Pot sales on the rise in some states with people home due to COVID-19
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It is Monday, April 20, which means it’s also 4/20 — the ad hoc international holiday to celebrate marijuana use and legalization.
You would think anything that involves large groups of people joining together, listening to music and speeches about legalizing pot and sparking up some joints would be cancelled in this year of COVID-19.
But organizers are calling for the celebrations to go ahead — safely, with no public gatherings, but instead virtual ones, online.
Pandemic or not, the recreational marijuana industry is doing just fine.
Oregon is one of 11 states where it’s legal for adults to use recreational marijuana. Many businesses are closed due to the COVID-19 pandemic, but pot stores are staying open, many of them preferring curbside service.
Cannabis retailers are deemed “essential” — it’s the same in most states where recreational marijuana is legal.
And sales have held up well, says Troy Dayton at the Arcview market research group.
“At the beginning of this, sort-of mid-March, there was a huge spike in sales,” Dayton said. “As people were panic buying, this was one of the products that they were stocking up on.”
Cannabis sales are still up compared to last April in major markets like California, Washington and Colorado.
Christian Groh, at investment firm Privateer Holdings, says it’s not surprising.
“Cannabis, much like alcohol, has the potential to be a counter-cyclical product,” Groh said. “Counter-cyclical businesses make products that actually see increased demand in times of economic distress.”
The cannabis business is volatile. Last year, several high-profile startups saw their stock soar, then fall back down to earth.
“There was a bit of overvaluation happening, there was a bubble that kind-of burst on it, not dissimilar to what we saw during the dot-com bubble,” Dayton said.
Eli McVey, at Marijuana Business Daily, predicts strong sales growth will continue once the COVID-19 economic crisis is past
“We’re seeing new consumers. Gen Z is just now coming of age, over 21,” McVey said.
The pandemic will delay legalization efforts in new markets, like Missouri and New York.
COVID-19 Economy FAQs
What’s the latest on the extra COVID-19 unemployment benefits?
As of now, those $600-a-week payments will stop at the end of July. For many, unemployment payments have been a lifeline, but one that is about to end, if nothing changes. The debate over whether or not to extend these benefits continues among lawmakers.
With a spike in the number of COVID-19 cases, are restaurants and bars shutting back down?
The latest jobs report shows that 4.8 million Americans went back to work in June. More than 30% of those job gains were from bars and restaurants. But those industries are in trouble again. For example, because of the steep rise in COVID-19 cases in Texas, Gov. Greg Abbott, a Republican, increased restrictions on restaurant capacities and closed bars. It’s created a logistical nightmare.
Which businesses got Paycheck Protection Program loans?
The numbers are in — well, at least in part. The federal government has released the names of companies that received loans of $150,000 or more through the Paycheck Protection Program.
Some of the companies people are surprised got loans include Kanye West’s fashion line, Yeezy, TGI Fridays and P.F. Chang’s. The companies you might not recognize, particularly some smaller businesses, were able to hire back staff or partially reopen thanks to the loans.
You can find answers to more questions on unemployment benefits and COVID-19 here.
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