Cannabis Industry Movers & Shakers Reflect On A Year Of Being ‘Essential’ This 4/20

Near the end of March 2020, when the coronavirus pandemic was just beginning to rage across the United States, states across the country deemed cannabis an essential business, allowing them to continue operating in whatever capacity was necessary—sales, production, and cultivation included. For an industry that was once entirely in the shadows and is still federally illegal, this acknowledgement and recognition was just as symbolically important as it was to companies’ bottom lines. It also meant that adults who consume cannabis for whatever reason, be it medically or recreationally or some combination thereof, now had unfettered access to a plant that for generations could only be found on the illicit market.

On 4/20, which has turned into a holiday of sorts for people who enjoy cannabis, top movers and shakers across the cannabis industry reflect on a year of being “essential.”

Narmin Jarrous, Chief Development Officer of Exclusive Brands

 « The biggest challenge we’ve faced during this pandemic has been leading our people through a global trauma. » said Narmin Jarrous, Chief Development Officer of Exclusive Brands. « The fact that cannabis has finally been viewed as essential by our government is a huge step in the right direction for the industry and our collective healing. »

Anthony Alegrete, Operations Director and Co-founder at 40 Tons

“How is it that states and big businesses are able to pay their bills with the legal sales of cannabis, but people are being locked up for the same plant? Things must change and we should free the prisoners that are locked up over cannabis ASAP. 40 Tons Brand would like to see more, if not all, of the 40,000 prisoners still incarcerated over cannabis be released. I think 4/20 does see an increase in numbers overall, especially as it relates to the giving spirit. Since there are 40,000 plus prisoners still incarcerated over cannabis offenses, this is the day we often see more donations to these prisoners.”

Kyle Kazan, Co-founder, Chairman & CEO of Glass House Group

“One year after being deemed an essential service during COVID-19, consumers have voted, and cannabis is a major, societal movement that is here to stay and will only continue to grow. As a founder of Glass House Group, I’m proudest that we didn’t miss a beat in keeping our teams fully employed and that we consistently provided truly safe cannabis access to our communities, which were and still are filled with anxiety. More and more people continue to discover the benefits of this plant, and I strongly believe that as the country’s economic engine restarts post-pandemic, the cannabis industry will return to its position as the #1 job-creating industry in the country – a role it played during the economically robust 2019. I sincerely hope that, just as we are here for our communities, those in Washington D.C. will be here for us and for the overwhelming majority of Americans who share our belief that the cannabis plant is good for people and for the world.”

Camille Roistacher, CEO and Founder of WYLLOW

“If last year showed us anything, it’s that people are essential and we need to uplift one another, especially the most marginalized. When cannabis was deemed an essential business, it meant people could turn to a medicinal plant rather than alcohol in order to help them cope with the many challenges stemming from the pandemic. It also meant that WYLLOW could launch as a new brand and keep our doors open while ensuring that our staff remain employed.

 Being a cannabis entrepreneur means staying on your toes and adjusting to a constantly shifting marketplace and regulatory landscape. Last year presented new challenges, unique opportunities, and it highlighted the importance of uplifting women and people of color in cannabis. We are the backbone of this industry. We are essential.”

Jennifer Dooley, Chief Strategy Officer of Green Thumb Industries

“This past year has been challenging, but it also underscores the truly essential place cannabis holds in people’s lives and our economy. This April marks the one year anniversary of cannabis being deemed “essential,” a shift that has helped de-stigmatize the plant, those who find well-being from it, and the industry that is creating jobs, tax revenue, and opportunity.  This recognition and designation allowed us to not only continue operating amid coronavirus-related closures, but importantly it allowed us to maintain reliable access to cannabis for our consumers. More people are choosing cannabis every day and we love serving them in our Rise stores across the country.

To celebrate how far we’ve come, Green Thumb’s Rise dispensaries are hosting a number of in-store experiences and giveaways to commemorate that cannabis is as essential as sleep and laughter. Our guests will have access to a variety of cannabis products for a range of experience levels including our Beboe vape pens and pastilles, Dogwalkers pre-rolls, incredibles edibles, and Rythm premium flower and vapes. We want this event to showcase how cannabis can continue to benefit people’s lives and local economies, and we are grateful for the opportunity to serve our communities, particularly throughout this difficult year.” 

