and its users among some Canadians.”

The American connection

Several Canadian companies have announced deals that will allow them to distribute U.S. brands, including two different brands of cannabis marketed by members of late reggae star Bob Marley’s family.

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Headlight is one of the U.S. brands that Tilray plans to distribute in Canada.


Tilray, a major B.C. medical producer whose parent company is in Seattle, has created a subsidiary called High Park Company to produce and distribute recreational brands. The U.S. brands include: Irisa, a “wellness driven brand designed with the modern woman in mind”; The Goodship, which produces cookies, chocolates and candies that combine a “clean, soothing, uplifting high with a magically delicious taste”; and Wallops, makers of “high-intensity” candy chews sold under the slogan: “Be Bold, Act Fast. Get Walloped.”

jmiller@postmedia.com

twitter.com/JacquieAMiller

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