Marijuana Business Factbook 2019

191 © 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. Financial & Operational Data: Wholesale Cultivators | Chapter 3 MJBIZDAILY.COM CHART 3.09: Colorado’s Recreational Marijuana Market: Percent Change In Annual Retail Sales & Price Of Wholesale Flower Source: Colorado Department of Revenue © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Colorado's Recreational Marijuana Market: Percent Change In Annual Retail Sales & Price Of Wholesale Flower 2015 2016 2017 2018 -20% 0% 20% 40% 60% 80% 100% Percent Change Vs. Previous Year 90.5% 7.0% 49.2% -2.9% -24.5% 26.6% -14.0% 11.2% Retail Sales Wholesale Flower Price Retail sales in Colorado continue to climb despite declines in the wholesale price of marijuana. This suggests an increase in demand because of one or more of the following factors: • An increase in the number of in-state customers (i.e., residents who make regular purchases). • Greater consumption by existing users. • A higher share of consumption happening in the legal market (as opposed to the illegal market). A larger base of more frequent consumers bodes well for the long-term prospects of cultivators that can ride out this period of intense competition and low prices. Cultivators who are willing to wait out the uncertainty will need to find a way to retain their competitive advantage under unfavorable economic conditions. This may be achieved by capitalizing on cost-cutting strategies to lower costs of production, establishing a strong brand identity or scaling up to achieve economies of scale.