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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]

Europe

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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

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Canada

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

United States

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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]

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]

References

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  1. ^ Peters, Bill (March 17, 2020). "Marijuana Stocks Are Tumbling — Are Any Good Buys As Coronavirus Leads To Demand Spike?". Investor's Business Daily.
  2. ^ Live (15 March 2020). "Dutch queue for cannabis as coronavirus closes cafes". France 24. Retrieved 2020-04-04.
  3. ^ "'Necessities' in Europe: Belgian Fries, French Baguettes and Dutch Cannabis". The Wall Street Journal. 2020-03-25. ISSN 0099-9660. Retrieved 2020-04-01.
  4. ^ "What counts as 'essential' during a coronavirus lockdown? Fries in Belgium, wine in France". The Washington Post. Retrieved 2020-04-01.
  5. ^ David Segal (25 March 2020). "North Macedonia Awaits Marijuana Laws to Become a 'Cannabis Superpower' - The New York Times". The New York Times. Retrieved 2020-04-04.
  6. ^ Campbell, Ben (2018-11-16). "Cannabis social clubs in Spain: legalisation without commercialisation". Transform Drug Policy Foundation. Retrieved 2020-09-08.
  7. ^ "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]". lamoncloa.gob.es (in Spanish). Retrieved 2020-09-08.
  8. ^ "Los porros ya cuestan a precio de oro". El País (in Spanish). 24 March 2020. Retrieved 7 April 2020.
  9. ^ a b "Advocates Consider COVID-19 Pandemic Opportunity to Push To Legalize Cannabis In Spain". High Times. 24 June 2020. Retrieved 2020-09-08.
  10. ^ "Nacida de la necesidad: se publica guía de buenas prácticas para el desconfinamiento de las asociaciones cannábicas". confac.org. Retrieved 2020-09-08.
  11. ^ Hudson, Russ (14 July 2020). "Corona Virus Protocols at Barcelona Cannabis Clubs". Retrieved 2020-09-08.
  12. ^ "Cannabis street prices surge under coronavirus lockdown in France". Reuters. 2020-03-27. Retrieved 2020-04-01.
  13. ^ "Cannabis sales hit new highs in US and Canada". New York Post. 2020-03-24. Retrieved 2020-04-01.
  14. ^ "As customers hoard pot brownies, North American weed firms see lockdown boost". Reuters. 2020-03-24. Retrieved 2020-04-01.
  15. ^ "After a long day of lockdown, how 'essential' is a drink?". France 24. 2020-04-02. Retrieved 2020-04-04.
  16. ^ Levin, Dan (2020-03-25). "Is Marijuana an 'Essential' Like Milk or Bread? Some States Say Yes". The New York Times. ISSN 0362-4331. Retrieved 2020-04-01.
  17. ^ "Cannabis finds its moment amid coronavirus outbreak". Politico. 27 March 2020. Retrieved 2020-04-01.
  18. ^ Wells, Jane (2020-03-25). "Legal cannabis industry sees record sales as customers facing coronavirus crisis stock up". CNBC. Retrieved 2020-04-01.
  19. ^ Simmons, By Rusty (2020-03-28). "Cannabis industry booming, but companies left out of coronavirus stimulus". San Francisco Chronicle. Retrieved 2020-04-01.
  20. ^ Hughes, Trevor. "Will legal marijuana stores close? Americans stock up on pot for coronavirus quarantine". USA Today. Retrieved 2020-04-01.
  21. ^ "California Deems Pot an Essential Coronavirus Business". The Wall Street Journal. 2020-03-23. ISSN 0099-9660. Retrieved 2020-04-02.
  22. ^ Neavling, Steve. "Michigan's marijuana industry is deemed 'essential' during coronavirus outbreak". Detroit Metro Times. Retrieved 2020-04-02.
  23. ^ Chief, Dan Boyd | Journal Capitol Bureau. "Medical pot sales adapt in response to coronavirus". abqjournal.com.{{cite web}}: CS1 maint: multiple names: authors list (link) CS1 maint: numeric names: authors list (link)
  24. ^ a b Booker, Brakkton (18 March 2020). "Amid Coronavirus, San Francisco, New York, Deem Marijuana Businesses 'Essential'". NPR. Retrieved 2020-04-02.
  25. ^ "Coronavirus in Ohio: Medical marijuana dispensaries can offer curbside pick-up". Cincinnati.com.
  26. ^ "Marijuana dispensaries in some states deemed an "essential service" during coronavirus lockdowns". CBS News. 25 March 2020. Retrieved 2020-04-02.
