We have talked about the idea of “permanent emergent” before. Those brands, genres, even sports, that always seem to be on the cusp of, but not yet ready to, break through. Buzzworthy always, substance filled, not yet.
CBD in sports is one of those topics. Like sports gambling crypto, gaming, hard liquor and others, branding opportunities that were once off-limits for the sports and entertainment media world are now OK and the categories for most (CBD is still dealing with legal state by state regulations) are more robust than ever. And of course, let’s not forget about the millions spent on ED medications that appear during every football and basketball game, as well as golf and tennis, on every screen we have.
Vice is nice for spending. Or at least what used to be vice.
So, it was interesting to read this week about the Weed business and the migration from celebrity driven brands that get buzz…pun intended…to the consumer needs business sometimes regardless of celebrity involvement. The NY Times piece focused around the burgeoning business tied to Mike Tyson as both an advocate and entrepreneur with a deep understanding of his consumers tied to CBD. One of the key takeaways? Like in most traditional startup industries, consumers get jazzed by the buzz but if the substance…OK another intentional pun…is not there for the long term the business opportunity fades.
The piece made it clear that consumers are flocking to Tyson’s brand because he walks the walk and has firsthand knowledge in the development of the product and is deeply involved in the marketing and sales side. However it is clear that if the product didn’t have two key components…potency and affordability…no celebrity endorsement would bring it back in such a fluid and still developing category.
The CBD business is still very much in transition in sports with MLB’s deal with Charlotte’s Web being the most potent deal…some athletes can endorse, some leagues don’t allow teams. Some leagues allow but don’t allow athletes to do personal deals with products that contain THC. Partnerships can exist in some states but not in others, and as the piece noted, the consumer for the long term is more concerned with cost and quality vs the brand. So many companies who would look to hit the sports business price point for teams and leagues, and some who were in early, might opt out because of the limitations being placed. Hence the permanent emergent category for now.
On the broadcast side, the options are still limited as well, but with streaming those options can open up more. We have seen another category…condoms…slowly find their way into broadcast with streaming and time limits, but the CBD category still faces strict guidelines.
One place the category has thrived is in fight sports, with UFC and other MMA organizations, as well as boxing, finding partnerships growing. Team sports or even individual global sports like tennis and golf have found some ways in but it is still in flux.
How soon will that change on a wide scale? Hard to say. However, cause marketing continues to grow in stature and value, and the CBD industry can cross over into that space… but the overall category remains limited in scope of traditional voice. Some changes, even with good reason, are still slow, but then again so were other off-limits areas just a few months ago.
All that being said, like any growing area, finding the right consumer experience, the right test case and the right face and voice is essential for the long-term growth, one that can adapt to new markets and the right moves with his/her/their brand.
Is CBD still a bit stigmatized and stuck in slow growth? Perhaps. But Iron Mike and a select others have found a path forward, and for one more pun, their success is less hazy than others who light up for the short term.
National Popcorn Day…Sports Ties Anyone?