Cannabis Event |
We will be hosting our monthly Q&A combined with our Canada Cannabis sales update call today at 12:30 PM EST.
On the call, we will discuss the following topics:
- July sales were revised up to $339 Million, 6.4% higher than the month prior.
- In August, sales continued to increase to $347 Million, up 2.4% from July.
- We expect 2021 sales to be $3.93 Billion Vs. our $3.8 Billion estimates last month, 50% higher than the 2020s $2.6 Billion in sales.
- CGC has been on a constant decline for the past four months.
- Tilray revenues have remained fairly flat.
- Pure Sunfarms has seen the most significant growth in Canada.
- CGC is struggling
Youth Cannabis Use Post Legalization
The Journal of the American Medical Association published survey data from 1 in 10 medical or adult-use states. They were researching the effects of recreational legalization on the usage rate amongst underage users. Here are their findings: “Consistent with estimates from prior studies, there was little evidence that RMLs (Recreational Marijuana Legalization) or MMLs (Medical Marijuana Legalization) encourage youth marijuana use,” the researchers said. “As more post-legalization data become available, researchers will be able to draw firmer conclusions about the relationship between RMLs and adolescent marijuana use.” Although the organization did not speculate on why usage rates remained the same or even dropped, the reasons can be inferred. After a state legalizes recreational weed, the black market shrinks exponentially. The youth primarily acquire their cannabis from these black market dealers. As the number of illicit dealers decreases, so do adolescent usage rates. It is much more difficult for a teen user to walk into a dispensary and buy weed compared to a dealer. Therefore, with recreational legalization likely comes decreased marijuana usage among those under 21. The data shows this slightly but cannot be a direct conclusion because it is not statically significant.
Maine Tracker
Sales grew by 8.3% to $10.2 Million. The largest MoM increase came from flowers which grew by 10.4%. Sales growth has been decelerating the past few months. Based on the last 3 months of sales, Maine's annual run rate is $105 Million.
Maryland Tracker
Medical sales in Maryland dropped by 2.56% in August to $46 Million. Sales have been declining for 5 of the past 6 months as Maryland's medicinal market struggles. However, the YoY growth has remained positive at 13.1% for the past month. Maryland's annual run rate is $552 Million for 2021.
