Marijuana Business Factbook 2019

190 Marijuana Business Factbook 2019 Chapter 3 | Financial & Operational Data: Wholesale Cultivators © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. WHAT GIVES WHOLESALE CULTIVATORS REASON TO BE HOPEFUL? CHART 3.08: Cultivation Licenses Held By Retailers In Colorado’s Recreational Marijuana Market Source: Colorado Department of Revenue © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Cultivation Licenses Held By Retailers In Colorado's Recreational Marijuana Market March 2017 March 2019 40% 60% 31% 69% March 2017 March 2019 1.42 1.36 % With A Grow License % Without A Grow License Adult-Use Retail Licensees With A Cultivation License: Average Number Of Cultivation Licenses Held Percentage Of Adult-Use Retail Licensees With A Cultivation License Vertically integrated businesses ― companies that cultivate some or all the cannabis they sell in their retail stores or dispensaries ― are beginning to purchase flower from the wholesale market because of inexpensive, available supply. Wholesale flower can be purchased for less than it costs to produce in some recreational markets. In Colorado between March 2017 and March 2019, the number of adult-use retail licensees who also held a cultivation license declined by nine percentage points, while the average number of cultivation licenses held by retail licensees declined as well ― a sign that some retailers are forgoing their cultivation licenses altogether. As retailers shift away from vertical integration, wholesale cultivators have more opportunity to get their flower on retail store shelves, even if flower is becoming a smaller part of the market. Cultivators specialize in growing, so they are well-positioned to produce the high-quality flower that is in demand through retail.