A recent interview with Moses Znaimer, President of CARP will be interest to cannabis investors. The Canadian Association of Retired People (CARP) is Canada’s equivalent to the AARP.
On October 25, 2019; Znaimer was talking cannabis with Forbes. CARP currently has an arrangement with Canopy Growth (US:CGC / CAN:WEED) to provide CARP members with a 20% discount on Canopy Growth products that carry the “CARP recommended seal”.
This is a savvy business move for Canopy Growth.
Cannabis is an amazing, natural substance.
It has therapeutic value in the treatment of hundreds of medical conditions. It also provides several general health benefits, such as improved sleeping, enhanced relaxation and mood, and appetite stimulation.
These are qualities that appeal to all of us. However, the medicinal and health properties of cannabis are especially important to seniors. This means that not only are seniors another large population of potential cannabis consumers. They are also likely to be regular consumers.
A Znaimer quote is revealing.
For a senior with a chronic medical problem and (perhaps) also problems sleeping, $4,000 to $5,000 in cannabis consumption per year is a reasonable ballpark figure.
In Canada’s most recent census (2016), seniors accounted for 16.9% of the population. That translates into approximately 6.5 million Canadians.
Technically, however, CARP doesn’t require its members to be aged 65 or over. Anyone can join. This means Canopy’s arrangement with CARP potentially applies to an even larger demographic.
Seniors also tend to be conservative shoppers. They generally stick with familiar brands. The first cannabis company to acquire them as a customer has good odds of retention.
Phase 2 of cannabis legalization will also greatly broaden the appeal of cannabis to older Canadians. With the introduction of edibles, infused beverages, and concentrates, seniors have new product options which are more likely to attract older consumers.
With Canopy’s recent acquisition of Biosteel Sports Nutrition (targeting the cannabis-infused beverage market), this gives Canada’s largest pot company two strong marketing thrusts especially geared to Phase 2 of cannabis legalization in Canada.
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