Nevada Hashish Market Replace: Development Slowed In December; Coronavirus prone to have a huge impact

Released
March 26, 2020

| By

Craig Behnke

and

Michael Regan

Nevada released its December sales data, and while the growth rate was still solid, it slowed somewhat.

19. December
Nevada Marijuana Sales ($) 60,494,485
Y / Y% growth 16.7%

The full dataset by county and retail versus medicine and interactive charts can be downloaded here.

The monthly growth rate appears to be relatively stable, only slowing sequentially by 0.3%. However, you need to look at the same month’s growth rate last year to get more context.

If you stack two year growth rates in the same month (called the two year stack in the table below) to account for the very weak growth rate in December 2019, you can see that this metric has decreased from 38.4% to 32.4% in November.

Even taking into account the strong November and the weak December in 2018, the growth rates in Nevada have compressed somewhat in the last few months compared to the previous year.

Y / Y% growth Two-year pile
November 18 21.4%
December 18th 15.7%
January 19th 25.1%
19th of February 18.8%
19th March 20.6%
April 19th 15.0%
May 19 29.4%
June 19 19.7%
July 19th 23.9%
August 19th 28.5% 51.0%
September 19th 17.9% 37.2%
October 19th 21.2% 45.7%
November 19th 17.0% 38.4%
19. December 16.7% 32.4%

More importantly, we expect a major negative impact for two of the largest cannabis retail locations in Las Vegas, Planet13 and Tryke (the latter is expected to be taken over by Cresco Labs).

With the Las Vegas economy being largely tourism-driven, we expect an even greater negative impact on Nevada cannabis sales when the state reports its March numbers due to closings due to the coronavirus outbreak.

Craig Behnke can be reached at [email protected].

Mike Regan can be reached at [email protected].

Categories: Analysis

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