December 18, 2013

Colorado Dispensary Sales Soar 50%, Hit $329M

Medical marijuana sales in Colorado soared 50% during the state’s latest fiscal year, surpassing even the most optimistic projections.

Dispensaries reported record revenue of $329 million from July 1, 2012, through June 30, 2013, according to the latest data from the Colorado Department of Revenue. That’s a healthy increase from $219.3 million in the previous 12-month period. (Note: The numbers include all products sold at dispensaries, including edibles.)

Sales in Denver alone hit $152 million, accounting for about 46% of the statewide total.

The revenue spike bodes well for the state’s fledgling recreational marijuana market. With the medical side growing at a rapid clip, it’s reasonable to assume recreational sales will take off quickly when they begin on Jan. 1, as overall demand seems strong.

The numbers also reflect the strength of the state’s existing medical marijuana dispensaries after a period of consolidation.

Based on the sales figures, Colorado’s 520 dispensaries generated about $633,000 in revenue each – nearly double the average a year earlier. That led to an improved bottom line for most dispensaries.

The state benefited as well, collecting more than $9 million in taxes during the period vs. $6 million the previous year.

While industry professionals expected an uptick in business, few predicted sales would reach this level.

In August, Marijuana Business Daily reported that sales were on track to hit $300 million, based on data through the first three quarters of the fiscal year. However, revenue picked up significantly in the fourth quarter, hitting $94 million. The average for the prior three quarters was $75 million.

The overall yearly increase is tied to an uptick in patient numbers (the registry grew by 7,000), an improving economy, growing acceptance of cannabis and a rise in prices. The fact that the industry is pumping out reliable products also helped fuel sales, as more patients opted for regulated cannabis over the black market.

It’s unclear how medical marijuana sales will be affected by the new recreational market. But there’s a chance MMJ sales could stay strong, given that medical cannabis will be significantly cheaper than recreational marijuana due to higher taxes on the latter.

Nearly 113,000 patients held medical marijuana cards in Colorado as of late September.

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

PharmaCann Poised to Hold Most IL Licenses

illinoismedicalmarijuana

After a medical marijuana company abandoned its cultivation license on Monday in an area west [click to continue...]

WA Could Outlaw Marijuana Vending Machines

Washington State entrepreneurs hoping to sell marijuana through vending machines or drive-up windows took a [click to continue...]

Cannabis Producers Have New Worry: Stoned Rabbits

Cannabis businesses face opposition from anti-marijuana advocates worried about the drug falling into the hands [click to continue...]

Nevada Senator: Secrecy in MMJ Licensing Process a ‘Disaster’

Las Vegas MMJ

Nearly 40% of the 519 businesses that applied for medical cannabis business licenses in Nevada [click to continue...]

Florida’s Second Stab at CBD Rules Questioned

Florida is having a hard time figuring out rules for its CBD industry. The state [click to continue...]

Maine Medical Cannabis Sales Total $16.2M

Dispensaries in Maine sold an estimated $16.2 million worth of medical cannabis last year, while [click to continue...]

Oregon Agency Weighs in on MMJ, Rec Rules

Oregonoutline

Oregon could keep medical marijuana completely separate from recreational cannabis when retail sales begin next [click to continue...]

Missouri Awards Hemp Cultivation Licenses

Missouri has joined the growing number of states legalizing CBD-based medicines. The state awarded cultivation [click to continue...]

150K Pounds of Legal Marijuana Sold in CO Last Year

Dispensaries and retail cannabis stores in Colorado sold nearly 150,000 pounds of marijuana flower last [click to continue...]

Medical Cannabis Demand Outweighing Supply in DC

supply and demand

Recreational marijuana has dominated headlines out of Washington DC this week, as the use, possession [click to continue...]

Another Lawsuit Over MMJ Licensing Process in Illinois

A company that got turned down for one of the Illinois’ 21 medical marijuana cultivation [click to continue...]

MJ Financial Services Firm Secures $2M Investment

A financial services firm that plans to serve the cannabis industry has secured $2 million [click to continue...]

Alaska’s Largest City Enacts MJ Concentrates Rules

Alaska

Alaska marijuana entrepreneurs who want to specialize in infused products or extracts will have to [click to continue...]

Washington DC Mayor Seeks to Ban ‘Cannabis Clubs’

With private marijuana use on track to become legal in Washington DC on Thursday barring [click to continue...]