Impact of the COVID-19 pandemic on the cannabis industry explained

The COVID-19 pandemic had a significant impact on the cannabis industry. Investor's Business Daily said the industry was affected as "customers stock up on prescriptions and recreational customers load up on something to make the lockdown a little more mellow or a little less boring".[1]

Europe

The Netherlands' coffeeshops were initially closed,[2] but later deemed essential businesses.[3] [4]

In North Macedonia, construction of Pharmacon's 178,000-square-foot cannabis grow house slowed because of social distancing requirements.[5]

In Barcelona, Cannabis Social Clubs – private, non-profit organizations in which cannabis is collectively grown and distributed to registered members [6] – shut their doors following the government's declaration of a state of alarm across the country.[7]

According to El País, the price of hashish and cannabis rose to double or triple its usual price on the Spanish black market.[8] Patricia Amiguet, president of the Catalan Federation of Cannabis Associations, stated in June that lockdown meant an estimated 300,000 cannabis club members were resorting to illicit market sources for supplies.[9]

On April 5, Podemos Cannábico submitted a parliamentary proposal for cannabis clubs to be deemed "essential services".[9] ConFAC, Confederación de federaciones de asociaciones cannábicas de España, submitted to the parliamentary groups a "guide of good practices" for the reopening of cannabis clubs.[10] The protocols proposed include the use of masks, staff partitions, social distancing, capacity guidelines, reduced hours, limited stays/visits, or take-out only.[11]

Cannabis prices also soared in France. This was partially the result of the interrupted traffic from Morocco via Spain.[12]

North America

Canada

Canada continued operating legal cannabis stores and saw sales increase.[13] [14] [15]

United States

Many U.S. states with legal cannabis, where dispensaries were deemed "essential" businesses,[16] [17] saw sales increases.[18] [19] [20] California,[21] Colorado, Illinois, Maryland, Michigan,[22] New Jersey, New Mexico,[23] New York,[24] Ohio,[25] Oregon, and Washington all deemed cannabis businesses as such.[26] [27] U.S. cities issuing similar stances included Chicago,[28] Denver,[28] and San Francisco.[24] Stocks for cannabis companies saw increases following reports of the increased demand.[29]

Some dispensaries had to lay off employees or reduce working hours.[30] The decision to remain open in California drew criticism from those who thought a congregation of shoppers posed a risk of spreading virus.[31] Santa Clara County eliminated take-out service on April 2.[32]

Sales in Denver on March 23, 2020, were up 392 percent over the same weekday prior to the stay-home order.[33] A Reno delivery service saw a 400 percent increase in business after the state ordered in-person retail operations to close.[34] Determination of retail store closures or remaining open as critical infrastructure or essential medical need was uneven in the U.S. states that had legalized sales.[35]

While states that had an established local customer base generally saw an increase in sales, other states where marijuana sales were closely linked with tourism suffered. Markets such as Las Vegas and Massachusetts were hit particularly hard.[36] The sale of recreational marijuana in Massachusetts was generally prohibited by Governor Charlie Barker during the outbreak, with Massachusetts becoming the only state that has legalized marijuana to prohibit it during the pandemic.[37]

In Massachusetts, the Cannabis Control Commission paused the sale of recreation cannabis fearing an influx of out-of-state buyers[38] and following a large increase in registrations by new medical patients and to study the supply chain.[39] [40] Five dispensaries and a medical cannabis patient sued Governor Charlie Baker over the closures.[41]

Ann Arbor, Michigan's annual Hash Bash festival was held online.[42] In Missouri, social distancing requirements may prevent organizers of a recreational marijuana legalization campaign from collecting signatures for ballot inclusion.[43]

The opening of medical dispensaries in Missouri was delayed due to the pandemic. Regulators were unable to inspect licensees in a prompt manner due to social distancing guidelines, and some related construction was slowed down due to COVID-19.[44] [45] Sales first begun on October 17, 2020.[46]

University of Miami researchers are studying the pandemic's impact on the industry, as of April 2020.[47] Cannabis legalization efforts were paused in multiple U.S. states.[48]

Erik Altieri, the executive director of the National Organization for the Reform of Marijuana Laws, said, "Cannabis is a safe and effective treatment that millions of Americans rely on to maintain productive daily lives while suffering from diseases and ailments. It is the very definition of essential that these individuals can still access their medicine at this time."[49]

Leafly launched a cannabis delivery service for Arizona, Florida, Maryland, Michigan, Nevada, New York, and Oregon.[50] Lantern launched a cannabis delivery service for Massachusetts and Michigan.[51]

