Portal - Company - Cheeba Chews
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Company Name: Cheeba Chews Categories: Edibles Contact Info: |
Geographic Locations: California, Arizona, Colorado, Michigan, New Mexico, Oregon, Washington List of Brands: Cheeba Chews Subcategories: Sugar Candy |
Executive Summary
- Cheeba Chews is the leader in California Edibles with 7% of the market
- Cheeba Chews are an economy brand: reliable, affordable and discrete to consume without gourmet inputs or sleek packaging
- The brand has the widest distribution in the state of California with 56% of dispensaries carrying their products
- Cheeba Chews’ core consumers are young, lower-to-middle income and moderate users
- Discretion and dosage drive brand loyalty despite weak reviews on taste
Methodology
Our company profiles leverage our multi-source methodology to give you the most complete view of each company from all sides. The insights provided on consumer demographics and feedback stems from Brightfield Group’s survey of more than 1,200 California medical patients in 2016. Detailed information on precise questions providing each graph and data point can be found in the report's endnotes. Market share and distribution data is based on our brand tracker, which analyzes digital menu audits from more than 1,200 dispensaries and delivery services throughout the state on a monthly basis. This is then evaluated with select POS data, survey data and interviews with dispensary owners which are used to weigh our algorithms.
Figure 1: Cheeba Chews Performance in Major California Markets (August 2016): Edibles Category
|
Market |
Percent of Dispensaries Carrying the Brand |
Brand Share of Category |
Brand Ranking in Category |
Change in Ranking Since January 2016 |
|
California |
56% |
7% |
1 |
No change |
|
Sacramento |
46% |
5% |
4 |
No change |
|
Bay Area |
43% |
4% |
3 |
No change |
|
Los Angeles |
60% |
9% |
1 |
No change |
|
Orange County |
67% |
9% |
2 |
No change |
|
San Diego |
58% |
7% |
2 |
No change |
Geographic Distribution
Cheeba Chews is the most widespread brand of medical cannabis in California.[1] Distribution is particularly strong in southern California, where it is the most prevalent brand in dispensaries in Los Angeles, Orange County, and San Diego. A small number of other edibles brands (Kiva, Korova, and Hi-Fi) are slightly more prevalent in the Bay Area and Sacramento. However, these brands focus on different subcategories, potency levels, or target consumer bases and do not compete directly with Cheeba Chews.
When analysis is limited to the sugar candy subcategory, Cheeba Chews’ distribution advantage is notable. Across California, Cheeba Chews’ products are present in about twice as many dispensaries as products from their closest sugar candy competitors (EdiPure and Kushy Punch). Cheeba Chews has almost three times the market share as the next two closest brands. Cheeba Chews is also the most widespread sugar candy brand in 5 of the state’s most important metro regions: Los Angeles, the Bay Area, San Diego, Orange County, and Sacramento.
The brand is particularly strong in Los Angeles and Orange County where it is present in over twice as many dispensaries as its closest sugar candy competitors (Kushy Punch, EdiPure, and Infused Creations). In northern California and San Diego, Cheeba Chew’s lead (while still significant) is not as impressive. In the Bay Area, Cheeba Chews leads Sensi Chews in distribution 44% to 31%. Cheeba Chews’ distribution is 45% in Sacramento, where EdiPure’s is 35%.
In San Diego, Cheeba Chews faces stiffer competition. The brand’s distribution lead in the county is negligible with 58% of dispensaries carrying Cheeba Chews products, 57% percent carrying Kushy Punch products, and 53% carrying EdiPure products. However, in every market except San Diego, Cheeba Chews’ lead in market share is far greater than its lead in distribution.
Consumer Profiles
Cheeba Chews’ customer base reflects the average California patient. Half the brand’s customers are white, make less than the median California household income of around $62,000, and most have not completed college.[2] Another quarter of their customers are Latino or Hispanic.[3]
There are three characteristics in which Cheeba Chews’ customers differ from the broader market: they are more likely to be single (not married, living with a partner, or divorced),[4] use marijuana less frequently, and are younger. Most California patients medicate 5-7 days per week, but Cheeba Chews’ customers are more likely to do so less than 5 days per week.[5] More than 70% of Cheeba Chews’ customers are under 35, but just 50% of all California patients are under 35.
