CT Legalization Troubles
It is looking like there won't be a House vote on cannabis legalization in CT, and they will delay the vote to a special session expected to occur later this month. For background, the bill passed in the Senate and was expected to be voted on by midnight last night but will be delayed. Democratic leaders say they have the votes to push through the nearly 300-page cannabis bill, but Republicans have broadly opposed it. Many expected a drawn-out debate Wednesday night, with GOP representatives trying to run out the clock to prevent a vote. The special session will likely be held two weeks from now, when the bill may be voted on again. Regardless if the bill passed last night or in two weeks, legal possession would begin on July 1, which is why some lawmakers are indifferent about when the bill is passed, as long as it is passed this month.
Cresco Expansion
Cresco announced that it would be expanding its portfolio of edibles and vapes through its Good News line of products. “Building on the successful launch of Good News, we’re continuing to differentiate the brand both in our wholesale portfolio and markets through exciting new edible and vape products that demonstrate cannabis’s many benefits and role in being a part of various social occasions,” said Greg Butler, Chief Commercial Officer at Cresco Labs. “Our strategy is to find the right product and brand mix to appeal to the right consumer segment and market needs, as well as launch innovations at opportune times in our markets. There’s so much opportunity for Good News, and we’re thrilled to bring easy to use, simple to understand, and approachable products to our consumers in California, Illinois, and Michigan.” The three products it will be adding to its line are Counting Sheep, Day Off, and Pride. All three offer a gummy and a disposable vape pen and vary based on strand and strength. The edibles and vape category continues to demonstrate strong growth in recreational markets. According to BDS analytics, edibles saw a 31% YoY increase in sales, and vapes saw a 27% YoY increase in sales. With the launch of these new products, which will sell in CA, MI, and IL, Cresco will be building a strong brand presence in these states, driving revenues.
Maine Tracker
Sales in Maine continue to show a steady increase as Adult-Use sales are still in their early stages in the state. We expect this market to grow to $340 Million upon maturity or $28 Million per month in sales. The current run rate is $44.4 Million. The largest increases were driven by Concentrate and Infused product sales, up 24.7% and 32.4%, respectively. Flower sales were up 19.9%. Total May sales were $5.36 Million, which is up 23.1% sequentially. These strong sales benefit Acreage Farms and Curaleaf's operations in Maine.
