How a CBD startup's marketing strategy helped it overcome regulatory hurdles

During this year’s Super Bowl, startup CBD maker Kadenwood drew some unusual—but valuable—attention when popular media personality Pat McAfee began rubbing one of its cream-based products on his face during his YouTube show. 

The episode emanated from the Super Bowl week’s “radio row” and involved Kadenwood influencer and ex-NFL star Carson Palmer pitching the pain-relief Level Select product. McAfee first used it on his arms, but when he put it on his face, he was visibly uncomfortable. “Don’t put it on your face,” he urged viewers, barely able to move his face.

But while it might have made him frown, the incident put smiles on the face of executives at four-year-old Kadenwood, as it drew millions of YouTube views. 

Kadenwood co-founder and CEO Erick Dickens shared the video this week during a presentation at the National Advertising Association’s Masters of Marketing conference as an example of how the brand is breaking through despite regulatory restrictions on CBD marketing. 

“This has not been an easy journey,” he said. But “frankly, we're very happy with the success that we've had.”

Below, three keys to Kadenwood’s rise.

Trading equity for media access

Some media outlets are reluctant to take CBD ads, but Kadenwood has chipped away at gaining access. “When we first started this business, only 20% of available GRPs would advertise CBD,” Dickens said, referring to the gross rating point measurement system used by linear TV. 

“Fortunately, we had some friends in the industry,” said Dickens, who has held marketing roles at King’s Hawaiian, LifeLock and Henkel. He credited Discovery (whose networks include HGTV and Food Network) as the first to “break the dam.” Kadenwood has also done media deals with Sinclar Broadcast Group and a360 Media.  In some of the arrangements, the company has traded equity for media. It now has access to 80% GRPs, with Disney and Fox remaining as CBD holdouts, he said.

Segmenting for different demos 

Kadenwood, whose executive team includes consumer packaged goods veterans, opted to segment its product lineup, differentiating it from other CBD brands that in the early days went to market with only one product, Dickens said. Its Level Select offering is positioned as a “performance” pain relief brand targeting males ages 45 and up, while Healist uses a body wellness approach for females ages 45-plus. Social CBD targets females 35 and younger, with a mental wellness message.

Using sports stars to gain credibility

In addition to Palmer, Kadenwood’s endorsers include golfer Rickie Fowler, volleyball Olympian Holly McPeak and retired baseball star Steve Garvey, who is a brand co-founder and head of sports partnerships. The company also has a new deal with pro tennis player Taylor Fritz in a pact that will have people in his courtside player’s box wearing Kadenwood-branded gear. All the athletes get a stake in the brand. “Athletes especially highly accomplished pro athletes serve as a great proof point,” Dickens said.