Cannabis companies are entering a new normal as the coronavirus pandemic puts stress on every sector of business
The COVID-19 outbreak has exacerbated fault lines in the rapidly evolving market and led to number of new outcomes, including:
- Retailers adapting to changing consumer behavior by offering delivery, curbside pickup, etc.
- State-by-state legalization movements hitting major obstacles.
- Businesses hoping for post-pandemic real estate deals.
- An acceleration of acquisitions and business failures, specifically in California.
- Canadian companies making the best of market uncertainty and changing regulations.
- Firms reevaluating the viability of the international supply chain.
As the market moves through this crisis, companies and their investors will learn to develop built-in resilience, make better assumptions about what could go wrong and put robust practices in place to gird against any disruptions, no matter how major or minor. And they need to be flexible.
Consumers’ purchasing habits are changing, including the method they use to buy cannabis products. Online ordering, delivery, curbside pickup and drive-thru lanes are likely here to stay as customers recognize their ease of use.
“There will be somewhat of a switch to delivery,” said Dan Zaharoni, CEO of From the Earth in Santa Ana, California, which has been delivering cannabis products for more than a year.
Mike Werner, chief business officer for Oakland, California-based dispensary Nug, said a switch to curbside pickup and delivery will limit the interaction his employees have with customers.
“Social distancing has made people not really want to go into a store and mill about,” Werner said.
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