Several cannabis data providers have confirmed that this year’s April 20 holiday was the highest ever – in sales. Despite falling in the middle of the week, sales were determined to be significantly higher than an average Wednesday and the highest day of sales in the past four years. Perhaps because some of these states have more mature markets. shoppers were spending slightly less on average, but there were more people shopping.
Cannabis consumer product preferences are also shifting year over year as more customers are reaching for something different from traditional flower for 420. Edibles and concentrates are winning over consumers. The data providers say that this can be partially attributed to the growing maturity of both cannabis markets and the consumers within them. The East Coast is quickly becoming the hot spot of the cannabis industry as Massachusetts won the day. While online ordering continues to have fans even after the pandemic, cannabis consumers continue to love going to their brick & mortar store.
Headset reported that in the US, the average cannabis store experienced 148% higher sales on 4/20 than over the previous four Wednesdays. Average discounting increased by 72%.
In Canada, the average cannabis store saw sales grow by 65% and average discounts rise by a whopping 92%.
In both countries, Headset said that sales growth was driven primarily by increases in total transaction volume. In the US, the median cannabis store saw a 107% increase in transaction volume on 4/20 in comparison to the previous four weeks. In Canada transaction volume at the median store increased by 57%. However, in the US customers purchased more per transaction on 4/20, with the median store seeing a 19% increase in average basket size. In Canada, average basket size at the median store only increased by 3%.
As usual on holidays, Headset said that beverages were the top-performing products in both countries. On 4/20 sales of Beverages grew by 110% in Canada and by 176% in the US. Pre-Rolls also performed well in both markets with 74% growth in Canada and 150% growth in the US. In Canada, Edibles were the second-best performing product category on 4/20 with 83% sales growth. Concentrates took the silver medal in the US with 155% growth.
Flowhub’s data agreed with what Headset experienced. The company said that Edibles saw a major jump in popularity in just a year, climbing 5%. Flower was also less popular this 420, while concentrates had a slight jump year over year. “It’s clear that consumers are beginning to move away from traditional products like flower and are consuming more edibles and concentrates instead. There is also a slight decrease in accessories, clones, and seeds – potentially caused by a maturity in markets, people don’t need as many accessories if they’re regularly consuming.”
Flowhub also noted that online orders made up 3% of all transactions on 420 this year, the rest were in-store. Also, more than twice as many online orders were placed on 420 in 2022 vs. 420 in 2021.
Jane Technologies reported that stores using Jane in both 2021 & 2022 saw an 11% increase in online sales. Overall Jane had ~35% growth in GMV between 2021 & 2022. Stores using Jane in both ‘21 & ‘22 saw a 34% increase in edible sales. Stores using Jane in both ‘21 & ‘22 saw a 43% increase in vape sales. Stores using Jane in both ‘21 & ‘22 saw a 22% increase in flower sales. Stores using Jane in both ‘21 & ‘22 saw a 10% increase in extract sales.
Jane said that the average cart size on 4/20 increased 15% compared to the previous four Wednesdays and overall sales on 4/20 increased 160% compared to the previous four Wednesdays.
East Coast Wins
Flowhub reported that the East Coast was recording very high average revenues per location. Flowhub wrote that “This is likely due to how new the markets are and the lack of competition. There are also likely high numbers of people driving in from out of state to purchase products in these states whereas states like California and Colorado are more mature and accustomed to cannabis. Oklahoma’s very low average sales per location can be attributed to the massive number of licenses in the state. The competition is too high for locations to haul in the same revenues as lower licensed states.”
Top-selling states according to Flowhub were as follows:
● Massachusetts had the highest average revenue per location on 420 of all Flowhub markets. The state also had the highest average basket value ($130).
● Maryland had the second-highest average revenue per location on 420 of all Flowhub markets.
● Oklahoma had the lowest average revenue per location of all Flowhub markets.
● Some states with very high sales compared to an average Wednesday:
○ Michigan’s average sales were 175% higher than an average Wednesday.
○ Maryland’s average sales were 156% higher than an average Wednesday.
○ California’s sales were 134% higher than an average Wednesday.
