The economy might be tanking, but hey, cannabis sales are on the rise and Denver-based Spherex is riding the wave.
“The dispensaries are starting to look like the toilet paper aisle,” said Dan Gardenswartz, CFO of Spherex, a company that produces cannabis concentrates and products, including a THC and CBD-infused sparkling water called Phyx.
Spherex isn’t the only one. Although stock markets around the world have been in turmoil, marijuana stocks actually outperformed the S&P the week of March 16 despite the pandemic or, presumably, because of it.
Despite shutdowns, lockdowns and shelter-in-place orders across the country, in many jurisdictions where cannabis is legal, including Denver, weed is considered an essential service, right up there with groceries, medicine and laundry. Dispensaries, like pharmacies, are allowed to keep their doors open.
It makes sense. People are stuck in their homes, anxious about what the economic future holds and looking for a calming distraction.
Spherex distributes its products through dispensaries, which people can either buy off the shelf or order in advance through the Spherex website. And it’s been hard keeping up with demand, Gardenswartz said.
Last week, Spherex sales were up 134% over their baseline – and that was on Wednesday, with two days left to go in the week and the weekend still coming up. Anecdotally, sales of its sparkling beverage were also up last week, although Spherex still needs to wait for hard data to come in from its retail distributors.