Cresco Labs has completed its first harvest from its expanded cultivation facility in Lincoln, IL. With the recent growth of the state’s medical market and adult-use legalization going live on January 1st, Cresco has been scaling operations to be able to accommodate what is expected to be one of the largest cannabis markets in the country.(1) As the only operator in Illinois with three (3) cultivation facilities, Cresco has a unique competitive advantage and is positioned to build on its already market-leading position(2).
To date, Cresco has been able to capture an approximate 25% market share(2) through its original 35,000 square feet of aggregate cultivation space across its three facilities. Earlier this year, after the expansion of the medical program and the passing of adult-use legislation, the Company embarked on an ambitious expansion plan that will bring the total area under cultivation to approximately 243,000 square feet by year-end. At the Lincoln location alone, Cresco has created the largest cultivation facility in Illinois(3) at roughly 224,000 sqft and added over 140,000 sqft of additional indoor and greenhouse cultivation space. The first production from the initial phases of this expansion was harvested last week. Cresco is legally entitled to expand its three facilities to have an aggregate total of 630,000 sqft of flowering canopy – the largest capacity footprint in the state(3).
“Cresco Labs has worked tirelessly to bring additional capacity to the Illinois cannabis market. The beneficial changes in the medical law created a rapid increase in demand that has recently outpaced supply. With this first harvest out of the expanded Lincoln facility, we are thrilled to bring this additional capacity to the patients of Illinois and the consumers in the soon to launch adult-use program,” said Charlie Bachtell, Cresco Labs CEO and Co-founder. “With the scale of this expansion phase, additional incremental production from the expansion areas will gradually increase ramping up for market distribution starting now and accelerating late Q1 through Q2. The ability to restock shelves reliably to ensure customers always have access to product is key to both generating solid financial results and building long term customer loyalty with medical patients and adult-use consumers.”
On October 6, 2019, Cresco Labs announced that it had received Early Approval Adult-Use Dispensing Organization Licenses for all five of its existing Illinois medical cannabis dispensaries, making it the first company in the state to be approved for both adult-use cultivation and dispensary operations. The company successfully won three Chicago adult-use dispensary locations including two in the heavily trafficked Central district for the five additional dispensaries permitted to open in that district. The Company sells its Remedi, Cresco, Reserve and Mindy’s Edible products wholesale throughout Illinois and the Company’s products are currently available at every dispensary in the state.
(1) Illinois is projected to be a $2-4 billion market at maturity according to Marijuana Business Daily making it one of the largest cannabis markets in the US.
(2) According to the monthly State of Illinois wholesale sales figures, Cresco has the leading market share in the state with approximately 25% market share.
(3) The state of Illinois, Department of Agriculture cannabis cultivation licenses