Jane also reported that it experienced year-over-year growth for these states: Arizona, Michigan, California, Colorado, Illinois, and Florida.
1. Stores using Jane in both ‘21 & ‘22 saw a 100% increase in sales YoY.
1. Stores using Jane in both ‘21 & ‘22 saw a 54% increase in sales YoY.
1. Stores using Jane in both ‘21 & ‘22 saw an 18% increase in sales YoY.
1. Stores using Jane in both ‘21 & ‘22 saw a 10% increase in sales YoY.
1. Stores using Jane in both ‘21 & ‘22 remained flat in sales YoY.
1. Stores using Jane in both ‘21 & ‘22 saw a 15% decrease in sales YoY.
1. Stores using Jane in both ‘21 & ‘22 saw a 20% decrease in sales YoY.
All of these dispensaries have to place orders for inventory and Leaflink has excellent data that shows how the companies were preparing for the big day. The company said that overall, sales trended upwards in the weeks prior to 4/20 in 2022. “Sales increased week-over-week, starting on 3/27 with 6.1% growth. The next week sales grew 6.9%, and an additional 2.7% in the final full week of sales prior to 4/20. Each week set a new high watermark for total sales in LeafLink, and the week of 4/10 is now the biggest week for sales in LeafLink history.”
When it came to specific state data, Leaflink noted that the vast majority of states saw sales grow in the 30 days before 4/20 with Colorado being the only exception. States included below (CO excluded) grew by varying percentages from 14.9% in Washington to 44.3% in Massachusetts over this time period. Colorado saw sales decrease by 2.3% in the 30 days prior to 4/20 compared to the previous period.
2021 was my initial formal foray into the commercial cannabis space. Joining Flowhub as COO presented an exciting opportunity to be a part of a new and emerging industry.
What made you decide to work in the cannabis industry?
I was originally introduced to the cannabis industry by a friend. His venture partners with a university to teach marginalized students the ins and outs of the cannabis business — from seed to sale. This opportunity, coupled with the rapid advancement of technology in cannabis and the overall need for drug reform in our country, drove my decision to work in this space.
Do you feel there is more opportunity for Black Americans in the cannabis industry versus a more traditional industry? Yes or No?
No, I can’t say with absolute certainty that there is more opportunity in the cannabis industry than in a traditional industry. Given the fact that cannabis is still relatively young as an industry and it’s not legal across all states, the opportunities are still limited. Other established industries are more plentiful in the opportunities for Black Americans just through the sheer size and diversity of jobs requiring all levels of experience and skill. As the cannabis industry matures, more opportunities will open up.
What is the most successful social equity effort in your opinion?
It’s difficult to gauge one social equity program against another. In general, I am encouraged by the efforts made by all social equity programs. They are providing greater access to resources and thus a higher chance that marginalized communities can take part in owning in the success of this burgeoning industry. My only concern is that these programs may not go far enough. Just providing access to startup capital isn’t going to create the outcomes that we desire. These programs should incorporate some version of ongoing mentorship so that these businesses have a higher chance of thriving and competing against the larger corporate entities that are beginning to overtake this space. These cannabis corporations may ultimately push out smaller mom and pop players, thereby creating the non-diverse industry that we are trying to solve with these social equity programs.
I am proud of the work we are doing at Flowhub with our Social Equity Program. Since launching in June 2021, we’ve awarded nearly $3 million in free software to eligible recipients, providing them the point-of-sale solutions needed to run their business.
What is your personal goal for 2022?
This year will be momentous for me personally. I have just completed building a home where my family hopes to reside for some time. In addition, my SO and I are expecting our first child in July. I also wouldn’t mind shaving a few points off my golf handicap but that may be wishful thinking with everything else going on.
Cannabis data providers have weighed in on the 2021 holiday sales for dispensaries with some surprising results. The data included the Thanksgiving holiday and then tracked sales through to the end of Christmas. Most agreed that sales increased in 2021 despite the resurgence of the new Covid fear with the variant Omicron. Consumers upped their cannabis shopping throughout the month of December causing Christmas week comparisons to be less strong than in the past. Still, sales remained elevated leading up to Christmas in both the Canadian and U.S. markets.
