CBD OIL

Today marks the second Earth Day for the adult-use cannabis market in Illinois. The industry is in a position of influence to help us all understand what it takes to be mindful about balancing costs for consumers with conservation and sustainability priorities.

With 21 existing cultivation centers, the state has taken the approach to ensure this cash crop leads the way toward earth-friendly industrial agriculture. Regulation for the best growing environments, however, has some tradeoffs, and there are barriers to environmental entrepreneurship that intersect with equity. What is clear is that MSOs like Cresco Labs and groups like the Illinois Environmental Council are each doing their part to create an equitable and environmentally conscious industry.

We listen and share with Cary Shepherd, former policy director for the Illinois Environmental Council, and Jason Nelson, senior vice president of horticulture at Cresco Labs, to learn a little bit about how Illinois legislation got to be so green—and what it all means for a budding industry in these challenging times.

Mila Marshall: The Illinois Environmental Council represents more than 90 environmental organizations across the state. Cary, can you share a little bit about how the IEC came about to working on  the recommendations for the Cannabis Regulation and Tax Act?

Cary Shepherd: We worked with the University of Chicago Abrams Environmental Law Clinic to do a policy and law review on sustainable cannabis growth to help us draft language that was reflective of the priorities and concerns of the network. The focus of the bill was not on the environmental, which isn’t a bad thing—Illinois’ bill was a criminal justice reform bill—but we were able to work with IEC members to create legislation that protects the environment very similarly to how other agricultural industries are held accountable, for example.

MM: Some people may feel some apprehensive about the additional environmental legislation in H.B. 1438. It seems as though the environment and the economy are always pitted against each other. What were the actual concerns from the environmental community? Why were these elements necessary to include?

CS: Many from the community were concerned with water, energy and waste from cannabis, but most people understood that criminal justice reform and social equity was the primary issue. The environmental community wanted to ensure that this new industry wasn’t creating any unnecessary environmental harms.

MM: Typically, draft regulations from our state agencies are open to the public and we are allowed to weigh in. What was the process for the environmental regulations and what state agency was responsible for engaging on those parts of the bill?

CS: The Department of Agriculture had a tight timeline for the environmental regulations for H.B. 1438. Typically, there is an opportunity for the public to weigh in and comment; however, the public commenting was suspended.

MM: Cresco Labs operates 13 cultivation centers in seven different states with three of those centers are located in Illinois. The company also has a robust social equity agenda. What are your thoughts about industry sustainability and social equity?

Jason Nelson: I think the dialogue for  social equity was escalated and prioritized because of the direct human impact. The lack of federal legalization in my opinion hampered a more robust dialogue of social equity. But it was necessary to lead with addressing the inequities of incarceration, expungement and increasing minority business ownership. Yet as an industry we have failed to address the intersections between the environment and equity, now it is our opportunity to connect sustainability plans to a broader normalization agenda. Cresco Labs is always looking to be a leader when it comes to being good stewards in the cannabis industry. 

MM: What are the benefits to having environmental regulations for cannabis in Illinois?

CS: Most of these benefits are related to cost effectiveness and efficiency. Building a space out, for example, with the intention of sustainability and efficiency can be much cheaper than retrofitting, for example. So, one benefit is that businesses have the opportunity to begin with their best foot forward.

MM: Jason, what are your thoughts about the challenges of Illinois’ environmental regulations for Cresco Labs?

JN: From an operator’s perspective we will always seek a balance between increasing our yields and  bringing down the electrical draw. Cannabis is energy intensive so the more we are working to encourage power company rebates that help offset the elevated costs of energy saving practices. We want to advocate for future legislative change such as allowing for open field secured production, that in and of itself would reduce the carbon footprint associated with a gram of THC produced. If Illinois were to do something the most consequential thing would be just that, it lowers the cost of manufacturing for certain products and is a win for the environment. 

MM: Who needs to be at the table to help the cannabis industry become more sustainable?

JN: I would say we need more environmental activists to lend their voices to this space. We need environmental stakeholders to understand the absence of traditional business banking and access to capital alongside the unpredictable nature of the burgeoning industry. Our companies need to support leveraging win-win circumstances through environmental incentives, for example. 

