Dixie Brands Inc. (CSE: DIXI.U) (OTCQX: DXBRF) said that it closed out 2019 in the Michigan market on a high. The cannabis brand company entered the Michigan cannabis market through a packaging and supply agreement with Choice Labs in February of 2019. It helped Dixie grow its sales by 108% and increased dispensary penetration by 33% in the fourth quarter.
“Expanding into the great state of Michigan was a priority for Dixie in 2019 and the incredible results we have managed to achieve so quickly are a testament to the strength of our brands and the expertise of both our production and commercial teams,” said Chuck Smith, President, and CEO, Dixie Brands. “And this is only the beginning! With the approval of recreational use, we expect the market to grow exponentially and Dixie’s portfolio is well-positioned to expand on its market-leading position into 2020 and beyond.”
According to the Detroit Free Press, Michigan is the second-largest medical cannabis market in the country with over 300,000 registered medical cannabis patients driving $30 million in annual retail sales. The state just initiated its legal adult-use cannabis sales in December and that market is projected to grow to $1.5 billion by the end of 2021. Still, the rollout has been slow with only 21 retail licenses awarded and roughly 80% of the cities in the state have opted out. Recreational marijuana sales managed to hit $6.5 million in December alone.
Dixie says it chose its partner will as Choice Labs is one of only four processors that were given a recreational license. Dixie said it launched its portfolio of branded products in early 2019 and then quadrupled the number of available SKU’s by the end of April in response to the positive reaction from both retailers and consumers. Since launching in February of 2019, Dixie has established itself as a powerhouse brand in the state with over 70% dispensary penetration and demand consistently outstripping supply.
CEO Chuck Smith spoke with Green Market Report in June of 2019 and said, “We had said at the beginning of the year that we were going to open up between four and six new states that would be adding to the four states that we already have. So, our goal is really in between eight and 10 new states. Oklahoma is our sixth.”
Written by Debra Borchardt