Figure 2: Average Income of California Medical Marijuana Customers by Brand
Purchasing Drivers
The Cheeba Chews brand appeals to customers for different reasons than other edibles brands. In the California market, taste is by far the most important consideration among patients choosing edibles products. Patients who choose Cheeba Chews’ products are less than half as likely to say taste was a primary factor in their decisions[6]. They are over 4 times as likely to say they chose their edible product because it offered the most discrete way to consume marijuana.
45% of patients who purchase edibles said taste is the most important consideration when choosing a product. This is only half as important to Cheeba Chews’ customers as just 21% of the brand’s customers report taste as a deciding factor in their purchase choices. Discretion is an important factor for Cheeba Chews with the brand’s customers about three times more likely to say they make purchases based on which products allow them to consume marijuana most discretely. [7]
Cheeba Chews’ customers also appreciate that the brand offers appropriate dosage sizes and can be trusted to deliver a consistent experience.[8] These characteristics are apparent when considering word of mouth doesn’t drive customers to Cheeba Chews as strongly as it does for other leading brands. Just 7% of Cheeba Chews’ customers say they made their purchase based on the recommendations from friends, compared to approximately 19% of customers in the overall market.
Figure 3: Drivers of Cheeba Chews Sales
Consumer Satisfaction
Cheeba Chews receives outstanding reviews with about 75% of the brand’s customers saying they are very satisfied with its products. This is far more than the share of customers (46%) who say this across the broader market.
These satisfaction levels translate well into brand loyalty. Only 30% of customers in the market say they are very likely to make another purchase from the average medical cannabis brand. Cheeba Chews’ customers who say they are very likely to purchase the brand’s products again is much higher at 51%.
Figure 4: Overall Satisfaction Levels across Leading Medical Marijuana Brands
Consumer Preferences
Cheeba Chews’ customers appreciate the brand is reasonably priced, easy to find in dispensaries, appropriately-dosed, and able to deliver consistent results. However, unlike many other leading brands they point to two clear shortcomings: quality of ingredients and taste. Cheeba Chews’ customers are about 3 times less likely to express satisfaction with the taste of their purchase as customers across the broader edibles market, and they are also less likely to express satisfaction with the quality of ingredients used in Cheeba Chews’ products.[9]
Likewise, other leading brands score higher satisfaction ratings for their packaging. These include Kiva and IVXX, both of which have more professional looking packaging. Cheeba Chews does not emphasize packaging and is among the leading brands whose customers are unimpressed or neutral about the appearance of the packaged product.[10] The awareness of Cheeba Chews’ products in California means the company does not need to invest in top-notch packaging to introduce customers to its products.
Cheeba Chews attracts medical cannabis users who care more about lower prices than the quality of the product. They use edibles because they value discretion but are not interested in paying premium prices for products that use high-quality ingredients. Cheeba Chews provides a consistent, effective medication customers express a willingness to continue buying despite its shortcomings.
Figure 4: Statewide Brand Share by Subcategory (June 2016)
Sugar Candy
|
Company |
Percent of Dispensaries Carrying the Brand |
Brand Share of Category |
Brand Ranking in Category |
Change in Ranking Since January 2016 |
|
Cheeba Chews |
56% |
32% |
1 |
No change |
|
EdiPure |
26% |
13% |
2 |
No change |
|
Kushy Punch |
34% |
8% |
3 |
No change |
|
Sensi Chew |
14% |
4% |
4 |
No change |
|
Infused Creations |
10% |
3% |
5 |
No change |
Brand Portfolio and Competitors
The sugar candy subcategory is divided between companies like Cheeba Chews and Sensi Chews who offer chocolate taffy products, and companies like Kushy Punch, EdiPure, and Infused Creations who offer primarily gummies and other candy products. These five leading companies offer a similar range of dosage sizes and sell their products at comparable prices. All of them use corn syrup and sugar, but Cheeba Chews and Sensi Chews’ social media pages show some demand for corn syrup-free products. At this time none of the companies have developed such products. Social media feedback may indicate an opportunity for Cheeba Chews and Sensi Chews to expand their market share to include patients who choose sugar candies because they are discrete, cheap, and not as unhealthy if they develop corn syrup-free products.
