February Sales Drop And Chicago Kicks Off A Race For State Licenses

Mar 09, 2020

Good Morning!

Retail cannabis sales dropped more than $4 million between February and January, state tax collectors announced this last week. The drop from $39.2 million to $34.8 million spurred on a thousand gossipy conjectures on whether or not taxes are too high, the illegal market’s continuing draw, supply problems, colder weather, and that maybe the first month’s numbers were a result of one-time novelty sales. Medical cannabis sales experienced a big drop from January to February too: From $27.4 million to $23.4 million after twelve straight months of monthly sales increases.

But as my college statistics professor screamed practically every class, “Two data points don’t make a trend!” March’s sales numbers will be sure to set off intense policy debates.

Meanwhile, Chicago’s Zoning Board of Appeals approved a slew of recreational dispensary applications, two pairs of which are competing for the same state license. The city Zoning Board’s move is unlike many smaller towns, which are essentially picking winners through the local zoning approval process before they can get to the state license stage. Now, two competing shops in River North and two on Goose Island will race to build out their shops and pass a state inspection.

The first stores to do so are likely to win a state license, a great setup for a madcap reality television show like “Restaurant: Impossible”, where hapless cannabis shop owners would be set upon by a muscle-bound, cannabis sales expert yelling about table placement and pot recipes. Produced by Dick Wolf, we’d name it “Chicago Cannabis” and this should totally happen.

And also, another reminder, since we’re still just getting started with this twice a week thing: On Monday mornings you should watch for our weekly recap of the last week’s news, a cool chart and a review of coming events across Illinois (that’s this email). Then, Thursday mornings you get Brad Spirrison’s unparalleled original cannabis reporting. Got something we should tell people about? Drop me an email at mike@grownin.com. Better yet: Click the button below and tell your friends how awesome the Grown In newsletter is. The karma you’ll earn from it is worth at least one or two really bad things you did a while back.

-Mike Fourcher

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Chart of the Week: Monthly Illinois Medical Cannabis Sales

As mentioned above, Illinois’ monthly medical cannabis sales dropped about $4 million from January to February, the biggest drop yet. Medical cannabis sales have had steady growth since their launch in 2016, but there have been a few sales drops here and there, noticeably between January to February 2019 (remember the Polar Vortex?) and September to October 2019. But, the overall trendline is of massive growth, from $2.9 million in sales in August 2016 to $27.4 million in January 2020, a 960% growth rate.

Last Week’s Illinois Cannabis News

Because it’s a compulsory-obsessive habit, we scour the news across Illinois for what’s going on with cannabis.

March 8

Speak Out: Tinley Park marijuana survey wasn’t scientific [Daily Southtown]

March 7

Patients And Caregivers Learn The Basics Of Growing Marijuana At Home [St. Louis Public Radio]

Dueling groups weigh in as Naperville pot sales referendum nears [Daily Herald]

South Jacksonville approves cannabis tax [Jacksonville Journal Courier]

March 6

Could Oregon cannabis solve Illinois' supply shortage? Maybe in the future. [Quad-City Times]

Illinois, Pot Paradise, Made $75 Million Off Weed Sales in Two Months [Riverfront Times]

Who gets weed tax revenue? Illinois is still working on that. [Crain’s Chicago Business]

The positives and negatives about Illinois' cannabis industry [WIFR]

Illinois launches cannabis education website to provide ‘clear and objective’ information [Alton Telegraph]

Group Calls for Chicago Pot Shops to Offer More Community Benefits [NBC5]

Zoning board approves 5 recreational pot shops, setting stage for race to win state licenses [Sun-Times]

March 5

City Approves Five Applications for Satellite Marijuana Dispensaries [NBC5]

Commentary: Flawed weed and gambling laws allow industries to hide investors [Chicago Tribune]

March 4

Illinois recreational marijuana sales totaled $35M in February, a decline from January [Chicago Tribune]

Recreational weed sales drop to $35 million in February as shortages continue [Sun-Times]

Second month sale totals of adult use cannabis in Illinois [KFVS-TV]

Tinley Park begins process of allowing marijuana retail dispensaries [Daily Southtown]

Dispensary33 wants to open a West Town marijuana shop that’s twice as big as its first store. It’s got plenty of competition for the neighborhood. [Chicago Tribune]

Dispensary33 Wants To Open Weed Shop On West Loop’s Restaurant Row [Block Club Chicago]

2 marijuana companies trying to open dispensaries in Gold Coast [WGN9]

Gold Coast Aldermen Want To Block 2 Weed Dispensaries From Opening In The Neighborhood [Block Club Chicago]

Commentary: Cannabis & Culture [Tri-States Public Radio]

March 3

Illinois Medical Marijuana Patients Start Growing to Avoid Shortages [Marijuana Times]

Marijuana retailers near Illinois borders benefit from out-of-state customers, offer warnings on crossing boundaries with MJ [Marijuana Business Daily]

Who’s profiting off the millions that Illinois’ marijuana business is bringing in? State officials are keeping that secret. [Chicago Tribune]

Second recreational marijuana dispensary now open near St. Louis [Belleville News-Democrat]

Short Lines, Quick Service On First Day Of Recreational Marijuana Sales In Sauget [St. Louis Public Radio]

A first in the weed-shop world [Crain’s Chicago Business]

President of Cresco Labs, operator of Sunnyside marijuana dispensaries, exits company [Chicago Tribune]

Cresco Labs co-founder Caltabiano resigns [Crain’s Chicago Business]

March 2

Think marijuana isn’t addictive? Former users say think again. [Chicago Tribune]

South Loop Elementary issues alert to keep marijuana-laced edibles out of school, leaving parents confused about acceptable snacks [Chicago Tribune]

Cannabis Events Coming This Month

Every week we round up some of the more interesting cannabis events coming up around Illinois. Got something we should be paying attention to? Drop a line to mike@grownin.com

March 9

Crestwood Plan Commission: Special Permit For Craft Grower

8:30 PM – 9:30 PM

Crestwood Village Hall, 13840 South Cicero Avenue, Crestwood

March 10

Streator Plan Commission: SUP For Adult-Use Cannabis Craft Grower

6:00 PM – 7:00 PM

CIty Hall, 204 S. Bloomington St., Streator

IL Cannabis Business Crash Course

6:00 PM – 10:00 PM

232 Main St, Park Forest

March 11