The Industry

Webinar Q&A: Demographics & COVID-19: Who is buying what?

Team Headset
May 21, 2020

In no specific order, you'll find answers to any and all questions you may have dropped into the webinar chat or Q&A feed. Weren't able to make the webinar? We've included links to the recorded webinar & presentation slides for your convenience.

Questions & Answers

Do these numbers take into account the influence of the Black Market?

  • The data that Nielsen presented in the presentation pertains to "legal" usage and future intent for "legal" usage. In previous studies, 58% of the US adult population claims to have consumed a cannabis product at some point in their life.

Are these numbers for LEGAL cannabis, or just cannabis sales in general?

  • Legal sales    

How do the 4/20 trends compare to alcohol sales at that time?

  • In Nielsen's aggregated census accounts for Grocery, Drug, and C-Store alcohol sales during the week ending 4/18/20 were up 32.2% compared to the week ending 2/29/20; if we compare the week ending 3/21/20
    with the week ending 2/29/20 alcohol sales were up 57.2%, which is more reflective of the "panic buying" that took place around the time most of the country was being ordered to shelter in place.
  • Relative to the 26.4% sales decline we saw in Hemp-CBD sales in those aggregated census channels (WE 4/18 vs. WE 2/29) alcohol sales saw significantly stronger sales as the result of COVID-19; whereas hemp-CBD sales in those agg. census channels saw significant decline.

Do these numbers take into account the influence of the Black Market?

  • Headset data covers Adult Use cannabis sales in licensed dispensaries.  The data shown in the presentation represented sales in the US states of CA, CO, NV, and WA only.  Headset Insights data also covers AB, BC, and ON but this data was not used in making the presentation.

Are these numbers for LEGAL cannabis, or just cannabis sales in general?

  • Legal

Can you talk about y/y growth rates vs. the growth relative to index point at jan 1?  

  • Year Over Year growth is available in our Insights platform.  Please reach out to your customer success manager to find more information on YOY growth rates.

In the weekly charts with four states, how do we know what would be "normal" this time of year if we're baselining off of January?  

  • To determine "normal" week over week changes in sales volume we looked at weekly sales volume changes in prior years (2019 and 2018) in the Demand Planning section of Insights.

Overall do you think y/y growth rate for q2 2020 for the industry will be faster or slower than y/y growth rate for q1 2020?  

  • I believe this is highly dependent on the area and the product.  Areas driven by tourism will see sustained weakened sales while areas that are in neighborhoods will see increases (as people shift their spending near their homes and reduce travel).  Further, we expect to see Flower continue to see sales increases as well as Edibles while single pack Pre-Rolls (especially those sized 1 gram or greater) will continue to see declines).  Please look to the Covid-19 dashboards in Insights for more specific current trends.

How quickly have dispensaries implemented ecommerce for offering online ordering and curb side pick up?  

  • This really depends on the dispensary and the location.  In some states, like CA, many dispensaries already had delivery capabilities.  In other markets, like ON, retailers had to add this service.

While average basket has increased, have their storefront visits decreased? If so, by how much?  

  • This is very dependent on the market. In both WA and OR transaction volume, as well as average baskets, were up.  In other markets like ON and NV we see transactions volumes down.  

Do you get granular to differentiate between infused vs non infused pre-rolls?    

  • Yes - the Covid-19 dashboards in Insights allow you to do this.  Go to the Covid-19 Details dashboard and select PreRolls as your category and Segment as your Compare By.

Are you seeing trends in smaller prerolls (like half gram or third gram) compared to larger 1g prerolls?  Figuring more people will be smoking joints solo.

  • Yes!  You can see more information in the Covid-19 dashboards in Insights by select PreRoll as your category and Package Size as your Compare By.

Do you think maybe edibles have grown based on now being available in Canada as of January? (Assuming your data includes Canada).  

  • We did not include Canada in this presentation.  However, you can find data on Canadian trends in Insights or in our Covid-19 Market Report.


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