MM: What about hemp, Jason? How does this connect to cannabis farmers on the hemp side?

JN: I do believe there are elements of cannabis production, through hemp farming applications, that have great potential to address environmental harm. Federal grants and incentives to plant hemp on low quality soil for environmental reclamation and for use in a secondary product on the back end could be targeted to benefit Black and brown farmers. 

MM: The SEED program at Cresco is an incubator program. Do participants learn about sustainability?

JN: Most of the program is tied to supporting participant visions. They are aware of both social equity and the environment. We surely make recommendations, and they are typically environmentally enlightened operators that are open to learning how to own and operate in ways that save money and protect the environment.

 

Virginia Gov. Ralph Northam detoured his signing of adult-use cannabis legislation, but an amendment package decided by a tiebreaker cleared a path for the stroke of his pen on Wednesday.

The state’s legislative chambers overcame differences to pass a compromise bill on Feb. 27, after each body passed different measures—Senate Bill 1406 and House Bill 2312—to legalize cannabis possession, personal cultivation and retail sales for adults 21 years and older.

The problem? Those legalization efforts, including possession laws, would not have gone into full effect until Jan. 1, 2024. Following the legislature’s passage, Jenn Michelle Pedini, Virginia’s executive director for the National Organization for the Reform of Marijuana Laws (NORML), said that timeline wasn’t good enough and she hoped to continue working to accelerate specific facets of legalization. Northam agreed and pushed to expedite certain components of the legislature’s bill. 

On April 7, the General Assembly approved the Democratic governor’s amendment package by way of Lt. Gov. Justin Fairfax casting the deciding vote in a split Senate. As a result, adults 21 years and older will be allowed to possess up to 1 ounce of cannabis and grow up to four plants per household starting July 1, 2021—speeding up the timeline 2 1/2 years.

“As of July 1, 2021—who’s counting, but 71 days from now—Virginia will no longer police adults for possessing small amounts of marijuana,” Northam said during his signing ceremony Wednesday. “What this really means is people will no longer be arrested or face penalties for simple possession that follow them and affect their lives. We know that marijuana laws in Virginia and throughout this country have been disproportionately enforced against communities of color and low-income Virginians.”

According to Virginia’s Joint Legislative Audit and Review Commission (JLARC)—the state’s non-partisan research arm—the average arrest rate of Black Virginians for marijuana possession was 3.5 times higher than the arrest rate for white individuals from 2010-2019, and their conviction rate was 3.9 times higher than white individuals.

The social equity implications of ending prohibition were mentioned by everyone who spoke during the governor’s signing ceremony, including Democratic Sens. Louise Lucas and Adam Ebbin, who were primary sponsors of S.B. 1406, Democratic Delegate Charniele Herring, who sponsored H.B. 2312, and Democratic House Speaker Eileen Filler-Corn.

Representing the Office of Diversity, Equity and Inclusion (ODEI) as the governor’s lead deputy chief diversity officer, Alaysia Black Hackett said, “This law establishes social equity as a pillar and major priority. Specifically, as mentioned before, it focuses on health equity, economic equity and equity in criminal justice. I want to especially highlight that it was critical for there to be equitable business licensing, especially for those who have been in the past criminalized and disenfranchised by marijuana laws.

“Secondly, the social equity reinvestment fund, an important structure in this legislation, provides resources that will elevate and uplift those persons, neighborhoods, communities and families most negatively impacted by the disparate enforcement of marijuana laws. This bill makes Virginia a national leader as we lean into many uncomfortable truths about the legalization of marijuana and the true meaning of being many Virginians but one commonwealth.”

Also included in Northam’s amendments, new language gives the state’s incoming Cannabis Control Authority the power to strip licenses from any cannabis business that doesn’t remain neutral while its workers attempt to unionize, a provision that drew partisanship on the opposite side of the aisle in the General Assembly.

But adult-use legalization in Virginia was partisan to begin with—neither the House bill nor the Senate bill attracted any Republicans sponsors or co-sponsors. That did not deter Democrats from their efforts. When Democrats flipped both chambers in 2019, they gained control of both the legislature and governor’s office for the first time in more than two decades.

