{"id":8782,"date":"2019-05-22T12:05:26","date_gmt":"2019-05-22T12:05:26","guid":{"rendered":"https:\/\/www.denverpost.com\/?p=3467070"},"modified":"2019-05-22T12:05:26","modified_gmt":"2019-05-22T12:05:26","slug":"colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation","status":"publish","type":"post","link":"https:\/\/cannitrol.com\/blog\/colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation\/","title":{"rendered":"Colorado raking in record marijuana money again in 2019, but in era of \u201cstabilization\u201d industry leaders look to impact of new legislation"},"content":{"rendered":"<div id=\"wp_fb_like_button\" style=\"margin:5px 0 5px 5px;float:right;height:100px;\"><script src=\"http:\/\/connect.facebook.net\/en_US\/all.js#xfbml=1\"><\/script><fb:like href=\"https:\/\/cannitrol.com\/blog\/colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation\/\" send=\"true\" layout=\"standard\" width=\"450\" show_faces=\"false\" font=\"arial\" action=\"like\" colorscheme=\"light\"><\/fb:like><\/div><div class=\"media_block\"><\/div>\n<p><a href=\"https:\/\/www.denverpost.com\/2019\/05\/22\/colorado-marijuana-sales-record-2019-legislation\/?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+dp-news-marijuana+%28Denver+Post%3A+News%3A+Marijuana%29&amp;utm_content=Google+UK#comments-anchor\"><span class=\"spot-im-replies-count\" data-post-id=\"3467070\" \/><\/a><\/p>\n<p>It\u2019s become a predictable pattern in the era of legal recreational pot in Colorado. Every year, the state sets a record for marijuana sales then, 12 months later \u2014 poof \u2014 it goes up in smoke and another record is set.<\/p>\n<p>It should come as no surprise then that after seeing <a href=\"https:\/\/www.denverpost.com\/2019\/02\/12\/colorado-marijuana-sales-6-billion-since-legalization\/\">a record $1.55 billion in sales in 2018<\/a>, Colorado is on a record-setting pace in 2019.<\/p>\n<p>Through the first three months of the year, combined recreational and medical cannabis sales have totaled a little less than $387 million, more than $21 million ahead of the end of March 2018, with the busy summer sales months ahead. March itself set a record for sales in a single month at more than $142 million. It beat out the previous mark of more than $141 million set in August.<\/p>\n<p>\u201cI honestly just think it\u2019s just more people finding out about it consistently,\u201d said Colin Patrick, general manager of the Eurflora dispensary on the 16th Street Mall. \u201cI think that the word is just spreading. More people tuned onto it every year through education.\u201d<\/p>\n<p>A deeper look at <a href=\"https:\/\/www.colorado.gov\/pacific\/revenue\/colorado-marijuana-sales-reports\">sales data provided by the state<\/a> shows another trend emerging, however. To put it in a single word, Kristi Kelly, executive director of industry lobby the Marijuana Industry Group, calls it \u201cstabilization.\u201d<\/p>\n<p><strong>RELATED:<\/strong> <a href=\"https:\/\/www.denverpost.com\/2019\/03\/31\/colorados-marijuana-bills\/\">Turning point for legal marijuana in Colorado: Big changes in the works as state plays catchup<\/a><\/p>\n<p>After seeing combined recreational and medical sales rise 46 percent in 2015 over 2014 (the first year of legal rec sales), growth moderated some in 2016, rising 31 percent over the prior year\u2019s total. The same occurred in 2017, with total sales growing just over 15 percent. Finally, in 2018 total sales grew just 2.5 percent over 2017.<\/p>\n<p>\u201cAs a new industry, there is obviously going to be exponential growth in the very earliest times, but what we\u2019re seeing is the stabilization of customer demand,\u201d Kelly said of the Colorado market.<\/p>\n<p>Stabilization isn\u2019t necessarily a bad thing. It happens in mature markets. Another one of Colorado\u2019s marquee industries, craft beer, is <a href=\"https:\/\/www.denverpost.com\/2019\/04\/11\/craft-beer-industry-slowing-growth-2018\/\">going through something similar on a national level<\/a>.<\/p>\n<p>Colorado was the forerunner state for recreational adult-use marijuana, but, as acknowledged this year by industry experts, competition has ramped up as larger states such as California and entire countries such as Canada have embraced recreational weed. That competition made the recently completed legislative session at the state Capitol <a href=\"https:\/\/www.denverpost.com\/2019\/03\/31\/colorados-marijuana-bills\/\">especially critical from an industry perspective<\/a>.