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California cannabis brands begin selling directly to consumers, bypassing retailers

A handful of California cannabis manufacturers and brands have begun selling their products directly to customers through their websites, effectively bypassing traditional brick-and-mortar retail shops and delivery companies that have long been the gatekeepers to marijuana consumers.

The direct-to-consumer approach reportedly is being employed by some of the biggest marijuana brands in California, including Kiva Confections, CannaCraft, Cann Social Tonic, Old Pal and Roach.

For now, the trend appears to be taking place primarily in California, the largest marijuana market in the United States and the one with the most established and mature delivery infrastructure.

But insiders say they expect the practice will spread quickly to other states that also allow home delivery. The only question is when.

“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.’”

Different options

Morrison and others said brands have several options for setting up their own direct-to-consumer infrastructure, including obtaining their own delivery licenses or partnering with existing marijuana delivery businesses.

But Morrison said the key selling point for brands is twofold:

  • It allows consumers to shop their entire line of products instead of only what retailers or independent delivery businesses choose to carry.
  • It allows brands to collect and retain customer data, providing valuable business intelligence for product development.

“There are different ways of achieving direct-to-consumer that are compliant,” Morrison said, including what Kiva has been doing.

Kiva is reportedly contracting with a licensed delivery company – Grass Door – to deliver customer orders placed directly through Kiva’s website.

To Read The Rest Of This Article By John Schroyer on Marijuana Business Daily

Published: July 09, 2021

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