California Cannabis Trends.
Pricing remains a big problem in CA!
In the month of January, California recorded ~$395M in cannabis sales, which represents a sequential decline of 6.6% and a YoY decline of 7.61%. Unit volumes in the month were down 6.1% sequentially but up 2.3% YoY. The average price per unit was down 0.3% sequentially and down 9.6% YoY. The California market has yet to see a meaningful slowdown for the most significant headwind that faces this market, pricing pressure. The state had 10% of their cultivators not renew their licenses this year, equating to 10M square feet of growing space.
Florida cannabis licenses.
These new licenses will likely drive pricing down further in FL! With that as a backdrop, who will fund the build-out of the new licenses in the state?
The state of Florida has not rewarded a new medical license for over five years, but come April 24th, that will no longer be the case. Governor Ron DeSantis announced Friday that state health officials would accept applications for up to 22 new medical cannabis licenses. The new licensees would double the number of vertically integrated operators active in the state. The state had 22 operators for 413 dispensaries last year. Under state law, each individual operator is allowed multiple cultivation and sales locations. With more operators coming to play in Florida, expect pricing pressure for this industry in the coming years.
Columbia Care Expands In Missouri.
Columbia Care (CCHWF) announced this morning that it began adult-use sales on February 4th at its Cannabist dispensary, located in Hermann, Missouri. “We are thrilled to see the swift action taken by the Department of Health and Senior Services to bring recreational cannabis to Missourians so soon after the ballot measure passed in November. It has been a privilege to operate in such a rapidly growing market and serve our patients in the local Hermann community. We look forward to welcoming new customers through our doors in the coming weeks and introducing them to our Cannabist experience,” said Jesse Channon, Chief Growth Officer, Columbia Care.
