Analyst says California is not Meeting Revenue Projections for Commercial Cannabis
According to BDS Analytics, a leading analytics firm, consumers bought an estimated $339 million worth of marijuana products from retailers in California in the first two months of cannabis legalization, which is 13 percent less than state projections. The state has estimated that retail cannabis sales for the remaining six months of this fiscal year would be $1.15 billion, which is about $383 million every two months. Greg Shoenfeld, vice president for operations with BDS Analytics, said the company collects sales data from dispensaries and uses statistical modeling to project statewide sales. Kristi Knoblich, board president of the California Cannabis Industry Association and co-founder of Kiva Confections, a manufacturer of edible cannabis products, stated the following regarding the revenue projections,
Sales are happening but they’re not happening in the regulated market.
The cannabis industry has also been complaining about how high taxes and local-government bans are driving consumers to the black and gray markets. It appears that this year’s California figures seem to support industry concerns about cannabis taxes and regulations. In February, over 6,000 dispensaries and delivery services in California were listed on Weedmaps, which is an Irvine-based company that lists marijuana dispensaries. By contrast, the state had licensed 580 dispensary and delivery companies at that time. We will have to wait and see if revenue from commercial cannabis sales increases.