Report: Nevada distribution issues hurting recreational cannabis sales

The 50 dispensaries licensed to sell recreational marijuana in Nevada have experienced a 20%-30% decline in sales since an initial explosion of activity on July 1, according to a report by the Nevada Department of Taxation.

The tax department said the drop in sales stem from the dispensaries’ inability to meet demand, according to the Reno Gazette-Journal.

The dispensaries – which are selling adult-use cannabis under the state’s early start program – have seen the supply of marijuana goods they can offer shrink by more than 50% because of Nevada’s ongoing distribution problems, the newspaper reported.

The tax department claimed that dispensaries require “at least nine to 11 deliveries per week with between 12 hours and five days notice,” the Gazette-Journal reported. However, they must wait closer to seven to 14 days.

The department based its findings on surveys of cannabis businesses and alcohol distributors.

The distribution issue is the result of a dispute between the state and the Independent Alcohol Distributors of Nevada, who have gone to court to keep marijuana transportation exclusively in the hands of liquor wholesalers.

On Thursday, a Nevada judge is expected to hear a request by the state’s Tax Director to lift the latest injunction blocking licenses for anyone other than alcohol distributors.

The Associated Press contributed to this report.