Tuesday, August 4, 2020
The title of this post is the headline of this notable new Forbes piece. Here are excerpts:
The pandemic has hobbled entire sectors of the economy but the cannabis industry is surviving, even thriving. Sales are up as consumers turn to marijuana for stress relief and recreation. Companies in the industry are making those sales easier and safer with online ordering to reduce contact between retailers and customers. There are even a variety of new products for consumers to try.
Consumers may be cutting their spending, but not on cannabis. Retail sales of medical and recreational cannabis in the U.S. is predicted to top $15 billion by the end of 2020 according to the Marijuana Business Factbook. That’s an increase of about 40% over 2019 sales.
Two thousand people who consume marijuana regularly were surveyed by Verilife and reported using more cannabis during the pandemic. Their increased consumption upped their average monthly spend on cannabis from $49 to $76. Greg James, the publisher of Marijuana Venture and Sun Grower magazines, said at least part of the sales increase is due to the bars closing. “Staying home and enjoying a joint or edible becomes the thing to do,” he said....
Of course, the cannabis industry is not a money-printing machine, even when demand expands. Basic business rules apply including follow the intricate laws carefully, keep pristine records, and hire excellent employees. Most businesses fail because they "have questionable management and unrealistic business plans,” said James. He has spoken with hundreds of cannabis companies during the six years his magazines have been published. “As with most businesses, the successful ones quickly adapt and figure out how to manage with the new normal,” he said. “Good management and well trained employees are as valuable in Cannabis as in every other industry.”