dispensaries Archives - Green Market Report

Debra BorchardtDebra BorchardtDecember 11, 2018
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MPX Bioceutical

MPX Bioceutical Corporation  (CSE: MPX; OTC: MPXEF) announced that GreenMart NLV, LLC, a subsidiary of MPX, has been awarded four conditional retail marijuana store licenses in the state of Nevada.

GreenMart is a fully-operational cultivation, production, and kitchen facility that produces MPX-branded wholesale products for both the adult-use and medical markets in Nevada. The new dispensaries will operate under the “Health for Life” brand, which is the company’s flagship retail brand. Nevada recorded more than half a billion dollars in cannabis sales during the first year that adult use was legal, according to the Nevada Department of Taxation, exceeding many expectations.

MedMen Enterprises

MedMen (MMEN.CN) (MMNFF) announced that it has closed its previously announced acquisition of a dispensary license in Emeryville, California from B12, LLC.

MedMen paid a combination of cash at closing and shares of MedMen in an undisclosed amount. The transaction closed within 90 days of signing. With the closing of the acquisition, MedMen will have one of only two adult-use cannabis dispensary licenses issued in the City of Emeryville, just outside San Francisco. MedMen currently operates eight dispensaries in Southern California. The Emeryville dispensary will be located in the commercial heart of the East Bay and is expected to open in 2019.

In the last month, MedMen acquired additional licenses in Arizona.  Through the acquisition of PharmaCann, MedMen will own an additional twenty-five licenses across 12 states (permitting operation of an additional 18 retail facilities and 7 cultivation/manufacturing facilities).

Liberty Health Sciences Inc.

Liberty Health (CSE: LHS) (OTCQX: LHSIF)  opened its first South Florida dispensary in the heart of Miami. The new dispensary provides customers in Miami-Dade County, the most populous county in Florida, access to premium quality medical marijuana products and educational services.

Located at 6827 Bird Road, Miami, FL., the dispensary is on one of the oldest and busiest state roads in Miami, with traffic exceeding 70,000 vehicles per day. The company said that it is a primary artery that feeds the main suburbs in Miami such as Coral GablesWest MiamiSouth Miami, Westchester, and Kendall. In addition to the Miami location, Liberty plans to open 3 more dispensaries this month with more to come in 2019, all subject to the receipt of the Florida Department of Health approvals.

Liberty remains committed to ensuring that its premium quality medical marijuana products and educational services are accessible to the more than 2.7 million people who call South Florida home,” said George Scorsis, CEO of Liberty Health Sciences. “When people come to our dispensaries, they know they will find the highest quality medicinal cannabis. They also trust that they are going to have access to the best brands in any category, including PAX and Mary’s Medicinals products.


StaffStaffFebruary 6, 2018
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The Super Bowl turned into a bonus day of sales for cannabis dispensaries. According to data from software company Flowhub, retailers saw a 32% increase in cannabis sales for the 2018 Super Bowl weekend versus last year’s Super Bowl weekend.

Compared to typical weekend sales, Super Bowl weekend sales jumped 7% and transactions climbed by 12%. Flowhub said that transaction sizes were getting smaller, but the volume of people buying marijuana for the celebration had increased.

“The rise in sales over Super Bowl weekend shows that Americans are continuing to incorporate cannabis into these national celebrations just as they would beer or even guacamole,” said Flowhub CEO Kyle Sherman. “Marijuana is becoming part of the fabric of American society and our national pastimes. I think we will continue to see this trend grow as legalization continues to spread.”

The top strains that were sold over the Super Bowl weekend included crowd favorites like Blue Dream, Gorilla Glue #4, Golden Goat, Durban Poison, Chem #4 OG. Perhaps hosts didn’t want to go too crazy and opted for fan favorites.

Dispensary owners shouldn’t be surprised that football lovers are big customers. They could have even capitalized on the holiday by offering Super Bowl specials. A study conducted by Consumer Research Around Cannabis and released in December found that cannabis consumers preferred the NFL over all other pro sports. The study found that 55% of cannabis users/buyers watched the NFL.

“The NFL has been the most successful professional sports league over the past couple of decades – supplanting Major League Baseball,” said Jeffrey Stein, Vice President of Consumer Research Around Cannabis. “In many ways, the league’s success mirrors our nation when it comes to income, age, and education.”

In 2018, cannabis delivery service Eaze experienced a 56% increase in deliveries compared to a typical Sunday over the past year. Eaze’s recently released State of Cannabis Report also found that more and more people are increasing marijuana use across all major holidays, which is a sign of evolving times and attitudes toward marijuana. This is only expected to continue as marijuana goes mainstream and many people celebrate traditional holidays – like Super Bowl, Valentine’s Day, or July 4th – with it.

A few did take advantage of knowing their customers’ preferences and ran specials. A sampling included Sunday Goods Delivery in Arizona that offered “Super Deals for Super Bowl Sunday” with a special on specific strains and swag. Chalice Farms offered Super Bowl specials of 25% off on flower and $4 pre-rolls. Inyo Dispensary in Las Vegas also offered a special on Pre-98 Bubba Kush with 5 free Bluebird pre-rolls.

Next year there may be a cannabis bowl in addition to the puppy bowl.


Debra BorchardtDebra BorchardtFebruary 5, 2018
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It’s the first marijuana unicorn in the country. California based MedMen recently received a $30 million investment from Captor Capital for 3% of the company placing the valuation of the currently private cannabis company at a billion dollars.

