If you were wondering whether celebrating 420 is professional or not… just look to trailblazing Aurora Cannabis (TSE:ACB – Research Report) for your answer. The Canadian company is calling for a national competition seeking Canada’s Top Budmaster (the contest name has been trademarked). The marketing opportunity here will surely put Aurora ahead in the cannabis industry game of whose name is bigger.
The press release was published on April 18, noting the impending holiday and embracing the spirit of the cannabis community with it. 420 has historically been an underground holiday for marijuana users. But more importantly, was that the company put itself in the headlines following news from competitor, Canopy Growth (CGC – Research Report), which announced it would acquire 100% ownership in shares of Acreage Holdings Inc. once cannabis production and distribution becomes permitted in the U.S. The release addressed 420, in an attempt to show appreciation to the cannabis underdogs who existed before the man took over the industry. Then it went on to explain the competition.
“As Canada’s first legal 420 holiday approaches, it’s time to recognize the women and men in cannabis retail stores who educate consumers every day,” the release said.
A budtender or budmaster, as ACB calls it, is a person who works in a proper cannabis dispensary. Their job is to advise customers on which strains would be the best fit for them, along with offering deep knowledge about the products.
As the top dogs in this budding industry move forward, it will be the companies that have the best marketing that become the Coca Colas and Pepsis of the industry. Without carving out a solid brand, consumers will be left to rely on pricing when it comes to choosing cannabis products. This marketing move gains customer interaction, which will ultimately strengthen the brand. It could greatly impact the company’s value and recognition when it comes to consumers and the stock price when it comes to investors. You can read TipRanks Research Report for Aurora (TSE: ACB).
Additionally, the competition will gain Aurora the email addresses and information of Canada’s most serious cannabis industry heads (from the local, regional and national levels) over the course of the next seven months beginning in June. On October 17, it will have been one year of full legalization in Canada and ACB plans to present the Top Budmaster award to one finalist, though awards will also be given to cannabis professionals who will have the opportunity to win the title for their cities and regions.
While ACB says the idea is to reward true masters who have shown their passion and dedication in the field, it is also likely a good way for ACB management to meet the players from all over the country as well as serve as a hiring opportunity. Another benefit ACB touts is that by registering for the contest using Aurora Pro, a service that brings researchers and sales professionals together, contestants will be able to connect with others cross-country to help learn about new products, brands and update their knowledge of the industry. This way, ACB will have the opportunity to learn about trends in the market while getting a feel for what is happening in brick and mortar shops around the nation.
ACB’s CEO, Terry Booth tried to recognize some of the original cannabis gurus by commenting in the press release: “We wouldn’t be where we are today as an industry, and as a company, without the cannabis advocates who fought to break boundaries and challenge perceptions. Aurora thanks the cannabis leaders of the past, and we applaud the work of budtenders everywhere who are educating Canadians on cannabis and helping to grow a strong and long-lasting future for the cannabis movement.”
ACB has had a diligent marketing department since the beginning, branding itself with an outer space theme as a motif. An aurora is a natural spread of stars, colloquially referred to as “northern lights,” which is the name of a sought-after strain of marijuana. The competition launch falls in line with the rest of ACB’s engaging marketing.
Whether it’s the branding, the product itself, or the company’s business plans… TipRanks data shows analysts are mostly bullish on the company – it’s considered a “Strong Buy” on Wall Street.
Out of 9 analysts who have covered the Canadian stock within the last 3 months, 7 are buy and 2 are hold. At the top of the list stands five-star analyst Vivien Azer (Track Record & Ratings), Cowen’s 5-star analyst, who specializes in the cannabis, beverages and tobacco industries. Azer ranks #89 out of 5,193 analysts and reiterated a buy rating on April 18. Canaccord Genuity’s analyst Matt Bottomley (#57) has been bullish over the course of the last year. The 5-star analyst reiterated a buy rating just a couple of weeks ago and bumped up his price target by C$.50 from C$13 to $13.50.
The consensus price target of C$13.30 shows a 10.56% upside from where the stock currently stands on the Toronto Stock Exchange.
