Colorado cannabis companies have a new strategy to attract more hesitant customers: weaker weed

At Terrapin Care Station, a Denver dispensary on Broadway, area manager Adam Shepler stood behind a counter displaying an array of more than 20 low-dose cannabis products: gummies, patches, drinks, topical lotions, tinctures, a vape and a powder.

Most of them were recently released. Though Shepler has fielded customer interest in low-dose products for years, he’s now interacting with more newcomers seeking holistic anxiety relief — and the industry is responding. Soon, the shop on Broadway will also carry flower that’s half CBD, half THC.

“As more consumers have been demanding this, you’re seeing more companies cater to that market,” Shepler said.

In Colorado, several cannabis companies — Dialed In Gummies, Wana Brands and Sun Theory Holding Co. among them — are part of a burgeoning trend of catering to clientele who don’t want their marijuana so strong. The move to provide more low-dose products allows them to access new market demographics, such as inexperienced cannabis users and people battling anxiety or sleep problems.

Those customers want the benefits of bud without an overwhelming high.

The pivot comes at a time of change for the cannabis industry. More Americans say they’re using weed on a daily basis than alcohol, and recreational cannabis is legal in 24 states and Washington, D.C. At the national level, outgoing President Joe Biden’s administration has put into motion the reclassification of marijuana from a Schedule I to a less dangerous Schedule III drug, which would help the industry financially — although progress has been delayed.

However, in Colorado, cannabis companies say they’re contending with challenges like over-regulation, dropping prices and plummeting sales. And recent headlines have the public talking about health issues resulting from long-term weed use, with The New York Times bringing attention to cannabis use disorder last month.

But a strategy that’s helping cannabis companies expand their appeal is the development of less potent products.

“Product development and evolving consumer trends have been a cornerstone of Colorado cannabis since legalization,” said Truman Bradley, the CEO and executive director of the Marijuana Industry Group. “Low-dose cannabis products are one of the products in demand right now.”

While some companies are still focused on making weed as potent as possible for their core demographics, others are trying to bridge the gap with underserved customers by playing with the ratios of cannabinoids in their products.

Tetrahydrocannabinol, or THC, is the predominant cannabinoid that gets users high. Other common cannabinoids are CBD, which helps with anxiety, nausea and inflammation; CBG, a mood enhancer; and CBN, which serves as a sleep aid.

Dialed In Gummies was established in Denver in 2020 as Colorado’s first gummy that uses rosin, a cannabis concentrate that goes through a more refined process than the standard THC distillate, said president Max Vansluys.

“Our gummies … tend to be a bit stronger than the typical 10-milligram dose,” Vansluys added.

He recognizes that potential consumers sometimes believe 10 milligrams of THC “is too much for them,” Vansluys said. “And because there aren’t a lot of other options, they aren’t even entering into the market.”

Feedback shared with Vansluys detailed how patrons were cutting gummies in half “just to give them a little bit of a lighter dose, because they found the full gummy may have been too much for certain activities,” Vansluys said.

So, a few months ago, his company released its Dialed Out gummies for sleep. They incorporate 5 milligrams of THC, 5 milligrams of CBN and 5 milligrams of CBD per edible, with 20 gummies in each tin.

“It’s done very well for us,” Vansluys said. “We’re figuring out ways to make more of it.”

Joe Hodas, the president of Boulder-based Wana Brands, said the cannabis industry has tried to experiment with low-dose products for years, but many attempts have failed. That’s because retailers steer customers toward high-potency products to get the “biggest bang for your buck.”

One of the brand’s successful low-dose products is Quick Calm gummies, which mixes three cannabinoids — 10 milligrams of CBD, 10 milligrams of CBG and 1 milligram of THC per piece — with the stress-relieving amino acid L-theanine.

“The combination of all these things really are intended to reduce anxious thoughts,” Hodas said.

The Quick Calm product launched in June 2023. To Hodas, Quick Calm appeals not only to newcomers seeking alternatives for health and wellness, but also to experienced users in search of a lighter experience than usual.

“We’re seeing great success with it,” Hodas said. “We’re launching it now into other markets and seeing the same thing.”

Wana Brands will continue to explore cannabis solutions for pain, anxiety and sleep, Hodas said, as well as to create new flavors and product lines for heavy-dose consumers.

Blythe Huestis, the vice president of retail at Denver-based cannabis company Sun Theory Holding Co., is watching her industry evolve. Her company operates 13 locations statewide under four retail brands: Terrapin Care Station, Roots RX, 3D Cannabis Center Salida and Durango Recroom.

Huestis cites findings by cannabis market researcher BDSA about the “major shift in (the) gender” of cannabis consumers, who increasingly are women.

For new and prospective customers, “budtenders” at the counters of Sun Theory’s dispensaries can suggest products with higher amounts of calming CBD.

“We’re seeing more and more that product lines are catering to this demographic, and we’re certainly getting more questions from our customers about these products, too,” Huestis said.

One of her favorites is Escape Artists’ relief cream, a topical lotion used to relieve bodily pain that contains 800 milligrams of CBD, 800 milligrams of THC and 400 milligrams of CBG. Another is Mary’s Medicinals Transdermal Patches: various packs of THC patches that respectively incorporate CBD for restoration, CBG for focus or CBN for sleep.

For Huestis, providing a wide range of offerings is a winning strategy.

“Our shoppers are evolving, and we — as an industry and as a retailer — have to evolve with our customer base,” she said. “We have an opportunity to create a whole new sector of customers.”

Still, not every cannabis company is investing in the development of low-dose products — yet.

“Our customers, the dispensaries, are not asking for or demanding — in any sense, really — lower potency,” said Conlan Keller, the co-founder and co-owner of Bonanza Cannabis Company. “It’s actually the opposite.”

The company sells to dispensaries directly, and they’re ordering its 4-gram vapes, its most potent product.

But Keller isn’t saying never to a low-dose product, either — as long as it makes sense for the bottom line.

“The volume of those shoppers is what’s going to determine it,” Keller said.

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