Akerna Flash Report: May Day, May Day, Cannabis Sales Leaving Las Vegas
BI Shows Recreational Sales Plummet 56% During COVID Restrictions
DENVER, May 01, 2020 (GLOBE NEWSWIRE) -- Business intelligence from Akerna (Nasdaq: KERN), a leading compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®) shows recreational cannabis sales in Nevada have taken a steep decline reaching 56% when compared to the rest of the recreational market’s average decline of only 1%. On March 21, when communities started to realize the full effect of travel bans and shelter in place orders, recreational cannabis sales in Nevada dropped to a year low.
“Eight months ago, analysts’ reports recognized Nevada for its potential to become the world’s top canna-tourism destination. It made sense, sales in 2019 were up 20%, reaching over $630 million,” said Ryan Ballman, business intelligence engineer, Akerna. “Today, while other markets are relatively even in terms of sales, Nevada is seeing steep declines. One indicator is lack of customers with order counts down almost 80%. Unlike other states, Nevada depends heavily on tourism and with the shutdown they are seeing a big impact. Customers who do visit dispensaries are spending double the normal amount.”
- Average recreational ticket size nationwide (excluding NV): $66.60 (up 10% pre-March 21)
- Average recreational ticket size in Nevada: $108.76 (up 114% pre-March 21)
Business intelligence from Akerna also shows, year-over-year, April 2019 to April 2020, recreational cannabis spending is up with a 39% increase in ticket size. The ticket size for the under 30 age group also increased by 49%. As the industry evolves to meet customer needs, product pick-up as a fulfillment method increased 541%, accounting for 15% of total sales.
**The Numbers, Year-over-Year, April 2020 compared to April 2019:
Total cannabis sales increased 68%, with an average ticket size of $123. Top categories:
- Concentrates increased 22%, accounting for 11% of total product sales
- Cartridges / Pens increased 3%, accounting for 35% of total product sales
- Infused Edibles decreased 18%, accounting for 9% of total product sales
- Flower maintained, accounting for 43% of total product sales
On April 30, Nevada governor Steve Sisolak announced the state is allowing curbside pickup of marijuana products at Nevada dispensaries starting Friday, May 1. Sisolak on Wednesday extended a stay-at-home order for Nevadans through mid-May but eased strict coronavirus-prevention measures for some businesses beginning today.
“With this action by the governor, we will continue to monitor Nevada,” said Ballman. “Hopefully, with this executive order, the industry in Nevada will start to rebound, and we’ll start to see recreational sales pick up.”
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Akerna is a global regulatory compliance technology company. Akerna’s service offerings include MJ Platform®, Leaf Data Systems®, and solo sciences tech platform. Since its establishment in 2010, Akerna has tracked more than $18 billion in cannabis sales. Akerna is based in Denver. For more information, please visit www.akerna.com and follow us on Twitter @AkernaCorp.
About The Akerna Flash Report
Flash Report is a look at buying trends in the cannabis market as captured by Akerna’s MJ Freeway subsidiary. MJ Freeway provides operators with MJ Platform, the industry-leading solution for regulatory compliance technology, from seed-to-sale-to-self. Some instances of the flash report may include business intelligence derived from Akerna’s family of companies, including Ample Organics, Leaf Data Systems, solo sciences, and Trellis.
**Data is derived from MJ Platform, the leading provider of cannabis compliance software for the marijuana industry. Reporting data is obtained from operators using Akerna’s MJ Platform solutions. Increases are relative to the prior period. Additional business intelligence data sources may include proprietary tools used by Akerna’s family of companies.
Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding sustained increases in demand for cannabis and the ability of the MJ Platform team to help operators make decisions through analytics and reporting. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna’s ability to maintain relationships with customers and suppliers and retain its management and key employees, (ii) changes in applicable laws or regulations, (iii) changes in the market place due to the coronavirus pandemic or other market factors, (iv) and other risks and uncertainties disclosed from time to time in Akerna’s filings with the U.S. Securities and Exchange Commission, including those under “Risk Factors” therein. You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna’s industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.
Akerna Media Relations
D. Nikki Wheeler
Akerna Investor Relations
Released May 1, 2020