Some of the Best Opportunities in Cannabis: Delivery and Distribution

Delivery and distribution services act as inventory clearinghouses for existing dispensaries and other plant-touching businesses and are relatively new in many states. This sector has emerged even further due to COVID-19, which has states and municipalities scrambling to provide important medicinal and recreational cannabis products when some dispensaries and retail stores are closed, and in other cases consumers want to quarantine. With the tightening of COVID-19 regulations and institution of stay-at-home orders, cannabis delivery has become a sought-after solution for consumers. 

Delivery and distribution are terms used interchangeably in the cannabis industry, however some use ‘distribution’ for the business to business component of cannabis distribution (i.e. cannabis transportation from cultivator to extractor, or extractor to dispensary), and ‘delivery’ referring to consumer-based home delivery of cannabis products. Cannabis home delivery is the next evolution of cannabis retail, and it’s gaining a foothold across legalized states. Many distributors simply act as third-party shippers for growers, manufacturers, extractors and more. Some distributors specialize in raw flower, others carry a wide range of products. Those in the cannabis business who adopt a quick and nimble approach to navigate these unchartered territories in the age of social distancing will succeed and owning the supply chain is paramount. The future remains unclear and companies will have to continue to adapt to a different way of working as regulations lift. 

But what exactly does it take to open a licensed cannabis delivery or distribution business? The answer depends on the particular market in which you’re operating. In some states, you must already possess a cannabis license before you apply for a delivery or distribution permit; in others, you can apply for delivery or distribution-only licenses. 

At 3C we specialize in helping companies gain new delivery and distribution licenses, whether first time or if you would like to expand. Feel free to contact us to learn more about licensing opportunities and securing a delivery or distribution license in your state. 

3C has programs designed to help cannabis operators scale their businesses even during this current uncertainty. Over the past 14 years, 3C has helped over 500 cannabis companies in 34 states and 17 countries. We are the only group that has a global cannabis consultancy, a set of cannabis venture funds (Multiverse Capital), and our own cannabis operations, including a portfolio of over 160 cannabis companies.