CURLF CLOSES OPERATIONS IN CA, CO, & OR.
Closing industry capacity is a net positive, but more work is needed!
Curaleaf Holdings (CURLF) announced last week the closure of the majority of its operations in California, Colorado, and Oregon. Additionally, in an effort to further optimize operations and reduce costs, the Company will consolidate cultivation and processing operations in Massachusetts to a single facility in Webster, resulting in the closure of its Amesbury facility. Curaleaf expects to record non-cash restructuring and impairment charges that it will detail on its fourth-quarter earnings call in March. The company has also reduced its payroll by 10%. CURLF expects to realize $60M in gross run-rate expense savings in 2023, exceeding its initial savings target by 50%. We saw AYR cancel their acquisition agreement last week, and we believe that capacity in the space will continue to turn off as the 2022 headwinds persist into 2023.
Illinois Cannabis Trends.
In the month of December, Illinois recorded ~$175M in cannabis sales, which represents a sequential increase of 10.5% and a YoY increase of 1.1%. Unit volumes in the month were up 14.7% sequentially and also up YoY by 10.1%. The average unit price decreased 3.7% sequentially and down 8.2% YoY.
Consumables Q&A CALL.
We are hosting our monthly Q&A call for Restaurants, Consumer Staples, & Cannabis on January 30 at 1 PM ET.
CALL DETAILS:
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WE WILL EXPLORE THE FOLLOWING TOPICS:
- Discuss the pushback and feedback from our recent Black Book calls.
- Provide thoughts for 2023.
- Discuss trends that we are seeing during 4Q22 ahead of earnings.
- Discuss the most common and noteworthy inbounds we have received in the past month.
- Revisit changes to our Position Monitors.
- Provide updates on some of our best ideas.
- Discuss recent trend changes in consumer spending.
- What lies ahead for the cannabis industry after SAFE Banking failed to pass?
