Morning Brew - ☕ Weed the people

Cannabis retail and the presidential election.
September 19, 2024

Retail Brew

Hey there, it’s Thursday and a sad day after iconic container brand Tupperware filed for bankruptcy amid mounting losses. While its quintessential airtight containers may have lost their enduring appeal, for the nostalgics among us, there will always be another “Tupperware party.”

In today’s edition:

—Adam Newman, Alex Vuocolo

STORES

Ballot puffing

Collage of Trump and Harris with cannabis objects behind them Illustration: Anna Kim, Photos: Justin Sullivan, Win McNamee/Getty Images

Former President Donald Trump surprised many when he announced in a Truth Social post on September 8 that, as a Florida resident, he’d vote in favor of the recreational cannabis initiative on its November ballot, in opposition to fellow Republican Florida Governor Ron DeSantis.

Trump earlier claimed on Fox News that his opponent in the presidential race, Vice President Kamala Harris, put “Black people in jail over marijuana” when she was a prosecutor in California, but since her election to the US Senate in 2016, and as vice president, she’s been an advocate for reform, even sponsoring a bill in 2019 to legalize cannabis nationally.

Harris’s running mate, Minnesota Governor Tim Walz, advocated for his state’s recreational use cannabis law, which he signed in 2023. Contrastly, Ohio’s Senator JD Vance, Trump’s running mate, declined to take a stand on his state of Ohio’s cannabis legalization law that also passed last year.

For cannabis retailers, brands, and growers, the stakes of the election are high. Retail Brew contacted both campaigns to expand on their positions on cannabis reform; neither responded. Here are three major issues for the industry and where our research indicates the candidates stand.

Keep reading here.—AAN

   

FROM THE CREW

The financial podcast you’ve been looking for

The Crew

You’re crushing it at work, but can you say the same for your finances? This weekly podcast from Katie Gatti Tassin breaks down topics relevant to millennial and Gen Z money, like the rent vs. buy equation, the perfect save rate, and the most rewarding luxuries worth splurging on.

And, yes, she covers how to invest, set up a 401(k), and retire early, too.

See why this illuminating podcast has 7m+ downloads. Tune in now.

MARKETING

Pizza de résistance

An ad from Domino's highlighting its Moreflation promotion, which allows customers who order two medium pizzas to bump one up to a large for free. Domino’s

Shrinkflation, the practice of brands reducing the size of products, often imperceptibly, and charging the same price or more, has irked many. President Joe Biden slammed the practice in a video, while the French and German governments have pursued anti-shrinkflation legislation.

As for consumers, when they notice shrinkflation, 68% said it causes them to switch brands, according to a Clarify Capital survey in May as reported by Chain Store Age.

Now Domino’s Pizza is trying to take advantage of all those shrinkflation bad vibes with a promotion it’s calling Moreflation.

Keep reading here.—AAN

   

LABOR

Join the club

Sam's Club Scott Olson/Getty Images

Sam’s Club is rolling out a new compensation plan this November that it says will make work schedules and pay increases more predictable for employees. The company says it will increase the rate of hourly wages to between 3% and 6% depending on tenure and establish more predictable milestones, with the goal of retaining talent and giving associates a clearer view of their long-term career prospects.

“Until now, retail compensation has largely been about hourly wages, and it’s almost unheard of to talk about frontline associate compensation in terms of a predictable financial future—that changes for Sam’s Club starting today,” CEO Chris Nicholas wrote in a LinkedIn post.

Keep reading here.—AV

   

SWAPPING SKUS

Today’s top retail reads.

No takebacks: Although inflation is cooling down, it has left long-lasting economic challenges in its wake. (the New York Times)

Let’s Tok about it: As a potential ban looms, US brands could take their cue from India, which has embraced platforms such as Instagram after TikTok was banned in 2020. (Business of Fashion)

Cheap thrills: Holiday sales in the US may be looking at growth of over 3% if retailers continue to focus on discounts and promotions. (Reuters)

$250 for your thoughts: Psst, if you complete this survey we’ve put together (should take five mins), you’ll be entered for a chance to win a $250 AmEx gift card.*

*A message from our sponsor.

JOBS

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