Controversial and cumbersome licensing processes within California cities and counties may be lessened and more opportunities created as local leadership struggle with COVID related budgets shortfalls, unemployment and lower commercial occupancy rates.[52] Many dispensaries began offering drive-thru services [53] [54]

External links

Notes and References

  1. News: . Marijuana Stocks Are Tumbling — Are Any Good Buys As Coronavirus Leads To Demand Spike?. Peters . Bill. March 17, 2020 .
  2. Web site: Live . Dutch queue for cannabis as coronavirus closes cafes . 15 March 2020 . France 24 . 2020-04-04.
  3. News: 'Necessities' in Europe: Belgian Fries, French Baguettes and Dutch Cannabis. 2020-03-25. The Wall Street Journal. 2020-04-01. en-US. 0099-9660.
  4. News: What counts as 'essential' during a coronavirus lockdown? Fries in Belgium, wine in France.. The Washington Post. en. 2020-04-01.
  5. News: David Segal . North Macedonia Awaits Marijuana Laws to Become a 'Cannabis Superpower' - The New York Times . The New York Times . 25 March 2020 . 2020-04-04.
  6. Web site: Campbell. Ben. 2018-11-16. Cannabis social clubs in Spain: legalisation without commercialisation.. 2020-09-08. Transform Drug Policy Foundation. en-GB.
  7. Web site: La Moncloa. 14/03/2020. El Gobierno decreta el estado de alarma para hacer frente a la expansión de coronavirus COVID-19 [Consejo de Ministros/Resúmenes]]. 2020-09-08. lamoncloa.gob.es. es.
  8. News: Los porros ya cuestan a precio de oro. El País. es. 24 March 2020. 7 April 2020.
  9. Web site: Advocates Consider COVID-19 Pandemic Opportunity to Push To Legalize Cannabis In Spain. 2020-09-08. High Times. 24 June 2020. en-US.
  10. Web site: Nacida de la necesidad: se publica guía de buenas prácticas para el desconfinamiento de las asociaciones cannábicas. 2020-09-08. confac.org.
  11. Web site: Hudson. Russ. Corona Virus Protocols at Barcelona Cannabis Clubs. 14 July 2020. 2020-09-08. en-US.
  12. News: Cannabis street prices surge under coronavirus lockdown in France. 2020-03-27. Reuters. 2020-04-01. en.
  13. Web site: Cannabis sales hit new highs in US and Canada. 2020-03-24. New York Post. en. 2020-04-01.
  14. News: As customers hoard pot brownies, North American weed firms see lockdown boost. 2020-03-24. Reuters. 2020-04-01. en.
  15. Web site: After a long day of lockdown, how 'essential' is a drink? . France 24 . 2020-04-02 . 2020-04-04.
  16. News: Levin. Dan. Is Marijuana an 'Essential' Like Milk or Bread? Some States Say Yes. 2020-03-25. The New York Times. 2020-04-01. en-US. 0362-4331.
  17. Web site: Cannabis finds its moment amid coronavirus outbreak. Politico. 27 March 2020 . en. 2020-04-01.
  18. Web site: Legal cannabis industry sees record sales as customers facing coronavirus crisis stock up. Wells. Jane. 2020-03-25. CNBC. en. 2020-04-01.
  19. News: Cannabis industry booming, but companies left out of coronavirus stimulus. 2020-03-28. San Francisco Chronicle. en-US. 2020-04-01 . Simmons . By Rusty .
  20. Web site: Will legal marijuana stores close? Americans stock up on pot for coronavirus quarantine. Hughes. Trevor. USA Today. en-US. 2020-04-01.
  21. News: California Deems Pot an Essential Coronavirus Business. 2020-03-23. The Wall Street Journal. 2020-04-02. en-US. 0099-9660.
  22. Web site: Michigan's marijuana industry is deemed 'essential' during coronavirus outbreak. Neavling. Steve. Detroit Metro Times. en. 2020-04-02.
  23. Web site: Medical pot sales adapt in response to coronavirus. Dan Boyd | Journal Capitol Bureau. Chief. abqjournal.com.
  24. Web site: Amid Coronavirus, San Francisco, New York, Deem Marijuana Businesses 'Essential'. NPR . 18 March 2020 . en. 2020-04-02. Booker . Brakkton .
  25. Web site: Coronavirus in Ohio: Medical marijuana dispensaries can offer curbside pick-up. Cincinnati.com.
  26. Web site: Marijuana dispensaries in some states deemed an "essential service" during coronavirus lockdowns. 25 March 2020 . CBS News. en-US. 2020-04-02.
  27. Web site: Marijuana deemed 'essential' in Washington, gets looser rules amid the coronavirus outbreak The Spokesman-Review. The Spokesman-Review. 2020-04-02.
