Supply woes are still a big problem in Nevada’s legal marijuana trade. Dispensaries are complaining that they do not have enough variety of supply to make customers happy and are missing out on revenue. The door has been opened for cannabis transportation outside of alcohol distributors but the licensing takes time and so in the meantime demand is not being met. Do you think Nevada will figure out how to fix this revenue problem?
Since Nevada’s recreational marijuana program launched in July, sales have dropped 20 to 30 percent as dispensaries struggle to meet the swell in demand, according to a report last week from the Nevada Department of Taxation.
A shortage of businesses able to deliver product to dispensaries has stunted the market, leaving dispensaries with a product selection that’s been reduced by more than half, the report said.
Dispensaries insisted that they needed more product faster, and they needed at least nine to 11 deliveries per week with between 12 hours and five days notice. Currently, they’re waiting closer to a week to two weeks.
“These (retail marijuana) businesses are struggling without a robust distribution system. Cultivators and producers have product sitting for days waiting to be delivered to stores while the quality of the product degrades. Retailers do not have the products their customers desire, products that are legal and should be available to them,” said Deonne Contine, director of the Nevada Department of Taxation, in the report.
The report is based on surveys filled out by more than five dozen marijuana establishments and more than a dozen alcohol distributors, an effort that is the result of an emergency regulation passed last month. It’s hoped to put to rest the issue of a distributors’ shortage.
The state currently is required to rely solely on alcohol distributors for delivery of recreational marijuana to dispensaries, a mandate that could either be killed or continued on Thursday in a Carson City District Court hearing.
““I would like to see the issue resolved quickly because it creates uncertainty in this new industry,” said Gov. Brian Sandoval in an email to the Reno Gazette-Journal late Wednesday.
Carson City District Court Judge James Russell may determine whether the state’s recent report is evidence enough that the state is in dire straits, or he may determine that the alcohol distributors still have exclusive rights to distribution.
Alcohol distributors were given those exclusive rights in the November ballot measure legalizing recreational marijuana, but the state last week determined in its report that there are not enough alcohol distributors qualified for the job at this time.