Colorado Marijuana Market Report Paul Seaborn, Ph.D. Daniels College of Business August 2017
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 2017 2
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 45. 8 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 http://www.paulseaborn.com/ 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 2017. 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 2017. 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
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 2015. 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 303-475-4687 paul.seaborn@du.edu www.paulseaborn.com 4
0 1000 2000 3000 313 328 328 373 373 389416 # of Active Colorado Marijuana Licenses Jan 2013 - Aug 2017 416 452470 484 488 1708 173618271853 1865 1910 1919197020272077 20892186 221522932328 2366 23762431 2444 246425072541 2544 2538 2590 2586 2588 266326912752 Recreational/Retail Medical 2782 28242850 2876 2892 2913 2887 2922 29412971 2976 3001 30123038 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
Density of Marijuana License Across Colorado: Denver Metro Area Licenses: 6
Marijuana Licenses by Colorado County 7
0 200 400 600 800 # 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. 0 1000 2000 3000 # of Active Colorado Marijuana Licenses Jan 2013 - 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
# of Active Colorado Licenses - Medical Only Jan 2013 to Aug 2017 0 500 1000 1500 Medical Testing Medical Infused Medical Cultivation Medical Centers Source: DU Prof. Paul Seaborn's analysis of Colorado MED data. Operator/Transporter not shown. 0 500 1000 1500 # of Active Colorado Retail Licenses - Retail Only Jan 2014 to Aug 2017 Retail Testing Retail Mfg Retail Dispensary Retail Cultivation 01 Jan 14 01 Jul 14 01 Jan 15 01 Jul 15 01 Jan 16 01 Jul 16 01 Jan 17 01 Jul 17 Source: DU Prof. Paul Seaborn's analysis of Colorado MED data. Operator/Transporter not shown. 9
0 500 1000 1500 # 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 0 20 40 60 80 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
0 500 1000 1500 2000 # of Active Colorado Marijuana Licenses - Top 5 Cities Jan 2013 - Aug 2017 Pueblo West Pueblo Boulder Colorado Springs Denver Source: DU Prof. Paul Seaborn's analysis of Colorado Marijuana Enforcement Division data 0 100 200 300 400 # of Active Colorado Marijuana Licenses - Cities 6th-14th Jan 2013 - 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
Top Ten Colorado Marijuana License Holders Jan 2013 to Aug 2017 0 20 40 60 80 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 0 100 200 300 Top Ten Colorado Marijuana License-Holders Jan 2013 - 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
LICENSE_TYPE Freq. Dec 2016 April 2017 Aug 2017 Medical Infused Product Manufacturer 254 250 255 Medical Licensed Center 528 520 507 Medical Marijuana Testing 14 14 14 Medical Marijuana Cultivation 791 777 759 Medical Marijuana Operator 4 Medical Marijuana Transporter 1 Retail Marijuana Dispensaries 454 481 507 Retail Marijuana Cultivation Facility 625 662 699 Retail Marijuana Products Mfg 235 254 273 Retail Marijuana Testing Facility 11 13 13 Retail Marijuana Operator 5 Retail Marijuana Transporter 1 Total 2,913 2,971 3,038 Top 15 Colorado Cities Medical Recreational Total AURORA 1 67 68 BOULDER 64 99 163 CARBONDALE 9 17 26 COLORADO SPRINGS 365 4 369 DENVER 691 529 1,220 DURANGO 14 24 38 FORT COLLINS 32 27 59 LOG LANE VILLAGE 8 11 19 MOFFAT 2 18 20 PUEBLO 38 111 149 PUEBLO WEST 28 59 87 STEAMBOAT SPRINGS 14 15 29 TRINIDAD 20 51 71 WHEAT RIDGE 11 13 24 Total 1,297 1,045 2,342 13
>10 Active Licenses Freq. Percent Cum. NATIVE ROOTS 66 2.17 2.17 LIVWELL 45 1.48 3.65 SWEET LEAF 36 1.18 4.84 THE GREEN SOLUTION 30 0.99 5.83 BUDDY BOY 26 0.86 6.68 MAGGIES FARM 22 0.72 7.41 PURE MEDICAL 21 0.69 8.10 LIGHTSHADE 20 0.66 8.76 SILVER STEM FINE CANNABIS 17 0.56 9.32 THE CLINIC 17 0.56 9.87 ROCKY MOUNTAIN REMEDIES 16 0.53 10.40 TODAYS HEALTH CARE 16 0.53 10.93 GREEN DRAGON 15 0.49 11.42 GREEN TREE MEDICINALS 15 0.49 11.92 MMJ AMERICA 15 0.49 12.41 STARBUDS 14 0.46 12.87 HGCO 13 0.43 13.30 IGADI 13 0.43 13.73 DOCTORS ORDERS 12 0.39 14.12 A CUT ABOVE 11 0.36 14.48 ALTITUDE ORGANIC 11 0.36 14.85 BEST BUDZ 11 0.36 15.21 DENVER CLONE STORE 11 0.36 15.57 NEW AGE MEDICAL 11 0.36 15.93 COLORADO HARVEST COMPANY 10 0.33 16.26 FROSTED LEAF 10 0.33 16.59 INFINITE WELLNESS CENTER 10 0.33 16.92 MEDICINE MAN 10 0.33 17.25 14
Cities with >= 10 licenses Freq. Percent Cum. DENVER 1,220 40.16 40.16 COLORADO SPRINGS 369 12.15 52.30 BOULDER 163 5.37 57.67 PUEBLO 149 4.90 62.57 PUEBLO WEST 87 2.86 65.44 TRINIDAD 71 2.34 67.77 AURORA 68 2.24 70.01 FORT COLLINS 59 1.94 71.96 DURANGO 38 1.25 73.21 STEAMBOAT SPRINGS 29 0.95 74.16 CARBONDALE 26 0.86 75.02 WHEAT RIDGE 24 0.79 75.81 MOFFAT 20 0.66 76.46 LOG LANE VILLAGE 19 0.63 77.09 AVONDALE 18 0.59 77.68 BOONE 18 0.59 78.28 GARDEN CITY 18 0.59 78.87 TELLURIDE 18 0.59 79.46 WALSENBURG 18 0.59 80.05 AVON 17 0.56 80.61 LAFAYETTE 17 0.56 81.17 LAKEWOOD 17 0.56 81.73 GUNNISON 16 0.53 82.26 IDAHO SPRINGS 16 0.53 82.78 ASPEN 15 0.49 83.28 COMMERCE CITY 15 0.49 83.77 PENROSE 15 0.49 84.27 HENDERSON 14 0.46 84.73 OAK CREEK 14 0.46 85.19 PAGOSA SPRINGS 14 0.46 85.65 15
RIFLE 14 0.46 86.11 CORTEZ 13 0.43 86.54 GLENWOOD SPRINGS 13 0.43 86.97 NORTHGLENN 13 0.43 87.39 PARACHUTE 13 0.43 87.82 DUMONT 12 0.39 88.22 CRESTED BUTTE 11 0.36 88.58 EDGEWATER 10 0.33 88.91 LEADVILLE 10 0.33 89.24 16