‘There’s a real attack on the industry’: Medical marijuana sales continue to drop in Colorado

Colorado’s Division of Income says medical marijuana gross sales are persevering with to drop.

Specialists are fearful about folks with well being situations getting access to the therapy they want. They are saying sufferers are paying extra in taxes for comparable merchandise at leisure services.

“That is the bottom they have been because the legalization of leisure. I am very fearful,” mentioned Truman Bradley.

Anxious is an understatement for Truman Bradley, govt director of the Marijuana Trade Group, a commerce affiliation in Colorado that gives assist for marijuana-related companies. He believes in secure entry to wash merchandise for all Coloradans and its guests.

In accordance with the Colorado Division of Income, medical marijuana gross sales within the state in June 2022 have been $19.2 million, down from $34.5 million in June 2021 — a 44% drop. Bradley believes the business is struggling for a lot of causes.

“On the medical aspect, some very strict buy limits got here in, you recognize, for prescribed drugs. Sufferers can stand up to a one-month provide. However for medical hashish, their day by day buy limits for folk who’re immunocompromised or disabled, it is a actual drawback,” he mentioned.

Bradley says that is making some sufferers resort to purchasing leisure marijuana, which prices extra as a result of increased tax base and pushes some medical marijuana companies to close their doorways. Buddy Boy dispensaries and Mile Excessive Inexperienced Cross closed their areas over the previous couple of months.

The Metropolis of Denver says it’s seen a decline in folks making use of for a medical marijuana license over the past 5 years, citing comparable causes.

“We predict it may be simply folks don’t need to undergo the effort of getting their medical marijuana card. They’d reasonably simply stroll down the road and go to a leisure dispensary,” mentioned Eric Escudero, spokesman for Denver Excise and Licenses.

Statistics from Denver’s annual marijuana report present town had 731 actively licensed marijuana companies in January 2014. There are at the moment 433 actively licensed marijuana companies as of January 2022.

“I believe what some persons are actually questioning is that if there’s an oversaturation of the marijuana market in Denver. We have now a variety of shops, whether or not or not it’s medical or leisure,” mentioned Escudero.

Bradley says the leisure business can also be taking successful.

“Leisure gross sales are a good portion of the tax income, however leisure gross sales are down 20% as properly. There’s an actual assault on the business,” mentioned Bradley.

Bradley says issues like inflation and rising taxes are contributing to that. He’s hopeful the business will make an upward development earlier than issues worsen.

Denver7 reached out to the Colorado Medical Enforcement Division, which regulates the medical and retail marijuana industries within the state, to see what they must say concerning the decline in medical gross sales and if there’s something that may be finished to cease the decline from occurring. A spokesperson mentioned the division doesn’t have something to contribute at the moment.