The cannabis industry today is under intense economic pressure in almost every state. Prices are low and producers are looking for ways to cut costs. Every day we talk to customers looking for packaging solutions to keep their brand strong but costs low.
While a switch to Mylar bags may seem like a prudent decision to cut costs, we’ve seen major brands take a substantial hit as a result of lowering the quality of their packaging.
One of our leading customers made the switch to bags and saw an incredible dilution of their brand and customer experience. This customer built their leading brand with a distinctive, recognizable glass jar. With a unique package, their branding stood out on the shelf and in display cases and was awarded prime merchandising space in dispensaries. The bold glass jar was a pop of color and it stood out from the crowd. Not only did the glass jar stand out in dispensary displays, it also made the brand look and feel premium.
With market pressures in mind, our customer made the decision to switch to decorated Mylar bags. The problem was that dispensaries knew that bags cost less and immediately demanded a price reduction. While the bag saved $0.20, dispensaries wanted a $2.00 per eighth ounce price reduction. Ultimately, there were no savings to be had and the brand was actually under water by switching to bags.
Customers also began complaining about how the buds were damaged in the bag and how shake was lost in the bottom of the bag. With a harder to reseal bag, the flower dried out and crumbled. The flower integrity was compromised and customers lost the perception of quality they had when the brand packaged flower in a glass jar.
A cannabis jar has staying power in a display and in a customer home where it can be properly sealed and reused. No matter what the customer did with the bag design, the product did not stand out on a wall of other bags and the product did not stay fresh once the bag was opened. The hard work of brand building is lost when a bag is on a wall with a multitude of other brands in the same packaging and the sale becomes strictly based on THC content and price.
On top of damaging customer perception, Mylar bags are also not a smart option in terms of Sustainability. Bags are the worst choice from a sustainable perspective since they are made from a multi layer construction of plastic and foil. These bags are not recyclable, making them a very poor choice from an environmental standpoint.
In an industry of intense pricing pressure, it may seem smart to cut costs on packaging. A better choice would be to look at operations. eBottles can help by supplying containers in reusable boxes, by offering just in time inventory delivered from local warehouses, and by helping with financing for automation.
Contact our eBottles sales team to discuss the right packaging solutions for your long term brand.