Adrian Sedlin, CEO of Canndescent

“It’s a huge milestone in social consciousness to go from prohibited, to medically legal, to legal for adult use, to, ultimately, being deemed essential.  It’s a message from state governments to operators, the capital markets, potential employees and consumers that the category is not just a tolerated activity but an important activity prioritized like food and other essentials.

Had we not been deemed essential, we could very easily have seen the legal industry collapse; being deemed essential, the sector saw 71% growth in 2020 and there was a roughly a 50% increase in average monthly spend among cannabis consumers as they turned to cannabis to manage pandemic related stress.

Staying open and being allowed to continue operations was the obvious benefit.  Few if any operators could have survived a prolonged shutdown.  Beyond that, we were able to participate in the growth of the market as consumers turned to cannabis to manage stress.  It also afforded us the perfect opportunity to launch our value brand, Baker’s Cannabis Co, as consumers turned to lower cost options as the pandemic wore on.

We did grow and evolve the business by commissioning our 4th cultivation project and launching two additional brands in 2020.  On the production side, we’re increasing our indoor footprint 75%.  With respect to brands, we launched Baker’s Cannabis Co, a value offering, recognizing the consumers’ need to stretch their dollars during the pandemic in which the industry was deemed essential.  We also launched Justice Joints, a brand we operate where 100% of profits go to cannabis related social justice causes.  Simply, when you enjoy the privilege of being deemed essential, it comes with a responsibility to help and give back.”

Salvator Armenia, VP of Business Development of C21 Investments

“At the onset of the pandemic in March 2020, the state of Nevada deemed cannabis as an essential business, but mandated delivery-only for the first six weeks, followed by the addition of curbside pickup as a sales option, before reopening in-store sales at a later date in May. Through these state-mandated restrictions, C21’s Silver State Relief dispensaries were able to pivot quickly to offer both additional sales channels, and ended up only experiencing a 10% decline in business despite the in-store restrictions throughout the spring. By summer 2020, Silver State Relief’s dispensaries were at record revenue run rates with all three channels of sales, and generated over 50,000 customer transactions per month.

Into 2021, sales have remained consistently stronger than before the pandemic by offering these alternatives to in-store sales. We now transact approximately 10,000 curbside pickups per month (averaging a curbside pickup every 2 to 3 minutes, 14hrs a day/7days a week) by offering the convenience of 95 curbside stalls at our dispensaries, as well as in-house delivery for both locations. We continue to look for ways to optimize sales for our customers and patients to meet the increased demand for cannabis.”

Vanessa Gabriel, CEO and co-founder of Drop Delivery

“We’ve had to deal with mountains of regulations and rules, even more so as a multi-faceted tech platform, that when we were able to stay open at such a critical time during the pandemic and support our clients making a positive impact in their communities, it validated our work and really gave us the confidence to keep moving forward.”

Spencer Andrews, communications director of March and Ash

« Being designated an essential business, for March and Ash, increased our sense of responsibility. In many ways it put us further under a microscope. We had restaurants right down the road from us that were shut down – friends and members of our business community. We faced major challenges being located in different areas that had wildly divergent experiences with COVID outbreaks. At one point we voluntarily shut down a location that legally was able to stay open. That sense of responsibility and respect for others, across our Union workforce, helped us meet the challenges of staying open. »

Rob Woodbyrne, CEO of Regrow 

« The people are way ahead of the politicians on this issue, » said Rob Woodbyrne, CEO of Regrow. « Congress is the voice of those people, and we need 10 Republicans in the Senate to stand up, read the science, then help THE PEOPLE get cannabis demonization removed to drive our economic and social stabilization. »

Charles Pyfrom, CMO of CannGen Insurance Services

 “Over the past year, we’ve witnessed a significant shift toward the destigmatization of cannabis across the nation, » said Charles Pyfrom, CMO of CannGen Insurance Services. « There is still much work to do though — cannabis businesses that are operating above board aren’t, but should be, treated just like any other legitimate business, whether that be in receiving the necessary insurance coverage, having safe access to banking, or any other aspect of their operations. I think we have taken a big step forward toward making that a reality during the pandemic.”

