Thursday, April 30, 2015 12:15:56 AM
8 of the 10 dispensaries are in the LA area.
Since there are only 130 fully licensed dispensaries in LA, we have achieved 6.2% penetration in that area in only 2 months.
The addition of dispensaries in LA appears to be occurring at a rate of approximately 1 per week.
If that current rate continues for the rest of 2015, with 36 weeks remaining in the year, we would end 2015 with 44 dispensaries in the LA area, for a penetration of 34%.
If this occurs, IVXX products would be in 1/3 of LA area dispensaries in only 10 months.
There are a variety of factors which may increase the penetration rate in LA area dispensaries, including the addition of extraction equipment in the Oakland Lab, the buildout of a Southern California Lab, the increasing popularity of the IVXX brand over time with accompanying increased demand for products in dispensaries which are not currently carrying IVXX products, the rollout of additional lines of product including oils and flowers which may serve to entice dispensaries uninterested in carrying IVXX wax/shatter, along with other factors which do not bear mentioning, in addition to those of which I am unaware.
Of course, there exist many reasons which may theoretically decrease the penetration rate -- a purposeful executive decision to emphasize vertical growth of product lines in existing dispensaries at the expense of horizontal penetration, the increased costs of both production and distribution which would have an adverse effect on supply, insufficient organic demand from either existing or unpenetrated dispensaries, a fear of flooding the market resulting in a supply/demand mismatch which could result in lowered wholesale prices or decreased ordering rates, etc...
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