  27. ^ "Marijuana deemed 'essential' in Washington, gets looser rules amid the coronavirus outbreak | The Spokesman-Review". The Spokesman-Review. Retrieved 2020-04-02.
  28. ^ a b "What is an essential business in 10 U.S. cities". The Washington Post. 2020-03-25. Retrieved 2020-04-04.
  29. ^ "Cannabis stocks surge as virus shut-ins load up". WPDE. 25 March 2020. Retrieved 2020-04-04.
  30. ^ Jacobson, Willis (31 March 2020). "Lompoc cannabis industry feeling the effects — good and bad — of coronavirus pandemic". Santa Maria Times. Retrieved 2020-04-01.
  31. ^ McGreevy, Patrick. (March 31, 2020). "'Essential' cannabis sparks debate; Governor's decree draws fire from critics who say shops could spread disease". Los Angeles Times. p. B.1.
  32. ^ "Coronavirus: Santa Clara Co. ends recreational marijuana take-out". San Jose Mercury News. 2 April 2020. Retrieved 2020-04-04.
  33. ^ Mitchell, Thomas (March 29, 2020). "Denver Pot Sales Jump 392 Percent During March 23 Shutdown Scare". Westword. Denver.
  34. ^ Kane, Jenny (March 31, 2020). "Marijuana deliveries skyrocketing amid virus pandemic". Reno Gazette-Journal. p. A.3.
  35. ^ Scottie, Andrew (March 25, 2020). "What constitutes 'essential businesses'? States seem to have varying standards". CNN.
  36. ^ Schaneman, Bart (17 April 2020). "How lack of tourism during COVID-19 is affecting cannabis retailers in certain markets". Marijuana Business Daily. Retrieved 2020-05-25.
  37. ^ Hanson, Melissa (5 May 2020). "Shut down amid coronavirus pandemic, Mass. recreational marijuana businesses plan to make pitch to be part of May 18 reopening plan". MassLive. Retrieved 2020-05-25.
  38. ^ Cherney, Max A. "Pot shops are considered 'essential' businesses in most states where it's legal, but the rules are shifting". MarketWatch. Retrieved 2020-05-01.
  39. ^ Hanson, Melissa (2020-04-03). "Coronavirus: Cannabis Control Commission to study medical marijuana supply chain after spike in patient applications during COVID-19 pandemic". masslive. Retrieved 2020-04-04.
  40. ^ /00:00Playing Live (2020-03-27). "More People Are Seeking Medical Marijuana Cards Amid Coronavirus Outbreak | Bostonomix". Wbur.org. Retrieved 2020-04-04.{{cite web}}: CS1 maint: numeric names: authors list (link)
  41. ^ "Recreational marijuana companies sue Massachusetts Governor Charlie Baker over shutdown - The Boston Globe". The Boston Globe.
  42. ^ Lee DeVito. "The 2020 Hash Bash will be livestreamed due to the coronavirus | One Hitters | Detroit | Detroit Metro Times". Metrotimes.com. Retrieved 2020-04-04.
  43. ^ "Virus likely dooms Missouri recreational marijuana campaign". KCTV Kansas City. Archived from the original on 2020-04-03. Retrieved 2020-04-01.
  44. ^ "Medical Marijuana Won't Be Available In Missouri Until Late Summer At The Earliest". STLPR. 2020-06-26. Retrieved 2023-05-01.
  45. ^ "COVID-19 'a bit of a speed bump' to Missouri medical marijuana industry". KOLR - OzarksFirst.com. 2020-04-12. Retrieved 2023-05-01.
  46. ^ Angell, Tom (2020-10-17). "Missouri Launches Medical Marijuana Sales At State's First Dispensaries". Marijuana Moment. Retrieved 2023-05-01.
  47. ^ "Florida researchers studying COVID-19 impact on marijuana users". 4 April 2020.
  48. ^ "Pandemic upends pot legalization". Politico. 8 April 2020.
  49. ^ Andrew Selsky (2020-03-29). "Coronavirus: Nations classify what is 'essential' during lockdown with some US states choosing guns and cannabis". The Independent. Retrieved 2020-04-04.
  50. ^ "Company now delivers cannabis to customers' homes, hoping to reduce spread of coronavirus". KATU. 2 April 2020. Retrieved 2020-04-04.
  51. ^ Gans, Felicia (May 5, 2020). "Team behind Drizly, an alcohol-delivery service, launches site to help get marijuana to customers - The Boston Globe". The Boston Globe. Retrieved 2020-10-05.
  52. ^ "COVID-19 Recession Creates Even More California Cannabis Start Up Opportunities". Cannabiz Digital. 2020-07-10. Retrieved 2020-07-14.
  53. ^ "Local cannabis dispensary WHTC offering drive-thru service amid pandemic". October 2020.
  54. ^ "The Cannabis Cafe in West Hollywood reopens Thursday as a drive-thru". Los Angeles Times. 22 April 2020.
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