The hardware used for cannabis vapes is primarily manufactured in China.
As Barron’s reports, trade disruptions resulting from the coronavirus outbreak will likely reduce supply of vapes in the United States and Canada, where they are increasingly popular among consumers.
Eight Capital analyst Graeme Kreindler suggests that better capitalized cannabis companies including Canopy Growth and and CuraLeaf Holdings are now stockpiling hardware preparing for the worst.
Closer to home, Kreindler says Chicago-based Green Thumb Industries and Cresco Labs, because of their diverse product portfolios, are well positioned to withstand prolonged delays in vape imports.
Marijuana Business Daily is also reporting that many cannabis companies now are looking to divert packaging for their products from China to the United States, Mexico and India.