The Effects of COVID-19 on California Cannabis Industries
Like many other businesses, the California Cannabis industry is feeling the effects of the coronavirus. From sales to outsourcing and day-to-day operations and even preplanned 420 events, businesses are adapting to new buying habits, health standards and social restrictions.
Early reports indicate dispensaries saw a mixture of increased and decreased sales depending on the city. This comes directly after the CDC’s recommendation for medical Cannabis users to stock up on at least a month’s supply of medication. In an effort to combat extreme decreases in sales, several dispensaries have also created preorder types of plans via email or text. Although this may help some businesses, it does leave them open to future regulation issues in their city. Before initiating your COVID-19 marketing plan, have a California Cannabis lawyer review your information and ensure you remain in compliance.
California Cannabis companies outsourcing hardware from China are suffering the most. Many shipments are severely behind, and several manufactures may have to shut down completely.
Outsourcing delays will also affect other sectors of the cannabis industry, including cultivators using LED lighting, greenhouse structures, and packaging and extraction equipment providers. Creating a contingency plan with the help of a California Cannabis lawyer, like those at Unlock Legal, can help minimize the Coronavirus impact on your business.
Additional Health Precautions
In response to the growing impact of COVID-19, California Cannabis industries in every sector are implementing additional health precautions. Dispensaries and delivery companies are encouraging clients to use home-delivery, drive-thru, and online ordering options to make their purchases. Additionally, they are prioritizing orders from medical marijuana patients. Overall in every industry, companies are enforcing additional sanitizing efforts and social distancing.
In the coming weeks and months, California Cannabis companies may feel more effects of COVID-19 on their businesses. Especially those that may already planned a large 420 type of event. It’s important to have a reliable Cannabis compliance and regulation expert in your corner. If you own a Cannabis business in California and need help navigating this new territory, contact Unlock Legal. We can review all your legal documents and marketing efforts and provide support for your contingency plan.
Do you need help finding and resolving cannabis compliance and regulatory issues before your license is questioned? We can help. Give us a call at 949-268-2857.