Impact of the COVID-19 pandemic on the cannabis industry

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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]

Contents

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

A cannabis dispensary in Portland, Oregon's Woodstock neighborhood with social distancing signage Kaleafa, Woodstock, Portland, Oregon (2020).jpg
A cannabis dispensary in Portland, Oregon's Woodstock neighborhood with social distancing signage

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]

University of Miami researchers are studying the pandemic's impact on the industry, as of April 2020. [44] Cannabis legalization efforts were paused in multiple U.S. states. [45]

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." [46]

Leafly launched a cannabis delivery service for Arizona, Florida, Maryland, Michigan, Nevada, New York, and Oregon. [47] Lantern launched a cannabis delivery service for Massachusetts and Michigan. [48]

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. [49] Many dispensaries began offering drive-thru services [50] [51]

Related Research Articles

Oregon Liquor and Cannabis Commission

The Oregon Liquor and Cannabis Commission (OLCC), formerly known as Oregon Liquor Control Commission is a government agency of the U.S. state of Oregon. The OLCC was created by an act of the Oregon Legislative Assembly in 1933, days after the repeal of prohibition, as a means of providing control over the distribution, sales and consumption of alcoholic beverages. To this end, the agency was given the authority to regulate and license those who manufacture, sell or serve alcohol. Oregon is one of 18 alcoholic beverage control states that directly control the sales of alcoholic beverages in the United States. In 2014, the passage of Oregon Ballot Measure 91 (2014) legalized the recreational use of marijuana in Oregon and gave regulatory authority to the OLCC.

Cannabis in Canada Use of Cannabis within Canada

Cannabis in Canada is legal for both recreational and medicinal purposes. Medicinal use of cannabis was legalized nationwide under conditions outlined in the Marihuana for Medical Purposes Regulations, later superseded by the Access to Cannabis for Medical Purposes Regulations, issued by Health Canada and seed, grain, and fibre production was permitted under licence by Health Canada. The federal Cannabis Act came into effect on 17 October 2018 and made Canada the second country in the world, after Uruguay, to formally legalize the cultivation, possession, acquisition and consumption of cannabis and its by-products. Canada is the first G7 and G20 nation to do so.

Cannabis in California Legal for medical use and recreational use

Cannabis in California has been legal for medical use since 1996, and for recreational use since late 2016. The state of California has been at the forefront of efforts to liberalize cannabis laws in the United States, beginning in 1972 with the nation's first ballot initiative attempting to legalize cannabis. Although it was unsuccessful, California would later become the first state to legalize medical cannabis with the passage of the Compassionate Use Act of 1996. In November 2016, California voters approved the Adult Use of Marijuana Act to legalize the recreational use of cannabis.

Cannabis in Massachusetts Overview of the use and culture of cannabis in Massachusetts, U.S.

Cannabis in Massachusetts is legal for medical and recreational use. It also relates to the legal and cultural events surrounding the use of cannabis. A century after becoming the first U.S. state to criminalize recreational cannabis, Massachusetts voters elected to legalize it in 2016.

MedMen Enterprises, or MedMen, is a publicly-traded, United States-based cannabis company with operations in California, Nevada, Arizona, Florida, Illinois, New York, and Massachusetts.

Cannabis in Maine Marijuana

In the U.S. state of Maine, marijuana (cannabis) is legal for recreational use. It was originally prohibited in 1913. Possession of small amounts of the drug was decriminalized in 1976 under state legislation passed the previous year. The state's first medical cannabis law was passed in 1999, allowing patients to grow their own plants. The cities of Portland and South Portland decriminalized the possession and recreational use of marijuana in 2013 and 2014, respectively.

Wikileaf American cannabis industry information site

Wikileaf Technologies is a Seattle business providing data services to the cannabis industry and information to consumers. The company provides price indexes and cannabis strain reviews and information.

