ETF PERFORMANCE
Last week the MSOS was up 4.3% on the back of positive movement in DC. OVER THE PAST SIX MONTHS, the MSOS is down 34.4% on DC being paralyzed about other issues and the Democrats losing ground in the polls. While slowing slightly in August, industry sales trends remain robust, and significant new markets are coming soon. Legalization is not going to be easy. Still, it looks like movement in the process, albeit small, is needed for continued outperformance. Both Fluent and Harvest added one dispensary location to the state.
FL Tracker
Overall sales in Florida dropped about 8% in the past week. Sales have had flat growth for the past month. We see a trend reversal: Trulieve, which lost significant market share in the past weeks, is now slightly gaining the share it had lost. Another reversal is Ayr, which gained significant market share and is now losing market share in the state. Verano and Harvest continue to gain market share in the state. Both Fluent and Harvest added one dispensary location in the state, bringing their totals to 27 and 13 respectively.
Shrink To Grow?
According to MJBIZ, Tilray Inc. is shutting down a “‘flagship” facility in Nanaimo, British Columbia. As part of the company’s plan to save money following its merger with Aphria, the company did not release a press release. Instead, the company told MJBIZ, “Tilray will be closing its office and facility in Nanaimo, BC. With the recent business combination with Aphria, Tilray is making changes to optimize operational efficiencies,” the company said via email. In the statement, Tilray said it would concentrate its B.C. cultivation in the Broken Coast facility on Vancouver Island and its international production and manufacturing in Portugal and Germany. The closure, first reported by NanaimoNewsNOW, will leave hundreds of people out of work. The closure will be managed in phases, with completion anticipated for next spring. “We will work with employees interested in transitioning and seeking opportunities at our nearby facility at Broken Coast on Vancouver Island,” Tilray said. “By focusing local cultivation and manufacturing at the remaining sites across Canada, Tilray will be able to operate more efficiently, save costs, and deliver the highest-quality products to its patients and consumers all while driving growth and shareholder value,” according to the Tilray statement. When Tilray merged with Aphria earlier this year, the company said it expected to achieve cost savings of 100 million Canadian dollars ($77 million) annually.
CBD Usage?
According to CivicScience, usage of CBD products has climbed significantly since before the pandemic, but satisfaction hasn’t. Thirty-five percent of U.S. adults have now at least tried CBD products, up from just 28% at the end of 2020. Another 15% say they intend to try it, meaning cannabinoids could hit 50% market penetration before it’s all said and done. Our data show a strong correlation between CBD usage and stress – particularly COVID stress – which could explain the uptick. The bad news is that most of these new users have said they weren’t satisfied with the experience. And that could explain why people keep turning to stronger inebriants to manage their stress.
