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Demand puts premium on recreational marijuana prices in Colorado
FT ^ | 06 Jan 2014 | Shannon Bond

Posted on 01/06/2014 12:14:37 PM PST by Theoria

People looking to buy marijuana in Colorado are facing steep price hikes, long queues and shuttered stores as demand for recreational sales, which became legal in the state on New Year’s day, outstrips supply.

“Prices for adult-use cannabis are both higher than medical (as expected) and going up since opening on January 1 based on limited supply and even larger than expected demand,” said Betty Aldworth, deputy director of the National Cannabis Industry Association.

The trade group does not formally track prices, but estimates that recreational cannabis is selling for an average of $400 an ounce in Colorado – twice the $200 charged on average for an ounce of medical marijuana.

At the Clinic Colorado in Denver, prices for recreational, or adult-use, marijuana ranged from $55 to $77 per eighth-ounce portion – the most commonly sold amount – compared with $37 to $46 for medical patients.

The supply squeeze is partially due to how Colorado has set up its retail market. For the first nine months of this year, dispensaries must grow 70 per cent of what they sell and growers must sell 70 per cent of what they grow through their own retail outlets, forcing vertical integration.

Only existing medical dispensaries are being granted retail licences in the early phases of Colorado’s market, adding to the bottleneck. The state has granted 136 licences to stores, but many did not begin selling immediately on January 1. Sixteen more stores have licences pending.

(Excerpt) Read more at ft.com ...


TOPICS: Business/Economy; Culture/Society; US: Colorado
KEYWORDS: colorado; marijuana
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1 posted on 01/06/2014 12:14:37 PM PST by Theoria
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To: Theoria

Can’t the Dept of Agriculture provide seedlings for personal growth?


2 posted on 01/06/2014 12:16:51 PM PST by Paladin2
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To: Theoria

Capitalism likes to get high too.

High profits!

Pay up to toke up!


3 posted on 01/06/2014 12:17:13 PM PST by VanDeKoik
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To: VanDeKoik

Growers expected high demand but didn’t increase production because a new Call of Duty game had been released.


4 posted on 01/06/2014 12:21:32 PM PST by AppyPappy (Obama: What did I not know and when did I not know it?)
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To: VanDeKoik

A stoned American is a controllable American.
A liberals dream!


5 posted on 01/06/2014 12:22:24 PM PST by Autonomous User (Pain Fades. Chicks Dig Scars. Glory, lasts forever.)
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To: Theoria

Import some from Kentucky, they’ve got plenty, and it would benefit small farmers.

In my world the profits would go to border enforcement.


6 posted on 01/06/2014 12:27:27 PM PST by Anton.Rutter
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To: Theoria
...prices for recreational, or adult-use, marijuana ranged from...

Okay, so how much for the child-use stuff?

Remember when this was all about the poor, poor glaucoma sufferers? Pffft... everybody knew it was a ruse to legalizes this crap. In other news, the stock prices for the makers of Doritos is now sky-high as well.

7 posted on 01/06/2014 12:28:23 PM PST by Obadiah (I Like Ted.)
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To: Theoria

I’m guessing sales and use will go down after the newness of the law dies down.


8 posted on 01/06/2014 12:28:51 PM PST by umgud (2A can't survive dem majorities)
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To: Theoria

Is open carry permitted in these marijuana stores???


9 posted on 01/06/2014 12:29:09 PM PST by Uncle Chip
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To: Theoria

How do Police know if the MJ you have on you was bought legally or not?


10 posted on 01/06/2014 12:29:57 PM PST by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
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To: Theoria
recreational, or adult-use,

That's like calling pornographic movies "adult" movies. Adults don't do it. People with juvenile minds do...

11 posted on 01/06/2014 12:32:37 PM PST by DouglasKC
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To: Theoria
In other news - the sale of Doritos’s has caused huge supply problems in the Denver area.
12 posted on 01/06/2014 12:33:05 PM PST by yobid
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To: Red_Devil 232
How do Police know if the MJ you have on you was bought legally or not?

Excellent question! LOL!

13 posted on 01/06/2014 12:33:17 PM PST by Ben Hecks
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To: Uncle Chip
Dunno. Many areas prohibit guns around alcohol. They might also ban marij around guns. A earlier thread hinted at prior drug use as way to prohibit purchasing a gun.
14 posted on 01/06/2014 12:36:24 PM PST by Theoria (End Socialism : No more GOP and Dem candidates)
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To: Obadiah
Don't forget Screaming Yellow Zonkers...


15 posted on 01/06/2014 12:36:37 PM PST by Carriage Hill (Peace is that brief glorious moment in history, when everybody stands around reloading.)
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To: DouglasKC

The notion that the illegal drug trade is going to disappear is ludicrous. The pushers still have a huge teen market to feed, will be selling legally grown Colorado weed to other states and - as with cigarettes - will be selling black market at prices lower than the official government sanctioned and taxed product. Also, many of the hoodlums will shift into harder drugs or other criminal ventures. Appeasing crime will not make it disappear.


16 posted on 01/06/2014 12:36:55 PM PST by littleharbour ("All men having power ought to be distrusted to a certain degree. ~ James Madison)
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To: littleharbour

More demand, higher prices will lead to more supply from all sources. This will be an interesting experiment.


17 posted on 01/06/2014 12:38:04 PM PST by Oldexpat
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To: Oldexpat
You can have 6 plants according to the law. I suspect alot of the demand is simply tourist and such. It will be interesting though, since you can grow your own stuff where the demand will be. But, you can have a dairy cow to have milk, but most people will simply go to the store to get it.
18 posted on 01/06/2014 12:41:27 PM PST by Theoria (End Socialism : No more GOP and Dem candidates)
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To: Theoria

That is around $8,000 a pound!

I give it less than a year and a Mexican drug cartel will take over every pot shop in CO.


19 posted on 01/06/2014 12:42:33 PM PST by Beagle8U (Unions are Affirmative Action for Slackers! .)
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To: yobid

I’ll take the brownie franchise for Boulder —


20 posted on 01/06/2014 12:44:20 PM PST by Uncle Chip
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