EXCLUSIVE: Cannabis Industry Leaders React To Twitter's Embrace Of Cannabis Advertising

Twitter’s decision to allow ads for CBD and THC products on its platform was a hot topic during the "Benzinga Live" show on Wednesday, which featured guests who will be speaking at the upcoming Benzinga Cannabis Capital Conference.

Twitter execs Alexa Alianiello and Rohan Routroy will attend the conference, set to take place in Miami Beach on April 11 and 12, marking the first time Twitter will be meeting with cannabis industry executives.

Get your tickets today and enjoy a 35% discount with this TWITTER code! Hurry as the discount ends at midnight on Wednesday, March 22. Benzinga Capital Conference: Cannabis

The Industry Responds To Twitter

Rob Sechrist, the president of Pelorus Equity Group, weighed in on the news and its impact on the industry. Sechrist praised Elon Musk for becoming an outlier in social media and forcing other platforms to reconsider their stance on controversial topics, namely cannabis advertisements. Sechrist noted that the biggest concern for the cannabis industry is not having access to the benefits of financial and banking services.

The discussion highlighted the challenges facing the cannabis industry and issues that need to be addressed by the federal government to ensure the industry can continue to grow. The CCC is an excellent opportunity to discuss these issues and to hear from industry experts on how they are navigating the landscape.

Twitter allowing cannabis advertising is a milestone for the industry, said Howard Shackter, chief communications officer at MeriMed.

The move is a catalyst, Shackter said, adding that MariMed Inc MRMD is evaluating its options for advertising spending with financial discipline. He noted that the cannabis industry is heavily dominated by retail investors who are unfortunately driven by headlines and that more institutional investors are needed in the space for longer-term investments.

Emily Paxhia, co-founder of Poseidon Investment Management, agreed that Twitter's recent move to embrace cannabis can be a valuable platform for weed companies to reach a broader audience.

She noted concerns around wholesale pricing and value-tiered products in the market, and the need for companies to be prudent about their balance sheet and not dilute shareholder value.

David Spreckman, executive VP of marketing at Verano Holdings Corp VRNOF, likened Twitter’s adoption of marijuana ads to the early days of dispensaries, which were relegated to hidden locations, perpetuating stigmas and stereotypes.

With time and effort, dispensaries became fixtures on Main Street, contributing to the growth of the industry, he said.

Spreckman believes that Twitter's policy change will similarly contribute to the visibility and credibility of the cannabis industry, allowing companies to reach new audiences.

Gina Collins, CMO at Trulieve Cannabis Corp TCNNF said Twitter’s move came at the right time, as the industry is beginning to move towards a more traditional CPG/retail-based model, which emphasizes the importance of branding and customer focus.

Retired NBA star and CEO of ViolaBrands, Al Harrington, said Twitter being the first social media platform to allow cannabis advertising will change the perception of other platforms.

Montel Williams, TV host and cannabis advocate, says the industry has stagnated due to its focus on B2B instead of B2C and that educating the masses is key.

Williams added that every brand and grower should take the opportunity to educate the public on the efficacy of cannabis as a medication.

Simon Espinosa, CEO of En Viola, highlighted the importance of building a community in the cannabis industry. He said Twitter’s adoption is a small victory though it should be recognized and hopes that it will generate a domino effect on other platforms and create a less hostile environment for companies in the cannabis ecosystem.