First Day Recreational Sales in Michigan Total $221K

[dropcap class=”kp-dropcap”]M[/dropcap]ichigan generated $221,000 in sales during the first day of legal recreational cannabis sales. The total doesn’t include the taxes paid to the state due to the 10 percent excise tax, or the revenue generated by the six percent sales tax.

Michigan issued 18 licenses for the first day of sales in December, including growers and processors. The state also allowed stores to move their medical cannabis supply to recreational until more recreational business open for business in January.

“I saw the coverage of the lines and I think that was what we expected,” said Andrew Brisbo, director of the Michigan Marijuana Regulatory Agency. “The demand is already there and we’re inching toward the supply that will meet that demand.”

The state’s sales came from the only three licensed shops. A fourth business wasn’t able to begin sales until about 7 p.m. Six retailers in Ann Arbor, Evart and Morenci are set to begin recreational sales. Detroit has delayed recreational cannabis until at least the end of January 2020. About 80 percent of Michigan’s municipalities have opted out of allowing recreational cannabis.

Michigan had one year after the adult use law took effect on Dec. 6, 2018 to set up a commercial adult use licensing system. The Marijuana Regulatory Agency issued the first license to Exclusive Brands in Ann Arbor on Nov. 19. On the first day of sales, Exclusive brands saw more than 900 customers purchase cannabis products and had to turn away more than 200 people still waiting in line when it closed at 9 p.m.

“I think a lot of cities were nervous about opting in from the get go and they were nervous to see how things would roll out,” said Narmin Jarrous, executive vice president for business development at Executive Brands. “But I think we’ve done a phenomenal job. I think us and the recreational stores in Ann Arbor have done an amazing job of getting things working, having everything go smoothly, having all the right processes in place, directing traffic properly.”