California Isn’t Selling Nearly As Much Pot As It Thought It Would
We already know that cannabis tax revenue isn’t meeting projections. Now, we’re getting a closer look at what’s happening on the retail side.
With tax revenue from legal pot sales in California falling short of projections, a financial analysis firm estimated Tuesday that total sales this year will be $1.9 billion, significantly less than the $3.8 billion the company expected.
The firm, New Frontier Data, had also estimated that total sales in California would reach $6.7 billion by 2025, but now says it is more likely the industry will generate $4.72 billion by then.
Giadha Aguirre De Carcer, chief executive of New Frontier Data, blames cities and counties for dragging their feet. She also points to strict regulations on growing, selling, and distributing, which some businesses find it too hard to comply with. As a result, adds California Cannabis Industry Assn. spokeswoman Amy Jenkins, only 30% of the state’s cities and counties have any authorized commercial cannabis activity at all.
Read more at the Los Angeles Times.