Coronavirus vs. The Cannabis Industry
As of March 2020, the Coronavirus (COVID-19) has spread from a small virus originating in Wuhan, China to become a global threat. As restaurants, stores, and airlines shut down, we are beginning to see that collateral damage that the virus has caused.
In this article, we will be touching on news and events that have occurred in both Vancouver and across Canada in regards to the effects of the virus on the Cannabis Industry.
4/20 Cannabis Protest Vancouver Cancelled for 2020 Due To Coronavirus
As most Cannabis lovers are aware, the 4/20 Protest in Vancouver has been a staple within the community for almost 25 years. Due to restrictions enacted by the British Columbia Government however, gatherings above 250 people are prohibited.
Although this news is rather tragic, it is important to understand the importance of preventing the spread of this dangerous virus.
The Vancouver 4/20 Cannabis Protest houses over 400 vendors, with over 60,000 attendees in 2019. It is easy to see the negative economic effect that this announcement will have on those that depended on this event to make a living.
Supply Chain Issues: China
At a first glance, one may assume that the COVID-19 crisis wouldn't affect the Canadian Cannabis industry that much from a supply chain issue. That being said, many supplies that Canadian Licensed Producer cannabis brands in Canada use come from China.
Although the current situation in China is certainly improving, much of the country has been on lockdown for quite some time. With such a reduction in shipments and production of products from the region, we could see a shortage in things such as vape pens and packaging.
Supply Chain Issues: Canada
As Provincial and Federal Governments impose restrictions on employment and coming to work, we inevitably will see a reduction in the amount of local shipments within the country. We also may see a slight shortage in supply from Cannabis producers being forced to close their factories.
As Cannabis is a consumable product, it is certainly important to ensure that the Cannabis supply chain is protected from contamination from workers. This includes employees directly within the production line, packaging, or those handling the products anywhere along the chain.
As businesses around Canada close, retail cannabis stores will also suffer from decreased traffic to their brick and mortar locations.
On the flipside, as more people are staying at home and taking a break from work, demand may increase. It was announced today that BC Liquor Stores will continue to operate.
We also anticipate legal cannabis retailers that have special mail-order sales licenses will be able to operate. Sellers such as BC Cannabis Stores online will most likely see increased demand.
Just like most industries, the Cannabis industry within Canada will certainly feel the effects of the COVID-19 Coronavirus. These effects will be seen through cancellations of events and public gatherings, reductions in availability of supplies and products through diminished supply chain, and closures of retail stores.
These issues come at a time of major restructuring of the Cannabis industry in Canada, as Licensed Producers struggle to meet profitability. Learn more on how to stay safe while shopping for Cannabis during COVID-19
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