November adult-use sales in Illinois slow down, but again top $75M (CRLBF, GTBIF, CURLF, CCHWF, ACRGF)
After 8 months of positive sequential growth, Illinois adult-use sales fell -0.1% MoM to $75.2 million. In-state resident sales fell -0.3% MoM to $54.5 million, while out-of-state resident sales grew +0.5% MoM to $20.7 million. YTD adult-use sales are at $582.2 million, and November’s adult-use sales represent $902.4 million in annualized revenues. While medical marijuana sales data has yet to be published, monthly medical sales have averaged $31.8 million over the past six months. Using that figure suggests combined legal sales YTD of $914.4 million, with November’s estimated total legal sales suggesting upwards of $1.3 billion in annualized revenues.
This slight slowdown comes as 75 adult-use dispensary licenses have yet to be issued due to a licensing imbroglio in September, which prompted several lawsuits. Despite the current licensing mess, supply issues, and the coronavirus pandemic, the recreational market in Illinois serving 12.67 million people is on track to top $1 billion in sales in its first year.
The State of Illinois publishes adult-use sales data in the first days of the month, while medical marijuana sales data tends to be published in the first week of the month.
Cresco Labs is currently one of the state's largest operators, having recently announced its tenth Illinois dispensary's approval and location in Naperville under its national retail brand Sunnyside. Upon final approval from the State of Illinois for the Naperville location, Cresco will operate the maximum allowed ten dispensaries in Illinois. On the wholesale front, Cresco is the market leader with 215,000 sq. ft. of cultivation and potential canopy space of 630,000 sq. ft., the largest of any Illinois operator. Green Thumb is right behind Cresco, with eight retail fronts offering adult-use cannabis. The company operates two cultivation and processing facilities in Illinois, with a stated capacity of 92,000 sq. ft. And yesterday, Acreage Holdings announced that it had agreed to a $12 million loan to complete the expansion of an existing 80,000-square-foot facility that will increase its wholesale and retail capacity in dried flower, oil extracts, and THC-infused beverages. The facility is expected to be completed in Q2 2021, and Acreage plans to launch Canopy Growth THC beverages that summer in the state as well.
Thanksgiving cannabis sales top $238 million (KERN)
Akerna, an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industry, founds those cannabis consumers spent approximately $238 million during the 2020 Thanksgiving weekend (11/25 – 11/28). Green Wednesday, the Wednesday preceding Thanksgiving, was the single biggest sales day of 2020 with an 80% increase in daily sales. This also marks the first time in four years that Green Wednesday has beat out Black Friday, which also saw a 75% increase in sales.
"Once again, Thanksgiving ranks in the top 5 cannabis sales days of the year," said James Ahrendt, Business Intelligence Architect, Akerna. "As we have noted throughout the year, daily sales averages have increased over the last year as a result of COVID. Since average days show such notable year-over-year growth, the percentage of growth during the holidays doesn't seem large. However, this is because more people, in general, are purchasing cannabis."
Sales by product category for the Thanksgiving holiday:
- Flower – 46.8%
- Cartridge/Pens – 30.2%
- Concentrates – 13.9%
- Infused Edibles – 7.4%
- Other – 1.7%
Sales by age group for the Thanksgiving holiday:
- Under 30 – 29.2%
- 30-40 –30.6%
- 50 – 19.3%
- 50-60 –11.9%
- Over 60 – 9%
United Nations approves WHO recommendation to remove cannabis from the most strict global drug category
Yesterday, the United Nations Commission on Narcotic Drugs (CND) accepted a WHO recommendation to remove cannabis and cannabis resin from Schedule IV of the 1961 Single Convention on Narcotic Drugs, with the support of the U.S. government. The CND's vote has been touted as formally recognizing the medical value of cannabis, which could potentially encourage further research in the plant’s medical potential. Cannabis still remains under Schedule I of the international drug control system; the international scheduling system differs from that of the U.S., where Schedule I is the country’s most restrictive category. While this primarily carries symbolic significance for cannabis, the CND's recognition could help bolster medical marijuana legalization efforts worldwide.
