Labor Day Weekend Cannabis Sales Exceed A Quarter Billion

Rhea-AI Summary

Akerna (Nasdaq: KERN) reports that cannabis sales over Labor Day weekend (Sept. 4-7) reached $245 million, a 23% year-over-year increase. Notably, adult-use sales surged by 35%. Friday and Saturday saw a 36% increase, while Sunday peaked at 43%. However, Labor Day itself experienced an 8% decline from last year. Akerna attributes the slower growth to increased cannabis purchases throughout the year due to COVID-19. The report analyzed sales by product category and age group, highlighting the ongoing expansion of the cannabis market despite recent challenges.

Positive

• Cannabis sales during Labor Day weekend exceeded $245 million, a 23% increase from last year.
• Adult-use cannabis sales increased by 35% during the holiday weekend.
• Sales on Friday and Saturday both saw a 36% year-over-year increase.
• Sunday recorded the highest increase in sales at 43%.

Negative

• Labor Day sales decreased by 8% compared to the previous year.
• Sales growth over the weekend was less significant than in prior years.

DENVER, Sept. 15, 2020 /PRNewswire/ -- Business intelligence from Akerna (Nasdaq: KERN), an enterprise software, leading compliance technology provider, and developer of the cannabis industry's first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), finds that cannabis sales over the Labor Day weekend (September 4-7) exceeded a quarter billion dollars.

Representing a year-over-year increase of 23% and totaling $245 million, cannabis sales did not increase as much as in previous years. The figures include both medicinal and adult use sales. Individually, adult-use sales increased by 35% over the holiday weekend.

Friday (September 4) saw the biggest sales day, representing a year-over-year increase of 36%. Likewise, Saturday saw a 36% increase in sales, while Sunday saw the biggest uptick with a 43% increase. Labor Day itself, however, saw an 8% decrease in sales from the previous year.

Additional Insights:

Product Sales by Category for Fri-Mon

• Flower – 47.4%
• Cartridges/Pens – 29.6% (down 2%)
• Concentrates – 12.9% (up 2%)
• Infused Edibles – 8.3%
• Other – 1.8%

Order Sales by Age Group

• Under 30 – 30% (up 3%)
• 30 to 40 – 30%
• 40 to 50 – 19%
• 50 to 60 – 12%
• 60+ – 9% (down 2%)

"Though we saw a smaller increase in cannabis sales than in previous years, that was due in part to increased cannabis sales throughout the year," says Ryan Ballman, Business Intelligence Analyst. "Because of the COVID-19 outbreak, people are purchasing more cannabis than in previous years. Consequently, we do not see as significant a rise in holiday cannabis sales."

About MJ Freeway: 
MJ Freeway is more than software as a service. Its flagship solution, MJ Platform, includes Platform Insights. Now operators, investors, and regulators can access the industry's largest and most statistically relevant database to drive data-driven business decisions.

Platform Insights provides:

• The greatest statistical relevance across countries
• Normalized data (not farmed from various disparate POS platforms)
• Full cannabis supply chain data
• Business insights founded in category management methodology

Platform Insights can eliminate the guesswork and provide answers to questions like:

• What is the gross margin return on inventory?
• What SKUs should be carried?
• How do basket adjacencies influence discounting and retention strategies?
• What does a medical market look like a year or five years after decriminalizing cannabis?

Click here for more information about MJ Platform.

About Akerna:
Akerna is a global regulatory compliance technology company. Akerna's service offerings include MJ Platform®, Leaf Data Systems®, solo sciences tech platform and Ample Organics. Since its establishment in 2010, Akerna has tracked more than $18 billion in cannabis sales. Akerna is based in Denver. For more information, please visit www.akerna.com and follow us on Twitter @AkernaCorp.

About the Akerna Flash Report:
Flash Report is a look at buying trends in the cannabis market as captured by Akerna's MJ Freeway subsidiary. MJ Freeway provides operators with MJ Platform, the industry-leading solution for regulatory compliance technology, from seed-to-sale-to-self. Some instances of the flash report may include business intelligence derived from Akerna's family of companies, including Ample Organics, Leaf Data Systems, solo sciences, and Trellis.

**Data is derived from MJ Platform, the leading provider of cannabis compliance software for the marijuana industry. Reporting Data is obtained from operators using Akerna's MJ Platform solutions. Increases are relative to the prior period. Additional business intelligence data sources may include proprietary tools used by Akerna's family of companies.

Forward-Looking Statements:
Certain statements made in this release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding the ability of the MJ Platform team to help operators make decisions through analytics and reporting. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna's ability to maintain relationships with customers and suppliers and retain its management and key employees, (ii) changes in applicable laws or regulations, (iii) changes in the market place due to the coronavirus pandemic or other market factors, (iv) and other risks and uncertainties disclosed from time to time in Akerna's filings with the U.S. Securities and Exchange Commission, including those under "Risk Factors" therein.  You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna's industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

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SOURCE Akerna

FAQ

What were the cannabis sales figures for Akerna (KERN) during Labor Day weekend 2020?

Akerna reported cannabis sales of $245 million over Labor Day weekend, reflecting a 23% increase year-over-year.

How much did adult-use cannabis sales increase during the 2020 Labor Day weekend?

Adult-use cannabis sales rose by 35% during the Labor Day weekend.

What was the trend in cannabis sales on Labor Day itself in 2020?

Labor Day sales saw an 8% decline compared to the previous year.

Which day had the highest cannabis sales increase during Labor Day weekend 2020?

Sunday experienced the highest sales increase at 43%.