As recreational markets mature, “house brands” are starting to lose share. What is the importance of branded cannabis flowers in this context? What are the macro trends that drive the evolution of the flower category? How does market segmentation impact this category and how do regulations affect market share across states?

Cantor Fitzgerald analyst Pablo Zuanic offered an industry report that evaluates the performance of branded flower lines in key markets, focusing on Massachusetts.

House Brands Are Losing Share In Massachusetts

Zuanic explained how house brand shares differ from state to state. House brands are owned by the retailer. In some cases, the retailer may also be the grower and in other cases, the retailer may be buying them from a grower selling on a white-label basis.

In Massachusetts, the house-brand share of flowers has gone from 90% in 2019 to 67% in 2022; over the past two years in Colorado, house brands went from 73% to 58% in flowers, 6% in California and 16% in Michigan, where house brands have much less share of flower.

“House-brand share remains high in Massachusetts and Colorado, but the trends are encouraging. That said, the fragmentation in flower share (only four brands in MA have a 2% share or more), share turnover, as well as the shift to value, are all of the concern,” Zuanic said. 

As more stores have opened in the state, says Zuanic, many of the owners do not have their own cultivation (a capital-intensive endeavor), “brands are gaining at retail.”

“House brand share in MA at almost 70% is still high (in line with CO), but …

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