Canndescent Expedites Launch Of Baker’s Cannabis Co.™ Amidst Rising Demand For AccessiblePrices

As the coronavirus outbreak continues to disrupt daily life and shut down businesses across the country, the detrimental impact of the economic downturn is becoming increasingly clear. Last week, the Department of Labor announced that an additional 6.6 million people filed for unemployment, bringing the total number of new unemployment claims to over 16 million since March. 

The compounding effect of these staggering unemployment rates, along with daunting financial uncertainties, will likely take a significant toll on consumer habits established before the pandemic. As federal and state lawmakers scramble to provide financial assistance and testing capabilities, everyday consumers are adopting more conservative spending habits to prepare for a potential depression. 

Even the cannabis industry, where retailers witnessed some of their highest performing months at the beginning of March, is now experiencing a sales slump after the initial panic buying period. Although cannabis is often considered to be a recession-proof product, much like alcohol or pharmaceutical drugs, legal retailers may have an even harder time competing with the illicit market as consumers seek out cheaper alternatives. 

California-based cultivator and consumer brand, Canndescent, realized this potential challenge at the beginning of the outbreak and moved up the launch of its third brand, Baker’s Cannabis Co., by 90 days to give legal dispensaries a competitive edge in the market. Baker’s mission is to deliver lower cost but high quality products in order to further democratize the legal cannabis consumption experience. The brand is now selling $6 one gram pre-rolls and $55 half ounce pre-ground pouches with a full set of rolling papers and crutches in dispensaries across California.

There’s a reason this is a wise move —in the wine and spirits industry, there has been a noticeable increase in consumers buying more bottles per order but spending less per bottle. This volume-driven behavior indicates that customers are in a “stocking up” mentality and are more inclined to purchase items that have better value. Similarly, cannabis customers who may be facing economic challenges ahead will likely gravitate towards lower priced but high quality products in the legal market if they are given the option to purchase them. 

“We recognized the potentially disastrous consequences of this global health and economic crisis and knew we had to pivot our business to better serve our hard-working consumers and retailers,” said Sam Arellano, Chief Marketing Officer of Canndescent. “Accessing safe cannabis should never be cost-prohibitive, and we urge consumers to choose legal products to mitigate additional health risks during this pandemic.”

In addition to expediting the brand’s launch, Canndescent is also allocating a portion of its Baker’s marketing budget to purchase hand sanitizer for all of its dispensary partners.