Marijuana Business Factbook 2019

294 © 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. Appendix Methodology Each year, our in-house editorial team reperforms the research for the entire Factbook from stem to stern. All the data, charts and analysis in this report are created from scratch each time. The cannabis industry evolves and changes so quickly that prior assumptions can quickly become outdated, necessitating new research to substantiate those assumptions and develop new ones. Marijuana Business Daily’s primary goal is to provide cannabis companies and investors with the most reliable and timely data possible. Our organization’s purpose is not to hype the industry, but rather to serve as a trustworthy reality check. When you see differences between our numbers and those of others, bear in mind that our sole goal is to bring cannabis entrepreneurs and investors a realistic, conservative view of the truth ― or as close to the truth as one can get at this time. We are not trying to recruit investors, sell consulting services, land licenses, go public or lobby politicians. Our job is to bring you the numbers. Here’s how we do it: Exclusive Study Data Every year since 2012, the team at Marijuana Business Daily has conducted an industrywide, anonymous online survey of cannabis executives from across the industry as well as marijuana investors. We ask that respondents answer questions related to the finances and operations of their businesses honestly and to the best of their knowledge. The industry has matured over the years, so respondents have a better sense of their companies’ financial and operational performance. Our brand and presence have also matured, so respondents are more likely to share this type of information with us. These factors have allowed us to pose increasingly sophisticated and detailed questions that in turn allow us to present more specific and actionable data. This year’s survey took place from Jan. 29, 2019, through Mar. 11, 2019. A typical respondent answered roughly 45 questions relevant to their sector and involvement with the industry. In total, we received 672 qualified responses, the demographics of which break down as follows: Ancillary Services Firms 213 Ancillary Technology & Products Companies 109 Vertically Integrated Medical & Recreational Retailers 83 Producers/Processors 73 Cannabis Product Manufacturers 52 Investors 51 Stand-Alone Medical & Recreational Retail Stores 44 Wholesale Cultivators 33 Testing Labs 14 These figures and much of the data and statistics throughout this book represent responses from individuals who are operating in a legal capacity in the U.S. cannabis industry. We take an extremely conservative approach and exclude data for businesses/respondents whose legal standing is unclear in any manner.