Headset said that its data showed that Canada saw arise in sales of more than 26% while the US saw an increase of 17% during the holiday month. Headset reported that in Canada, sales were up by 8.9% versus the previous four Fridays. In the US,sales increased by 6.0%.In Canada, Saskatchewan had the largest increase in sales, up 12% over theprevious four Fridays. In the US, Michigan had the strongest showing with a13.7% increase in total sales.
LeafLink is a wholesale cannabis platform and as such has visibility into orders thatlicensed retailers place from the brands they carry. In December, sales through LeafLink increased by 6.8% whencompared to the average growth rate over the prior three months – signaling that theholiday season positively impacted sales this year.
Cannabis delivery company Lantern said it saw consumers start stocking up their holiday stashes earlier this season. Specifically the company noted that sales started to increase the second weekend of December with a +56% increase in daily order volume. “That trend continued through December, a +26% lift in order volume and +7% increase in AOV the week before Christmas, peaking the day before Christmas Eve with a +51% lift compared to our daily average. Lantern reported a +110% lift in order volume the three days before New Year’s Eve vs. three days prior, peaking three days before NYE with a +56% lift in daily order volume.
Springbig reported that starting from a week before Christmas and going into New Year’s Day, it saw (excludingChristmas day) $276 million in total sales with a daily average gross of $20.82mm.This was an 11% increase over the same period last year. “In terms of how big the increase was, as compared to normal days of the year, we see thatlast year had a roughly 50% increase over normal while this year we only saw 21%.This could be due to the major Covid outbreak that has occurred recently.Another hint that this may be the cause is the fact that last year Jan 1st saw $15 million in saleswhile this year only saw $13 million.”
While some of the ingestible categories got big lifts, flower continues to command the market. Leaflink said that flower was the most popular category, making up around 32% of sales throughLeafLink in the month prior to the holidays. Cartridges were the second most popular,at around 24% market share. Leaflink said that both were relatively consistent with the previous month,showing that buyers did not significantly change their purchase habits into differentcategories for the holiday season. The most popular Flower subcategory in the month leading up to the holidays in 2021 was Packaged Flower at 15% of sales, and the second most popular was Bulk Flower at 14.7%.
Jushi (OTC: JUSHF) also reported that Flower remains the number one category leader in demand and interest from patients and consumers. “However, we saw an aggressive uptick trend in disposable and edible sales in 2021,” said the company.
Discreet products were also big winners. Perhaps consumers wanted to have their cannabis but not be obvious about it when visiting friends and relatives. Lantern said, “What’s interesting about our trending products in Boston for the holiday season, was that our most popular products were discreet and designed to share – predominantly edibles, drinkables, and pre-rolls (typically flower products are our best-sellers). Similarly in Detroit, pre-rolls were our most popular holiday product (party-ready for individual sharing and more discreet).”
Headset’s data seemed to agree. Their data from Canada showed that the categories that saw the largest sales increase on New Year’s Evewere: Tincture & Sublingual (+30%), Concentrates (+23%), and Beverages(+21%).In the US, the categories with the largest sales response were: Beverages(+18%), Flower (+8.5%), and Concentrates (+7.8%).
Jane Technologies noted that edibles online sales were up over 10% in December 2021 compared to the previous three months and topicals online sales were up over 9% in December 2021 compared to the previous three months. They noted that Airo Black Mamba Specialty Pod online sales were up over 290% in December 2021 compared to the previous three months and –Incredibles Cookies & Cream 100mg chocolate online sales were up over 200% in December 2021 compared to the previous three months
With so many shoppers, it was a wonder why anyone would offer a discount, but then people love a bargain. Plus competition is heating up in some markets. Flowhub said that dispensaries were discounting for the holidays, but the discounts themselves weren’t huge.
Typical Day = 18% of transactions include a discount
Christmas Eve = 39% of transactions included a discount
Christmas Day = 40% of transactions included a discount
New Years Eve = 39% of transactions included a discount
New Years Day = 38% of transactions included a discount
Across the Christmas and New Years’ holidays, the average discount amount stayed consistent at $5.00 off their total amount.
