Delaware Officials Tout ‘Strong Rise’ In Marijuana Sales, With $7.3 Million Worth Of Purchases In First Month Of Market Launch

Delaware officials are touting the “strong rise” in marijuana sales since the recreational market launched, with $7.4 million in purchases reported in the first month since retailers started serving adult consumers.

On Tuesday, the Office of the Marijuana Commissioner (OCM) announced the state’s “strong results” from August, which saw customers “demonstrating broad interest in a variety of products including flower, vapes, edibles, pre-rolls, tinctures, and topicals.”

“The first month of sales reflects both high demand and a smooth rollout, signaling a solid foundation for Delaware’s developing cannabis industry,” OCM said. There was a “strong rise in the sales of adult-use recreational marijuana in the state since its launch.”

As of September, regulators have issued 79 conditional licenses and three active licenses, and OCM said the office “continues its work to strengthen and expand the market,” with additional license approval pending.

The state is also planning to support the industry by distributing Social Equity Financial Assistance (SEFA) Grants for qualifying licensees. And the office said it is actively carrying out a comprehensive review of the overall cannabis program “to ensure Delaware’s cannabis industry grows safely, sustainably, and equitably.”

Of the $7,354,293 in marijuana sales the state saw last month, the largest product category was flower, with $4,065,032 in purchases. That amounts to about 55 percent of the total sales.

OCM also noted that there are currently 447 cannabis strains in production, with 171 already available at licensed retailers.

Meanwhile, Delaware’s governor last week vetoed a bill that would have overruled local zoning authority on marijuana and made it easier for cannabis businesses to set up shop—and the sponsor of the legislation says the governor “lied” to him about a deal to get it enacted into law.

Gov. Matt Meyer (D) had made it clear in interviews leading up to Thursday’s action that he was struggling with the decision as he tried to balance his respect for local decision-making as a former New Castle County executive with his desire to see the state’s marijuana market launch in a way that ensure broad consumer access to legal and regulated products.

Last month, during an interview with Delaware Public Media, Meyer also discussed a conversation he had with Colorado Gov. Jared Polis (D) about regulating the marijuana industry—drawing a contrast between their respective responsibilities given the fact that Colorado is much larger with more local jurisdictions to interact with compared to Delaware, which has just three counties.

The launch of Delaware’s legal market comes about two years after marijuana legalization was enacted into law under former Gov. John Carney (D).

Ahead of the sales roll-out, the governor in July toured one of the state’s cannabis cultivation facilities, praising the quality of marijuana that’s being produced, which he said will be the “French wine of weed.”

The launch of the legal market comes amid some controversy, however, with critics alleging that allowing medical operators to start adult-use sales ahead of other license applicants is unfair. Dozens of other would-be retailers that have either already received licenses or are still awaiting issuance will need to wait for further regulatory approvals until they can open their doors—a situation that’s frustrated some advocates.

Meanwhile, two lawmakers who led the push to legalize marijuana are separately seeking input from consumers and businesses about the market launch. Sen. Trey Paradee (D), the sponsor of the zoning bill SB 75, and House Majority Whip Rep. Ed Osienski (D)—the primary sponsor of the state’s 2023 legalization bills—put out a new online form last month for residents to share thoughts and feedback about the cannabis program anonymously.

The idea is to identify any hiccups that lawmakers might need to address when they return for next year’s legislative session.

OCM initially projected that recreational sales would start by March, but complications related to securing an FBI fingerprint background check service code delayed the implementation. Lawmakers passed a bill in April to resolve the issue, and the FBI subsequently issued the code that the stat’s marijuana law requires.

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Late last year, OMC held a series of licensing lotteries for cannabis business to start serving adult consumers.

A total of 125 licenses will ultimately be issued, including 30 retailers, 60 cultivators, 30 manufacturers and five testing labs. Last year, regulators also detailed what portion of each category is reserved for social equity applicants, microbusinesses and general open licenses.

Regulators have also been rolling out a series of proposed regulations to stand up the forthcoming adult-use cannabis industry.

Meanwhile, Carney raised eyebrows in January after making a questionable claim that “nobody” wants cannabis shops in their neighborhoods, even if there’s consensus that criminalization doesn’t work.

The then-governor last year signed several additional marijuana bills into law, including measures that would allow existing medical cannabis businesses in the state to begin recreational sales on an expedited basis, transfer regulatory authority for the medical program and make technical changes to marijuana statutes.

The dual licensing legislation is meant to allow recreational sales to begin months earlier than planned, though critics say the legislation would give an unfair market advantage to larger, more dominant businesses already operating in multiple states.

In October, Carney also gave final approval to legislation to enact state-level protections for banks that provide services to licensed marijuana businesses.

Delaware’s medical marijuana program is also being significantly expanded under a law that officially took effect last July.

The policy change removes limitations for patient eligibility based on a specific set of qualifying health conditions. Instead, doctors will be able to issue cannabis recommendations for any condition they see fit.

The law also allows patients over the age of 65 to self-certify for medical cannabis access without the need for a doctor’s recommendation.