What a month, 2020 is a year for the books
Previously featured on Higher Education
TOP 5: COVID-19
Wondering how COVID-19 is effecting cannabis sales? We’ve been tracking whether the cannabis industry will be recession-proof.
(Emily Paxhia, at Poseidon Asset Management, thinks cannabis will emerge stronger than ever)❗️
Here are the top trends we spotted from the latest BDSA webinar:
📉There’s an overall decrease in cannabis sales (-54% on April 12th) due to customers visiting dispensaries less after stocking up from the previous month.
💻 Cannabis sales transactions are moving online. There’s a big uptick in pre-order dispensary pick-up sales in addition to delivery as shops are adapting to changing consumer habits given social distancing - curbside pickup is here to stay.
📈Customers believe prices are being inflated.
🌿 Weekends are no longer the prime shopping days, and sales for all seven days of the week have evened out.
💰 Sales are leaning towards popular name brands. Consumers are staying loyal to the brands they are familiar with as new companies come into the market.
High Times, the iconic cannabis magazine, is acquiring 13 dispensaries from Harvest Health and Recreation in Oakland, San Francisco, and Los Angeles. The company is planning on completely rebranding each dispensary and each store will have both in-store pickup and delivery. The deal is estimated to be done by the end of June.
Cresco Labs, a vertically integrated seed-to-sale cannabis company, has terminated a 282.5 million dollar deal to buy Tryke Companies LLC. This deal was canceled for many reasons, including regulatory delays, and the current market downturn that COVID-19 has created.
Also a notable mention, BRN has stalled a potential purchase for Green Growth Brands’ CBD biz, clearly, folks are a bit hesitant to make deals in these murky times.
Gov. Ralph Northam passed a bill on April 12th in Virginia to decriminalize cannabis. This bill will completely eliminate jail time for possession charges. Virginia is now the 16th state to decriminalize cannabis.
Due to the health crisis, some states have lifted delivery bans for medical marijuana. Now under Colorado’s emergency rules, customers can pay for marijuana online and then pick up their purchase at the store. Colorado lawmakers last year legalized delivery but left it up to municipalities to decide if they want it. The state law allows for the delivery of medical marijuana this year and recreational cannabis in 2021.