Headset’s discount data found a modest increase in discounting on New Year’s Eve in bothCanadian and US cannabis markets. Noting that tThe average discount in Canada on New Year’s Eve was 4.0%, up by about 10%over an average of the previous four Fridays(3.6%).The average discount in the US on New Year’s Eve was 21.1%, up by about 13%over the previous four Fridays (18.6%).
After all that holiday drinking, many people look at January as a month to sober up and give their bodies a break from all that alcohol. Lantern said, “As we head into the new year, we’re seeing consumers really embrace “Dry January” with our record-best Monday, +29% lift in daily order volume.”
The numbers are in and it’s official—Green Wednesday 2021 was a big one for the cannabis industry, while Black Friday fizzled in comparison. Green Wednesday saw cannabis sales increase across the U.S. Black Friday did not have the sales growth seen in previous years, though some data (Flowhub) showed larger order values and bigger discounts than Green Wednesday. Data from market analytics and cannabis companies like Headset, LeafLink, Lantern, Glass House Brands, and others show common trends regarding most popular products and year-over-year sales numbers. Using this data, companies extrapolate some possible variables affecting this year’s numbers, including a decreased emphasis on Black Friday door-buster deals targeted towards packing stores with bargain-hungry shoppers, focusing instead on online sales spread out over the holiday season (Springbig).
Headset’s Green Wednesday 2021 data showed a 33% increase in total retail sales compared with the four previous Wednesdays, with a marked trend of customers taking advantage of promotions on offer to receive discounts on holiday shopping, with the average discount up 29 percent. This was in contrast to a slight decrease in sales (-4.6%) on Black Friday relative to the previous four Fridays, despite the fact that average Black Friday discounts increased by 56% from the previous four Fridays.
Flowhub’s data showed an average Green Wednesday discount of $9.57 (up from $8.94 in 2020) and an average Black Friday discount of $11.09. Notable in Flowhub’s findings was the conclusion that while Green Wednesday was a big sales day, Thanksgiving weekend as a whole had lower pre-tax sales than a typical Wednesday through Sunday. Jushi Holdings (OTC: JUSHF) didn’t seem to notice, however, experiencing its best online sales day in the company’s history on Green Wednesday 2021 with an 80% uptick in sales during Thanksgiving week and online ordering up 200% on Green Wednesday. Eaze saw a 135% increase in deliveries compared to a typical Wednesday in 2021, making it their second biggest day this year by both numbers of deliveries and sales after 04/20/21.
Edibles Most Popular For Green Wednesday
Headset’s data on category winners by sales numbers showed edibles leading the pack with 67% growth on Green Wednesday and 11% on Black Friday. Topicals and tinctures took second and third place while beverages saw a whopping 86% growth. Leaflink showed flower holding the top spot for most popular category in the month leading up to Green Wednesday making up 33% of sales with cartridges coming in second up 24.9% from the previous month. Jane Technologies saw its biggest category sales increases in edibles (94%), vapes (84%), and flower (73%) compared to the previous three Wednesdays, with chocolates and disposables leading subcategory sales by increases of 126% and 100% respectively. For Glass House Brands (OTC: GLASF), flower, carts, and edibles were the big winners.
LeafLink’s data measured the growth of sales (10.61%) during the month leading up to Green Wednesday compared to October, with the biggest sales increase (16%) coming during the week of November 14th over the previous week. The run-up to Green Wednesday broke records for cannabis company Lantern, with a 44% rise in average daily sales leading up to Green Wednesday, though there was no significant change to daily Average Order Value. As the cannabis economy continues to transform to meet a shifting retail environment and shopping behaviors adaptive to these uncertain times, market analysts and retailers will continue to keep an eye on Green Wednesdays and Black Fridays to come as annual bellwethers for the market.
Cannabis retail point-of-sale company Flowhub, has raised $19 millionwith some help from Headline, Poseidon, and a personal investment from world-renowned rapper, entrepreneur, and entertainment mogul Shawn “Jay-Z” Carter. The company has so far raised to nearly $50 million and is currently valued at over $200 million.
