Hall of Flowers draws its most optimistic crowd in years, a stark reversal from the survival-mode sentiment that dominated September's show.
Established brands are pulling back from booths as newer entrants rush in to fill the space and forge deals.
Cultivated’s Chris Casacchia spoke with dozens of brands, retailers, and industry insiders on the floor.
Ventura, CA: What a difference six months makes.
The energy was high, optimism was up and business conditions are improving in the world’s largest cannabis market.
That was the overwhelming, and somewhat surprising, consensus from dozens of brands, retailers and other industry insiders interviewed last week by Cultivated at Hall of Flowers’ signature event at the Ventura County Fairgrounds in Southern California.
The takeaways were a stark contrast to perceptions at their last California show in September at the Sonoma County Fairgrounds, where survivability dominated chatter. The B2B trade show, which links brands with retailers, is one of the few in the nation sanctioned by a local municipality and state regulators to sell product samples and consume on-site, a longheld hope in nearly every other state-legal market.
Though deep challenges persist in California, including declining annual sales and a robust unlicensed market the state’s Department of Cannabis Control pegs at nearly $6 billion, the vibes were high in the sunny, coastal town.
Some other insights: Established and leading brands seem to be diminishing their booth presence at Hall of Flowers, with several opting for reps and executives walking the floor and networking. That shift has led to an increase in newer and unestablished brands showcasing and launching products.
Hall of Flowers CEO and co-founder Dani Diamond told Cultivated he was pleased with this year’s turnout, and teased a new venue in the Fall.
Pretty Dope’s booth at Hall of Flowers. Image by Chris Casacchia.
Women-owned brands take center stage
Hundreds of brands and retailers attended the show primarily to ink deals while others came to increase brand exposure and awareness.
Yummi Karma, High Gorgeous and Pretty Dope were among a small group of women-owned brands showcasing new products.
The trio, based in Orange County, shared a pink-adorned booth akin to a cosmetic department that featured a build-your-own lip gloss station, as well as a curated lineup of infused pre-rolls, vapes and tinctures. The design played into a new collaboration between High Gorgeous and Pretty Dope, which are releasing a 100-milligram nano-infused THC lip gloss slated to hit shelves before April 20, the industry’s biggest retail day of the year.
“Women represent a good portion of customers and buyers recognize that,” Krystal Kitahara, CEO and co-founder of Yummi Karma and High Gorgeous, told Cultivated. “They realize when you have a brand that speaks to women that’s pretty important. They control the purse these days.”
Kitahara built her brands, which makes products formulated for women, with her sister Chelsea.
Pretty Dope showcased pre-rolls in a makeup compact with mirror and its latest release, a vape shaped like a lipstick case. The brand was one of the few to hold an after-show party as ancillary events have greatly subsided over the last few years, a result of industry capital constraints, brand constriction and more fiscal prudence.
Pretty Dope CEO Shanna Droege hoped to secure new independent retailers to expand beyond her 200-plus vendors amid a wave of consolidation in the California market.
“Chains are eating up small mom and pops unfortunately,” she told Cultivated.
Other women-owned brands with booth space included Los Angeles-based Clone Goddess and Humboldt County-based edibles maker Space Gem, which featured a book signing by longtime collaborator Vanessa Lavorato, who starred on VICE’s “Bong Appétit” and recently released her first book, "How to Eat Weed in Have a Good Time: A Cannabis Cookbook."
Jeanette Wright, a cannabis community liaison for BASA Collective in San Francisco, drove 350 miles to Ventura, an annual trek with her husband to gauge industry growth and connect with new suppliers.
BASA, established in 2003, is one of the nation’s longest-operating dispensaries.
“Because San Francisco is so saturated we're also looking to partner with newer, upcoming businesses or strains that we can help develop and build and bring into the Bay,” she told Cultivated. “We are specifically here as the OG flower intakers.”
Image by Chris Casacchia.
New brands drum up excitement
The two-day event drew several newer brands and exhibitors trying to cut through the clutter and more international attendees than recent years, another positive development in the market.
Gravity, a small boutique brand based in San Bernardino County, debuted half ounce and ounce bags at its second Hall of Flowers show. The Adelanto-based operator expanded to a 10-foot by 20–foot booth this year, showcasing a variety of new strains as well.
The craft cultivator and processor has products in about a dozen stores primarily in Southern California, a total it hopes to grow after exhibiting.
“Everyone here is from all over,” CEO Joseph Sayegh said. “We’re always looking for more stores.”
Manhattan Beach-based finance expert Seth Yakatan, who remains bullish on the California market, estimated more than 15% of attendees were from outside the U.S.
“I’m definitely seeing a lot of international interest here for the first time in a while,” the capital markets strategic advisor and cofounder of Katan Associates International told Cultivated.
“California is the No. 1 market for cannabis from a retailer and consumer perspective and will be for the foreseeable 12 quarters. If you’re not on the street understanding what is happening from a retail perspective and product perspective you’re 10 years behind the rest of the world.”
Sweet Sister, a family farm in Mendocino County and a longtime wholesaler, introduced and revived its namesake brand created by David O’Donnell’s late godfather in the 1980s.
“We wanted a foothold in the market, not just a wholesale brand,” said O’Donnell, its lead cultivator. The company’s products are sold in nine stores. It specializes in high terpene and cured weed grown outside in living soil.
The grower, which has been attending Hall of Flowers since the inaugural 2018 show in Santa Rosa, aimed to bring awareness to the quality of outdoor cannabis.
“Outdoor cannabis in Southern California has a stigma of being lower quality, dryer, and smells like hay,” O’Donnell said. “That’s not what we do.”
At Uncle Arnie’s booth. Image by Chris Casacchia.
MOCA Humboldt, a vertically integrated micro-business, aimed to attract awareness of its brand and production, which drops one fresh flower strain every week.
“We want to get all our products out there and make sure people know who we are and where to find us,” Matt Engel, owner of the Humboldt County-based company, told Cultivated.
Raw Garden, which operates a farm and production facility in nearby Lompoc, showcased a new line of refined live resin pre-rolls, as well as all-in-one THC vapes with live resin and with fuller spectrum oil.
The Santa Barbara-based brand, one of the top selling concentrate producers in the state, wanted to show appreciation to its dispensary partners.
“We couldn't do anything without our retailers. They’re out there every day selling our products,” said Jared Valdes, an inside sales and support rep. “Really it’s about showing love.”