Maine hits new milestone in record-breaking marijuana sales

Last month marked a new milestone for Maine’s fledgling recreational cannabis industry: the state Office of Marijuana Policy reported sales of $ 5.3 million for licensed retailers in May.

The number makes it last October “the month with the highest earnings since the industry started”.

Erik Gundersen, director of the Office of Marijuana Policy in Maine, said in a statement Tuesday that one of the “primary goals of cannabis legalization is to reduce the illicit market”.

“The strong monthly growth here in Maine, just seven months after the industry officially launched, suggests that more and more consumers are choosing the tested, tracked, and well-regulated market over the illicit market,” said Gundersen. “This is a positive sign of the health of Mainers and the viability of the industry. With the busy Maine summer season, our effective regulation of the industry continues. “

In states and countries where marijuana has been legalized, the regulated market often lags behind the illegal market, and customers often turn to the latter for cheaper options.

A 2019 report found that the unregulated market in California was three times larger than the regulated market three years after the state ended the cannabis ban.

Maine’s regulated market sales were “$ 1 million above the previous record month of April” in May, according to the Office of Marijuana Policy, as licensed “retailers conducted 71,843 transactions in May, with smokable marijuana accounting for 59 percent of sales.” Revenue, while infused products and concentrates accounted for 23 percent and 18 percent, respectively. “

“In the seven months since the adult market was launched in Maine, gross sales of adult marijuana in Maine have grown steadily to a total of $ 22.77 million. 34 retailers are now licensed for the program, and more than 50 communities across the state have chosen the program, ”the agency said in a press release on Tuesday.

The Maine legal market originally got off to a slow start

Legal marijuana sales in Maine officially launched on October 9th last year, nearly four years after voters in the state approved legalization on the vote. However, the implementation of the new law has been plagued by a number of delays, starting with a recount sparked by the narrow voter approval of the initiative.

With the outcome in place, then-Governor of Maine, Paul LePage, a Republican, stood in the way of the law’s entry into force, going so far as to veto a law in 2017 that would have promoted legalization.

But LePage was eventually replaced by Democrat Janet Mills, who backed the legalization effort and helped the legal industry finally move forward.

In September last year, the state began issuing licenses to would-be marijuana dealers.

When the industry started operating a month later, there were only six active licenses at the time, according to the Office of Marijuana Policy. In the first month, the state reported revenue of more than $ 1.4 million, generated from a total of 21,194 transactions. 76 percent of those first month sales were from smokable cannabis.

The agency said Tuesday that these licenses “completed 16,294 transactions and generated just over $ 1 million in revenue for the entire submonth, up to approximately $ 4.35 million by April, with more in May $ 1 million was added “.

“Since starting retail sales last fall, our adult licensees have proven innovative and resilient as they partnered with OMP to launch an emerging industry amid a global health pandemic,” Gundersen said in a statement. “As our state prepares to welcome visitors during the summer tourist season, I am confident that they will continue to work to maintain the high standards we have to protect the health and safety of the public.”