According to a Bloomberg report, cannabis is not immune to the coronavirus impacts and the industry is starting to feel it hit its supply-chains.
Feather Co., a marijuana hardware provider that sources nearly all of its products from China, is experiencing shipment delays of two to four weeks because of the corona virus related factory shutdowns in the country, according to Chief Executive Officer Pat Lehoux.
According to Lehoux, these delays are likely even longer for other companies that do not have strong relationships with their suppliers.
“When it comes to the delay a customer will actually get when dealing with a Chinese company, it really comes down to the relationship you have with that manufacturer,” he said. “If you’re going through a third party and you don’t have that close relationship, I think the delays will be more severe.”
Organigram Holdings Inc. is the company’s largest customer and uses its vape pens for its Edison brand.
“We were able to convince Organigram to get that order in before Chinese New Year even hit,” said Mitch Thompson, Feather’s director of product development. “Had we waited, we’d be in a pretty bad situation right now.”
Curaleaf Holdings Inc. Executive Chairman Boris Jordan said in an interview that it recently stocked up on about $2 million worth of vapes from a U.S. supplier.
“I’m not particularly worried although I do think that some companies that were running thin on capital and couldn’t store inventory the way Curaleaf can, I think they will be faced with shortages of cartridges,” Jordan said.
