Joe: On this episode of the "CBD University" podcast maximizing your sell-through during the holiday season we recently discussed a new study navigating the complicated world of CBD in retail. Now, make sure you are ready to take advantage of added foot traffic during the holiday season and maximize your sell-through a popular impulse CBD purchases at your store. This is the "CBD University" podcast and it starts right now. I'm Joe Agostinelli, host of the "CBD University" podcast, if you are a returning listener thanks for tuning in once again. If you are new listener, we are glad you found us on your podcast platform of choice.
A reminder you can see full video episodes of our podcast on the Global Widget YouTube channel and the YouTube channel of our brands Hemp Bombs and Nature's Scripts. And speaking of our brands, you can find those brands and over 25,000 retail locations nationwide and with last-minute gift ideas in mind, retailers can maximize their sell-through of CBD products this holiday season with some helpful tips to get ready for that added holiday foot traffic. Joining me for this episode of the podcast, no stranger to the podcast is our Vice President of Sales, Vince Gillen. Vince, thanks for joining me once again.
Vince: Absolutely. Thanks, Joe. Glad to be here.
Joe: Lots of new products in 2020. We went through some of the product ideas back on our previous episode that would be Episode 48 for the holidays and everybody in your life who's a CBD fan. But for retailers having that eye-popping display that can really set products apart is one of the key ways to maximize their throw through and we saw changing displays this year too along with products. Discuss a little bit about that.
Vince: Absolutely. We made a big change to our displays. Once we launched our new gummy line, changed the packaging, added a topper display to really just make it pop. And I think a lot of retailers are hoping that throughout this holiday season there is an uptick in foot traffic that we haven't seen in the last six-seven months due to COVID. So, you know that part about having a good display it helps sell-through your CBD category has not changed. And definitely, right now it's probably more important to make sure it's stocked, highly visible. We do a good job of making sure that the displays we see now in place in retail have proper graphics, it's eye-catching. And yeah just got to look good and it's really sell itself.
Joe: And the biggest change in the display used to be we've had the display on the podcast before now we have our studio decorated for the holiday season there was a countertop display and now it's more of a floor display.
Vince: Well, actually it's both. So, retailers that have been having success with the counter display which is the one that you guys have seen before here have added a floor display to really house multiple brands. And what we've seen is it's a great complement to the counter displays. So, the counter display is still very important and key to have right up front by the register. But if you have 2, 3, 4 different brands, you can put them in a floor display and really give CBD a home, is what we like to say, so you have eye-catching display on the counter and then you're also catching foot traffic and the eyes in the store on that for display where you can have other brands, maybe some higher dollar items that you're not used to selling on the counter. So, it just gives more store, I mean, it holds more inventory, and yet the goal is to improve sell-through.
Joe: And let's talk about that when we talk about the pricing because is important feature with any grab-and-go impulse purchase is that price point. And we're talking gummies oils, popular topical products from $9.99 to $19.99 in the retail space, has anything changed with those?
Vince: That has not changed. In fact, the base on our sell-through data that we're getting through our partner SPINS, we're seeing it, even more, today that that $9.99 to $19.99 range is exactly what consumers are buying in the stores that our products are in. So, those are great price points now. We have seen an uptick in some of the items that are made $29.99 and $39.99 but it's still those best sellers are right there in that price range which we've always been doing well in and the data has just proven that even throughout 2020.
Joe: And outside of the displays and the products that are featured inside the displays what type of signage can retailers take advantage to call attention to those eye popping displays so people know exactly where to find them?
Vince: And that hasn't changed either. I feel like sometimes we're beating a dead horse when talking about window clings, yard signs. The topper on top of the acrylic itself tri-folds other material like that we've seen some retailers starting to use floor decals made with the spacing with the whole COVID thing 6-feet apart. So you know, you get creative with it but the basics have not changed, and that's what helps sell the product.
Joe: And whether it's the floor display or the counter display is still the educational material and resources available to retailers and consumers?
Vince: Yes, exactly. That's also proven to be key as well. We've heard over and over again, that category managers, they don't want their employees having to educate consumers in their stores on CBD when somebody may only be in there for less than four minutes. So, they want to be able to grab what they have, get some educational material themselves and make a buying decision without having to engage maybe the store employee that also may not know a lot about the product. And, in some cases, they may not really want to try to sell something. So, having tri-folds and education material that is product and brand-specific, does help. And that's proven itself as well.
Joe: And interesting to point out, we've hit this on a couple past episodes, especially with the new products is the new packaging and labeling still has the QR codes where they can get the CBD 101, which is our educational tool for consumers and retailers by just scanning the QR code from their mobile device?
Vince: Absolutely. And we've actually taken that a step further internally to see how the QR codes have been active in the retail space. And the data we're getting back actually gives us the geographic location of who's scanning the QR codes and trying to learn about CBD and our products. So, it's pretty great to see that something we pushed two years ago, a year ago, is still very relevant and it's becoming something that consumers can use to educate themselves on our CBD products.
Joe: And speaking of consumer education and CBD products, another avenue that we haven't discussed, we discussed so much about the gifts for gummies, oils, tinctures for each other, but we don't talk about the CBD users and pet owners who are shopping for CBD products for their pets and they can find those too in the retail space from our Perfect Paws Hemp in our Hemp Bombs brand. What do we have in store for pet owners?
Vince: Right. The four-legged friends.
Joe: Yeah. The four-legged friends.
Vince: So, we just launched those we had a biscuit and we switched it to a chew product that's really taken off. So, Perfect Paws has chew product that's $19.99 and Hemp Bombs a little bit less quantity in there so it's $9.99. They have consistently been the best seller then you have oils, a couple topicals Paw butter, and shampoo that do very well. But yeah, the chew products seem to be very, very popular for pet owners particularly dogs and we do have cat oils, I don't want to discriminate like [inaudible 00:07:59]. So but yeah, the pet products have definitely been a huge hit. And I think that vertical itself, in retail, has gotten a lot more attention with CBD from vets and then people just talking about alternative ways to help their pets.
Joe: And you're pet owner? Correct. Are you a pet owner?
Joe: Yes, someone's a pet owner because I've seen it on social media. So I know...
Vince: We have a cat.
Joe: Yes. And I cat does... You don't think I watch it?
Vince: Yeah, so our cat, Leo. He does use the shampoo, and it smells amazing.
Joe: The tropical scent?
Vince: Tropical scent.
Joe: And that's actually a good point because the cat uses shampoo but really, people think of it as a dog shampoo. But dogs and cats can both use it.
Vince: That's right. Absolutely. It's good.
Joe: Well, Vince, thank you for taking time out of your busy day as always to join me on our podcast as we go through some tips for retailers as we head into this holiday season. We know it's a much different holiday season than holiday seasons past. So, on behalf of everyone here at Global Widget we wish all of our retailers and our consumers a safe, healthy, and happy holiday season. Vince, will be back towards the end of the year as we take a look back at the year in review in wholesale and we'll cover 2020 as best we can, and what we brought new to the retail market. So, thanks for joining me once again. Look forward to having you back soon.
Vince: Absolutely. Thanks a lot, Joe.
Joe: And thank you for tuning in to this episode of the "CBD University" podcast. I once again wish you and your family a safe, healthy, and happy holiday season. Thanks for tuning in.
These statements have not been evaluated by the Food and Drug Administration. The CBD products are not intended to treat, cure, or prevent any disease or condition. Always consult your personal physician about CBD and using CBD products. CBD should never be used by anyone under the age of 18. This content is not intended to provide legal advice regarding the legal status of CBD and CBD products.