“This is another example of Democrats, yes Democrats, listening to Virginians and taking action on the will of the people,” Northam said, “from expanding health care to over 500,000 people, to commonsense gun legislation, criminal justice and police reform, ending the death penalty in Virginia, fairer voting laws, moving forward clean energy, giving our teachers and state employees a much-deserved raise, and now legalizing the recreational use of marijuana in Virginia. On these and many other initiatives, Democrats have delivered.”

Statewide polling data released Feb. 2, 2021, by Christopher Newport University’s Watson Center for Civic Leadership showed that 68% of registered voters in Virginia, including majorities of Democrats and Republicans, support adult-use cannabis legalization. That mirrored the 68% of Americans who support legalization, according to a November 2020 Gallup poll.

According to JLARC, a fully legal cannabis industry in Virginia will create more than 11,000 jobs in sectors ranging from farming to retail. The Cannabis Control Authority, which the governor’s signed legislation aims to establish by July 2021, will oversee regulations and licensing. The five-member board of directors will institute the number of licensees, which cannot exceed 400 retailers, 25 wholesalers, 450 cultivators and 60 product manufacturers.

Many of the provisions in the roughly 300-page bill are subject to a reenactment, meaning a second review and vote by members of the General Assembly in 2022. But other provisions, such as simple possession and home grows, require no further action.

“Over the past two months, I have answered more times than I can count, ‘How did Virginia just legalize cannabis?’” said Pedini, who also serves as NORML’s development director. She gave credit to the Democratic leaders at the governor’s signing ceremony and to Virginians who supported the effort to become the first state in the South to legalize cannabis.

“Today and together, we celebrate an extraordinary victory for cannabis justice in the commonwealth,” she said. “I’ve also mentioned countless times how Virginia is the single most prepared state to ever undertake a legalization effort. The study and the workgroup both prioritized legalization that ensures equity, consumer safety and restorative justice. This is why the legislation succeeded, and on its first attempt.”

Virginia Gov. Ralph Northam detoured his signing of adult-use cannabis legislation, but an amendment package decided by a tiebreaker cleared a path for the stroke of his pen on Wednesday.

The state’s legislative chambers overcame differences to pass a compromise bill on Feb. 27, after each body passed different measures—Senate Bill 1406 and House Bill 2312—to legalize cannabis possession, personal cultivation and retail sales for adults 21 years and older.

The problem? Those legalization efforts, including possession laws, would not have gone into full effect until Jan. 1, 2024. Following the legislature’s passage, Jenn Michelle Pedini, Virginia’s executive director for the National Organization for the Reform of Marijuana Laws (NORML), said that timeline wasn’t good enough and she hoped to continue working to accelerate specific facets of legalization. Northam agreed and pushed to expedite certain components of the legislature’s bill. 

On April 7, the General Assembly approved the Democratic governor’s amendment package by way of Lt. Gov. Justin Fairfax casting the deciding vote in a split Senate. As a result, adults 21 years and older will be allowed to possess up to 1 ounce of cannabis and grow up to four plants per household starting July 1, 2021—speeding up the timeline 2 1/2 years.

“As of July 1, 2021—who’s counting, but 71 days from now—Virginia will no longer police adults for possessing small amounts of marijuana,” Northam said during his signing ceremony Wednesday. “What this really means is people will no longer be arrested or face penalties for simple possession that follow them and affect their lives. We know that marijuana laws in Virginia and throughout this country have been disproportionately enforced against communities of color and low-income Virginians.”

According to Virginia’s Joint Legislative Audit and Review Commission (JLARC)—the state’s non-partisan research arm—the average arrest rate of Black Virginians for marijuana possession was 3.5 times higher than the arrest rate for white individuals from 2010-2019, and their conviction rate was 3.9 times higher than white individuals.

The social equity implications of ending prohibition were mentioned by everyone who spoke during the governor’s signing ceremony, including Democratic Sens. Louise Lucas and Adam Ebbin, who were primary sponsors of S.B. 1406, Democratic Delegate Charniele Herring, who sponsored H.B. 2312, and Democratic House Speaker Eileen Filler-Corn.