“We are thrilled to announce this capital raise. Headline is an incredible Silicon Valley-based venture capital firm, Poseidon is a pioneer investor in the cannabis industry and Jay-Z is a cultural and creative global force no matter the industry he is involved in,” said Kyle Sherman, founder, and CEO of Flowhub. “I couldn’t think of a better group to be working with as we take this company to the next stage. This funding not only underscores the significant value that Flowhub provides to our customers, but also the maturation of the cannabis industry at large. We remain committed to developing innovative products that help our retail customers run better businesses.”
Flowhub said the additional money will speed up its expansion into emerging markets, develop its product line and grow its social equity program. Launched in June 2021, Flowhub’s social equity program invests in those who have been adversely impacted by the War on Drugs. Per the program, eligible social equity business owners receive Flowhub’s POS software discounted at $4.20 for up to three years, the mobile Stash and Greet apps, the View app, and free implementation. So far, Flowhub has awarded over $1 million worth of software products to eligible cannabis entrepreneurs via this program.
Flowhub processes more than $3 billion in cannabis sales annually and is trusted by over 1,000 dispensaries. Built specifically to serve the highly regulated cannabis industry, Flowhub helps dispensaries operate compliantly, effortlessly expand, and deliver exceptional guest experiences. By automating the compliance process that cannabis retailers have to deal with on a daily basis and helping dispensaries sell smarter, Flowhub is working to enable a future where cannabis is accessible to every adult on planet Earth.
Recently, Flowhub appointed Leandre Johns as Chief Operating Officer. The former Uber executive was brought in to help shape the business for the next stage of growth. The company also announced a recent integration by Weedmaps (NASDAQ: MAPS) to streamline online ordering for consumers and Flowhub-powered cannabis retailers.
Cannabis consumers flocked to dispensaries on the Friday of this past Labor Day weekend resulting in the third-largest day for cannabis sales in 2021. Unfortunately, that was the only good news for cannabis retail. Overall, sales dropped in 2021 versus 2020 for the last weekend of summer. Analytics firms Headset and Flowhub both reported that sales dropped for the regions they cover. While LeafLink the B2B wholesale e-commerce marketplace company saw an early jump in orders for the holiday, orders seemed to taper off as the weekend got closer.
According to cannabis data and analytics company Headset, Labor Day weekend (Friday 9/3 through Monday 9/6) actually saw aslight decrease (-3.2%) in average daily sales in comparison to the previousfour weekends. On a positive note, though on Friday 9/3/21 alone,we see a different story. Sales on September 3rd, 2021 were up 10.3% over theprevious four Fridays and drove this day to be the third-largest day of total UScannabis sales so far this year. All data for the US is from the following markets: CA, CO, MI, NV, OR, PA, WA.
Beverages For The Win
Headset said that for the full holiday weekend, the only categories to see sales growth overthe previous four weekends were Beverages (+8.4%) and Edibles (+4.2%). “Whenwe look at only Friday, September 3rd instead, all categories saw positivegrowth with Edibles (+15.1%), Capsules (+13.3%), and Vapor Pens (+11.2%). Thecategory with the lowest sales lift was Concentrate with +2.8% growth over theprevious four Fridays.”
Dispensaries must’ve had an inkling that sales might be down because there was a slight increase in discounting over the entire holiday weekend. Headset said that the average discount over Labor Day Weekend 2021 was 13.7%, up from 12.3% overthe previous four weekends – a relative increase of 11.8%. While Friday,September 3rd was the highest sales day of the weekend, Labor Day itself(Monday 9/6) had the highest average discounts of 15.1%, up 27% over theprevious four Mondays.
On the wholesale side of the business, it seems dispensaries were planning ahead for a busy holiday. LeafLink said that sales increased 4.33% during the month leading up to the 2021 Labor Day holiday versus a 2.39% increase across the same period in 2020. Leaflink also said that the most significant GMV (gross merchandise value) percentage increase came during the week of 8/15, increasing 4.5% over the previous. Sales then leveled off for the rest of the weeks leading up to Labor Day.
