It’s become a predictable pattern in the era of legal recreational pot in Colorado. Every year, the state sets a record for marijuana gross gross sales then, 12 months later — fagot — it goes up in smoke and some other record is set.
It should come as no surprise then that after seeing a record $1.55 billion in gross gross sales in 2018, Colorado is on a record-setting pace in 2019.
Through the first three months of the year, combined recreational and medical cannabis gross gross sales have destroyed a little less than $387 million, more than $21 million ahead of the end of March 2018, with the busy summer gross gross sales months ahead. March itself set a record for gross gross sales in a single month at more than $142 million. It beat out the previous mark of more than $141 million set in August.
“I honestly just think it’s just more people finding out about it consistently,” aforementioned Colin Patrick, general manager of the Eurflora clinic on the sixteenth Street Mall. “I think that the word is just spreading. More people tuned onto it every year through education.”
A deeper look at gross gross sales information provided by the state shows some other trend emerging, however. To put it in a single word, Kristi Kelly, executive director of industry lobby the Marijuana Industry Group, calls it “stabilization.”
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After seeing combined recreational and medical gross gross sales rise 46 percentage in 2015 over 2014 (the first year of legal rec gross gross sales), growth qualified some in 2016, rising 31 percentage over the prior year’s total. The same occurred in 2017, with total gross gross sales growing just over 15 percentage. Finally, in 2018 total gross gross sales grew just 2.5 percentage over 2017.
“As a new industry, there is obviously going to be exponential growth in the very earliest times, but what we’re seeing is the stabilization of client demand,” Kelly aforementioned of the Colorado market.
Stabilization isn’t necessarily a bad thing. It happens in mature markets. some other one of Colorado’s marquee industries, craft brew, is going through thing similar on a national level.
Colorado was the forerunner state for recreational adult-use marijuana, but, as acknowledged this year by industry experts, competition has ramped up as larger states so much as California and entire countries so much as Canada have embraced recreational weed. That competition made the recently completed legislative session at the state Capitol especially critical from an industry perspective.
A trio of bills passed in the session have big potential to reshape businesses — and drive gross gross sales — in the years to come.
House Bill 1090 opens the door for cannabis companies operational in Colorado to become publicly listed and court investment from equity funds. House Bill 1230 creates new business licenses for marijuana tasting suite and “cordial reception” business where people 21 and older can use their own cannabis products outside their private residences. And House Bill 1234 legalises cannabis deliveries starting with medical products in 2020, with recreational to follow in 2021.
None of the legislation will have an immediate impact on the industry. For one thing, none of the bills have been signed by Gov. Jared Polis yet. galore are count on Polis’ support, but the industry has seen legislation vetoed by Polis’ Democratic precursor, John Hickenlooper.
Just one of the bills — the one clearing the way for publicly listed cannabis operators in the state — is set to take effect this year. Its effective date is Nov. 1. The other two are subject to the rulemaking authority of the state’s Marijuana social control Division before taking hold next year. The public rulemaking process brings together groups that include industry proponents, industry opponents, municipalities and law social control being assembled to discuss and craft regulations.
“For us, we‘re writing these rules and our hope is to have as few accidental consequences as possible,” aforementioned Marijuana social control Division interpreter Shannon Gray.
It promises to be a busy year at MED headquarters; the division besides has been tasked with streamlining the state’s separate medical and recreational marijuana codes into a single code as part of the alleged “sunset bill” that besides passed out of the General Assembly this year.
Of the three house bills, the Marijuana Industry Group’s Kelly expects the public investment legislation to have the biggest impact should the governor sign it, not the delivery or cordial reception businesses bills.
She aforementioned that legislation “will allow for reinvestment in growth, employees, commerce trading operations and research and development.”
- February 12, 2019 Colorado marijuana gross gross sales crack $6 billion since 2014 legalization, state says
- March 4, 2019 Colorado lawmakers taking second crack at bill that would allow publicly listed marijuana companies
- March 29, 2019 Firms looking to invest big money in Colorado’s hemp industry
- April 22, 2019 Trump administration says Colorado immigrants in cannabis industry not showing good moral character
Kyle Speidell, the co-founder and co-owner of the Green Solution, an industry powerhouse, is excited about what the public investment bill will mean, some for Colorado-based companies like his and the industry at large.
“It’s really focused on legitimizing the industry even more,” Speidell aforementioned. “It’s going to bring back the desire to reinvest in the business, to legalise the retail experience and stores throughout the state.”
Speidell and his brothers, once real estate developers, got into the marijuana industry in 2010. Today in Colorado, they operate 18 dispensaries — six of which have opened since the start of 2018 — a products manufacturing facility, and a network of indoor and outdoor grows. They employ nearly 700 people. That doesn’t even touch on their commerce trading operations in Illinois, Michigan, Oregon, Nevada and Canada.
With a long history in the industry — and a lot at stake — the Green Solution has thrown its weight into lobbying at the Statehouse. Company leadership spoke at committee hearings in favor of the public investment bill. Speidell is not yet talking about the need to “fix” the cordial reception bill. He feels that with no insurance liability cap written into the legislation, insurance companies won’t underwrite new business concepts, and those that do operate will run the risk of major lawsuits if thing goes wrong. He will be keeping a close eye on the delivery bill as it is rolled out, too. That law allows jurisdictions to opt in or out of allowing deliveries in their borders, thing that could limit the market opportunity.
Overall, Speidell aforementioned he is very pleased with how the legislative session went. With the Hickenlooper administration and its “conservative outlook” gone, he feels Colorado’s cannabis industry is moving into a new era.
“Ultimately, I feel like we’re in a very good place as an industry right now,” he aforementioned. “We can use the next few years to learn once once again about what property are working and what property aren’t.”