Cannabis sales growth breaking New Mexico records but competition is tough

New Mexico dispensaries have sold over $350 million worth of cannabis since April, 2022 when sales began for all adults and the state is lauding boosts to the economy, burgeoning revenues, erasing the inequities left by the war on drugs and balancing the state's water crisis with growers.

Indeed, small towns have fared well month over month in recreational cannabis sales – especially those that border Texas. Sunland Park had its best month to date, surpassing $2 million in recreational sales for the first time. Hobbs also had a record-breaking sales month, standing at $1.7 million last month. And Clovis did $831,975 in recreational sales, its best month to date and the first time the town has surpassed $800,000 since April. Las Cruces did nearly $2 million in recreational cannabis sales, its second-best month to date. And Santa Fe did $1,997,410 in sales, its best month to date. [Recreational cannabis sales finish year on a high note]

New Mexico's Cannabis Control Division created rules based on the state's compliance with the Obama era Cole Memorandum and its existing therapeutic cannabis regulations. The New Mexico Department of Health maintains the patient registry for the therapeutic cannabis program while ensuring those sales remain tax-free.

But not all operators are feeling the buzz.

Some new operators spoke of problems obtaining building leases or navigating local zoning rules. Others may be stumbling with poor business plans in a competitive industry that could quickly become oversaturated with dispensaries, as well as unexpected wait times to receive licenses and difficulty accessing water rights for production, said Ben Lewinger, president of the New Mexico Cannabis Chamber of Commerce. As of mid-December, the state Cannabis Control Division has authorized just over 1,800 licenses for producers, manufacturers, couriers, testing labs, retailers and others involved in the industry. More than 550 cannabis dispensaries are open, a number some industry insiders and experts say could be more than the market will support. [Start up of cannabis industry has posed challenges for small operators]

The Picuris and the Pojoaque Pueblos have entered agreements with State of New Mexico to market cannabis product outside tribal borders. The Tewa words wõ poví translate to “medicine flower” and so far half of Pojoaque's clients are from Texas and other red states. 

Democratic then-Representative from New Mexico's First District, now-Governor Michelle Lujan Grisham worked with Republican-now-Libertarian former Gov. Gary Johnson to legalize cannabis for some patients but Gov. Bill Richardson, a Democrat, signed it into law in 2007. The Cannabis Regulation Act was signed by Governor Lujan Grisham and became effective June 29, 2021.

Learn more at the Santa Fe Reporter.