Colorado Retail Hashish Gross sales Replace

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Retail Hashish Gross sales in Colorado Proceed to Decline Since a
Report Excessive in August 2018

The Colorado Division of Income
(CDOR) just lately launched its month-to-month Marijuana Gross sales Report for November 2018. Complete retail gross sales decreased for the third consecutive
month, following traits noticed the yr prior, with revenues from the adult-use
sector falling to their lowest level since Might 2018. In the meantime, tax collections
counsel that wholesale buying and selling and transfers elevated general in November,
probably as a result of retailers stocking up for the Thanksgiving vacation. Colorado’s
Spot Index declined general in November in comparison with the month prior however did
ascend in every of the ultimate three weeks of the month.

In November, mixed retail gross sales
of adult-use and medical cannabis totaled over $123.9 million, down by 4.1%
in comparison with October’s mixed revenues of $129.2 million. Complete retail
revenues have now declined by no less than 4% in three consecutive months since
reaching a file excessive for the state in August, of over $141.Three million. In
2017, complete month-to-month gross sales in Colorado’s market additionally noticed a downturn from October
to November, of 6.4%.  

Grownup-use retailers in Colorado
tallied over $97.Eight million in November. Revenues from the state’s adult-use
sector in November have been down by 3.6% in comparison with the $101.Three million in retail
gross sales generated in October. November is the primary month since Might 2018 to see
retail revenues within the state’s adult-use market complete lower than $100 million.

Medical cannabis revenues in
November got here to over $26 million, down by 6.8%, from the over $27.9 million in
gross sales tallied in October in that part of the market. The income generated
by Colorado’s medical dispensaries in November is the bottom month-to-month complete
recorded because the opening of the state’s adult-use market 5 years in the past,
falling beneath the earlier trough of over $26.2 million, which occurred in Might
2018.    

Colorado’s mixed retail
cannabis gross sales for November are up in comparison with the identical month final yr, by
3.7%, when over $119.5 million in complete retail revenues have been recorded. By means of
November, complete gross sales year-to-date have reached over $1.41 billion, up by about
2.3% in comparison with mixed revenues of just about $1.38 billion generated to the
identical level in 2017.

Retail gross sales within the adult-use
market from January by November 2018 reached over $1.1 billion, exceeding
2017’s full-year complete of over $1.09 billion. Income generated by adult-use
retailers by November 2018 remained up year-over-year, by 11.4%, in contrast
to that documented in the identical span the yr prior. In the meantime, retail gross sales of
medical cannabis from January by November 2018 totaled over $302.9
million, down by 21.2% from the income reported in the identical interval in 2017.    

Within the wholesale realm, tax assortment knowledge for December
– which corresponds typically to wholesale transfers and
transactions executed in November – exhibits that the 15% excise tax on wholesale
exercise in Colorado’s adult-use system resulted in over $4.69 million accruing
to state coffers. December’s wholesale excise tax receipts are up by 1.3%
in comparison with tax collections from the earlier month, which amounted to over
$4.63 million.

Common Market Charges (AMRs)
utilized by the state to evaluate the wholesale excise tax on
inside transfers between commonly-owned licenses remained fixed from
October to November. (Since August 2017, AMRs are adjusted quarterly by the
Colorado Division of Income. The methodology employed by the Division to
assess the state’s AMR for flower and different plant materials is totally different from
that of Hashish Benchmarks in figuring out the state’s Spot Index and different
wholesale worth assessments.) Consequently, it seems that the small enhance
in tax revenues is probably going as a result of a rise in wholesale buying and selling quantity in November.

Retailers and dispensaries could have been taking
in additional stock forward of the Thanksgiving vacation, which has develop into an
event for gross sales and promotions within the cannabis trade, significantly in
states with adult-use markets. Nonetheless, whereas there could have been extra visitors
than traditional at retailers on “Inexperienced Friday” – the trade’s model of Black
Friday – the enhance in revenues from a powerful single day of gross sales was not sufficient
to elevate statewide totals. Comparable traits have been noticed relating to 4/20 in
latest years.

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