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Below is a complimentary excerpt from a recent research note written by our Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
April 20th or "420" for cannabis consumers is the industry's largest sales day. Last year Americans purchased $90M of cannabis for 420, three times normal sales figures according to research firm BDSA.
Cannabis is an example of an industry that is benefiting from the current stay at home restrictions despite the changes to where the product is consumed. Cannabis sales spiked with the beginning of the stay at home orders in mid-March.
After consuming the stockpiles, purchases have returned to an elevated rate, as seen in the chart below.
Many states have designated dispensaries as essential businesses. Last week the order volume at Weedmaps, which enables online ordering and logistics for dispensaries was up 7x compared to last year.
The cannabis industry may also prove to investors its recession resiliency with the much better data availability currently.
Contact sales@hedgeye.com if you are interested in our industry trackers.
