April Pot Sales Show Resilience Amid Shutdown: Cannabis Weekly
April Pot Sales Show Resilience Amid Shutdown: Cannabis Weekly
(Bloomberg) -- U.S. cannabis sales stayed strong in April even as broader retail sales fell by double digits, indicating that the March increase in demand was more than just pantry loading.
Total U.S. retail sales fell 21.6% in April from the year prior, yet pot sales in several states posted significant year-over-year gains -- in some cases, even bigger than in March when demand spiked ahead of Covid-related shutdowns, according to data firm BDS Analytics. Many legal states declared cannabis an essential service during the pandemic, allowing for delivery and curbside pickup.
In states that have legalized recreational marijuana, Oregon stood out with 40% sales growth in April versus 31% in March and 19% in January, according to BDS. Jurisdictions where medical use is legal but recreational isn’t showed even stronger gains, with Maryland sales doubling and Arizona jumping nearly 50%.
Nevada, where the industry is more dependent on tourism than most other states, was an outlier with a 30% drop in April sales.
Interestingly, the strength wasn’t reflected to the same extent on April 20, better known as 4/20 or the biggest pot celebration of the year. In Colorado and California, 4/20 sales were 62% and 55% above the year-to-date average, respectively, but that compared to increases of 148% and 135% in 2019.
Overall, 4/20 sales in California, Colorado, Nevada, Oregon and Washington fell 22% from 2019, according to data from Headset Inc. That may be at least partly because the celebration fell on a Monday this year and a Saturday last year.
Father’s Day
In a sign that times have changed, there are growing indications that more and more dads are getting cannabis as a gift for Father’s Day.
LeafLink Inc., a wholesale pot marketplace, said the overall market share of concentrate products -- most commonly found in vapes -- jumped 30% during the week after Father’s Day last year versus the week before. That compares to an average weekly increase of just 0.9%, likely due to retailers restocking after a jump in demand.
The products that generate the most interest on Father’s Day include many that seem dad-friendly, such as cannabis cigars, mocktails and resins, according to Headset. However, there was also growth in some surprising products during last Father’s Day weekend, including a 79% jump in lip balm purchases and a 55% increase in breath strips and sublinguals.
Events This Week
MONDAY 6/22
- Canopy Growth Corp. holds an investor day
- Prohibition Partners holds a virtual conference, through June 23
TUESDAY 6/23
- Tilt Holdings Inc. will report first-quarter results postmarket
THURSDAY 6/25
- Slang Worldwide Inc. will release results premarket
- Acreage Holdings Inc. and Flowr Corp. report earnings postmarket
Last Week’s Top Stories
Vandalized Cannabis Businesses in Oakland, Calif., Get Grants
New Jersey Assembly Approves Marijuana Legislation, 63-10
Pennsylvania County’s Medical Weed Prohibition Unenforceable
©2020 Bloomberg L.P.