1Q24 Industry Sales
In the Hedgeye Tracked markets industry, sales in 1Q24 were $5.6 billion -0.1% MoM and up 7% YoY; this represents a 230bps YoY acceleration in sales. Of the 14 tracked markets, 5 declined in the month of March (WA, NV, CO, CA & AZ)
March Madness: Michigan's Marijuana Market Hits New Heights
The Michigan Headset data indicate a significant increase in sales, particularly for adult-use marijuana, which hit nearly $289 million in March 2024. This reflects a growing consumer market and acceptance of legal cannabis use. The market is segmented into different product categories, with flower the most significant portion of sales, benefiting the GRUSF business model. The state has issued numerous licenses to operate within the cannabis industry, with 785 active retailer licenses as of March 2024. The legal cannabis market is taxed at a rate that includes a 10% excise tax and a 6% state sales tax, contributing significantly to state revenue. Oregon saw a 7.8% MoM increase and a 0.7% YoY increase in March
Cannabis Banking Reform Finds Unlikely Ally in Cryptocurrency Regulation
An Article in MJ Moment highlights the potential for bipartisan congressional action on two significant issues: cryptocurrency regulation and marijuana banking reform. Here are the takeaways that underscore the importance of this development for cannabis:
- High-level discussions: Senate Majority Leader Chuck Schumer is engaging with House Financial Services Committee leaders from both parties to explore combining cryptocurrency regulation legislation with the SAFER Banking Act, which aims to provide banking access to the marijuana industry.
- Potential legislative vehicle: The combined package could be attached to the Federal Aviation Administration reauthorization bill, which must pass before May 10, increasing the likelihood of its passage.
- Ongoing support for marijuana banking reform: Schumer has reiterated his commitment to passing the SAFER Banking Act but has done nothing about it in the past. As has been the case for 5+ years, recent polls show strong public support for allowing the marijuana industry access to banking services.
- Bipartisan appeal: Representatives from both parties, such as Rep. Nancy Mace (R-SC) and House Majority Whip Tom Emmer (R-MN), have supported the SAFER Banking Act, highlighting its potential to garner bipartisan backing.
- Momentum building: The article suggests that the SAFER Banking Act is gaining momentum, with ongoing bicameral negotiations and key lawmakers working to bring the bill to the floor for a vote.
