As customers hoard pot brownies, N.American weed firms see lockdown boost

Medical Marijuana

24/03/2020 14:57

By Shariq Khan
    March 24 (Reuters) - Cannabis sales are touching new highs
as customers across the United States and Canada stockpile weed
to prepare for long spells of isolation because of the
coronavirus pandemic.
    Between March 16 and March 22, sales of recreational
cannabis across California, Colorado, Oregon and Arkansas - some
of the key U.S. markets - were up 50% and medical marijuana
sales rose 41% from the same period last year, figures obtained
from cannabis point of sale and data platform Flowhub show.
    Several U.S. states and Canadian provinces have taken steps
to curb the fast-spreading coronavirus by issuing stay at home
orders, restricting business operations, or closing down borders
as death toll in both countries approaches 600.  urn:newsml:reuters.com:*:nL4N2BH3FZ
    While many businesses have been ordered shut, cannabis
stores have been listed as essential services and allowed to
remain open.
    In Ontario, Canada's most populous province, online sales on
the government-run Ontario Cannabis Store's (OCS) website have
soared over the last two weeks, OCS director of communications
Daffyd Roderick, said. For example, last weekend's orders were
more than twice as high as only two weeks ago.
    In Nova Scotia, which on Sunday became the latest province
to declare coronavirus emergency, cannabis sales spiked 76% last
week, according to the province's liquor commission, which
controls sales of cannabis there.
    Fears of months of supply disruptions were boosting Canadian
sales, Stuart Titus, CEO of California-based Medical Marijuana
Inc  MJNA.PK  told Reuters.
    "We have seen stockpiling in Canada by consumers who have
snapped up products from LPs (licensed producers)."
    The surge in demand may offer pot producers a welcome
respite after investors sold off cannabis stocks throughout much
of last year as profits in the sector remained elusive.
    Jamie Pearson, CEO of California-based Bhang Inc  BHNG.CD ,
which makes cannabis-infused beverages, chocolates and other
products, said sales were booming and should boost revenue and
profits this quarter.
    Pearson said edibles such as gummies, brownies, and
chocolates, were most popular, probably because they were easier
to store and eat, even with gloves on.
    Still, Titus and others recommended caution, saying the
long-awaited reversal of fortune could prove not much more than
a short-lived relief.
    "The cannabis industry is showing itself to be
recession-proof but at times like this, it's important to
understand that the spike in consumer demand is probably not
going to last long," Avis Bulbulyan, CEO of cannabis consulting
firm Siva Enterprises, said.

 (Reporting by Shariq Khan and Shanti S Nair in Bengaluru
Editing by Tomasz Janowski)
 ((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780,
outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs))