Cannabis companies look to '4/20' to light up sales

High Tide

20/04/2023 14:17

By Mrinalika Roy
       April 20 (Reuters) - 
    From cannabis-infused flowers to edible weed gummies,
marijuana companies are pulling out all the stops as they eye
bumper sales on April 20 - a day referred to as "4/20" in weed
culture.
  
    Industry insiders expect highest single-day sales ever for
the cannabis sector on Thursday even as the industry faces
increased scrutiny from lawmakers in the United States.
        4/20, derived from a trope for smoking marijuana,
typically sees cannabis companies such as High Tide, Canopy
Growth  WEED.TO , and Trulieve Cannabis Corp  TRUL.CD  amp up
promotions, throwing in exclusive deals and discounts to lure
customers.
    Wholesale cannabis platform Leaflink expects sales of
infused flowers and pre-rolled joints to jump 500%-1,000%
compared to 2022.
    "4/20 continues to gain recognition with state-by-state
legalization," said Curaleaf  CURA.CD  CEO Matt Darin.
    Recreational use of marijuana is legal in only 21 U.S.
states along with Washington, D.C. and Guam. Four of those
states approved legalization only last year.
    "We'll probably see two-and-a-half times the normal Thursday
sales … we've been upping our production in anticipation of
record sales," said Nick Rinella, CEO of Hippos, which operates
recreational and medicinal cannabis dispensaries in Missouri.
    Curaleaf saw an increase of about 45% in net sales and 70%
increase in transactions across its retail stores on April 20
last year compared with 2021. The company expects a similar
spike in traffic this year.
    Sales are likely to get a further boost from the day falling
on a Thursday this year.
    According to seasonality data from cannabis data firm BDSA,
cannabis retailers see more sales on Thursdays than on
Wednesdays and Tuesdays.
    Given that 4/20 fell on a Wednesday in 2022 and on a Tuesday
in 2021, it is expected that 4/20 will bring an even bigger
spike in sales this year, BDSA said.
    "With stiff competition and the illicit market threatening
the growth of legal adult-use cannabis markets, cannabis brands
must leverage key holidays like 4/20 to simply reinforce the
message about what they do best," said Andy Palalas, chief
revenue officer at High Tide  HITI.V .

 (Reporting by Mrinalika Roy in Bengaluru; Editing by Saumyadeb
Chakrabarty)
 ((mrinalika.roy@thomsonreuters.com;))