Cannabis Subscription and Delivery Services Thrive Amid Coronavirus Lockdown
Since it became clear that the novel coronavirus (COVID-19) was a serious health crisis in the US, people have been in a cannabis buying frenzy. From use for medical ailments to a stress reliever and sleeping aid, or to just to simply cope with their new life on lockdown, cannabis and CBD are essential for many. States, including California, have now classified dispensaries and the cannabis supply chain as “essential business,” and are able to remain operational.
To meet the consumer demand, online cannabis-delivery marketplace Nugg scrambled to launch its cannabis subscription, Nugg Club Box, months ahead of schedule.
“The response has been incredible,” says Alex Milligan, co-founder of Nugg. “We had 500 subscribers in the first 24 hours and we haven’t even hit a fraction of our total customer base with the announcement,” Milligan explains. “We feature new brands and products in each box…offering a true discovery experience for customers.” The company says the box has over $225 of the industry’s top cannabis products, personalized for customers and delivered monthly, bi-monthly, or quarterly starting at $99.
Hemp Crate Co., a CBD subscription box, says it saw a slight uptick in orders. At the same time, they recognize that many of their customers might be struggling financially. “To combat this and attempt to help all of our existing subscribers continue to get the products they need to keep themselves healthy, we just offered all of our existing subscribers 10% off their next renewal, no questions asked,” says Lowell Bieber, co-founder and co-owner of Hemp Crate Co. Bieber says that people right now are looking for new, holistic and natural ways to keep their bodies healthy and reduce anxiety living through the stressful pandemic. Hemp Create Co. offers three different subscription options: Health & Wellness for relaxation and recovery; Hempa the Explorer for a combination of CBD products; or a “Furry Friends for pets who need a little help with anxiety.”
It’s not hard to see why product delivery and e-commerce services are booming. For some companies, the pandemic has enabled growth they had not previously been able to achieve. Oregon-based Kush Cart, a company that offers online, on-demand recreational and medical cannabis in under two hours, says orders have quadrupled, going from 30 deliveries per day to over 120. Resulting revenue increases have allowed Kush Cart to hire an inventory specialist and two full-time drivers. They’ve also been able to pay above minimum wage and offer paid sick leave. Another Oregon company, Green Box, which offers on-demand delivery and a monthly subscription service, told the Willamette Week last week that “both daily orders and subscribers are way up.”
What remains true is that the online cannabis shopping experience will be critical in the weeks and months to come. Businesses that adapt, and pivot will survive. For Milligan and both of his businesses, Nugg Club Box and Nugg, his core cannabis delivery marketplace business, he’s optimistic that demand will hold steady; and while times for many are tough right now, for the greater cannabis economy, we will continue to see supply chain innovation and in the long run new jobs will be created.