Chief Executive Officer Adam Bierman said MedMen is expecting an additional private investment in February that will make the valuation even higher. Following that, MedMen is planning on a reverse merger that will place shares on the Canadian Stock Exchange with the proposed symbol of MMEN. The estimated open of the publicly traded shares is expected sometime in the second quarter. “I used to say we were the biggest pot company in America and that was aspirational, now it’s actually true,” said Bierman. He went on to add, “It was a real heavy lift to get all the signoffs and go through all the governance we had to go through to do the roll-up.”

MedMen did not become a unicorn overnight. It was founded by company President Andrew Modlin and Bierman back in 2010 as a dispensary owner and consulting business. Then the company pivoted towards investments raising capital with the intent to put investors money to work towards various cannabis projects. In October 2017, MedMen announced it was planning on raising $250 million for the Opportunity II fund which would have made it the largest marijuana investment fund to date. Those plans were scrapped and MedMen pivoted again with the decision to go public.

The second fund was doing better than the first fund,” said Bierman, “But it was going to take a year and a half to raise that $250 million. At the same time, a billion has been raised in the Canadian market.” Bierman said he had already been in discussions with various groups in Canada over the past couple of years and the timing finally felt right.

It all lined up. The money being raised in Canada, California’s legal market and the number of people looking for a California play,” he said. Now when people invest with MedMen they are investing in the expansion of the brand, not outside investments.

MedMen believes it will be successful because it remains hyper-focused on just three markets. California, Nevada and New York. “We only compete in constrained markets where there is a high barrier to entry,” he said. He noted that Los Angeles will be trimming its 1,500 illegal dispensaries to approximately 200 licensed operators. “Even if it swells back to 500, it is still cutting down on the total,” he added.

Bierman also acquired licenses in New York for medical marijuana and has leased space on Fifth Avenue for a dispensary planned sometime in the future. In Nevada, three locations are planned, with one of those on the strip in Las Vegas. The Nevada market is already experiencing a heavy tourist trade and California is expected to see the same. New York is a heavily restricted medical market, but many in the industry are planting flags now for what they believe will inevitably become a recreational market. If that were to happen, New York is also expected to do a heavy tourist trade.

MedMen’s choice to stay focused on these three markets leads Bierman to believe it won’t suffer from the typical retail margin squeeze seen in other markets. In Washington, Oregon and Colorado dispensaries have faced market saturation causing falling margins and stiff competition. “For us, it doesn’t apply. The margins will only get better,” said Bierman.

MedMen currently has six locations open in California with a seventh planned. Three are in the process of being established in Las Vegas and should be on board this year. New York has three dispensaries operating in upstate with one planned for Manhattan, but no firm opening date. That puts MedMen at potentially owning 14 locations as of now.

By comparison, Native Roots in Colorado has 21 stores with 59 licenses in the Denver area. LivWell Enlightened Health has 14 locations open in Colorado and holds 43 licenses, plus it operates a dispensary in Oregon for a total of 15.


Debra BorchardtDebra BorchardtNovember 28, 2017
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Cyber Monday may have become the biggest shopping day for traditional retail, but bricks continue to rule the day for the cannabis industry. Cannabis software company Baker tallied up its sales results for the past holiday weekend and Black Friday was the big winner. Sales did rise for Cyber Monday, but it came in third place when compared to Wednesday and Friday.

Cart values rose 11% for Cyber Monday for the dispensaries that Baker works with as order volume increased 746% versus a typical Monday. “Almost every single dispensary client of ours across 15 states ran a promotion yesterday around Cyber Monday and customers responded extremely well to it,” said Baker CEO Joel Milton. “We even had clients launch online ordering in the last few weeks to prepare for this past weekend and they saw instant returns!”

Green Wednesday or Weed Wednesday (the day before Thanksgiving) is still a big trigger for sales and came in second place. Milton noted that last year Baker talked about how people geared up for the holidays with cannabis and the data proves this trend is still ongoing. “We saw online orders rise 774% from our dispensaries with the order sizes and average carts, up 13.6% compared with a typical Wednesday,” he said.

However, Black Friday will now get named Green Friday since it seemed to come out on top and broke records. The average online cart was a whopping $105 with double-digit growth. Baker saw a 568% increase in orders over a typical Friday, the busiest day of a standard week.  Almost every dispensary from its 700+ clients ran a Green Friday promotion, on par with general retail “Black Friday” sales, and the promotions brought cart sizes way up.

The trend in traditional retail found that year over year in-store traffic actually fell on Black Friday as online sales posted almost a 20% growth. The cannabis industry so far has bucked that trend. Even with the majority of dispensaries closed on Thanksgiving, from Weed Wednesday through Cyber Monday, Baker recorded record-breaking stats from its loyalty program with the highest usage of new and repeat customers over the 6 day period ever, while online growth powered by Baker posted even larger gains!

The data supports the efforts by the cannabis industry to go mainstream and normalize in states where it is legal. Dispensaries continue to break records during the holidays as shoppers mostly make their trips to physical stores. Yet, technology is ubiquitous with shopping and so even cannabis consumers are finding ways to incorporate online shopping with cannabis consumption.

“We are also seeing the rise of e-commerce disrupting general retail and even dispensaries,” said Milton. “The engagement rates illuminate how consumers are using technology to beat lines and shop for goods online, and Baker is empowering the cannabis industry retailers with this tool.”

 Dispensaries and their online menus are becoming a destination for many shoppers around Thanksgiving, right next to Walmart, Best Buy, and Amazon.



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