Ryan Hale, Chief Sales Officer of OSS

 « Passage of the SAFE Banking Act is a historic, significant step forward for the cannabis industry, which deserves more legitimacy and access to banking, insurance and other services just like any other mainstream industry. This legislation will open up much-needed access to financial institutions and loans for cannabis industry entrepreneurs, » said Ryan Hale, Chief Sales Officer of Operational Security Solutions (OSS). « Meanwhile, as the sheep dogs for the industry in security, we know that many compliance issues will remain as long as cannabis is still considered a Schedule 1 drug and passage of the SAFE Banking Act will only mean more regulation for the industry. »

Socrates Rosenfeld, CEO, Jane Technologies

“Cannabis is already one of the fastest-growing industries of our time, and the essential status granted during the pandemic truly propelled the industry forward in every sense, for the benefit of not only patients and customers but also the economy, technology, and job creation. Since the start of the pandemic, online shopping has jumped from 17% of dispensary revenue to 50% as customers stay out of retail stores in favor of curbside collection and delivery. The tech updates we developed and implemented during the pandemic, like curbside pickup, our Brand Portal and digital merchandising, proved their value and will carry over post-pandemic. The fact that the cannabis economy exploded during the past year was perhaps the proof legislators needed to push legalization forward – Jane alone powered over $2B in sales. We hope that the fast track to legalization continues, and all have access to the plant, the way nature intended.”

Mary Jane Gibson & Mike Glazer, Weed + Grub

“We’ve learned that the best way to educate is through entertainment. We are so proud that our podcast Weed + Grub didn’t miss one episode during the pandemic. Our fans truly kept us going because we felt like we had buds across the country while we were buds in people’s ears every week. We were also able to highlight smaller companies we believe in, and call out the hypocrisy of cannabis being deemed essential, yet still illegal, in much of America.”

Matt Hawkins, Founder and Managing Partner of Entourage Effect Capital

« Cannabis gaining its ‘essential’ status across the country was a turning point for the industry. The designation signaled to the entire investment community that these businesses are not only legitimate but also have immense long-term social utility. This momentum culminated in last year’s November election when voters in five states expanded legal cannabis access, and we’re continuing to see states flip to adult-use at a steady pace. The past year has showcased what the industry is capable of, and with public sentiment at an all-time high, my peers are eager to continue leveraging these favorable tailwinds to create a truly sophisticated market. »

Brett Fink, Managing Partner at Greater Holdings

“420 is one of the biggest, if not the biggest sales days of the years, also a time for people to show their love for the plant. Cannabis so different than most other vices in that way. Activism has been the root of the movement to legalize in our generation and that has definitely been hampered by last years lockdown. I mean, we missed 4/20/20—at least it wasn’t the same as most of us have been used to. Even while missing one of the largest weed “holidaze,” cannabis sales across the US have been at all time highs, play on word intended. For all of our brands it’s a day to show some of what you do as a brand, and what you stand for.”

Kyle Porter, CEO of CMW Media

“I think seeing cannabis on the list of essential businesses during the lockdown was more powerful than some may think. Grouping the cannabis industry in with those of frontline healthcare and food workers inherently brought a level of credibility that we’ve never seen before. I fully stand behind the decision to include cannabis businesses as essential because the cannabis industry is essential, it’s not going anywhere, and it’s incredible to see the world finally agree.”

Keith Cich, co-founder, Sunderstorm Inc.

“The ‘essential’ designation undermined the stigma with cannabis and set sail a new industry that is driving job creation throughout the country. Revenue spiked higher in March when quarantine began – if we had to shut our operations, we may not have been able to resurrect the company. The essential designation allowed our brand to flourish in California, and to offer good wages to nearly 200 employees through quarantine, when employees in other industries were furloughed or terminated. Without the essential designation, California cannabis companies would have lost tens of thousands of decent paying jobs during quarantine.”