Representing the Office of Diversity, Equity and Inclusion (ODEI) as the governor’s lead deputy chief diversity officer, Alaysia Black Hackett said, “This law establishes social equity as a pillar and major priority. Specifically, as mentioned before, it focuses on health equity, economic equity and equity in criminal justice. I want to especially highlight that it was critical for there to be equitable business licensing, especially for those who have been in the past criminalized and disenfranchised by marijuana laws.

“Secondly, the social equity reinvestment fund, an important structure in this legislation, provides resources that will elevate and uplift those persons, neighborhoods, communities and families most negatively impacted by the disparate enforcement of marijuana laws. This bill makes Virginia a national leader as we lean into many uncomfortable truths about the legalization of marijuana and the true meaning of being many Virginians but one commonwealth.”

Also included in Northam’s amendments, new language gives the state’s incoming Cannabis Control Authority the power to strip licenses from any cannabis business that doesn’t remain neutral while its workers attempt to unionize, a provision that drew partisanship on the opposite side of the aisle in the General Assembly.

But adult-use legalization in Virginia was partisan to begin with—neither the House bill nor the Senate bill attracted any Republicans sponsors or co-sponsors. That did not deter Democrats from their efforts. When Democrats flipped both chambers in 2019, they gained control of both the legislature and governor’s office for the first time in more than two decades.

“This is another example of Democrats, yes Democrats, listening to Virginians and taking action on the will of the people,” Northam said, “from expanding health care to over 500,000 people, to commonsense gun legislation, criminal justice and police reform, ending the death penalty in Virginia, fairer voting laws, moving forward clean energy, giving our teachers and state employees a much-deserved raise, and now legalizing the recreational use of marijuana in Virginia. On these and many other initiatives, Democrats have delivered.”

Statewide polling data released Feb. 2, 2021, by Christopher Newport University’s Watson Center for Civic Leadership showed that 68% of registered voters in Virginia, including majorities of Democrats and Republicans, support adult-use cannabis legalization. That mirrored the 68% of Americans who support legalization, according to a November 2020 Gallup poll.

According to JLARC, a fully legal cannabis industry in Virginia will create more than 11,000 jobs in sectors ranging from farming to retail. The Cannabis Control Authority, which the governor’s signed legislation aims to establish by July 2021, will oversee regulations and licensing. The five-member board of directors will institute the number of licensees, which cannot exceed 400 retailers, 25 wholesalers, 450 cultivators and 60 product manufacturers.

Many of the provisions in the roughly 300-page bill are subject to a reenactment, meaning a second review and vote by members of the General Assembly in 2022. But other provisions, such as simple possession and home grows, require no further action.

“Over the past two months, I have answered more times than I can count, ‘How did Virginia just legalize cannabis?’” said Pedini, who also serves as NORML’s development director. She gave credit to the Democratic leaders at the governor’s signing ceremony and to Virginians who supported the effort to become the first state in the South to legalize cannabis.

“Today and together, we celebrate an extraordinary victory for cannabis justice in the commonwealth,” she said. “I’ve also mentioned countless times how Virginia is the single most prepared state to ever undertake a legalization effort. The study and the workgroup both prioritized legalization that ensures equity, consumer safety and restorative justice. This is why the legislation succeeded, and on its first attempt.”

Charlotte’s Web Holdings, the company that just about launched the entire CBD industry, announced this week that they have just been approved for registration on Health Canada’s list of approved cultivars (LOAC) for 2021. Three of their proprietary hemp cultivars have made the cut, gaining the company access to the Canadian market.

Jared Stanley, co-founder and chief cultivation officer at Charlotte’s Web, says they plan to lead the market in Canadian hemp-derived CBD products. “The majority of approved cultivars on the LOAC to date have been for industrial hemp grown to produce food, fiber, and animal feed,” says Stanley. “Now our approved cultivars are paving the way for full-spectrum hemp CBD demand in Canada and most importantly, will provide access to Charlotte’s Web products in Canada.”

