Since Missouri dispensaries started selling marijuana for recreational purposes more than a month ago, demand has outpaced expectations. In November 2022, a measure allowing for recreational cannabis sales was approved, opening the door for the establishment of dispensaries in the state.
Marijuana sales reached $102.9 million in February, with recreational sales accounting for $71.7 million of the total. The first weekend of sales brought in $13 million. In addition to experiencing astronomical sales and customer numbers in its first month, Missouri has seen a nearly 50% increase in the wholesale price of marijuana flower. According to LeafLink — a wholesale cannabis platform that links distributors and retailers — the state is the only top 20 market by size experiencing a shortage rather than a surplus since the demand is outpacing expectations.
LeafLink cites two elements as the causes of Missouri’s recent success. First, the program’s design made it possible to license the already-existing medical businesses, creating almost immediate retail opportunities. Secondly, Missouri borders noncannabis-selling states, and Illinois, the only bordering state with recreational marijuana, has a lot more expensive goods and high taxes.
The Missouri Cannabis Legalization Movement’s founder, Tim Gilio, claims to have noticed a noticeable impact on dispensaries, with lines getting longer and items disappearing from shelves as supplies completely run out. Unfortunately, medical cannabis users are being affected by this because recreational users outnumber the patients.
3Fifteen Primo owner Jason Corrado claimed to have observed serious supply issues at dispensaries that were unprepared for the approval of amendment 3. In Corrado’s opinion, the best way for stores to meet demand is by being in touch with various suppliers. He claims that his extensive network of supplier connections has helped to keep a steady supply in all 3Fifteen Primo locations, urging others to follow suit.
The problem, however, is the limited number of cannabis cultivators in the state since DHSS set a limit on grower licenses to 60. Demand is much higher than even they anticipated, according to Gilio; otherwise, growers would have produced more over the previous year.
But will Missouri run out of marijuana with the high demand? Most likely not.
According to Illicit marketing vice president David Craig, most growers ramped up production when amendment 3 passed in November. Illicit and the majority of cultivators operated below capacity during the medical-only program. These brands have currently filled all the available space.
A marijuana product still needs to be produced for four to five months before it can reach the final consumer, thus the gaps in the supply will be filled by the end of April.
The skyrocketing demand for recreational cannabis could open a wider market for companies, such as Advanced Container Technologies Inc. (OTC: ACTX), which “sell shovels during a gold rush” as they serve firms directly dealing in marijuana or its derivatives.
NOTE TO INVESTORS: The latest news and updates relating to Advanced Container Technologies Inc. (OTC: ACTX) are available in the company’s newsroom at https://cnw.fm/ACTX
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