Oregon Cannabis Sales.
Oregon sales came in at ~$16M for the month of September which is a MoM decline of 1.1% and a YoY decline of 0.5%. Unit volumes for the month were flat compared to the previous month and up 7.6% compared to this time last year. Not surprisingly, the average cannabis item price declined 1.1% compared to last month and declined 7.6% compared to last year. Oregon is starting to show passive signs when it comes to mapping out the pricing pressure in this market. It looks like this state has passed the worse of the pricing pressures and is close to coming out of this headwind.
California Cultivators.
We wrote about the pricing pressure of California cannabis yesterday, but there are so many headwinds cultivators in California are facing. The black market in the state is out of control, there is more product than users, and the state and local governments have regulated and taxed many out of the market. What will save this market is interstate commerce. This is a state that has some of the best product in the world with some of the most knowledgeable cultivators in the world and they are restricted to their state lines. Governor Newsom passed an interstate commerce bill for cannabis early in the fall and he has recently commented that he wants his state cultivators to "legally supply the rest of the nation". If we were to get an interstate commerce bill passed by New Jersey and the White House Administration allowed it, you could see California grown flower in dispensaries on the east coast by as soon as next year.
Tilray & Charlotte's web.
Tilray Brands (TLRY) announced this morning that they entered into a strategic alliance with Charlotte's Web which includes licensing, manufacturing, quality, marketing and distribution for Charlotte's Web CBD hemp extract products in Canada. Charlotte's Web's proprietary full-spectrum hemp CBD products will be available across Canada in 2023, the companies said. Previously, Charlotte's Web hemp extract had only been available to Canadian families that qualified for a special access medical exemption through Health Canada for specific need-states. Under the arrangement, Tilray will acquire and extract Charlotte's Web proprietary hemp biomass, harvested from Canadian-grown hemp cultivars, and manufacture into final product at its state-of-the-art production facilities in Canada. Quality and manufacturing by Tilray will follow the same proprietary methods and specifications Charlotte's Web employs in the USA. Tilray will manage distribution through Health Canada's regulated channels across Canada, the companies said.
