Decrease in Canadians Stockpiling Cannabis Amid COVID
According to Aurora Cannabis Inc. executives, the weed-buying frenzy in Canada amid the coronavirus pandemic is slowly losing steam. The shopping-spree peaked in late March when uncertainty was at an all-time high regarding the status of the cannabis industry (essential or not).
The interim chief executive of Aurora Cannabis Inc., Michael Singer, reported that things went back to normal in April when the cannabis industry was finally deemed an essential service.
Nevertheless, March 31 marked Aurora’s third quarter, as well as the first few weeks when Canadians remained indoors. During this period, the company managed to sell 12,729 kilograms (28,062 pounds) of cannabis, which is 39% more than the previous quarter.
Provincial cannabis distributors, Societe québécoise du cannabis, and Ontario Cannabis Store noticed the said spike in both March and April. Moreover, OCS claimed that, in mid-April, their online orders tripled since the coronavirus pandemic began.
In fact, the number of orders that the OCS received before March 9 was between 2,500–3,500. Just two weeks after people started social distancing, the orders doubled to 5,000. But wait, there’s more! In the following weeks, the orders doubled yet again, reaching a whopping 13,000 no less!
According to the director of communications at OCS, Daffyd Roderick, orders have stabilized at 5,000 daily, which is still a lot more than before the coronavirus-induced lockdown. Roderick also pointed out that products such as seeds and edibles are sold at a rapid rate still.
The spokesperson of SQDC, Fabrice Giguere, didn’t say whether the cannabis distributor has since seen a major decrease. Nevertheless, the initial spike, and the coronavirus in general, were quite the challenge for the already-struggling weed industry — even before the crisis struck there were massive rollouts of edibles, executive shakeups, and huge layoffs.
According to John Arbuthnot of Delta 9 Cannabis Inc., foot traffic at stores is still high, yet consumer attitude has changed. Arbuthnot claims that consumers shifted from panic mode — in other words, mass buying (stocking) — to business as usual.
Arbuthnot also added that Delta is getting to a point where product prices are starting to become competitive; particularly with what consumers were used to on the black market.
Stay tuned for more info.