<\/p>\n<p>A trio of bills passed in the session have big potential to reshape businesses \u2014 and drive sales \u2014 in the years to come.<\/p>\n<p><a href=\"https:\/\/leg.colorado.gov\/bills\/hb19-1090\">House Bill 1090<\/a> opens the door for cannabis companies operating in Colorado to <a href=\"https:\/\/www.denverpost.com\/2019\/03\/04\/colorado-marijuana-publicly-traded-companies-bill\/\">become publicly traded<\/a> and court investment from equity funds. <a href=\"https:\/\/leg.colorado.gov\/bills\/hb19-1230\">House Bill 1230<\/a> creates new business licenses for marijuana tasting rooms and \u201chospitality\u201d business where people 21 and older can use their own cannabis products outside their private residences. And <a href=\"https:\/\/leg.colorado.gov\/bills\/hb19-1234\">House Bill 1234<\/a> legalizes cannabis deliveries starting with medical products in 2020, with recreational to follow in 2021.<\/p>\n<p>None of the legislation will have an immediate impact on the industry. For one thing, none of the bills have been signed by Gov. Jared Polis yet. Many are counting on Polis\u2019 support, but the industry has seen legislation vetoed by Polis\u2019 Democratic predecessor, John Hickenlooper.<\/p>\n<p>Just one of the bills \u2014 the one clearing the way for publicly traded cannabis operators in the state \u2014 is set to take effect this year. Its effective date is Nov. 1. The other two are subject to the rulemaking authority of the state\u2019s Marijuana Enforcement Division before taking hold next year. The public rulemaking process brings together groups that include industry proponents, industry opponents, municipalities and law enforcement being assembled to discuss and craft regulations.<\/p>\n<p>\u201cFor us, we\u2018re writing these rules and our hope is to have as few unintended consequences as possible,\u201d said Marijuana Enforcement Division spokeswoman Shannon Gray.<\/p>\n<p>It promises to be a busy year at MED headquarters; the division also has been tasked with streamlining the state\u2019s separate medical and recreational marijuana codes into a single code as part of the so-called \u201csunset bill\u201d that also passed out of the General Assembly this year.<\/p>\n<p>Of the three house bills, the Marijuana Industry Group\u2019s Kelly expects the public investment legislation to have the biggest impact should the governor sign it, not the delivery or hospitality businesses bills.<\/p>\n<p>She said that legislation \u201cwill allow for reinvestment in growth, employees, operations and research and development.\u201d<\/p>\n<figure id=\"attachment_3470727\" class=\"wp-caption aligncenter size-article_inline\"><img class=\" lazyautosizes lazyload\" src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/05\/colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation.jpg\" alt=\"A woman shops in front of ...\" width=\"5228\" data-sizes=\"auto\" data-src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/05\/colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation.jpg\" data-srcset=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/05\/colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation.jpg 620w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/05\/EUFLORA-AAO_7AO9337x.jpg?fit=780%2C9999px&amp;ssl=1 780w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/05\/EUFLORA-AAO_7AO9337x.jpg?fit=810%2C9999px&amp;ssl=1 810w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/05\/EUFLORA-AAO_7AO9337x.jpg?fit=630%2C9999px&amp;ssl=1 630w\" \/><figcaption class=\"wp-caption-text\">\n<p>AAron Ontiveroz, The Denver Post<\/p>\n<p>A woman shops in front of a display case at Euflora on the 16th St. Mall in Denver on Tuesday, May 21, 2019.<\/figcaption><\/figure>\n<aside class=\"related right\" \/>\n<p>Kyle Speidell, the co-founder and co-owner of the Green Solution, an industry powerhouse, is excited about what the public investment bill will mean, both for Colorado-based companies like his and the industry at large.