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The Arizona Department of Revenue (ADOR) recently released estimated sales data for November 2023. Combined medical and adult use sales reached $108.6 million in November, down 3.2% from $112.2 million in October. November 2023 sales were down 8.5% year-on-year from $118.7 million in November 2022.
November 2023 adult use sales were $83.5 million, down 3.1% from the prior month and down 3.2% year-on-year.
November 2023 medical sales were $25 million, down 3.6% month-on-month and down 22.6% from November 2022.
Our analysts observed in December that Arizona’s spot wholesale flower price was heading downward after a double top formation occurred in mid-November and early December at about $815 per pound. The state’s wholesale composite price has indeed dropped since then and has shown no signs of relief as we head into March and supply continues to outpace demand.
Interestingly, the movement of Arizona’s spot index has converged closely with that of California’s, as seen in the chart below. Arizona’s spot price opened in 2022 nearly 86% above California’s. After declining consistently throughout 2022, the average wholesale flower price in Arizona fell below California’s in the first week of February 2023. That trend has continued as California’s wholesale composite price continues to be buoyed by the high premium that indoor cultivated prepackaged flower demands over bulk transactions.
