While Cyber Monday and Black Friday did deliver solid sales growth, the cannabis industry was on a totally different level.
Joe Milton is the CEO of Baker, a cannabis industry software platform that connects dispensaries and customers with ordering systems, loyalty programs, and message services. Baker operates in 175 dispensaries in seven U.S. states and Ontario.
In an interview with online publisher Westword, Milton reported huge sales gains across its network of users over the holidays.
From “Dispensaries Break Online Sales Records on Cyber Monday After a Very Green Friday” via Westword.
“Cyber Monday sales were up 70% from a ‘regular day’ while the average ticket price was up 230%.
According to Baker’s data, online orders went up 77 percent last week, when customers were using Baker’s loyalty program 65 percent more than they had in the previous two months.
On Black Friday, dispensaries across the state experienced almost twice the volume of a normal day.
Weed Wednesday saw 55 percent more orders than on a typical day and a 25 percent increase in the size of purchases, Milton notes. Baker also spotted a spike in concentrate sales.”
This spike in demand makes perfect sense.
Cannabis can be a great holiday gift. Friends like to share cannabis over holiday parties.
Don’t forget the family aspect. Cannabis can be a stress reliever at family parties or help patients sleep away from home.
Whatever the reason, the spike in holiday sales is good news for the cannabis industry.
I expect it to support sentiment for the sector and drive strong fourth-quarter results in January.
Looking forward, I see two more important events on the horizon.
January 1 Is The Day Many U.S. States Will Launch New Cannabis Programs
January 1 is another big day for the cannabis industry.
That is the day a number of the eight U.S. states that just voted to legalize medical or recreational marijuana will launch their new programs.
For example, cannabis use for recreational purposes in Nevada is set to kick off on January 1.
This is important for two reasons.
First, it will drive industry revenue.
Secondly, it will generate additional media coverage and interest in the sector.
Back in January of 2014 when Colorado and Washington launched their recreational programs, that story went viral and cannabis stocks proceeded to log staggering gains in the next three months as capital poured into the sector.
I’m hoping for a repeat this time around.
I Expect Canada to Legalize Recreational Cannabis In The Spring Of 2017
Eight U.S. states voted yes on legal cannabis programs on November 8. Those results have been getting a lot of attention from the media.
Rightfully so. That was great news for the North American cannabis industry.
However, looking forward, I see an even bigger event on the horizon.
There is a strong probability that Canada will legalize recreational cannabis in the spring of 2017.
Early estimates are projecting this could give birth to a $5 billion to $10 billion annual industry overnight.
Make no doubt about it that would be a game changer. If it happens, once again, it would be a huge catalyst for cannabis stocks.
The Outlook For Cannabis Stocks Is Bullish
As you can see, the cannabis industry is thriving over the holidays with two important events on the horizon.
That’s why I believe there is still plenty of time to invest in the young industry despite many stocks posting big gains in 2016.
Be sure to stay tuned for more information on the most promising companies in the sector and how you can profit.