The cannabis industry is more complicated than most, and changes to its operations during the pandemic make it only more complex. Deemed as essential service providers but also federally illegal operators, cannabis growers, processors and sellers are working under new restrictions but barred from any federal government support.

Each state government is making its own adjustments during the pandemic and legal marijuana businesses have tried to adapt quickly to the changing landscape. Nevada closed all cannabis retail shops but is permitting delivery for medical and recreational customers so some dispensaries, like The+Source which has two locations in Las Vegas, have created their own in-house delivery service. Retail cannabis spaces remain open in Oregon, but the number of customers allowed in the store is limited, so retailers like Chalice Farms, which operates seven locations in the Portland area are rolling out home delivery and curbside pick-up for online orders.  

Some changes may become permanent. The I Heart Jane platform which helps coordinate sales for 1300 dispensaries around the country, implemented curbside pickup on the site, just 24 hours after cannabis regulations changed in California. Within the first week, 100,000 new users signed up for the service and the company believes the change in consumer behavior will be a shopping shift that sticks. “Why would customers go back to waiting in lines in stores?" asked chief executive Socrates Rosenfeld.

Some states including Colorado and California, have changed their cannabis sales regulations more than once in response to the pandemic causing the industry to switch gears multiple times. The Green Solution of Colorado which operates 21 dispensaries says it closed and re-opened its sales floors, implemented and then suspended curbside pick-up, and is now trying to direct its customers to website ordering paired with expedited store pick-up to limit the exposure of staff and customers to each other. The company is offering discounts to attract people to buy online in order to reduce time spent in its stores.

Some sellers are noticing a shift in the type of products sold. Los Angeles-based cannabis delivery platform Emjay reported a significant increase in sales in the first quarter of 2020, including a big shift from vape products to edibles. The company reported that vaping products moved from the second to the fourth largest product category since California’s stay-at-home order was enacted, while edibles sales have increased by 200%. The move away from vaping may be due to the reported health problems reported in 2019 that landed vape users in the emergency room, and the fact that the coronavirus is a respiratory illness.

While cannabis businesses have been deemed essential and allowed to keep operating, they are still federally illegal and thus prohibited from receiving bailout money. The CARES Act which provides $350 billion of low-interest small business loans to cover expenses such as salaries,  paid sick, medical or family leave, insurance premiums, and payments for mortgages, rent, and/or utilities can not be accessed by cannabis businesses. Businesses in the hemp-based CBD market are eligible for relief.