Cannabis in Virginia

Cannabis in Virginia is legal for medical use and recreational use. The first medical marijuana dispensary opened in August 2020, and adult recreational use became legalized in July 2021.

Cannabis dispensaries in the United States Local government regulated location

Cannabis dispensaries in the United States or marijuana dispensaries are a local government regulated physical location, typically inside a retail storefront or office building, in which a person can purchase cannabis and cannabis related items for medical or recreational use. First modeled in Amsterdam in the late 1970s where they were innocently called coffee shops, it would take the Americans more than a generation to successfully duplicate the idea of a retail cannabis storefront. Unlike the Dutch coffee shops, today dispensary customers are prevented from consuming cannabis on the site of a regulated dispensary in all known markets.

Harborside, formerly Harborside Health Center, is a recreational and medical cannabis dispensary, with its flagship location in Oakland, California, and an additional location in San Jose. Founded in 2006 by longtime activist and entrepreneur, Steve DeAngelo and dress wedding, Harborside operates as a non-profit patient collective. In December 2011, Harborside Health Center was featured in the Discovery Channel's four-part documentary series, Weed Wars. In June 2013 CNN premiered "Inside Man", an 8-episode documentary hosted and produced by Morgan Spurlock. The show's first episode provided a detailed, inside look at California's medical marijuana industry and featured Spurlock working in Harborside Health Center, as well as it described the legal troubles of the center.

Cannabis in Nevada Legality of marijuana in Nevada

Cannabis in Nevada became legal for recreational use on January 1, 2017, following the passage of Question 2 on the 2016 ballot. The first licensed sales of recreational cannabis began on July 1, 2017.

Cannabis in Arizona Overview of the use and culture of cannabis in Arizona, U.S.

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Cannabis in Pennsylvania

Cannabis in Pennsylvania is illegal for recreational use, but possession of small amounts is decriminalized in several of the state's largest cities. Medical use was legalized in 2016 through a bill passed by the state legislature.

Cannabis in Illinois

Cannabis in Illinois is legal for both medical and recreational use. Illinois became the eleventh state in the US to legalize recreational marijuana on January 1, 2020.

Cannabis in New Jersey Overview of the use and culture of cannabis in New Jersey, U.S.

Cannabis in New Jersey is legal for both medical use and recreational use. An amendment legalizing cannabis became part of the state constitution on January 1, 2021 and enabling legislation and related bills were signed into law by governor Phil Murphy on February 22, 2021.

Cannabis in Maryland

Cannabis in Maryland is legal for medical use and illegal for recreational use, but possession of 10 grams or less is decriminalized. In 2013, a state law was enacted to establish a state-regulated medical cannabis program. The program, known as the Natalie M. LaPrade Maryland Medical Cannabis Commission (MMCC) became operational on December 1, 2017.

Cannabis in Washington (state) Overview of cannabis use and culture in Washington state

Cannabis in Washington relates to a number of legislative, legal, and cultural events surrounding the use of cannabis. On December 6, 2012, Washington became the first U.S. state to legalize recreational use of marijuana and the first to allow recreational marijuana sales. The state had previously legalized medical marijuana in 1998. Under state law, cannabis is legal for medical purposes and for any purpose by adults over 21.

Budtender

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Cresco Labs, Inc. is a publicly traded, vertically integrated cannabis and medical marijuana company based in Chicago, Illinois, with current retail operations in nine states where marijuana has been legalized for medical use. The company’s stock trades on the Canadian Securities Exchange under the ticker symbol CL, and in over-the-counter markets in the United States with the ticker symbol CRLBF.

Since 2012, various jurisdictions in the United States have legalized cannabis for recreational use. Because there are no border controls between U.S. states and citizens are allowed to travel freely between them, this has resulted in the proliferation of cannabis dispensaries located in towns that border states where cannabis remains illegal. These dispensaries can often be a significant source of revenue for the local economy of a city; for example, the city of Ontario, Oregon generated $100 million in cannabis sales less than two years after allowing dispensaries.

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