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.

Four WA Rec Stores Sell to Minors in Sting Operation

A quartet of recreational cannabis shops in Washington State wrongly sold marijuana to minors in [click to continue...]

New Lawsuit: CO Cannabis Baron Breaking IL MMJ Rules

Yet another lawsuit has been filed in Illinois over the licensing process in the state’s [click to continue...]

Facebook Blocks MMJ Educational Video

regulations

Medical cannabis apparently isn’t socially acceptable in Connecticut. At least, not by Facebook. A marketing [click to continue...]

Former OH Lawmaker Joins Cannabis Legalization Campaign

Former state Senate Minority Leader Eric Kearney, a Democrat from Cincinnati, has been hired by [click to continue...]

‘Worthless’ CBD Bill Heads to Texas Governor

The Texas Legislature has sent a bill allowing CBD treatments for some epilepsy patients to [click to continue...]

Debate Over New MMJ Business Restrictions in Oregon

Oregon medical marijuana developments and cannabis news

Just a week after one legislative committee fought to a standstill over Oregon’s medical cannabis [click to continue...]

Cannabis Cultivation Contender in Illinois Drops Lawsuit

One of several losing contenders in Illinois’ medical marijuana program has withdrawn a lawsuit it [click to continue...]

Denver MJ Law Firm Funds Local Cannabis Professorship

Vicente Sederberg LLP, perhaps one of the best known marijuana legal firms in the country, [click to continue...]

AZ Cannabis Farmer’s Market Club Raided by SWAT

arizona medical cannabis

Nine people were arrested at five locations after an Arizona SWAT team raided a medical [click to continue...]

Denver Grower Loses Court Fight Over Pesticide Quarantine

Denver marijuana cultivator Organic Greens was shot down in court on Friday by a district [click to continue...]

Revamped MA Dispensary Guidelines Make Process More Transparent

Medical marijuana dispensary license applicants in Massachusetts will be judged on their own merits under [click to continue...]

FDA Says CBD Products Don’t Qualify as Dietary Supplements

FDA

The U.S. Food and Drug Administration has ruled that cannabidiol products don’t fit under the [click to continue...]

Edibles Producer May Beef Up Offerings With Infused Meats

Infused products companies are known for their cookies and candies, but producers are getting creative [click to continue...]

License Problems Lead to Layoffs at Cannabis Chain

A marijuana baron in Colorado has been forced to lay off roughly 45% of his [click to continue...]

Marijuana Business Daily