Washington Cannabis Trends
In the month of December, Washington recorded ~$104M in cannabis sales, which represents a sequential increase of 3.9% but a YoY decrease of 12%. Unit volumes in the month were up 4.1% sequentially and down 1% YoY. Pricing continues to be a headwind in this market, and it doesn't seem to be slowing. The average unit price decreased only 0.3% sequentially but was down 11.1% YoY. This was the most significant YoY decrease in pricing we have seen since October of 2018.
DRY January
CivicScience polled U.S. adults last month to gauge general interest in Dry January this year, which looks positive for cannabis consumption. "According to their latest data, a plurality of Dry January participants are not replacing alcohol with anything right now – potentially the cohort planning to make this month a one-off. But roughly 60% of those partaking in Dry January are evenly split between non-alcoholic beverages, cannabis/CBD products, and soda/seltzer products." The study shows that 33% of participants are not replacing alcohol with anything else, but cannabis use is the next biggest cohort coming in, with 21% of people saying they will replace alcohol in January with cannabis consumption. civicscience.com
Trulieve Leadership changes
Trulieve Cannabis (TCNNF) is a Hedgeye Cannabis Best Idea long.
Trulieve announced Rebecca L. Young, Vice President, Chief Accounting Officer of the Company, gave notice of her resignation in order to pursue other opportunities. The Company also announced that Joy Malivuk has been named Vice President, Accounting. Ms. Young will continue to serve in her role as Vice President, Chief Accounting Officer of the Company through March 10, 2023, in order to allow time to transition her responsibilities to Ms. Malivuk. Prior to joining Trulieve, Ms. Malivuk spent nearly 15 years at HSN, Inc., a subsidiary of QVC, Inc. Her career at HSN culminated as Director of Accounting, where she oversaw the accounting function and was responsible for financial reporting, general accounting, and SOX compliance. Previously, she served as HSN’s Operational Vice President of Financial Reporting and SEC Compliance.
