Cannabis has been mainly distributed in licensed dispensaries for the most part, while some CBD-based products have been sold in retail stores and malls across America. However, one marijuana company made news and history today in announcing that they would be offering same-day pot deliveries for residents all across California.
MedMen (OTC: MMNFF) announced on Monday that they would be providing the most robust delivery service seen out of any cannabis company in the country.
For those wondering why this is such a big deal besides being a little more of a convenience for customers, the issue comes down to the fact that there’s still somewhat of a stigma surrounding cannabis use.
Even in states like California, many potential consumers that would be open or curious about trying out marijuana don’t bother going to dispensaries in the first place due to the stigma attached to these places. Cannabis executives know this already and many of the top retail brands have worked hard to counter this stigma through marketing campaigns and changing the shopping experience for potential buyers.
The adoption of luxury-class dispensaries is one strategy, appealing to a more sophisticated, higher-class consumer that otherwise wouldn’t go to a regular dispensary in the first place.
However, this announcement makes all of that moot. Now that consumers can buy marijuana remotely and anonymously without having to step foot into a dispensary, this could open the door to millions of potential new customers, giving MedMen a massive edge over other companies in the already highly-competitive California pot market.
“MedMen has always been at the forefront of shaping and defining the cannabis industry, and we are proud to be taking the next step in our evolution by now offering delivery service in California,” said Adam Bierman, MedMen Co-Founder and CEO in a press release. “This enhancement in technology provides our California communities with convenient access to quality products from the brand they know and love.”
While the company will focus on California at first, where they have 17 retail locations, MedMen is planning to expand this delivery service nationwide in the near future. While previous cannabis retailing successes, such as partnerships with mega-mall operators, have done much to open up the industry to new customers, this type of delivery service could end up having a bigger impact on converting potential customers to frequent buyers than anything else.
Shares of MedMen were up around 7.5 percent in response to the news. Over the past few months, the stock has lost around a third of its market value, more or less following the industry as a whole throughout Q2 2019, where so and steady declines have become the norm. Currently the stock is trading at $2.05 US on the OTC markets down from a high of around $3.3 in April.
MedMen Company Profile
MedMen Enterprises Inc is the preeminent cannabis company with multiple assets and operations in California, Nevada and New York, which combined account for nearly half of North America’s addressable legal market. The company owns and operates licensed cannabis facilities in cultivation, manufacturing, and retail. – Warrior Trading News
