13 Oct 2021
2021 has been a banner year for Michigan’s cannabis industry and we consider it to be one of the most attractive recreational markets in the US.
According to Michigan’s Marijuana Regulatory Agency, the state generated $161.4 million revenue in September. Although this amount was approx. 2.5% lower than August, it was more than 50% higher than September 2020 and we are bullish on the growth of the market.
The agency breaks down monthly cannabis sales into medical or recreational transactions and we found these data points to be the most thought provoking. Compared to the same month last year, medical cannabis sales fell by more than 20% while recreational cannabis sales increased by more than 100%.
In September, medical cannabis sales were approx. $36.5 million and recreational cannabis sales were approx. $125 million. We are bullish on the sales trend that we are seeing in Michigan and expect to see increasing revenue on a going forward basis.
From a product category performance standpoint in Michigan, infused edibles and concentrates showed impressive growth on a year-over-year basis. During this time, revenue from edibles increased to $16.6 million from $3.9 million while revenue from concentrates increased to $9.2 million from $3 million.
Dried flower continued to be the largest revenue generator for Michigan’s cannabis market. In September, the state generated more than $61 million from the sale of dried flower (up from $18 million in September 2020) which accounted for almost 50% of the total amount of recreational cannabis revenue during the month.
Body and Mind is Capitalizing on Michigan
Earlier this month, we highlighted Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) as a US multi-state operator (MSOs) that is levered to the Michigan market and believe our readers need to be aware of the business.
At current levels, we find Body and Mind’s valuation to be attractive and believe that it has a favorable risk-reward profile. We are of the opinion that there is a disconnect with the market and consider Body and Mind to be a unique growth story.
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