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.
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.
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.
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.
Episode 1133 The #TalkingHedge...
https://youtu.be/WKYE7CiIRqc
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