There was no blue wave or red wave during Election Day, but the green wave rolled on for cannabis as voters expanded recreational use to more locations just days after the industry’s most lucrative month yet in Illinois.
Illinois adult-use cannabis dispensaries generated a record $75 million in sales during October, up nearly $8 million from the previous month, according to the state.
The marijuana business crossed the $100 million threshold in total sales for the first time. In addition to recreational sales, medical marijuana topped $33 million during the month, according to the Illinois Department of Financial and Professional Regulation, which licenses marijuana dispensaries in the state.
Four more states approved recreational marijuana use in Tuesday’s election, while six Chicago suburbs joined a growing list of municipalities across Illinois allowing adult-use cannabis dispensaries.
Add in a Joe Biden presidential victory and the improved prospects for federal legislative reform, and Chicago cannabis companies see the nascent industry headed to new heights.
“This was a green sweep,” said Ben Kovler, 42, founder and CEO of Chicago-based Green Thumb, a six-year-old, multibillion-dollar cannabis manufacturer and retailer. “This is a massive new engine in the American economy.”
Legal marijuana went five-for-five on state ballots as Arizona, Montana, New Jersey and South Dakota voted in favor of adult-use cannabis, while Mississippi approved medical marijuana. Weed is now legal in 35 states, include 15 that allow for recreational use.
In Illinois, Batavia, Elk Grove Village, Glen Ellyn, Mount Prospect, Park Ridge and Wilmette joined a growing list of municipalities that have approved the sale of recreational marijuana. Western Springs voted it down.
For Kovler, the election shows that legal marijuana — which is still a controlled substance at the federal level — has won the hearts and minds of a majority of Americans.
“There is mass acceptance of the U.S. cannabis industry by the consumer and the voter,” Kovler said. “In this divided country, there are very few issues that have that kind of universal acceptance.”
Green Thumb has 13 manufacturing facilities, licenses for 96 retail locations and operations across 12 U.S. markets. During the second quarter, the company generated nearly $120 million in revenue, up 167.5% year-over-year.
Kovler said Green Thumb has a medical marijuana store in New Jersey and is positioned to sell recreational marijuana in that state when it opens for business. But Illinois is at the center of its growth plans.
When Illinois legalized recreational marijuana Jan. 1, it allowed each of the 55 medical dispensaries to add adult-use sales at their existing location and open a second adult-use location. A planned lottery to award 75 new recreational licenses is on hold after unsuccessful applicants alleged the process unfairly excluded minorities.
There are currently 70 recreational dispensaries open in Illinois. Ultimately, state law could allow for as many as 500 locations.
Green Thumb operates eight adult-use cannabis stores in Illinois under the Rise banner, with licenses to open two more. The most recent opened last month in Naperville. Kovler said its plans to open a downstate store in Charleston, and one in a…
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