Largely due to the difference in regulatory approaches between Canada and the U.S., the CBD product market in Canada is somewhat small. Health Canada currently regulates CBD products the same as products containing more than 0.3% THC. In the U.S., a checkerboard of state laws, the 2018 Farm Bill and the subsequent state hemp programs led to massive growth for the CBD product marketplace.

Charlotte’s Web is one of the leading hemp-derived CBD companies operating in the United States. With the soon-to-be expansion into Canada, the company hopes to develop a global footprint, says Deanie Elsner, president and CEO of Charlotte’s Web. “Today, Charlotte’s Web is the leading hemp wellness company in the U.S. with the most recognized and trusted hemp CBD extract,” says Elsner. “We aspire to be the world’s leading botanicals wellness company, entering countries with an asset light model where federal laws permit hemp extracts for health and wellness. Israel and Canada are included in the first steps of our international expansion.”

Virginia Gov. Ralph Northam detoured his signing of adult-use cannabis legislation, but an amendment package decided by a tiebreaker cleared a path for the stroke of his pen on Wednesday.

The state’s legislative chambers overcame differences to pass a compromise bill on Feb. 27, after each body passed different measures—Senate Bill 1406 and House Bill 2312—to legalize cannabis possession, personal cultivation and retail sales for adults 21 years and older.

The problem? Those legalization efforts, including possession laws, would not have gone into full effect until Jan. 1, 2024. Following the legislature’s passage, Jenn Michelle Pedini, Virginia’s executive director for the National Organization for the Reform of Marijuana Laws (NORML), said that timeline wasn’t good enough and she hoped to continue working to accelerate specific facets of legalization. Northam agreed and pushed to expedite certain components of the legislature’s bill. 

On April 7, the General Assembly approved the Democratic governor’s amendment package by way of Lt. Gov. Justin Fairfax casting the deciding vote in a split Senate. As a result, adults 21 years and older will be allowed to possess up to 1 ounce of cannabis and grow up to four plants per household starting July 1, 2021—speeding up the timeline 2 1/2 years.

“As of July 1, 2021—who’s counting, but 71 days from now—Virginia will no longer police adults for possessing small amounts of marijuana,” Northam said during his signing ceremony Wednesday. “What this really means is people will no longer be arrested or face penalties for simple possession that follow them and affect their lives. We know that marijuana laws in Virginia and throughout this country have been disproportionately enforced against communities of color and low-income Virginians.”

According to Virginia’s Joint Legislative Audit and Review Commission (JLARC)—the state’s non-partisan research arm—the average arrest rate of Black Virginians for marijuana possession was 3.5 times higher than the arrest rate for white individuals from 2010-2019, and their conviction rate was 3.9 times higher than white individuals.

The social equity implications of ending prohibition were mentioned by everyone who spoke during the governor’s signing ceremony, including Democratic Sens. Louise Lucas and Adam Ebbin, who were primary sponsors of S.B. 1406, Democratic Delegate Charniele Herring, who sponsored H.B. 2312, and Democratic House Speaker Eileen Filler-Corn.

Representing the Office of Diversity, Equity and Inclusion (ODEI) as the governor’s lead deputy chief diversity officer, Alaysia Black Hackett said, “This law establishes social equity as a pillar and major priority. Specifically, as mentioned before, it focuses on health equity, economic equity and equity in criminal justice. I want to especially highlight that it was critical for there to be equitable business licensing, especially for those who have been in the past criminalized and disenfranchised by marijuana laws.

“Secondly, the social equity reinvestment fund, an important structure in this legislation, provides resources that will elevate and uplift those persons, neighborhoods, communities and families most negatively impacted by the disparate enforcement of marijuana laws. This bill makes Virginia a national leader as we lean into many uncomfortable truths about the legalization of marijuana and the true meaning of being many Virginians but one commonwealth.”

Also included in Northam’s amendments, new language gives the state’s incoming Cannabis Control Authority the power to strip licenses from any cannabis business that doesn’t remain neutral while its workers attempt to unionize, a provision that drew partisanship on the opposite side of the aisle in the General Assembly.

