Hartford Business Journal

12 HARTFORDBUSINESS.COM | SEPTEMBER 6, 2021 By Michelle France L egal recreational cannabis sales are still likely more than a year away and state regulators must adopt a host of rules before the first adult- use pot shop can open its doors to the public. But one area where plenty of restrictions already exist is in how cannabis businesses will be able to advertise their products. Unsurprisingly, the rules are stringent, which will pose challenges to both cannabis businesses and the marketing firms they hire to craft and sell their brands. The regulations, which will be monitored and enforced by the state Department of Consumer Protection, carry a strong focus on shielding cannabis advertisements from anyone under 21 years old. For example, cannabis products cannot be advertised in print, television, radio or on the internet or billboards unless there is "reliable evidence" that at least 90% of the audience is 21 years or older. DCP has already notified billboard advertisers they must take down signs currently promoting Massachusetts cannabis companies, which have been able to operate in the Bay State's legalized recreational cannabis market since 2018, if the ads don't comply with the law. Those billboards for months have been highly visible to Hartford-area drivers traveling along I-91. Other Connecticut regulations include not advertising within 500 feet of an elementary school, library, playground or child-care center. Advertisements also can't use symbols or imply that a product has any medicinal or therapeutic effects. Besides the state restrictions, each municipality can further prohibit cannabis advertisements or even ban them. "Regulations on what we can say and where we can say it are always a challenge," said Sean Crane, chief creative officer of Avon ad agency Mintz + Hoke. "But they can also be an opportunity." Mintz + Hoke has decades of experience working with casino brands, another highly- regulated industry. But more recently it began work for Contentious Inc., a Brooklyn- based creative content partnership that works with several cannabis brands, including Pennsylvania-based Harvest House of Cannabis and EVOLAB of Denver. "Marketing for cannabis is, in a word, fun," Crane said. "It's a lifestyle category more than anything else. Look, feel and sensibility are a top priority. We're, of course, selling a consumer product, but we're also selling a brand image." "We expect the category to be highly competitive for that reason," he added. Charlie Mason, CEO of Bethany- based brand communications agency Mason Inc., said he is watching the cannabis market as it evolves, and despite the stiff restrictions, is interested in getting involved. The company has years of experience advertising smokeless tobacco — a similarly-regulated sector. "It's parallel to what goes on with the tobacco and alcohol industries," said Mason. "You learn to work within those boundaries. It's not always easy, but you learn over time what things will be allowed and what will not." Fast-growing industry Learning to navigate a new industry may come with its fair share of challenges, but there could be a substantial pay off as some experts say the cannabis industry will generate as much, or even more, tax revenue than alcohol in the state. "I see it getting as big as the alcohol industry," said Benjamin Pomerantz, a partner at Connecticut law firm Carmody Torrance Sandak & Hennessey and managing director of its cannabis practice. "States where adult use is already allowed, the cannabis industry is starting to rival the alcohol industry." Pomerantz said a good way to measure what's going to happen in Connecticut is by looking at what's happening in other states — like Illinois, Colorado, Michigan Charlie Mason Sean Crane Branded merchandise sold at medical marijuana dispensary Fine Fettle in Newington. Special Report: CT's emerging cannabis industry Tight advertising restrictions will pose challenges for CT recreational cannabis businesses, marketers HBJ FILE PHOTO

• Cover