Cheeba Chews offers a simple line of sweet, chewy medical cannabis products. These are primarily chocolate taffies, including the standard 70mg THC Cheeba Chew offered in indica, sativa, hybrid or high CBD varieties, the Caramel Chew with 100mg of THC, and the Deca Dose with 175mg of THC. The company also offers Green Hornet Gummies with 70mg of THC, its only non-chocolate product.
Sensi Chews focuses on chocolate taffy with products offered in packs containing 50mg, 100mg, or 200mg of THC. Unlike other leading sugar candy brands, Sensi Chews offers a limited number of products that include caffeine or, “aphrodisiacs”. Kushy Punch is a specialized gummies company, Infused Creations offers a range of gummy products and a limited number of lollipops, and EdiPure offers gummies and other candies.
Cheeba Chews tends to be priced lower than EdiPure and Kushy Punch, but higher than Infused Creations and Sensi Chews. There does not appear to be a clear correlation between price and market share in this subcategory.
Company positioning / Competitive advantages
Cheeba Chews’ core strength has been the company’s ability to leverage a reasonably-priced, functional product into a national brand, state-level licensing agreements, and extremely successful distribution networks throughout California. The fact almost all California medical marijuana patients can find the brand’s products in a nearby dispensary has helped Cheeba Chews to become the primary choice for discrete medicating. The company’s ability to generate strong brand loyalty and sales without investing in expensive, premium ingredients other companies have provides a durable foundation for continued cost leadership.
Opportunities
Cheeba Chews’ presence in California dispensaries offers an opportunity for leveraging brand awareness to support the introduction of new product lines. This would be a departure from the norm for the company, which has a 7-year track record of focusing solely on sugar candy, but it represents an opportunity that should be considered a valuable asset no other California medical cannabis brand can match.
Another opportunity is the company’s experience with recreational regulations. Cheeba Chews already produces edibles in Colorado that are compliant with that state’s 10mg limit on individually-packed edible products. If a recreational market is introduced in California, Cheeba Chews would be well-positioned over rival brands because of their experience in Colorado and existing strength in distribution throughout California. This is in sharp contrast to a company like Korova, which has taken a leading position in California’s baked goods subcategory by offering extremely high potency products that would probably require significant changes in order to be offered in a recreational market.
[1] The word “widespread” here refers to the share of dispensaries in which the brand is present.
[2] 51% of Cheeba Chews customers reported their ethnicity as white, compared to 48% of all CA medical patients surveyed.
43% of Cheeba Chews customers reported household incomes of less than $49,999, compared to 49% of all CA medical patients surveyed.
71% of Cheeba Chews customers reported the highest level of education they have completed is less than a bachelor’s degree, compared to 67% of all CA medical patients surveyed.
[3] 29% of Cheeba Chews customers reported their ethnicity to be Latino or Hispanic, compared to 23% of all CA medical patients surveyed.
[4] 57% of Cheeba Chews customers reported being single and/or never married, compared to 41% of all CA medical patients surveyed.
[5] 43% of Cheeba Chews customers reported consuming marijuana less than 5 days per week, compared to 35% of all CA medical patients surveyed.
[6] When asked why they chose a brand, 45% of all edibles customers surveyed said “I like the taste.” Just 21% of Cheeba Chews customers said this.
[7] When asked why they chose a brand, 15% of all edibles customers surveyed said “It was the most discreet form of consumption.” 43% of Cheeba Chews customers said this.
[8] When asked why they chose a brand, 29% of Cheeba Chews customers surveyed said “The dosage suits my needs/tolerance level” and 21% said, “I trust the brand to give me a consistent experience.” These numbers are similar to the average brand in which 27% point to dosage and 20% point to trusting in the brand.
[9] When asked to rate their level of satisfaction with a product’s taste, 25% of Cheeba Chews customers expressed dissatisfaction. Just 9% of customers said the same of the average brand.
When asked to rate their level of satisfaction with the quality of ingredients used in a product, 25% of Cheeba Chews customers expressed dissatisfaction. Just 5% of customers said the same of the average brand.
[10] When asked to rate their level of satisfaction with the package labeling for a product, 50% of Cheeba Chews customers expressed satisfaction. 77% of Kiva customers expressed satisfaction as well as 99% of IVXX customers.