Cannabis Companies Hiring To Meet Surge In Demand From Homebound Customers
Source: Sacramento Business Journal, Felicia Alvarez
Photo: Bryan Brown and Maisha Bahati are two of the co-founders of local cannabis delivery business Crystal Nugs. (DENNIS MCCOY | SACRAMENTO BUSINESS JOURNAL)
Local cannabis businesses are seeing an unprecedented surge in sales as public health precautions to slow the spread of the coronavirus force workers to stay home.
Cannabis businesses are allowed to continue operating across the state as officials deem them to be an “essential service.” The city of Sacramento confirmed on Thursday evening that it would allow all cannabis businesses to continue operations as they are “considered medical/health-related, and therefore essential services.” The policy includes all businesses types, from dispensaries and delivery to manufacturing and cultivation.
On Friday, Maisha Bahati, the CEO of local cannabis delivery business Crystal Nugs, said her business had 10 orders in the queue before it started the workday at 8:30 a.m.
“It’s been insane,” Bahati said. “I hate to say things have been great, but cannabis has been doing magnificent.”
She said she’s planning to double her company’s fleet of drivers to keep up with demand in the coming weeks and months, which would bring her total number of drivers to 10.
Crystal Nugs is getting not only a lot of new customers, but also receiving orders from first-time cannabis users, including elderly customers and women, Bahati said. A portion of those customers were also stockpiling, she said, as it was unclear earlier in the week whether cannabis businesses would be considered essential or non-essential businesses.
Supply chains were ready for the influx, Bahati said, as most distributors had already begun preparing their inventories for April 20, the unofficial cannabis holiday that usually accounts for an increase in sales and consumption.
“Everyone in cannabis is realizing this might be recession-proof,” Bahati said.
Local dispensaries experienced a similar surge in sales. At A Therapeutic Alternative, an East Sacramento dispensary, sales last week were about 35% higher than average, CEO Kimberly Cargile said.
State and local regulators opened up the ability for the dispensary to do curbside pickup for products, she added, which has largely allowed it to stay in business.
The sudden wave of demand is expected to taper off in a couple weeks, though, Cargile said. She said she’s reduced the number of hours a day the dispensary is open from 12 to eight.
Ross Haley, who runs Truth Enterprises Inc., said he’s been working 12- to 15-hour days to keep up with the shifting environment and demand that has been caused by the coronavirus. Haley’s distribution company, lbs. Distribution, operates out of a 55,000-square-foot warehouse in West Sacramento, distributing cannabis products to about 120 dispensaries across California.
The company was already growing, but with the recent surge, Haley said he’s looking to hire 15 to 20 new workers for the production side of the business, which includes packaging products.
“We’re getting the feedback from consumers that they’re glad to have access to clean cannabis in these uncertain times,” Haley said. “It makes sense. You’re stuck at home, or you’re scared or have anxiety.”
Haley said that so far the coronavirus hasn’t disrupted his workplace too much, as his staff were already wearing personal protective equipment to prevent contamination. His staff have begun social distancing in the facility and he said he’s meeting regularly with employees to make sure they’re following Centers for Disease Control and Prevention guidelines to limit their potential exposure to the coronavirus.