One wonders whether Ward and June Cleaver would have let the Beaver anywhere near a Twinkie if they knew how the popular school lunch box treat from the 1950s would be marketed 75 years later.
J.M. Smucker, that bought the twice bankrupt Hostess Co. in 2023 for $4.6 billion, spent the week of the 4-20 marijuana holiday distributing free munchies outside of cannabis dispensaries.
The free Twinkies and Ding Dongs were distributed to patrons of pot shops in Massachusetts, New York, New Jersey, Maryland’s and Connecticut from a “Munchie Mobile”.
Marijuana and the munchies.
No surprise there.
But for the once storied brand that marketed heavily to kids and families it’s a somewhat bold move tying them into what some might say are those that like to get stoned.
Most marijuana users are far from being stoners.
That said, the last thing you’d expected from the folks pushing Hostess Cupcakes and Sno Balls — the sugary, chocolate, marshmallow and coconut covered snack that can get kids bouncing off the walls in 5.0 seconds — to align themselves with Cheech and Chong.
We’ve come a long way since the mid-20th century when Hollywood turned out movies about the “destructiveness” of Mary Jane.
Marijuana has been used for centuries.
This is not a pro and con debate of cannabis.
Instead, it’s to make a point that the legal cannabis industry needs no further “breaks” from the government via lighter taxes and such than liquor stores do.
J.M. Smucker making a fairly high profile tie in with their products as being the ideal snack to deal with the marijuana munchies tells you that cannabis use has become pretty much mainstream.
Legal marijuana stores are still selling product even though there is a big, thriving black market that didn’t diminish in size with legalization as those lobbying to legalize cannabis claimed would happen.
Now the same people are saying the government needs to cut taxes to help the “struggling” legal cannabis industry.
Funny, liquor store sales have dropped in recent years but you don’t see the legal liquor industry pushing for reducing excise taxes on booze.
The days of quick easy money in the legal pot market are gone.
That’s because numbers such as those composed by the State of California show the industry has matured.
The 2024 cannabis sales of $4.2 billion in the Golden State were the same as in 2020. They peaked at $5.3 billion in 2021, dropped slightly to $4.9 billion in 2022, and were at $4.8 billion in 2023.
San Joaquin County was at $58 million in 2023 while Stanislaus County was at $86 million.
The year prior in 2022, San Joaquin County was at $61.8 million and Stanislaus County at $131 million.
As an added noted back in 2020 San Joaquin County sales were at $63.5 million and Stanislaus County at $139 million.
On a regional level, the numbers likely reflect not just a maturing market but the fact San Joaquin County has opened more legal cannabis storefronts reducing the need for those in Lathrop, Tracy, Manteca, and Mountain House to travel to Stanislaus County to buy product.
Then there is the “wild card.”
People are growing their own cannabis and probably at a more comfortable level than they were five years ago.
There is little doubt the black market is strong.
But cutting taxes on legal cannabis won’t necessarily change buying habits.
The idea of a cannabis product being highly regulated in terms of keeping unsafe chemicals out of the growing process and knowing the level of potency appeals to some people.
So does the fact they are making a transaction in a clean, well-lit store that is secure.
Besides, $4 billion plus in annual legal sales in California is nothing to sneeze at.
The problem is market saturation.
Just like in any retail sector, those that control costs and offer products at price points that work for consumers will survive.
Those that can’t are weeded out.
It isn’t the state’s concern that a cannabis retailer isn’t financially deep enough to weather market adjustments.
And adding new twists such as cannabis lounges shouldn’t be a priority for the state either.
The model in Nevada is clearly a bust.
There isn’t a big demand for people to go to a lounge and try out all different types of cannabis in a public setting.
A restaurant lounge model where cannabis is tied into food service seems to work in West Hollywood. It’s a more upper class take on the marijuana munchies.
Cutting edge cuisine instead of Twinkies. It is also at a much higher price point than anything you would buy in a typical cannabis storefront.
Manteca clearly shouldn’t entertain cannabis lounges or those with food service.
It is highly doubtful any elected Manteca official has a stomach for either one.
As for the cannabis shops per se, it is clear Manteca is simply doing what it did when it lured Costco here with an incentive to build a store in the local market a decade or so before the company would even have considered such a move.
Data showed a lot of Mantecans were buying taxable items at the Costcos in Modesto and Tracy.
The opening of a local Costco store simply took sales tax Manteca was bleeding to the two jurisdictions and kept it here. It has the added bonus of snaring consumer dollars of those that reside in Lathrop, Ripon, and even Escalon.
The three cannabis shops Manteca has issued permits for will do the same thing.
That said, the three endeavors have the ability to take advantage of Manteca’s steady population growth that isn’t happening in many parts of California.
It is why Manteca is unlikely to be adding additional permits for cannabis stores.
The three stores would be better off in the long run as would the City of Manteca’s ability to generate revenue.
Who knows?
Maybe the Dairy Queen on South Main when the Embarc cannabis retailer opens behind it will be able to take a page from the J.M. Smucker playbook and see a bounce in sales from the marijuana munchies.
This column is the opinion of editor, Dennis Wyatt, and does not necessarily represent the opinions of The Bulletin or 209 Multimedia. He can be reached at dwyatt@mantecabulletin.com