Leaflink outlined the category demand as follows for the holiday:
Flower remained the most popular category in the month leading up to Labor Day, driving 36.33% of GMV compared to 35% of GMV in the month prior to Labor Day 2020 and 35.37% in the previous month.
The second most popular product category leading up to Labor Day 2021 was Cartridges, which made up 22.29% of GMV (about a 1% increase over the previous month). This is a slight drop over 2020 when Cartridges made up 24% of GMV in the month before Labor Day.
Flower saw significant growth during the week of 8/15, increasing 23% in GMV compared to the week before then grew another 9.9% in the following week. This could signify an increase in dispensaries stocking up on Flower in advance of Labor Day 2021.
Packaged Flower was the most popular subcategory, making up 17.47% of total GMV in the month before Labor Day, with Bulk Flower coming in second at 16.29%.
The most popular products in the month leading up to Labor Day in 2021 were: ○ Slurricane Packaged Flower – MUV (FL)
○ Gelato Cake Packaged Flower – District Cannabis (MD)
○ Wedding Cake Packaged Flower – Pacific Stone (CA)
○ Blueberry Indica Gummies – MUV (FL)
○ Moon Rocks Concentrates – UBaked (MI)
The most popular Cartridges in the month leading up to Labor Day 2021 were: ○ Biscotti – Platinum Vape (MI)
○ Sour Jack – MUV (FL)
○ Double Bear Honey Cart – Terrapin (PA)
○ Pink Lemonade – MUV (FL)
○ Pie Driver – Platinum Vape (MI)
Flowhub provides point-of-sale, inventory, and other dispensary analytics. That company found that on average, Labor Day normally outperforms the typical Monday by 17-27%. Unfortunately, Flowhub’s data agreed with Headset as this year’s Labor Day 2021 was right on par with (actually slightly less than) a typical Monday. Flowhub said that there didn’t appear to be any holiday bumps in sales or transactions for Labor Day Monday and sales dropped by 9% versus the 2020 holiday.
Maybe the pandemic lockdowns of 2020 caused consumers to buy more last year? Labor Day’s Monday 2020 sales increased around 10% versus 2019. Just one year later as more people were able to get out and return to a less restrictive lifestyle, Labor Day weekend sales dropped 35% compared to 2020. On average, Labor Day weekend outperforms the typical (median) weekend by 15-21%. Flowhub said that Labor Day weekend 2021 sales were 27% less than sales on a typical summer weekend.
Cannabis tech company Flowhub has raised an oversubscribed $23 million Series A financing round led by e.ventures, Evolv Ventures — the venture fund backed by Kraft Heinz — and Poseidon, with contributions from investors 9Yards Capital, former NBA commissioner David Stern and Iqram Magdon-Ismail, the co-founder and former CEO of Venmo, among others.
Evolv Ventures’ goal is to invest in new tech companies innovating within the food industry. The firm was created to help Kraft Heinz stay on top of the food industry’s changing trends. However, it isn’t limited to food investing and also looks at new consumer models and consumer insights.
The Flowhub platform is used by dispensaries making it easier for them to run their operations. Some of the features include the Stash app, a mobile inventory management solution, the Cashier app for enhanced front-of-house point-of-sale capabilities with iPad/tablet compatibility, and Order Ahead with integration partner Dutchie for a streamlined in-store pickup process. Flowhub said it also added new technology integrations with LeafBuyer and Leafly as part of its commitment to creating a robust partner ecosystem that enables customers to build their own custom cannabis tool stack.
“What we are experiencing right now is an end to cannabis prohibition and Flowhub is on the front lines of this movement,” said Kyle Sherman, founder and CEO, Flowhub. “Every legal transaction completed with the Flowhub retail platform is a positive step forward, and we are committed to helping our customers build thriving cannabis businesses. With this investment, we will continue to automate the cannabis supply chain, retail and reporting processes and bring to market technology solutions that are not only shaping the cannabis retail business, but also driving forward the future of legalization and de-stigmatization.”
