FILE PHOTO: Marijuana plants for the adult recreational market are seen inside a greenhouse at Hepworth Farms in Milton, New York, U.S., July 15, 2022. REUTERS/Shannon Stapleton
By Mrinalika Roy
(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 (NASDAQ:HITI), Canopy Growth (NASDAQ:CGC), and Trulieve Cannabis (OTC:TCNNF) Corp 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 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.