Chicago, IL--As the industry is inundated with shifts and opportunities, Cresco Labs Inc. in the branded cannabis space, has made headlines by becoming the first cannabis company to roll out advertisements on Spotify.
[Image via Unsplash]
This comes amidst Cresco's strategic shift, as they recently called off their highly anticipated merger with Columbia Care.
Innovating in the Audio Streaming Space
According to a Business Wire release, Spotify, boasting over 551 million users and 220 million subscribers, is the world's premier audio streaming subscription service.
Cresco Labs recognizes the potential of audio streaming platforms to reach expansive audiences in a precise manner.
Cory Rothschild, Cresco Labs’ National Retail President, expressed the company's enthusiasm to team up with Spotify, emphasizing that such a collaboration is integral to "normalizing cannabis" and exemplifying Cresco's advanced marketing capabilities.
The release noted that the advertisement campaign, aimed at highlighting the perks of shopping at their Sunnyside dispensaries, will span 30-second audio clips and in-app digital banners.
These ads are set to redirect users to Sunnyside’s proprietary e-commerce platform. The campaign will be supported by a comprehensive paid media campaign encompassing programmatic buying, native ads, connectedTV, and more.
Nixed $2 Billion Merger
In another significant development, Cresco Labs and Columbia Care have mutually decided to dissolve their previously announced $2 billion merger, a deal that had promised to establish the largest cannabis entity in the U.S.
Charles Bachtell, Cresco's CEO, highlighted that the decision was taken considering the best interests of Cresco Labs and its shareholders amidst a shifting cannabis industry landscape.
The report noted that the anticipated merger between Chicago's Cresco and New York's Columbia Care began to falter when the companies couldn’t divest enough assets for regulatory clearances by the June 30th deadline.
Adding to the list of canceled deals, a $185 million agreement involving Sean “Diddy” Combs was also abandoned.
In the report, Columbia Care’s CEO and co-founder, Nicholas Vita, stated that operating independently is optimal for the company's stakeholders.
This all transpires in an industry grappling with declining sales in numerous legalized states and an investment drought.
Key industry players are keenly awaiting the Secure and Fair Enforcement Banking Act, or SAFE, a crucial reform that would open traditional banking avenues for cannabis businesses.
While the legislation has faced setbacks, there's hope it might get Congressional approval soon, but for now, all focus is on the Spotify ad by Cresco labs.