But adult-use legalization in Virginia was partisan to begin with—neither the House bill nor the Senate bill attracted any Republicans sponsors or co-sponsors. That did not deter Democrats from their efforts. When Democrats flipped both chambers in 2019, they gained control of both the legislature and governor’s office for the first time in more than two decades.

“This is another example of Democrats, yes Democrats, listening to Virginians and taking action on the will of the people,” Northam said, “from expanding health care to over 500,000 people, to commonsense gun legislation, criminal justice and police reform, ending the death penalty in Virginia, fairer voting laws, moving forward clean energy, giving our teachers and state employees a much-deserved raise, and now legalizing the recreational use of marijuana in Virginia. On these and many other initiatives, Democrats have delivered.”

Statewide polling data released Feb. 2, 2021, by Christopher Newport University’s Watson Center for Civic Leadership showed that 68% of registered voters in Virginia, including majorities of Democrats and Republicans, support adult-use cannabis legalization. That mirrored the 68% of Americans who support legalization, according to a November 2020 Gallup poll.

According to JLARC, a fully legal cannabis industry in Virginia will create more than 11,000 jobs in sectors ranging from farming to retail. The Cannabis Control Authority, which the governor’s signed legislation aims to establish by July 2021, will oversee regulations and licensing. The five-member board of directors will institute the number of licensees, which cannot exceed 400 retailers, 25 wholesalers, 450 cultivators and 60 product manufacturers.

Many of the provisions in the roughly 300-page bill are subject to a reenactment, meaning a second review and vote by members of the General Assembly in 2022. But other provisions, such as simple possession and home grows, require no further action.

“Over the past two months, I have answered more times than I can count, ‘How did Virginia just legalize cannabis?’” said Pedini, who also serves as NORML’s development director. She gave credit to the Democratic leaders at the governor’s signing ceremony and to Virginians who supported the effort to become the first state in the South to legalize cannabis.

“Today and together, we celebrate an extraordinary victory for cannabis justice in the commonwealth,” she said. “I’ve also mentioned countless times how Virginia is the single most prepared state to ever undertake a legalization effort. The study and the workgroup both prioritized legalization that ensures equity, consumer safety and restorative justice. This is why the legislation succeeded, and on its first attempt.”

Canopy Growth Corporation, the Canadian cannabis powerhouse moving its way throughout international markets, has signaled another move into the United States to push their new CBD beverage line. The company inked a deal with Southern Glazer’s Wine & Spirits, a large U.S. alcohol distributor.

This follows the launch of their first CBD-infused beverage line sold in the United States, Quatreau. In the initial phase of the agreement, Southern Glazer’s will distribute the beverage line in seven states, with plans to expand that footprint considerably in the coming months.

Being a national distributor with a strong presence throughout the country, Southern Glazer’s will be moving Canopy’s beverage line in conventional retail stores. The press release seems to credit Canopy’s partnership with Constellation Brands as the catalyst for the new distribution deal. “The agreement also showcases the benefits of the company’s strategic relationship with Constellation Brands, the global beverage leader,” reads the release.

Back in 2018, Constellation Brands made a $4 billion bet on Canopy, but immediate profitability did not come to fruition. This new deal with Southern Glazer’s, as well as the launch of the Quatreau beverage line, seems to prove Constellation’s bet is beginning to pay off, or at least showing signs of a long term play for market share.

Illinois’ monthly adult-use cannabis sales surpassed $100 million for the first time in March.

The new sales record, reported by the Illinois Department of Financial and Professional Regulation (IDFPR), tops February sales by nearly $28.4 million. According to the report, Illinois sold nearly 2.3 million cannabis items worth roughly $109.1 million in March.

The report also indicates that about 69% of cannabis sales came from in-state residents, while 31% of sales came from out-of-state residents.

The state’s March cannabis sales were reflected in the day-to-day dispensary and wholesale operations in Illinois.

Cresco Labs, a vertically integrated multi-state cannabis operator, saw a significant lift in sales in March across its wholesale customers and its 10 Sunnyside retail locations in Illinois, said Melissa Wagamon, regional president of Cresco Labs Illinois and Michigan locations.

