Marijuana Business Factbook 2019

218 Marijuana Business Factbook 2019 Chapter 4 | Financial & Operational Data: Cannabis Product Manufacturers © 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. CHART 4.12: California’s Recreational Cannabis Market: Product Sales & Availability Following End Of Six-Month Transition Period Source: Headset © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. California's Recreational Cannabis Market: Product Sales & Availabilty Following End Of Six-Month Transition Period -50% -40% -30% -20% -10% Beverages Capsules Dabbable Concentrates Edibles Flower Pre-Roll Tinctures & Sublinguals Topicals Vape Pens -46% -49% -44% -36% -21% -41% -29% -30% -9% Jan Feb Mar Apr May Jun Jul 0K 1K 2K 3K 4K 5K 6K 4,700 4,800 4,200 3,600 5,600 4,000 5,400 Total Distinct Products Sold By Month In 2018 Percent Decrease In Available Products From June 2018 To July 2018 California cannabis product manufacturers were put to the test in July 2018 as the state ended its six-month transition period and moved from one set of emergency rules to another, updated set of emergency rules. A significant aspect of the new rules was compliance with new testing guidelines, with all product not meeting the new standards needing either to be sold by June 30 or destroyed. Cannabis product manufacturers scrambled to comply by the cutoff date but struggled with increased testing costs, gridlock at testing facilities, issues with locating and taking on the cost of compliant packaging and unclear ― and, in some cases, contradictory ― regulations. The sudden reduction in competition on July 1 ― the number of available products in the beverages, concentrates, edibles and tinctures and sublinguals categories decreased by at least 40% each ― created substantial opportunities for those companies that were able to come into compliance in advance. Companies that were not able to come into compliance were forced to move product at fire sale prices in June to mitigate their overall losses.