WASHINGTON, DC – New Frontier, the leading Big Data & Analytics provider in the cannabis industry, accurately predicted 18 months ago that Colorado growers would see a dramatic drop in wholesale pricing.
Recent news articles, Colorado Wholesale Recreational Cannabis Prices Tumbling, Marijuana Price Drop 8% to $1886, and Too Much of A Good Thing? Colorado Pot Glut Prompts Wholesale Price Plunge all now report on a price plunge in the wholesale market that New Frontier saw coming over a year ago.
“Nearly 18 months ago, New Frontier’s modeling in the legal cannabis industry showed that conditions were ripe for much greater competition that would result in a price war in Colorado,” said New Frontier CEO and Founder Giadha DeCarcer. “Our Operator and Energy reports both accurately predict the steep decline in the wholesale prices we are now seeing, and outline strategies cannabis producers can adopt to maximize their profitability and strengthen their market positions in this increasingly competitive environment. This is a perfect example of how rigorous data collection and analysis can help prepare for the future in such an extraordinary and fast-changing industry.”
New Frontier’s Operator Report, Small Price Changes Significantly Impact Marijuana Cultivator Revenues: Colorado Marijuana Demand Modeling Signals a Coming Price War, states on page 9:
“The end of the vertical integration requirement will further increase price competition as newly licensed cultivators enter the market . . . As the number of growers rises, we expect more competition as cultivators work to capture market share and set themselves apart in an increasingly crowded field.”
New Frontier’s Energy Report, Illuminating Cannabis: The Future of Energy in the Cannabis Industry, clearly covers the need to prepare for the impending price drop in the section, Market Forces Are Fueling New Focus on Reducing Energy Use, Why Growers Must Plan for Where the Market is Going, Not Where It Is:
“As prices fall, indoor growers who continue to rely on conventional energy-using systems and have pegged their revenue models to current prices will find it increasingly difficult to compete against growers who have adopted more energy efficient systems and/or who have moved to greenhouses or outdoor production facilities.”
“The falling prices we are currently seeing in Colorado are just the beginning of an ongoing trend that is driven by the increase in the number of states that permit legal cannabis sales and by the growing number of producers in those states,” said New Frontier’s Executive Vice President of Data Analytics, John Kagia.
If you have any questions or would like to receive a copy of Small Price Changes Significantly Impact Marijuana Cultivator Revenues orIlluminating Cannabis: The Future of Energy in the Cannabis Industry, contact Gretchen Gailey at 202-489-3821 email@example.com.
About New Frontier:
New Frontier provides objective, sophisticated and comprehensive reporting for the nascent and underserved cannabis industry. New Frontier’s data and reports have been cited in over 45 countries around the world to inform industry leaders. New Frontier, the premiere Big Data shop in the sector and looks beyond the plant cultivation and distribution, to raise the industry bar and provide visibility into what will inevitably soon be a mature and more complex industry. Founded in 2014, New Frontier is headquartered in Washington, D.C. For more information or media inquiries, please visit www.frontierfinancials.com or contact Gretchen Gailey at 202-489-3821 or firstname.lastname@example.org.