© Courtesy of Cresco Labs

But what factors helped drive cannabis sales in March?

Wagamon said some macro trends in the world that she believes helped drive sales for the entire state.

“I think the stimulus [check] helped, and I think having a really lovely, warm and welcoming March, where people were excited to get outside after what was a pretty cold and dark February helped,” Wagamon said. “And then as people start to get vaccinated and feel safer going outside, we’re just starting to see more people out in the world.”

In addition to the stimulus checks and the state’s favorable weather conditions, William Butler, senior vice president of retail operations for Cresco Labs Sunnyside locations, expressed other factors that helped drive March dispensary sales, including the store’s overall depth of product, its sales promotions and wellness advisers.

Butler also agreed with Wagamon that he is starting to see more people getting outside and traveling again.

“I live just outside of Chicago, and as I like to say, the city is just starting to turn back on as far as folks coming from a destination standpoint that doesn’t live here,” Butler said. “But that’s just starting. So, as we start to see this growth [in sales], we see a lot of that come from our localized customers, which is terrific.”

The spike in sales affected the dispensary and wholesale side of things. Both sides had to make adjustments to ensure orders were getting filled, product was available, dispensaries were properly managing wholesale deliveries and more.

“It was a very busy March,” Wagamon said. “We are lucky in that we were able to fulfill orders for the most part, but when you have spikes in demand that are that high, we definitely felt it at the facility level. There were days that we averaged packing out about 25,000 to 30,000 units a day. We had one day where we shipped 45,000 units over 19 different orders, and that’s a lot of volume for our facility.”

And Wagamon said that wholesale employees were asked to work overtime to meet the demand.

“Ultimately, what her [Melissa’s] team does, helps fulfill our Sunnyside locations, which is just incredible,” Butler said. “So, that pack-out and those extra hours that went into the additional deliveries, part of that is a more Sunnyside.”

The dispensary is starting to get more deliveries than ever before, which is exciting as it means the dispensary is doing well with sales, and it’s also good to see a substantial amount of product available for customers, Butler said. 

© Courtesy of Cresco Labs

“I’m really proud of what we have done as a collaborative team to be able to manage the scheduling of these deliveries,” Butler said. “You can imagine the demand that this causes in the stores behind the scenes. So, we have to be very thoughtful, very methodical about how the deliveries are coming in and making sure we have the right amount of team members in place to be able to manage those deliveries when they do arrive, because the day they arrive, we want them available on the store menu, on the website available for purchase, we don’t want there to be a delay.” 

Butler said the dispensary and wholesale team’s strong collaboration is not something that was built overnight.

“Our sales overall have been very strong month over month, but March was exceptional,” Butler said. “So, I really viewed it as an extra building block. We weren’t scrambling to pull it together. We were able to really turn on our best practices and just take it to that next level.”

There has been a substantial increase in the number of in-store customers as well, Butler said.

“I would like to add that we still have very important measures in place when it comes to COVID prevention measures within all of our stores, for the safety of our team members and for the safety of our customers,” Butler said. “So, we’re proud that as we’ve had this influx of customers, that we still very much have very safe environments in order to prevent any issues from happening within the locations.”

In addition to having safety measures in place, Sunnyside dispensaries have also added additional team members and expanded store hours across multiple locations to keep up with the increase in customers.

And the March cannabis sales have been keeping the same momentum leading into April.

“It’s looking great thus far,” Butler said. “We are thrilled for 4/20 as that’s an incredible highlight of the year for us. I just love that we in the industry continue to make it even more important than special for our customer and for our team members in-store.”

The wholesale side is also having a strong April, and the team members are crossing their fingers that the weather continues to stay beautiful and that the momentum and excitement remains high as well, Wagamon said.

 

Illinois’ monthly adult-use cannabis sales surpassed $100 million for the first time in March.

The new sales record, reported by the Illinois Department of Financial and Professional Regulation (IDFPR), tops February sales by nearly $28.4 million. According to the report, Illinois sold nearly 2.3 million cannabis items worth roughly $109.1 million in March.

The report also indicates that about 69% of cannabis sales came from in-state residents, while 31% of sales came from out-of-state residents.

