Packaging companies are a key piece of the pot industry as rules around containers change rapidly
Tilray Inc. Chief Executive Brendan Kennedy quipped last year, when his company reached Wall Street, that Ziploc was the biggest brand in cannabis.
As the cannabis industry has grown since Tilray’s IPO, Kennedy likely wishes that packaging pot was as easy — and cheap — as tossing it in a plastic bag. As marijuana laws are enacted across the U.S. and the world, the requirements for packaging are becoming a giant headache, while the business of packing pot into a range of containers has become its own billion-dollar industry.
Consumer-packaged-goods companies have worked efficiencies to push costs of packaging down — a typical $6 container of yogurt, for example, costs about 5 cents, while a single standard soda or beer can cost fractions of a penny. However, the packaging of pot demands about 10 cents of every dollar spent on pot, according to Canaccord Genuity analyst Bobby Burleson — yes, a literal dime bag.