Akerna Flash Report: Can Oil Day Beat the Sales Record Set by the 4th of July Weekend?

Rhea-AI Summary

Akerna (Nasdaq: KERN) anticipates an 11% increase in vaporizer and concentrate sales during the 7/10 Oil Day celebrations, highlighting a historical 124% increase in oil sales compared to the daily average. Sales trends indicate that during the July 4 weekend, over $206 million was spent on cannabis, with 47% on flower and 32% on cartridges. The company’s MJ Platform now includes Platform Insights, offering valuable insights into cannabis sales and inventory management, aiding operators and investors in making data-driven decisions.

Positive

• Anticipated 11% increase in vaporizer and concentrate sales for 7/10 Oil Day.
• Historical data shows 124% increase in oil sales compared to average daily sales.
• Over $206 million spent on cannabis during the July 4 weekend.

Negative

• Recent sales data indicates a shift away from pickup and delivery methods, dropping to 14% from 67% in May.

DENVER, July 10, 2020 /PRNewswire/ -- Business intelligence from Akerna (Nasdaq: KERN), a leading compliance technology provider and developer of the cannabis industry's first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), anticipates an 11% increase in vaporizer and concentrate sales as part of 7/10 Oil Day celebrations. Historically, oil sales have seen a 124% increase on 7/10 compared to the daily average for the rest of the year.

"Health-conscious consumers are seeking the benefits of cannabis without the impact of smoking on their lungs," said James Ahrendt, business intelligence architect, Akerna. "Some people may choose to vaporize their flower to bypass the negatives of smoking cannabis while still reaping the benefits. Overall, in the last six months, we have seen steady buying trends when it comes to vaporizers, cartridges, and pens as well as concentrates."

Over the 4^th of July weekend, Friday, July 3 was the highest sales day for cannabis in 2020. From July 2 to July 4 consumers spent more than $206 million on cannabis. Sales over the holiday weekend broke down as follows:

• 47% flower
• 32% Cartridges/Pens
• 10% Concentrates,
• 8% Infused Edibles

"It was interesting to see 86% of sales were in store. At the height of COVID we tracked a steady trend in pickup and delivery as product fulfillment methods," said Ahrendt. "Over this weekend pickup and delivery as a fulfillment method accounted for 14% of sales. Think about Nevada, for example, in May pickup accounted for 67% of total sales, now, two months later, we're seeing industry lows when it comes to pickup and delivery."  

MJ Freeway is more than software as a service. Its flagship solution, MJ Platform now 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 Platform Insights.

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 anticipated increases in cannabis sales in relation to the July 4^th weekend, sustained increases in demand for cannabis and 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 is the expected sales increase for Akerna during 7/10 Oil Day in 2020?

Akerna anticipates an 11% increase in vaporizer and concentrate sales during 7/10 Oil Day.

How did cannabis sales perform over the July 4 weekend in 2020?

Consumers spent over $206 million on cannabis during the July 4 weekend in 2020.

What percentage of cannabis sales were from flower and cartridges during the July 4 weekend?

47% of sales were from flower and 32% from cartridges/pen.

What insights does Akerna's MJ Platform provide to cannabis operators and investors?

Akerna's MJ Platform now includes Platform Insights, offering data-driven business insights and inventory management.

What shift in sales methods did Akerna report in recent data?

Sales from pickup and delivery methods dropped to 14%, down from 67% in May.