First Signs ‘Not All That Impressive’ For New Mexico’s Adult-Use Market: Q&A With Ultra Health CEO Duke Rodriguez

Duke Rodriquez laid it out bluntly: New Mexico’s adult-use retail program underperformed in April, the first month for the new market.

Rodriguez, the president and CEO of Ultra Health, a vertically integrated operator with 38 dispensaries serving both patients and adult-use customers in the state, said the nearly $39.5 million in combined adult-use and medical sales recorded by licensed dispensaries were about 25% short of his expectations.

Courtesy of Ultra HealthDuke Rodriguez, president and CEO at Ultra Health

“I think we’re about $10 million light,” he said. “That’s the concern.”

Specifically, New Mexico retailers recorded more than $22.1 million in adult-use sales and $17.3 million in medical sales in April, according to the state’s Cannabis Control Division.

“The first signs are not all that impressive,” Rodriguez said. “Again, we should have done $20 million falling off a log with medical, and so, literally, we dropped off of medical and made a little bit more room for adult, but the aggregate was not that impressive.”

Rodriguez’s $50-million benchmark for April was two-fold.

First, New Mexico represents roughly twice the population of Montana, which launched its adult-use retail program Jan. 1, 2022, and ended up recording $25.4 million in combined adult-use and medical sales in April, according to the state’s department of revenue.

Therefore, New Mexico’s sales should have roughly doubled that figure, especially considering its geographic draw to customers from Texas—the second most populated state, where only medical with a 1% THC is legally accessible—according to Rodriguez.

Second, a trifecta of stars aligned

More First Signs ‘Not All That Impressive’ For New Mexico’s Adult-Use Market: Q&A With Ultra Health CEO Duke Rodriguez