Colorado Marijuana Market Report

Transcription

1 Colorado Marijuana Market Report Paul Seaborn, Ph.D. Daniels College of Business August 2017

2 August 2017 Colorado Marijuana Market Report based on License data from the Colorado Marijuana Enforcement Division (MED) conducted by Paul Seaborn, Ph.D. of the Daniels College of Business, The University of Denver Copyright

3 Executive Summary The total number of active Colorado marijuana business licenses is at a new all-time record high of 3,038. Since April 2017, retail/recreational licenses have continued to increase in number while medical licenses have continued to decrease. Denver, Colorado Springs, Boulder, Pueblo and Pueblo West remain the top 5 cities for marijuana licenses. Moffat has entered the top 15 city list with 20 active licenses despite having <150 residents and no medical dispensaries. Native Roots and LivWell continue to have the largest number of licenses operating under a single name with Native Roots operating 66 licenses and LivWell operating organizations have at least 20 active licenses. Four new license categories were introduced in July 2017: Retail Transporter, Retail Operator, Medical Transporter and Medical Operator but less than 5 of each license type have been issued to date. NEW: I have added visual maps below showing license locations within Colorado. I am currently experimenting with offering interactive access to these maps on my personal website Additional Details The total number of active marijuana business licenses issued by the Colorado Marijuana Enforcement Division (MED) continues to grow and is now at an all-time record high of 3,038, up from 2,971 in April Retail/recreational licenses are increasing while medical licenses are decreasing. o 50.7% of active licenses are for medical marijuana businesses (down from 52.5% in April 2017) and 49.3% are for recreational/retail businesses (up from 47.5%). o Retail dispensary, cultivation and manufacturing licenses have continued to increase in number since April 2017 while medical centers and medical cultivation have both decreased. The top 5 cities for marijuana licenses remain unchanged since April The City and County of Denver has over 40% of the state s active marijuana licenses but has experienced a slight decrease in the number of active licenses since April (from 1,238 to 1,220). Denver is followed by Colorado Springs, Boulder, Pueblo, and Pueblo West. 39 Colorado cities now have at least 10 active licenses. Native Roots has increased its license count from 61 to 66 since April while LivWell has one fewer active license (from 46 to 45). SweetLeaf has retaken 3 rd place from The Green Solution by expanding from 30 to 36 3

4 licenses while Green Solution dropped from 33 licenses to 30. No single organization name represents more than 2.2% of the state s licenses. Methodology: This analysis is based on raw license data provided by the Colorado MED on a ly basis. Each business license represents a separate operating location for one of the twelve types of marijuana businesses (six medical, six retail). Data errors in the raw MED data have been checked and corrected where possible but some may remain. The largest license-holders have been identified based on common license names (e.g. Native Roots Vail, Native Roots Boulder). License totals do not directly reflect the level of economic activity in the Colorado marijuana industry. About the Author: Paul Seaborn is an assistant professor at the Daniels College of Business, University of Denver. His research interests include nonmarket strategy/corporate political activity, industry regulation & self-regulation, political economy, industry evolution, and the economics of information. He is working on a series of projects related to Colorado s emerging marijuana industry. In 2014, he published one of the first academic teaching case on the marijuana industry in Case Research Journal, Medical Marijuana Industry Group: Outdoor Advertising in Denver. Prof. Seaborn teaches undergraduate, graduate and executive students. In 2016, he was the recipient of the Daniels Excellence in Teaching Award and he was one of two finalists for the award in In Spring 2017, he taught the first ever Business of Marijuana course at Daniels and at any AACSB-accredited business school to 26 graduate and undergraduate students. Prior to joining Daniels in 2011, Prof. Seaborn completed his doctoral studies in Strategic Management at the Rotman School of Management, University of Toronto. He worked eight years as a consultant for Mercer Management Consulting (now known as Oliver Wyman) and IBM Global Services. He holds an MBA from the Richard Ivey School of Business, University of Western Ontario and a Bachelor s Degree in Mathematics from Acadia University. He is a native of Corner Brook, Newfoundland, Canada. To receive a copy of future Colorado Marijuana Market Reports, to provide feedback or request additional information, please contact: Paul Seaborn - Assistant Professor Department of Management, Daniels College of Business paul.seaborn@du.edu 4

5 # of Active Colorado Marijuana Licenses Jan Aug Recreational/Retail Medical Source: DU Prof. Paul Seaborn's analysis of Colorado Marijuana Enforcement Division data The total number of Colorado marijuana licenses has grown steadily since 2013, with a significant one- increase in January 2014 after the legalization of recreational marijuana as a result of the passing of Amendment 64. Since the start of 2017 the number of medical licenses has declined, particularly in cultivation. Note: The only license data available prior to January 2014 was for Medical Centers. 5

6 Density of Marijuana License Across Colorado: Denver Metro Area Licenses: 6

7 Marijuana Licenses by Colorado County 7

8 # of Colorado Marijuana Licenses by Type Medical Center Retail Cultivation Medical Infused Retail Testing Medical Cultivation Retail Dispensary Retail Product Manufacturing Medical Testing Source: DU Prof. Paul Seaborn's analysis of Colorado MED data. Operator/Transporter excluded # of Active Colorado Marijuana Licenses Jan Aug 2017 Retail Testing Retail Manufacturers Retail Stores Retail Cultivations Medical Testing Medical Infused Manufacturers Medical Cultivations Medical Centers Source: DU Prof. Paul Seaborn's analysis of Colorado Marijuana Enforcement Division data 8

