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.
Disintermediation 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.
It’s evident that the pandemic is a key influence in the development of California’s delivery infrastructure. For example, people are using Amazon at a higher rate than before. Disintermediation became inevitable as people began to rely on consumption via websites such as Amazon instead of the traditional brick-and-mortar store.