| “Akerna’s 420 data showed large increases in purchasing and consumption. Americans are increasingly turning to cannabis, which we predict will only increase with federal cannabis reform,” said Jessica Billingsley, Akerna Chief Executive Officer.
The previous year’s 420 didn’t see any jumps in sales. It didn’t even make the top five sales days of the year, indicating the cannabis retail industry had some work to do to adapt to new social guidelines and customer changing needs. Soon after, cannabis dispensaries began offering various alternative shopping options, including online ordering, curbside pickup, and delivery. With all these new business needs came an increased dependency on technology.
“Earlier this month, we released predictions for this year’s 420, derived from MJ Platform, which correctly predicted the $373+ million value,” said James Ahrendt, Business Intelligence Architect at Akerna. “This is a testament to the power of our data analytics. By leveraging data-driven insights, cannabis businesses can make strategic predictions and decisions for their businesses.”
These historically high sales are likely a combination of 420 celebrations and additional states legalizing cannabis for both medicinal and adult use. While the cannabis industry has relied on state-by-state legalization, federal cannabis reform is on the horizon with support from many leading congresspeople. Senate Majority Leader Chuck Schumer gave a speech on the Senate floor commemorating the holiday and calling for reform, some of which has already passed in the House.
The day before the 420, the House passed the SAFE Banking Act with bipartisan support, which addresses a significant issue in the industry. Because cannabis is a Class I controlled substance at the federal level, cannabis businesses cannot access traditional banking services that are a given with other mainstream industries, which creates a variety of problems from securing loans, processing payments, receiving high fees, and in some cases, can impact payroll. How the final Senate bill looks is yet to be determined, but banking will likely be part of a broader cannabis reformation bill that includes decriminalization and federal regulation.
Additional Insights for the 5-day shopping period (4/16 – 4/20):
- Average Order total:
- Average basket Size:
- Overall Category sales:
- Flower – 48.08%
- Cartridge/Pens – 30.38%
- Concentrates – 11.63%
- Infused Edibles – 8.1%
- Other – 1.81%
- Demographics:
- Male: 60.91% male
- Female: 39.01%
- Sales by age groups:
- Under 30 – 30.49%
- 30-40 –30.66%
- 40-50 – 18.90%
- 50-60 –11.17%
- Over 60 – 8.78%
Forward-Looking Statements:
Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such terms or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding the ability of the MJ Platform team to help operators make decisions through analytics and reporting. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna’s ability to maintain relationships with customers and suppliers and retain its management and key employees, (ii) changes in applicable laws or regulations, (iii) changes in the market place due to the coronavirus pandemic or other market factors, (iv) and other risks and uncertainties disclosed from time to time in Akerna’s filings with the U.S. Securities and Exchange Commission, including those under “Risk Factors” therein. You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna’s industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part. |
