As of recently, California cannabis manufacturers and brands are beginning a process of disintermediation as companies are now selling products directly through websites, effectively bypassing the traditional retail shops and delivery companies that were typically necessary as to regulation.
Some key examples of companies practicing these forms of disintermediation are Kiva Confections, CannaCraft, Cann Social Tonic, Old Pal, and Roach, who are big players in the California cannabis industry.
This seems to be a trend in California, which makes sense since California has the most well-developed market with some of the best delivery infrastructures to facilitate these processes. However, insiders say they expect this practice to spread quickly to other states that also allow home delivery.
“The (COVID-19) pandemic made it practically a necessity. As people use Amazon more and more … direct-to-consumer made a lot more sense,” said Kenny Morrison, the president of the California Cannabis Manufacturers Association and CEO of marijuana manufacturing company VCC Brands.
“When the pandemic hit, it was like, ‘We better step on it.'”