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The Nevada Department of Taxation (NDOT) issued data on November 2023 cannabis tax revenue and sales. November’s combined medical and adult use sales were under $66.2 million, down 2.6% from $67.9 million in total sales in October. November 2023 combined sales were down 6.6% year-on-year, from $70.8 million in November 2022.
Stability in monthly sales persisted in November. However, a very modest downtrend is evident. In 2022, only two months of the year saw sales come in below $70 million. With data available for 11 months of 2023, only five months have seen sales settle above $70 million. Monthly sales have also trended downward fairly consistently from March 2023, when retailers generated just above $75 million in revenue.
Since our last update on Nevada the state’s spot wholesale flower price has continued to slide back into the range it occupied prior to its peaks in the first week of November 2023 and the final weeks of December 2023. Given the recent consistent stability – and slight downtrend – on the demand side of Nevada’s market, it makes sense that price would revert back to the levels seen for much of 2023.
In the previous update in our January 26 report, we also pointed out that slumping wholesale flower prices in California could end up being a drag on Nevada’s market. This appears to be occurring, with the recent steep drop in Nevada’s price mirroring that which has been taking place concurrently in the Golden State. The anticipated demand created by hosting the NFL Super Bowl lifted wholesale prices last week, but the retail sales figures for January and February 2024 will not be available for quite some time.