If it helps people stay glued to the couch... that's one way to fight the COVID-19 spread. North American weed producers are seeing a major sales boom. As lockdowns continue across the US and Canada, panicked pot buyers are stocking up on their brownies, gummies, and smokeable weed products in particular. All this panic even though...
- Cannabis stores have been listed as "essential services" (not mandated to close) in over 12 states. Others that can't remain open are shifting to delivery/pickup.
- On Monday, the Mayor of Denver ordered all recreational weed stores to close — then he reversed the ban just a few hours later on widespread outrage.
Hitting new highs, after years of disappointment... Since recreational weed was legalized in parts of the US and Canada, sales slowed. Demand was over-hyped and producers ended up over-producing: shares of Canadian cannabis giants Aurora Cannabis, Tilray, and Canopy each started 2020 down ~60% from their 2018 highs. But now...
- +50% = How much recreational weed sales across the key markets of California, Colorado, Oregon, and Alaska were up last week.
- +150% = Spike in weed sales in the SF Bay Area after the "stay-at-home" order was issued (compared to same time last year).
- +100% = How much online cannabis sales on Canada's gov-run Ontario Cannabis Store jumped in only 2 weeks.
- One guy even purchased enough weed for 9.5 years of daily joint-smoking.
This probably won't change long-term weed demand... The surge in sales is giving pot stocks a boost — in the last 5 days, Canopy is up 35% and Tilray is up 43% (though both are still down over 70% from a year ago). Still, the bump in sales will likely dwindle when things get back to normal. And if people have a lot hoarded, it may actually hurt cannabis companies more in the long-run (they'll lose out on future sales).