This is what a successful cannabis brand looks like…
In June 2019, TREC Brands launched its first product in a single Canadian province.
Just one year later, the company boasts 10 products available across 5 Canadian provinces with more on the way.
This impressive growth is a testament to the leadership and branding expertise behind this startup – and a well-known Canadian licensed producer (LP), The Valens Company (OTC: VLNCF), has taken notice.
So much so that it just entered into a new agreement to manufacture vape pens across TREC’s three existing brands: WINK, Blissed, and Thumbs Up.
Through this partnership, Valens will receive royalties and TREC will be able to grow its brand and expand its product offering.
This win-win deal is a perfect example of the power of great branding, which is more important than ever in cannabis.
There aren’t any household names in this industry right now because the legal market is so young. But as recreational legalization spreads across the country, more companies will be fighting for shelf space and vying for customer attention.
Just think about Apple.
There are dozens of smartphone brands on the market, yet Apple’s iPhone 11 is the most popular smartphone in the world – even with its premium $699 price tag.
It will be the same with cannabis. The companies doing branding right or entering into partnerships with branding juggernauts will make a lot of money and, in turn, make you more money through rising stock prices.
The Power of Great Branding
We first introduced our Cannabis Profits Daily readers to TREC Brands in March when Executive Director Don Yocham shared his interview with CEO Trang Trinh – and we couldn’t be happier that her company has gotten the attention of a big player like Valens.
For those who may be unfamiliar with TREC, this is more than just a cannabis company. Its name stands for trust, respect, equality, and compassion and, according to Trang, it’s those values that lead all of this startup’s business decisions day in and day out.
[RELATED CONTENT] Get this self-made millionaire’s advice for discovering the next billion-dollar cannabis brand (and your next big profit opportunity) right here.
While TREC is a private company right now, it’s important to know about startups like this because they can sign deals with publicly traded companies you already own. In this case, when TREC announced the partnership with Valens, you already knew what it was bringing to the table.
And remember – startups won’t stay startups forever. They can get acquired or go public.
In this fast-growing industry, it’s just as critical that you understand why a company like Valens was so eager to sell its products under TREC’s brands.
So, here are just a few specific aspects of TREC Brands’ strategy that make this company stand out.
- Just branding. TREC Brands is purely a branding company, meaning that it has no storefronts or cultivation facilities. This business model is sometimes referred to as a house of brands. It keeps companies like TREC asset-light.
- Community engagement. TREC has built a sustainable business with strong community engagement. Through its corporate responsibility program, “10% for good,” the company donates 10% of its profits back to the communities it serves.
- Targeted audiences. TREC has three major brands that target specific consumer segments, which allows the company to market to each group in a way that speaks to them. WINK caters to a higher-end consumer, Bliss caters to a women-focused wellness audience, and Thumbs Up carries affordable but high-quality products for the everyday consumer.
- Educated consumers. TREC holds educational sessions and pop-up events to teach budtenders and sales associates about its various brands and products because, at the end of the day, this company understands that these are the people who are going to help consumers decide which brand to purchase.
TREC Brands is a case study in how to find the winners and separate them from the wannabes, so make sure to take notes during Don’s exclusive video meeting with Trang:
This was part two of our ongoing cannabis branding series. You can check out part one right here to explore seven of our best free cannabis branding resources.
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June 23 2020