Akerna Flash Report: 4th of July weekend expected to bring in $206,000,000 in national retail cannabis sales

Rhea-AI Summary

Akerna (Nasdaq: KERN) anticipates over $206 million in legal cannabis sales for the upcoming 4th of July weekend, with Friday, July 2nd, expected to generate $91 million, marking a 60% increase from the average. Historical data indicates a 23% year-over-year rise in purchases for this holiday period. Predictions suggest Saturday, July 3rd, will bring in $72 million, while Sunday, July 4th, is estimated at $43 million. The average order total is expected to be $109, with a basket size of 3.6 products.

Positive

• Projected sales of over $206 million for the 4th of July weekend, indicating strong market demand.
• Friday, July 2nd, expected to yield $91 million, showcasing a 60% surge in sales.
• 23% increase in product purchases year-over-year for the holiday weekend.

Negative

• None.

DENVER, June 29, 2021 /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®), predicts that the upcoming 4th of July holiday weekend will bring in over $206,000,000 in legal national cannabis sales. 

Historical data shows that the Friday ahead of the 4th of July weekend spikes in sales, with this Friday, July 2nd expected to retail nearly $91,000,000, up 60% from an average Friday. This will likely be the second highest sales day of 2021, after 420. 

"Year over year, we've seen a 23% increase in the number of products consumers and patients are purchasing for the 4th of July holiday weekend," said James Ahrendt, Business Intelligence Architect at Akerna. "With the holiday falling on a Sunday this year, dispensaries should be evaluating staffing and preparing inventory ahead of the weekend to ensure they are ready to accommodate these increases in both traffic and sales."

Saturday, July 3rd, should bring in another $72,000,000 of cannabis sales, and Sunday, July 4th is predicted to garner an additional $43,000,000. Sundays are historically the lowest sales day of the week, but sales will still be elevated due to the holiday. 

Other predictions for the holiday weekend (7/02 - 7/04):

1. Average order total:
1. 1. $8 more – up to $109 from $101 (2021 average)
2. Average basket size:
1. 1. 3.6 products per purchase
3. Category sales:
1. 1. Flower – 49%
   2. Cartridge/Pens – 31%
   3. Concentrates – 10%
   4. Infused Edibles – 9%
   5. Other – 1%
4. Demographics:
1. 1. 61% male
   2. 39% female
5. Sales by age groups:
1. 1. Under 30 – 29%
   2. 30-40 –31%
   3. 40-50 – 20%
   4. 50-60 –11%
   5. Over 60 – 9%

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 (Nasdaq: KERN) is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industry. First launched in 2010, Akerna has tracked more than $20 billion in cannabis sales to date and is the first cannabis software company listed on Nasdaq. The company's cornerstone technology, MJ Platform, the world's leading infrastructure as a service platform, powers retailers, manufacturers, brands, distributors, and cultivators.

For more information, visit https://www.akerna.com/. 

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, Trellis, and Viridian Sciences.

Data is derived from MJ Platform, the leading provider of cannabis compliance software for the marijuana industry. Sales projections are based on market adjustment calculations and represent the entire US market as an aggregate.

Reporting Data is obtained from operators using Akerna's MJ Platform solutions. Akerna has one of the largest seed-to-sale footprints in the cannabis industry, operating in 15 countries and 23 U.S. states, including Pennsylvania, Oklahoma, Puerto Rico, Arizona, California, Utah, Michigan, Colorado, Montana, Nevada, Maine, Vermont, New Mexico, Missouri, Texas, Ohio, Maryland, Washington D.C., Kansas, Arkansas, New York.

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 terms 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 are the projected cannabis sales for the 4th of July weekend according to Akerna?

Akerna predicts over $206 million in legal national cannabis sales for the 4th of July weekend.

What is the expected sales figure for Friday, July 2nd, 2021?

Sales for Friday, July 2nd, 2021, are expected to reach $91 million, a 60% increase from average Fridays.

How much is anticipated from cannabis sales on Saturday, July 3rd, 2021?

Saturday, July 3rd, is anticipated to generate another $72 million in cannabis sales.

What is the expected average order total for the 4th of July weekend?

The average order total is expected to be $109, up $8 from the 2021 average.

What demographic trends does Akerna report for cannabis purchases during the holiday?

The cannabis purchasing demographic is 61% male and 39% female, with 29% of buyers under 30.