As an entrepreneur, I’ve been a big fan of Futurola since meeting their team at a trade show a few years back. Their success in driving meaningful R&D in the processing space and their ability to integrate it with their retail offerings is a shining example of an agile, adaptable, and aggressive corporate mindset. The company has expanded their footprint in the Cannabis industry, yet again. The new ‘Fatboy’ cone, measuring 120mm, is about 10% longer than their popular ‘King’ size cones. It is also 20% wider in crown diameter, allowing it to fit 2-3x more flower than the King, and up to 6x more than the standard 1 1/4.
This presents ample opportunity in both the retail cannabis market, and the packaging industry that runs along side it. A quick search of Weedmaps’ LA inventory shows a distinct shortage of XL (2g and above) prerolls for customers looking for an more opulent (or more shareable) experience. Currently, the only widely available brands working successfully in that micro-market are Jeeter, Packwoods, and CaliGreenGold, however, their offerings are dominated by either blunts, or infused flower, with very few affordable, herb-only options. This shortage is even more pronounced in the newly legal markets like Michigan.
What does this mean for the cannabis industry? It means effective marketing teams and product designers should be salivating. The Fatboy design allows flower companies to offer a new SKU, with a new price point, reaching a new audience. For mid-range or lower-tier brands, a reasonably priced 2–3g preroll ($20–30 retail) can give your customers a taste of the ‘high life’, so to speak, but without the $50+ sting of a Packwoods. For brands that command higher prices, launching a SKU in the $30-$40 range gives both ends of the consumer market access, while launching a $80–100 infused option can serve to further elevate your brand.
Just as the product can serve serval functions to the brand, packaging can serve several functions to the product. In this case, because the XL preroll market is so thin, the relative novelty of the product itself is exponentially amplified by equally novel packaging. A properly packaged, properly marketed SKU has the potential to drive a wave of attention from both current and new customers, and if that SKU is introduced into a market with little competition, it can create a foothold that is hard to shake free. Packwoods, with their signature wax tipped tubes, is a perfect example.
The specialty size of the papers lends itself well to a variety of seldom used, but common packaging options, including cigar tubes and tins, and their higher price point provides greater opportunity for more extravagant strategies. I have little doubt that a product launch in this category, if executed correctly (and relatively quickly), can have significant impact from both a branding and revenue standpoint.
The take home message is this: all companies in the industry should make sure they are prepared to service this growing sector. Brands should weigh their options in launching a new SKU, processors should look to add the XL option into their offerings to brands, and make sure they have the machinery to fill them (don’t worry, Futurola makes a Fatboy adapter for their Knockboxes), packaging companies should be hard at work developing new products, dispensaries should make sure they have the means to properly showcase them.
If you are interested in launching your own XL Preroll project, don’t hesitate to reach out to our team at firstname.lastname@example.org.