Cellular Goods CEO, Anna Chokina, discusses how Amazon’s CBD pilot is helping the company overcome barriers from major online platforms when it comes to advertising and selling cannabinoid products.
The UK has a high demand for cannabinoid-based products. According to a report by the Centre for Medicinal Cannabis, the CBD market generated £690m in annual sales in 2021, and projects that it will reach nearly £1B by 2025.
Estimating the UK CBD market to be one of the largest in the world, the report notes that surveys from Dynata and YouGov indicate between 4 to 6 million UK adults have tried CBD.
Read more: Cellular Goods white paper explores the sustainability of cannabinoid production
CBD companies in the UK struggle to advertise products through usual marketing channels such as Google and other social media sites. This is a problem that does not seem to be moving, says Cellular Goods CEO, Anna Chokina, who suggests the platforms could play a more proactive role in the UK marketplace in their respective fields.
With the lack of marketing access to these platforms, Chokina highlights that the Amazon marketplace was a natural choice to host Cellular Goods’ products.
Chokina commented: “There is a considerable demand for products, yet somehow the information flow from the companies that play in this industry to the end customer is quite difficult.
“There is no lack of variety in terms of what’s available in the marketplace, but it’s very hard to understand what the products do and how they work. What is CBD, what is CBG, plant based, non-plant based, biosynthesised?
Read more: Cellular Goods launches UK’s first CBG face serum
“It can be very hard to understand for the average consumer. It’s very hard as manufacturers and producers not only to sell our products but also to deliver truthful information to the customers about what the industry is and what the products do.”
Amazon approached Cellular Goods to take part in its new pilot trial of CBD products in the UK at the same time the company was discovering the limitations of Google and Meta. The eCommerce giant has already demonstrated that it is not shy about cannabis with its lobbying efforts for reform in the US having already removed cannabis testing from its pre-employment screenings, and now, its new CBD pilot is showing its support for the UK sector.
“We are quite happy to take part in this pilot because at least this way we have access to the Amazon consumer base that are searching for cannabinoid-based products,” said Chokina.
Cellular Goods will be featuring a number of its products on the platform, such as its cosmetic Look Better range which includes its new CBG face serum – the UK’s first CBG-based serum to prevent the signs of aging caused by UV light exposure and inflammation.
The company produced research on the anti-inflammatory and antioxidant properties of cannabinoids CBG and CBD, which demonstrated the cannabinoids as contenders for other popular anti-inflammatory and anti-aging ingredients such as retinol and vitamin C serums, whilst also being much kinder for skin.
Chokina continued: “This was Cellular Goods way of ensuring that people who search for cannabinoid-based products were aware of our brand. As a startup, you have to look for ways to get your product out there, to get your name out.”
Many customers may not be aware of some of the cosmetic benefits of cannabinoids, and Chokina emphasises that customer education is key for the CBD market.
“I think consumer education is very important. I think one side effect from Meta and Google not taking a more proactive approach to allow companies to advertise freely or to trade freely on their platforms, is the fact that consumers are clueless,” said Chokina.
“They do not know the difference between CBD or CBG, they don’t know the amazing promises these ingredients can bring.
“So, we as the brand would like to become that voice that drives clarity, and hopefully, in time, the credibility will come with our name as well, that we’re only going to put the products in the market if they’re justified from the scientific standpoint.
“Science is very much who we are, so we want to make sure that what we bring is substantiated and it’s consistent as well.”
Chokina highlights that Cellular Goods has undertaken a 360-degree media campaign that includes billboards across London and Manchester, which will help drive customers to the Amazon platform as well as its own website marketplace.
Chokina said: “We have partnerships with Conde Nast with GQ with Vogue. So, there is a lot of influencer strategy involved as well.
“We’re working with bloggers and advertising, so, we have limitations on Meta and Google, but it doesn’t mean that the customers are not going to know about us. I don’t think one campaign is going to educate the market to get the customer base and get the sales growing. It’s just the start.
“We are pleased and humbled to be approached by Amazon because it’s also a sign that the industry is developing. It’s a sign that the wind is turning. So, it is definitely very positive for us. We are very much focused on our customers.
“If our customers prefer to shop, for instance, in some of the retail stores or in the pure play beauty stores, online that that’s where we would like to be because we are very much focused on making it easy for them to buy us.
“As part of our expansion to Europe and beyond, this is also going to be an integral part of our go-to market. What Amazon is doing is a sign of thriving, and I hope that the other big companies are going to follow suit and then we can advance and push the industry.”
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