  28. News: What is an essential business in 10 U.S. cities . The Washington Post . 2020-03-25 . 2020-04-04.
  29. Web site: Cannabis stocks surge as virus shut-ins load up . WPDE . 25 March 2020. 2020-04-04.
  30. Web site: Lompoc cannabis industry feeling the effects — good and bad — of coronavirus pandemic. Jacobson. Willis. Santa Maria Times. 31 March 2020 . en. 2020-04-01.
  31. News: 'Essential' cannabis sparks debate; Governor's decree draws fire from critics who say shops could spread disease.. McGreevy. Patrick. . Los Angeles Times. March 31, 2020. B.1 .
  32. Web site: Coronavirus: Santa Clara Co. ends recreational marijuana take-out . San Jose Mercury News . 2 April 2020. 2020-04-04.
  33. News: Westword. Denver Pot Sales Jump 392 Percent During March 23 Shutdown Scare. Mitchell . Thomas . Denver. March 29, 2020.
  34. News: Marijuana deliveries skyrocketing amid virus pandemic. Kane. Jenny. Reno Gazette-Journal. March 31, 2020 . A.3 .
  35. News: CNN. What constitutes 'essential businesses'? States seem to have varying standards. Scottie. Andrew. March 25, 2020 .
  36. Web site: How lack of tourism during COVID-19 is affecting cannabis retailers in certain markets. Schaneman. Bart. Marijuana Business Daily. 17 April 2020. en-US. 2020-05-25.
  37. Web site: Shut down amid coronavirus pandemic, Mass. recreational marijuana businesses plan to make pitch to be part of May 18 reopening plan. Hanson. Melissa. MassLive. 5 May 2020. en-US. 2020-05-25.
  38. News: Pot shops are considered 'essential' businesses in most states where it's legal, but the rules are shifting. Cherney. Max A.. MarketWatch. en-US. 2020-05-01.
  39. Web site: Hanson . Melissa . Coronavirus: Cannabis Control Commission to study medical marijuana supply chain after spike in patient applications during COVID-19 pandemic . masslive . 2020-04-03 . 2020-04-04.
  40. Web site: /00:00Playing Live . More People Are Seeking Medical Marijuana Cards Amid Coronavirus Outbreak | Bostonomix . Wbur.org . 2020-03-27 . 2020-04-04.
  41. Web site: Recreational marijuana companies sue Massachusetts Governor Charlie Baker over shutdown - The Boston Globe. The Boston Globe.
  42. Web site: Lee DeVito . The 2020 Hash Bash will be livestreamed due to the coronavirus | One Hitters | Detroit | Detroit Metro Times . Metrotimes.com . 2020-04-04.
  43. Web site: Virus likely dooms Missouri recreational marijuana campaign. KCTV Kansas City. en. 2020-04-01. 2020-04-03. https://web.archive.org/web/20200403091355/https://www.kctv5.com/coronavirus/virus-likely-dooms-missouri-recreational-marijuana-campaign/article_d6f06333-2cd0-5107-88ba-dce82658afa6.html. dead.
  44. Web site: 2020-06-26 . Medical Marijuana Won't Be Available In Missouri Until Late Summer At The Earliest . 2023-05-01 . STLPR . en.
  45. Web site: 2020-04-12 . COVID-19 'a bit of a speed bump' to Missouri medical marijuana industry . 2023-05-01 . KOLR - OzarksFirst.com . en-US.
  46. Web site: Angell . Tom . 2020-10-17 . Missouri Launches Medical Marijuana Sales At State's First Dispensaries . 2023-05-01 . Marijuana Moment . en-US.
  47. Web site: Florida researchers studying COVID-19 impact on marijuana users. 4 April 2020 .
  48. Web site: Pandemic upends pot legalization. Politico. 8 April 2020 .
  49. Web site: Andrew Selsky . Coronavirus: Nations classify what is 'essential' during lockdown with some US states choosing guns and cannabis . The Independent . 2020-03-29 . 2020-04-04.
  50. Web site: Company now delivers cannabis to customers' homes, hoping to reduce spread of coronavirus . KATU . 2 April 2020. 2020-04-04.
  51. Web site: Gans . Felicia . May 5, 2020. Team behind Drizly, an alcohol-delivery service, launches site to help get marijuana to customers - The Boston Globe. 2020-10-05. The Boston Globe.
  52. Web site: 2020-07-10. COVID-19 Recession Creates Even More California Cannabis Start Up Opportunities. 2020-07-14. Cannabiz Digital. en-US.
  53. Web site: Local cannabis dispensary WHTC offering drive-thru service amid pandemic. October 2020.
  54. Web site: The Cannabis Cafe in West Hollywood reopens Thursday as a drive-thru. . 22 April 2020.

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