“We are excited to join Flowhub at such a crucial time in the company’s overall growth journey,” said Jett Fein, partner, e.ventures. “As the demand for legal cannabis products rises across the U.S., Flowhub is focused on using technology to advance the future of the cannabis industry and has built a cloud platform with a suite of applications that enables dispensaries to provide superior and tailored consumer retail experiences in this highly regulated industry.” According to Tech Crunch, the firm e.ventures is a 20-year-old, early-stage venture outfit that has raised $400 million in fresh capital across two new funds: a $225 million U.S.-focused fund that’s based in San Francisco, and a $175 million fund that’s focused on Europe and based in Berlin.
Flowhub has experienced tremendous growth over the last year, increasing revenue by 200 percent and doubling its customer base across 11 markets, which includes household brands like Cookies, Dr. Greenthumb’s, Green Dragon, Nectar and Starbuds. The company also added strategic roles to its executive team — including SaaS enterprise tech leader Dave Smith as CRO — grew its female leadership across key strategic business roles such as marketing, product management and finance and has already increased headcount by 50 percent in 2019. Flowhub also recently announced its new headquarters at the former Slack HQ near downtown Denver’s Union Station and three satellite offices to support continued expansion efforts.
“Cannabis is not an industry that you just jump right into,” said Emily Paxhia, managing director, Poseidon. “The compliance and regulation aspects make this a unique industry and Flowhub is one of the leading cannabis tech companies that is taking a meticulous and strategic approach. We saw the potential for Flowhub’s technology and mission early on and we’re thrilled to continue to support them in delivering the cannabis retail experience of the future.”
The $23 million of financing closed on this round brings the company’s total funding to $27 million. This marks the first cannabis tech investment from round leaders Evolv Ventures and e.ventures and is indicative of the increased appetite to bet big on a maturing market segment with an industry leader like Flowhub. With this injection of capital, the company will continue to invest in product innovation, hire top technical talent and expand its partner ecosystem with future technology integrations and collaborations through an open API approach.
Cannabis consumers love a good holiday and July brings two in quick succession. First, of course, is the Fourth of July. Cannabis software company Akerna Corp. (NASDAQ: KERN) said that it expects Americans will spend more on cannabis this Fourth of July than chicken for their BBQs.
According to Akerna, Fourth of July-week (June 28 – July 4) cannabis sales are expected to increase by 80% compared with an average week, ringing in approximately $450 million in total sales nationally. If this keeps up, Akerna said that by 2020 Americans could end up spending more money on cannabis than they would spend on wine for the Fourth of July.
While sales are expected to begin on the weekend before the holiday, increased sales are expected to continue throughout the week. Since the Fourth falls on a Thursday this year, Wednesday’s sales are forecast to be the busiest of the year.
Akerna released these retail sales figures that they compiled through a statistically relevant analysis of the cannabis retail market analyzing data tracked in MJ Platform across 20 states, Puerto Rico and Washington D.C.
July 4th by the numbers:
The order total on average will be $3.43 more than the average daily order total of $97.57.
Average basket count for 2019 is 2.64. 4thof July week will ring in an average basket count of 3.12.
Cartridge/Pens are expected to take a category share increase of 5%, as the second most popular category purchased June 28-July 4.
In states where flower is legal, flower will be the largest sales category with 40% of all sales for retailers.
“Utilizing the largest data set in the cannabis industry, we are able to provide a unique insight into market peaks and trends to anticipate and prepare for their busiest days,” said Jessica Billingsley, Akerna’s CEO. “Cannabis sales rival the sales of traditional holiday staples. It’s time to stop looking at this industry as niche or marginal. The growth of consumer adoption is explosive as the legalization of cannabis expands and Americans across all demographic segments are incorporating cannabis into their everyday lives.”
However, the fun doesn’t end with the Fourth of July. Just as 4/20 holds significance for cannabis consumers, there is the extracts holiday on July 7. 7/10 looks like OIL spelled backward. Some take it a step further and call it Happy Dab Day to celebrate the concentrate side of the market. There is a Dab Day celebration in Miami on July 13 this year sponsored by Trulieve.
