Question · Q4 2023
Asked about the reasons for Colorado's relative success in combating the illicit market, the pace of market consolidation and Schwazze's competitive position in Colorado, and whether the wholesale expansion represents a strategic pivot.
Answer
Colorado's success against the illicit market is attributed to strong, well-enforced regulations from the beginning. In Colorado, Schwazze's market share is growing, and its revenue per store is well above the state average. The company clarified that it remains a "retail forward organization" and its wholesale strategy is asset-light, focusing on third-party brand licensing partnerships rather than a major strategic pivot.