Trick or Treat? Akerna Predicts Halloween to Generate $103 Million in Cannabis Sales

Rhea-AI Summary

Akerna (Nasdaq: KERN) predicts a significant boost in cannabis sales for the Halloween weekend, forecasting an overall revenue generation of approximately $103 million. On October 30, adult-use sales are expected to increase by 11%, while Halloween itself is projected to see a 14% rise in adult-use sales. Medical cannabis sales are also anticipated to grow by 5% on Halloween. The average ticket sizes are projected at $74.48 for adult use and $124.43 for medical. Historically, Halloween ranks as the 5th largest cannabis sales day annually.

Positive

• Forecast of $103 million in cannabis sales over Halloween weekend.
• Predicted increase of 11% in adult-use sales on October 30.
• Expected 14% rise in adult-use sales on Halloween.

Negative

• Medical sales predicted to remain flat leading up to Halloween.

DENVER, Oct. 13, 2020 /PRNewswire/ -- According to 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®), cannabis retailers can expect a surge in sales over the Halloween holiday weekend.

On the Friday preceding Halloween (10/30), adult-use sales are expected to increase by 11% compared to daily sales averages, while medical sales remain flat. On Halloween, medical cannabis sales are predicted to increase by 5%, while adult-use sales rise roughly by 14%.

"Historically speaking, Halloween tends to be the 5^th largest cannabis sales day of the year," said Ryan Ballman, Business Intelligence Engineer, Akerna. "Over the two-day period, we expect cannabis sales to generate approximately $103 million nationwide."

Additional Insights

Predicted Avg. Ticket Sizes

• Adult Use – $74.48
• Medical – $124.43

Product Sales by Category

• Flower – 41%
• Cartridges / Pens – 35.3%
• Concentrates – 10.7%
• Infused Edibles – 10.4%
• Other – 2.6%

Order Sales by Gender

• Male – 65%
• Female – 35%

Order Sales by Age Groups

• Under 30 – 23.2%
• 30-40 – 27.6%
• 40-50 – 20%
• 50-60 – 14.7%
• Over 60 – 14.5%

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, 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 around the Halloween holiday weekend 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 are Akerna's predictions for cannabis sales during Halloween 2023?

Akerna forecasts approximately $103 million in cannabis sales during the Halloween weekend.

How much are adult-use sales expected to increase on Halloween according to Akerna?

Adult-use sales are expected to increase by 14% on Halloween.

What is the projected increase in medical cannabis sales during the Halloween weekend?

Medical cannabis sales are predicted to increase by 5% on Halloween.

What was the historical significance of Halloween for cannabis sales?

Halloween is historically the 5th largest cannabis sales day of the year.

What is the expected average ticket size for adult-use cannabis purchases?

The expected average ticket size for adult-use cannabis purchases is $74.48.