Arizona Cannabis Update

<p>The “Grand Canyon State” legalized adult-use sales just over two years ago, and though the Arizona market parallels other US markets in many ways, it has some notable exceptions.</p><p> </p><p>Category composition is consistent with other US markets, but the overall market has exhibited slower growth than most emerging markets, up only 2% since 2021.</p><p> </p><p>Pricing compression has also been less severe in AZ than in other US markets, with the EQ price of flower only dropping 13% from January to December 2022.</p><p> </p><p>Given the market’s heavy verticalization, there has been significant brand consolidation (only second to Massachusetts), mostly driven by flower-producing ‘House Brand,’ defined as any brand produced and sold by a retailer within the same retail chain.</p><p> </p><p>Episode 1133 The #TalkingHedge...</p><p>https://youtu.be/WKYE7CiIRqc</p>