<\/p>\n<p>\u201cIt\u2019s really focused on legitimizing the industry even more,\u201d Speidell said. \u201cIt\u2019s going to bring back the desire to reinvest in the business, to legitimize the retail experience and stores throughout the state.\u201d<\/p>\n<p>Speidell and his brothers, formerly real estate developers, got into the marijuana industry in 2010. Today in Colorado, they operate 18 dispensaries \u2014 six of which have opened since the start of 2018 \u2014 a products manufacturing facility, and a network of indoor and outdoor grows. They employ nearly 700 people. That doesn\u2019t even touch on their operations in Illinois, Michigan, Oregon, Nevada and Canada.<\/p>\n<figure id=\"attachment_3469860\" class=\"wp-caption aligncenter size-article_inline\"><img class=\" lazyautosizes lazyload\" src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/05\/colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation-1.jpg\" alt=\"Billy Koerber works, fixing a display, ...\" width=\"5232\" data-sizes=\"auto\" data-src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/05\/colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation-1.jpg\" data-srcset=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/05\/colorado-raking-in-record-marijuana-money-again-in-2019-but-in-era-of-stabilization-industry-leaders-look-to-impact-of-new-legislation-1.jpg 620w,https:\/\/i2.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/05\/TDP-L-Green-Solutions-RJS-3186.jpg?fit=780%2C9999px&amp;ssl=1 780w,https:\/\/i2.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/05\/TDP-L-Green-Solutions-RJS-3186.jpg?fit=810%2C9999px&amp;ssl=1 810w,https:\/\/i2.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/05\/TDP-L-Green-Solutions-RJS-3186.jpg?fit=630%2C9999px&amp;ssl=1 630w\" \/><figcaption class=\"wp-caption-text\">\n<p>RJ Sangosti, The Denver Post<\/p>\n<p>Billy Koerber works, fixing a display, at The Green Solution\u2019s new downtown dispensary on May 21, 2019, in Denver.<\/figcaption><\/figure>\n<p>With a long history in the industry \u2014 and a lot at stake \u2014 the Green Solution has thrown its weight into lobbying at the statehouse. Company leaders spoke at committee hearings in favor of the public investment bill. Speidell is already talking about the need to \u201cfix\u201d the hospitality bill. He feels that with no insurance liability cap written into the legislation, insurance companies won\u2019t underwrite new business concepts, and those that do operate will run the risk of major lawsuits if anything goes wrong. He will be keeping a close eye on the delivery bill as it is rolled out, too. That law allows jurisdictions to opt in or out of allowing deliveries in their borders, something that could limit the market opportunity.<\/p>\n<p>Overall, Speidell said he is very pleased with how the legislative session went. With the Hickenlooper administration and its \u201cconservative outlook\u201d gone, he feels Colorado\u2019s cannabis industry is moving into a new era.<\/p>\n<p>\u201cUltimately, I feel like we\u2019re in a very good place as an industry right now,\u201d he said. \u201cWe can use the next few years to learn again about what things are working and what things aren\u2019t.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"media_block\"><\/div>\n<p>It&#8217;s become a predictable pattern in the era of legal recreational pot in Colorado. Every year, the state sets a new record for marijuana sales then, 12 months later &#8211;poof &#8212; it goes up in smoke and a new record is set. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5062,52,7347,6811,7612,7317,854,2383,2097,6813,2150,77,5577,6858,9,6882,5019,5236,6845,1,3,61,1736],"tags":[5063,2632,7348,6816,7614,7318,3427,4947,4665,6818,4718,2655,5580,6860,6883,5022,5238,6846],"_links":{"self":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts\/8782"}],"collection":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/comments?post=8782"}],"version-history":[{"count":0,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts\/8782\/revisions"}],"wp:attachment":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/media?parent=8782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/categories?post=8782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/tags?post=8782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}