Report: Nevada Recreational Cannabis Sales Decline Due to Supply Shortages

Flickr / Jeremy Brooks / CC BY-NC 2.0

Flickr / Jeremy Brooks / CC BY-NC 2.0

Nevada recreational cannabis sales have declined by approximately 20-30% since first launching in July of this year, according to a report published by the Nevada Department of Taxation and obtained by the Reno Gazette-Journal.

According to the report, the decline in Nevada recreational cannabis sales is due to a supply that can’t be distributed in a timely fashion to meet the high rate of demand in the Silver State.

Under Nevada state law, alcohol distributors had exclusive rights to cannabis distribution licenses for the first 18 months of legalization; however, supply has slowed down to a trickle because few alcohol distributors have actually expressed interest in distributing cannabis.

“These (retail marijuana) businesses are struggling without a robust distribution system,” said Deonne Contine, Department of Taxation Director, in the report. “Cultivators and producers have product sitting for days waiting to be delivered to stores while the quality of the product degrades. Retailers do not have the products their customers desire, products that are legal and should be available to them.”

Although a Nevada district judge recently cleared the department to start issuing distribution licenses to businesses other than alcohol distributors, an appeal filed by the Independent Alcohol Distributors of Nevada has once again stalled the issuance of licenses.

The hearing for the appeal has been scheduled for Aug. 29, as reported by the Las Vegas Review-Journal.

William Sumner, a freelance writer and marijuana journalist, was a staff writer for MJINews from May 2014 through February 2018. You can follow him on Twitter @W_Sumner.

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