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Green thumb sales soar amid rising US cannabis demand | WSAU News / Talk 550 AM 99.9 FM

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By Arunima Kumar

(Reuters) – Green Thumb Industries Inc.’s third-quarter revenue jumped nearly 49%, topping estimates on Wednesday, thanks to more distribution channels and increased retail store traffic.

A record number of Americans used cannabis products for entertainment during the months-long shutdowns last year, and now retail stores are reaping the benefits with both new and old customers visiting after pandemic restrictions ease.

American consumers overwhelmingly choose cannabis for the sake of luxury. “People are demanding this product and we’re just seeing it grow,” CEO Ben Koffler told Reuters in an interview.

Koffler estimated that the US cannabis industry currently accounts for $24 billion in annual sales, in line with independent research data, and expects it to triple in size over the next decade as new countries, products and consumers enter the market.

New marijuana policy changes friendly to the marijuana sector, including access to federal banking and expectations of federal marijuana decriminalization, have sparked optimism among investors in the industry.

“We believe that American consumers will consume $80 billion of cannabis annually and that means there will be at least an additional $50 billion in legal sales in the next decade,” Koffler said.

Chicago-based Green Thumb’s earnings more than doubled to $20.2 million, or 8 cents per share, in the third quarter ended September 30.

Revenue rose to $233.7 million from $157.1 million last year, narrowly exceeding Refinitiv IBES’ estimate of $233.3 million.

Green Thumb, which has 16 manufacturing facilities, 66 retail outlets and operations in 14 US states, said retail revenue increased 7.3 percent from the previous quarter, as new stores opened and more people entered older stores.

(Reporting by Arunima Kumar and Ritika Krishna in Bengaluru; Editing by Devika Siamnath)

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