MEDFORD, OREGON – November 18, 2019 — Grown Rogue International Inc. (CSE:GRIN | OTC: GRUSF) (“Grown Rogue” or the “Company”), a vertically-integrated, multi-state cannabis company, with operations and assets in Oregon, California, and Michigan, has released survey data suggesting the pricing in the Oregon cannabis market is recovering.
- Over 50 dispensary owners and/or managers were surveyed during a two-week timeframe between September 17, 2019 and October 4, 2019.
- More than 75% of dispensary owners and/or managers surveyed said the number of farms has either stayed the same or decreased;
- More than 75% of dispensary owners and/or managers surveyed indicated pricing has stayed the same or increased; and
- Over 85% of dispensary owners and/or managers indicated that flower supply has stayed the same or decreased.
What Grown Rogue Sales Indicate
“Over the past year, pricing in the flower category of the Oregon cannabis market has trended up and the survey results validate what our sales and customer relationship managers are observing,” said Obie Strickler, CEO and Founder of Grown Rogue. “Earlier this year, we began to see the market shift from an over-supply of Sungrown to a lack of flower available to retailers in Oregon. We are also fortunate to have 6 fully operational indoor flower rooms producing approximately 200 lbs on a monthly basis which have been rapidly selling through,” continued Mr. Strickler.
Earlier this year, many news outlets reported that the cannabis supply in Oregon had reached record levels and potentially equated to a 6-year supply. The oversupply narrative has been replaced with the reality that the State currently has limited supply, which is supported by both the rising retail prices and OLCC data showing a drop in active Oregon recreational licenses. This raises two questions: 1) Where did the supply go?; and 2) How will the State manage the fluctuation in supply moving forward?
“The cannabis markets continue to show major volatility across both the macro and micro components of the sector. The recovery in flower pricing, being driven by a lack of product, is primarily a result of many Oregon producers reducing the amount being grown, or not growing at all and forfeiting their licenses, along with the emergence of hemp which has resulted in many recreational cannabis producers shifting to that crop,” added Mr. Strickler. “This recovery bodes well for Grown Rogue as we complete our 2019 sungrown harvest and we are excited to take advantage of the increase in flower pricing across the state.”
The survey revealed that the majority of dispensaries are experiencing price increases due to short supply. After the 2019 sungrown harvest becomes available, some expect that supply will be fully replenished and pricing will stabilize. “I wouldn’t count on any significant decrease in pricing, even with the outdoor harvest,” said Mr. Strickler. “We have been securing pre-orders at $700 a pound for our sungrown flower which is double the price we saw last year at this time,” added Mr. Strickler.
Grown Rogue‘s ongoing dialogue with dispensary leaders provides qualitative feedback that supports the quantitative pricing data we get on a weekly basis through sales. As a public company, Grown Rogue is always analyzing market conditions to ensure capital expenditures drive ROI. To learn more about the survey, or to obtain full details, please email email@example.com