Recreational cannabis sales reach new high in June

Adult-use cannabis sales in New Mexico reached a record high in June at a time when some industry leaders have sounded the alarm regarding market saturation, a continued drop in medical cannabis sales and confusion regarding reported cannabis excise taxes.

Data from the state’s Cannabis Control Division shows recreational cannabis sales reached $33.3 million last month, beating a previous record high set in March by nearly $1 million. June’s record follows a trend of mostly increased adult-use sales from last April, when sales at the time accounted for slightly more than $22 million.

“Adult-use sales across the state will continue to grow, as more people over 21 feel comfortable … making the decision to purchase regulated products that are tested and safe,” said Ben Lewinger, executive director of the New Mexico Cannabis Chamber of Commerce.

Industry concerns

The increase in adult-use sales has coincided with a medical cannabis industry in decline.

Sales last month for medical cannabis stood at $14.4 million, which is a slight increase from May but down nearly $3 million from last April. Enrollment has also dropped significantly, with the latest data showing 100,921 patients enrolled in the program as of May.

There have also been questions from some cannabis leaders about the lack of a cap on licensing, given that nearly 600 dispensaries have opened in the state in a little over a year of adult-use sales.

A group of nearly 100 industry leaders last month sent a letter to Gov. Michelle Lujan Grisham outlining concerns about the large number of stores and other issues that they say are forcing “homegrown small and medium-sized cannabis businesses... to close their doors or lay off staff.”

Concerns about cannabis sales have been on the mind of Duke Rodriguez, the president and CEO of Ultra Health, the largest cannabis operator in New Mexico, for some time.

He said sales data from the CCD may be overstated, as cannabis excise tax reports from the New Mexico Taxation and Revenue Department show sales are likely much lower.

“The CCD continues to exaggerate retail sales, but the reality is those numbers are vastly inconsistent with the financial numbers being compiled by the New Mexico Tax Department,” Rodriguez said. “After 15 months of adult use, we still don’t know the true level of dollar sales, the actual number of active operators, the number of plants in production, and more importantly, the level of compliance by licensed operators.”

But Charlie Moore, a spokesman with the TRD, addressing the complaints on tax discrepancies, told the Journal in an email that the “difference could be any number of things,” including late filings and incorrect filings.

Other numbers for June

Albuquerque continues to lead the way in New Mexico, as it has since adult-use sales started. Recreational sales in June stood at $9.4 million, the third-highest sales month for Albuquerque.

And Sunland Park, which borders El Paso, continues to sell more cannabis than cities such as Santa Fe and Las Cruces. In June, recreational sales were $3.2 million — its best sales month to date and about $618,000 more in sales than in May.