Posts Tagged ‘cannabis sales’

Hawaii the First State to Require Debit-Only Cannabis Sales

touch-screenBeginning Oct. 1, Hawaii will be the first state in the U.S. to require cashless-only cannabis sales.

A Colorado-based credit union will permit dispensaries in Hawaii to open bank accounts, and a debit app called CanPay will enable patients to purchase cannabis with their smartphones. The app is currently in use in six states, but Hawaii will be the first to use it exclusively for medical marijuana transactions.

Because marijuana is still illegal under federal law, most banks and credit card companies refuse to work with cannabis industry. As a result, marijuana businesses are forced into cash-only transactions, making day-to-day operations tedious and putting dispensaries and employees at risk for robberies and other crime.

To put the amount of cash floating around the marijuana market in perspective, consider that Colorado consistently makes $100 million in pot sales every month (with California expected to dwarf that number)–that’s a lot of physical money, and most businesses don’t to have anywhere to put it.

Having access to banking is a big deal in the cannabis industry–and widespread access probably won’t happen until Congress decides to deschedule marijuana.

Hawaii was one of the first states to legalize medical marijuana in 2000, but dispensaries weren’t legalized until 2015.

The state Department of Health delayed the roll-out of medical marijuana until this year because the state didn’t have a certified lab–putting dispensaries in the unenviable position of growing and harvesting plants that they weren’t allowed to sell.

So far, there are eight licensed dispensaries in the state: Three on Oahu, two on Hawaii Island and two on Maui. The state’s first two medical marijuana dispensaries opened last month.

Colorado’s $100 Million/Month of Cannabis Sales the “New Norm”

mjbizAnother month, another record-breaking amount of cannabis sales in Colorado. The cannabis industry achieved a milestone in May, with $100 million in pot sales for the 12th consecutive month.

“I think that $100 million a month (in sales) are the new norm,” said Bethany Gomez, director of research for Brightfield Group, a cannabis market research firm.

Over 12 months, Colorado saw monthly sales reach $1.4 billion the state collected nearly $223 million in taxes and license fees. Since recreational marijuana was legalized four years ago, recreational sales have consistently counted for two-thirds of the monthly pot sales totals.

In May, recreational-use sales accounted for about $90.1 million and those from medical marijuana contributed just over $37.5 million. The industry’s 2017 cumulative sales through five months neared $620 million, generating close to $96 million in state revenue from taxes and fees.

However, Colorado is seeing a slow-down of growth in the industry as more states legalize recreational marijuana. Sales in Nevada–where dispensaries made about $3 million in sales and the state made about $1 million in tax revenue between July 1 and July 4–prompted the governor to declare a state of emergency as marijuana supplies ran dry. Recreational marijuana sales launch in California in 2018.

In Colorado, the market is still growing, but Gomez said that the market is approaching maturity.

“What you’re seeing in Colorado is similar to other industries, we’re starting to see lower double-digit growth rates, rather than the triple-digit growth rates,” she said. “That time of massive growth expansion in Colorado, I think, is over.”

Signs of market maturity includes the increased demand for concentrates and edibles, as well as a decrease in overall number of medical marijuana patients. New Frontier Data, a cannabis analytics firm, said that falling prices have reduced the incentive for patients to apply for medical marijuana prescription.

As of May 31, 2017, a total of 86,964 patients had an active medical marijuana registration, according to the Colorado Department of Public Health and Environment. A year before, that figure was 106,066.

Since recreational use began in 2014, the products that cannabis users have evolved. Consumers have shifted from dried marijuana flower to infused products, edibles, and concentrates.

“There is increased innovation in the product category, and that’s continuing,” she said. “Consumption patterns haven’t really settled in the recreational market yet; people are still experimenting. There is still a lot of room for change there.”

 

Nevada Runs Low in Weed, Gov. Declares State of Emergency

nevada-cannabisThere’s a first for everything, especially when it comes to the cannabis industry, so perhaps it’s not surprising that a weed shortage has led the governor of Nevada to declare a state of emergency.

Less than two weeks after recreational marijuana sales began, dispensaries report that they’re running out of product to sell. The state of emergency will allow state officials to decide on new rules to help alleviate the shortage.

The problem is that when Nevada approved recreational marijuana last November, the ballot measure stipulated that for the first 18 months of recreational marijuana sales, wholesale alcohol distributors would be granted the exclusive right to transport cannabis from grows to dispensaries.

However, the Department of Taxation hasn’t approved a single distribution license–and dispensaries are unable to restock their shelves. The department says that they haven’t issued any licenses because of incomplete applications and zoning issues.

“The business owners in this industry have invested hundreds of millions of dollars to build facilities across the state. They have hired and trained thousands of additional employees to meet the demands of the market. Unless the issue with distributor licensing is resolved quickly, the inability to deliver product to retail stores will result in many of these people losing their jobs and will bring this nascent market to a grinding halt. A halt in this market will lead to a hole in the state’s school budget,” said Department of Taxation spokeswoman Stephanie Klapstein.

The Nevada Dispensary Association estimated that dispensaries made about $3 million in sales and the state made about $1 million in tax revenue between July 1 and July 4. Over the next two years, Nevada tax officials expect cannabis sales to generate $100 million in revenue.

The Nevada Tax Commission will vote on regulation to expand the pool of eligible distributors on Thursday.

 

Harvest Season: Colorado Cannabis Sales Dip

legal cannabis salesLegal cannabis sales in Colorado took a dip in October from months, according to new data from the state’s Department of Revenue. From September to October, recreational cannabis sales dipped 13 percent to $49.1 million and medical pot sales dropped 18 percent to $31.3 million, according to an article on the Cannabist.co.

Experts have given a couple of different takes on the lower sales during holiday season. One thought is during the dip in the cultivation in winter, many medical cannabis consumers will rely on their own legal indoor grow. Another is that cold weather reduces tourist travel during the winter months, also resulting in less cannabis consumers. Our third theory is that many of us let our medical cannabis licenses lapse at the end of the year, save up for one huge purchase in October, then fast until January.

Have your own theories? Contact us on Facebook!

Join the Cheeky Monkey™ Club!

Get latest news, cannabis legalization info, and all things Cheeky!