9 # of Active Colorado Licenses - Medical Only Jan 2013 to Aug Medical Testing Medical Infused Medical Cultivation Medical Centers Source: DU Prof. Paul Seaborn's analysis of Colorado MED data. Operator/Transporter not shown # of Active Colorado Retail Licenses - Retail Only Jan 2014 to Aug 2017 Retail Testing Retail Mfg Retail Dispensary Retail Cultivation 01 Jan Jul Jan Jul Jan Jul Jan Jul 17 Source: DU Prof. Paul Seaborn's analysis of Colorado MED data. Operator/Transporter not shown. 9

10 # of Colorado Marijuana Licenses - Top 5 Cities Denver Boulder Pueblo West Colorado Springs Pueblo Source: DU Prof. Paul Seaborn's analysis of Colorado Medical Enforcement Division data # of Colorado Marijuana Licenses - Cities 6th-14th Trinidad Fort Collins Steamboat Springs Wheatridge Log Lane Village Aurora Durango Carbondale Moffat Source: DU Prof Paul Seaborn's analysis of Colorado MED data. Excludes Top 5 cities by # of licenses 10

11 # of Active Colorado Marijuana Licenses - Top 5 Cities Jan Aug 2017 Pueblo West Pueblo Boulder Colorado Springs Denver Source: DU Prof. Paul Seaborn's analysis of Colorado Marijuana Enforcement Division data # of Active Colorado Marijuana Licenses - Cities 6th-14th Jan Aug 2017 Log Lane Village Wheat Ridge Steamboat Fort Collins Trinidad Moffat Carbondale Durango Aurora Source: DU Prof. Paul Seaborn's analysis of Colorado Marijuana Enforcement Division data 11

12 Top Ten Colorado Marijuana License Holders Jan 2013 to Aug Native Roots Sweet Leaf Buddy Boy Pure Medical Silver Stem Livwell Green Solution Maggie's Farm Lightshade The Clinic Source: DU Prof. Paul Seaborn's analysis of Colorado Medical Enforcement Division data Top Ten Colorado Marijuana License-Holders Jan Aug 2017 Green Solution Silverstem Pure Medical Maggie's Farm Buddy Boy The Clinic Sweet Leaf LivWell Native Roots Lightshade Source: DU Prof. Paul Seaborn's analysis of Colorado Marijuana Enforcement Division data 12

13 LICENSE_TYPE Freq. Dec 2016 April 2017 Aug 2017 Medical Infused Product Manufacturer Medical Licensed Center Medical Marijuana Testing Medical Marijuana Cultivation Medical Marijuana Operator 4 Medical Marijuana Transporter 1 Retail Marijuana Dispensaries Retail Marijuana Cultivation Facility Retail Marijuana Products Mfg Retail Marijuana Testing Facility Retail Marijuana Operator 5 Retail Marijuana Transporter 1 Total 2,913 2,971 3,038 Top 15 Colorado Cities Medical Recreational Total AURORA BOULDER CARBONDALE COLORADO SPRINGS DENVER ,220 DURANGO FORT COLLINS LOG LANE VILLAGE MOFFAT PUEBLO PUEBLO WEST STEAMBOAT SPRINGS TRINIDAD WHEAT RIDGE Total 1,297 1,045 2,342 13

14 >10 Active Licenses Freq. Percent Cum. NATIVE ROOTS LIVWELL SWEET LEAF THE GREEN SOLUTION BUDDY BOY MAGGIES FARM PURE MEDICAL LIGHTSHADE SILVER STEM FINE CANNABIS THE CLINIC ROCKY MOUNTAIN REMEDIES TODAYS HEALTH CARE GREEN DRAGON GREEN TREE MEDICINALS MMJ AMERICA STARBUDS HGCO IGADI DOCTORS ORDERS A CUT ABOVE ALTITUDE ORGANIC BEST BUDZ DENVER CLONE STORE NEW AGE MEDICAL COLORADO HARVEST COMPANY FROSTED LEAF INFINITE WELLNESS CENTER MEDICINE MAN

15 Cities with >= 10 licenses Freq. Percent Cum. DENVER 1, COLORADO SPRINGS BOULDER PUEBLO PUEBLO WEST TRINIDAD AURORA FORT COLLINS DURANGO STEAMBOAT SPRINGS CARBONDALE WHEAT RIDGE MOFFAT LOG LANE VILLAGE AVONDALE BOONE GARDEN CITY TELLURIDE WALSENBURG AVON LAFAYETTE LAKEWOOD GUNNISON IDAHO SPRINGS ASPEN COMMERCE CITY PENROSE HENDERSON OAK CREEK PAGOSA SPRINGS

16 RIFLE CORTEZ GLENWOOD SPRINGS NORTHGLENN PARACHUTE DUMONT CRESTED BUTTE EDGEWATER LEADVILLE