By Joe Armes
WASHINGTON: The final numbers are in from the Washington Liquor Control Board (LCB) for 2014 and we have the key insights from the year for your cannabis business. Washington State ended 2014 with $65.3M in combined producer, processor and retailer sales. In comparison, Analytically Correct forecasts sales for 2015 between $350M and $495M.
Month-to-month sales growth in December slowed to just under 5% compared to the nearly 52% monthly average growth between July and November. The stall was fueled by the ~22% drop in Producer/Processor sales from $7M to $5.5M from November to December. However this was offset by healthy retail growth of over 25% for the month from $9.1M to $11.4M. The fall in Producer/Processor Sales is an insight to watch over the next couple months and something that needs further analysis. Initial observations indicate that the decline is in part a result of outdoor harvests in October and November which created a spike in inventory in the market, generating larger sales in November but now has driven down prices in the market with a surplus of product still available.
Here are other insights from 2014 in the Washington State Recreational Cannabis Business Intelligence Dashboard:
- 2014 legal cannabis sales generated over $16M in excise taxes due to the state. Additionally, the state will also bring in a generous amount of revenue from Sales and Business and Occupation (B&O) taxes from the industry (we have not calculated state revenues from these taxes).
- With 86 retail stores recording sales in 2014, 62.4% (~$40.8M) of the combined $65.3M cannabis sales were generated from retailers.
- After a slow start for the first several months, King County ended the year with the most combined producer, processor and retailer sales with $9.4M folled by Clark County at $6.3M and Spokane County with $5.1M.
- Local acceptance of cannabis business still varies greatly. At the end of 2014, 27 counties had retail stores with approved licenses and 25 had stores in operation. Twelve counties still have no approved retail stores.
- King County had the most stores in operation at the end of the year with 12, followed by Spokane County with 10.
- Klickitat and Cowlitz Counties had the highest percentage of allotted stores in operation with 75% and 71% of allotted stores operating.
If you are a producer, processor or retailer who would like to be a confidential data provider for the dashboard and receive custom business insights or would like more information about business intelligence and analytics feel free to contact Joe at email@example.com.
About Joe Armes: Joe is the founder of Analytically Correct, a data analytics services company that provides custom analytics solutions that transform data into insights to allow decision makers to focus on what adds most value. His passion is to work with organizations with deeply rooted causes to help them gain access to the knowledge needed to make timely and informed decisions.