The state’s March cannabis sales were reflected in the day-to-day dispensary and wholesale operations in Illinois.

Cresco Labs, a vertically integrated multi-state cannabis operator, saw a significant lift in sales in March across its wholesale customers and its 10 Sunnyside retail locations in Illinois, said Melissa Wagamon, regional president of Cresco Labs Illinois and Michigan locations.

© Courtesy of Cresco Labs

But what factors helped drive cannabis sales in March?

Wagamon said some macro trends in the world that she believes helped drive sales for the entire state.

“I think the stimulus [check] helped, and I think having a really lovely, warm and welcoming March, where people were excited to get outside after what was a pretty cold and dark February helped,” Wagamon said. “And then as people start to get vaccinated and feel safer going outside, we’re just starting to see more people out in the world.”

In addition to the stimulus checks and the state’s favorable weather conditions, William Butler, senior vice president of retail operations for Cresco Labs Sunnyside locations, expressed other factors that helped drive March dispensary sales, including the store’s overall depth of product, its sales promotions and wellness advisers.

Butler also agreed with Wagamon that he is starting to see more people getting outside and traveling again.

“I live just outside of Chicago, and as I like to say, the city is just starting to turn back on as far as folks coming from a destination standpoint that doesn’t live here,” Butler said. “But that’s just starting. So, as we start to see this growth [in sales], we see a lot of that come from our localized customers, which is terrific.”

The spike in sales affected the dispensary and wholesale side of things. Both sides had to make adjustments to ensure orders were getting filled, product was available, dispensaries were properly managing wholesale deliveries and more.

“It was a very busy March,” Wagamon said. “We are lucky in that we were able to fulfill orders for the most part, but when you have spikes in demand that are that high, we definitely felt it at the facility level. There were days that we averaged packing out about 25,000 to 30,000 units a day. We had one day where we shipped 45,000 units over 19 different orders, and that’s a lot of volume for our facility.”

And Wagamon said that wholesale employees were asked to work overtime to meet the demand.

“Ultimately, what her [Melissa’s] team does, helps fulfill our Sunnyside locations, which is just incredible,” Butler said. “So, that pack-out and those extra hours that went into the additional deliveries, part of that is a more Sunnyside.”

The dispensary is starting to get more deliveries than ever before, which is exciting as it means the dispensary is doing well with sales, and it’s also good to see a substantial amount of product available for customers, Butler said. 

© Courtesy of Cresco Labs

“I’m really proud of what we have done as a collaborative team to be able to manage the scheduling of these deliveries,” Butler said. “You can imagine the demand that this causes in the stores behind the scenes. So, we have to be very thoughtful, very methodical about how the deliveries are coming in and making sure we have the right amount of team members in place to be able to manage those deliveries when they do arrive, because the day they arrive, we want them available on the store menu, on the website available for purchase, we don’t want there to be a delay.” 

Butler said the dispensary and wholesale team’s strong collaboration is not something that was built overnight.

“Our sales overall have been very strong month over month, but March was exceptional,” Butler said. “So, I really viewed it as an extra building block. We weren’t scrambling to pull it together. We were able to really turn on our best practices and just take it to that next level.”

There has been a substantial increase in the number of in-store customers as well, Butler said.

“I would like to add that we still have very important measures in place when it comes to COVID prevention measures within all of our stores, for the safety of our team members and for the safety of our customers,” Butler said. “So, we’re proud that as we’ve had this influx of customers, that we still very much have very safe environments in order to prevent any issues from happening within the locations.”

In addition to having safety measures in place, Sunnyside dispensaries have also added additional team members and expanded store hours across multiple locations to keep up with the increase in customers.

And the March cannabis sales have been keeping the same momentum leading into April.

“It’s looking great thus far,” Butler said. “We are thrilled for 4/20 as that’s an incredible highlight of the year for us. I just love that we in the industry continue to make it even more important than special for our customer and for our team members in-store.”

The wholesale side is also having a strong April, and the team members are crossing their fingers that the weather continues to stay beautiful and that the momentum and excitement remains high as well, Wagamon said.