Flowhub, the seed-to-sale software company tracked a sample set of cannabis consumers on this holiday over the course of one year, and the company found that in 2017, concentrate sales rose 88% versus 2016. In 2017, Dab Day sales increased 34% for that specific day of the week. The most popular type of concentrate is shatter (by a large margin), followed by wax, vape cartridges and live resin.
Dave Smith is the Chief Revenue Officer at Flowhub responsible for overseeing the sales strategy and execution for revenue-generating teams. Dave has an extensive background in leadership roles, building world-class SMB and Enterprise sales teams at companies like Ceridian, Citrix Systems, and Convercent. Prior to Flowhub, Dave accelerated revenue growth from $3.4M to $21.5M in 3 years at Convercent as EVP of Sales. Dave received his Bachelor of Business Administration in Marketing at the University of North Texas.
Education profile: BBA Sales & Marketing, University of North Texas 1997
Most successful professional accomplishment before cannabis: Two things come to mind – one team and one individual.
My proudest professional achievement was growing Convercent over a nearly 4 year period of time over 500 percent, leading them through multiple fund raises and successfully on-boarding over 650 enterprise customers globally while growing the company to over 160 employees.
My proudest individual achievement was winning Citrix Systems Global Innovation Award in 2014 for the impact my playbook and processes had on our global revenue and go-to-market strategies.
Company Mission: Flowhub’s mission is to become the defacto inventory management and point of sale software for cannabis retailers in the U.S. Custom-built for the highly regulated industry, Flowhub provides retailers with the most intuitive, compliant and extensible solution to meet challenges unique to dispensaries. Flowhub already empowers over 500 cannabis retailers to grow revenue, stay compliant and manage inventory to create a seamless experience for their customers, and we’re committed to continually delivering on that mission.
Company’s most successful achievement: When our customers win, we win. We are obsessed with our customer’s success and are proud to serve over 13 percent of the dispensary market in just a few short years of business. Each and every day is a reminder of the positive influence we have on this growing industry and we are so humbled and honored to be able to drive meaningful business change for our customers and more importantly, support their pursuit of the American dream.
Has the company raised any capital (yes or no): Yes. Flowhub raised a total of 3.3M in seed funding to date.
If so, how much?: 3.3M
Any plans on raising capital in the future? As a fast-growing company, we’ll keep our options open for future fundraising opportunities.
Most important company 5 year goal: We want our target market to catch the “Flow” and hopefully trust us to help them drive continued dispensary success by leveraging the power of the Flowhub inventory management and POS platform. We hope that dispensary operators will join the Flowsquad revolution by selecting our company as the first and preferred choice for all of their cannabis business needs.
With 10 states having legalized recreational cannabis and 33 states having legalized medical cannabis, the prospects for increased legal cannabis sales in America this April 20, the original cannabis holiday, are greater than ever.
According to a recent report from Flowhub, a Colorado-based provider of point-of-sale software for dispensaries, with April 20 falling on a Saturday and new consumers continually entering the legal market, this year’s holiday will be the biggest sales day for retailers in 420 history.
Flowhub came to this conclusion by examining the growth of 420 from 2017 to 2018, with cannabis sales on April 20, 2018, growing by more than 30% compared to April 20, 2017.
“This number was bolstered by the fact that 420 happened to fall on a Friday last year,” said Anne Fleschman, VP of Marketing at Flowhub. “Retailers can expect to see a similar growth trajectory during the 2019 holiday which lands on a Saturday for the first time for most markets that have legalized adult-use or medical marijuana.”
On April 20, 2018, flower captured 54% of sales, concentrates represented 29%, and edibles came in at 12%. Flowhub predicts that easily shareable, instant-use products, such as pre-rolls and edibles, to name two, will dominate 420 sales this year.
The majority of this is good news for the industry, but it is possible that retailers could see a decline in the average sales amount per transaction. In states like Oregon, the market is facing issues of producer and retailer saturation, so cannabis prices are dropping and dispensaries are dealing with a greater amount of competition, as reported by the Oregon Office of Economic Analysis.
While this could be alarming for producers and retailers, a recent report from the Oregon Legislature noted, “Despite those falling prices the overall dollars sold year-over-year have continued to increase.”
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