New York's cannabis market, CHARTED 📈

NY OCM, CHARTED 📊
New York cannabis regulators approved new licenses, and more

What happened: New York’s Cannabis Control Board (CCB), which oversees the Office of Cannabis Management (OCM), the state’s chief regulatory agency, held a board meeting yesterday. 

The regulators approved more than a hundred new licenses and made some key changes to restrictive advertising rules that would benefit cannabis shops. They also touted their enforcement numbers, and much more. 

Here’s what you need to know, with some charts below!  

Mad Men, but weed:  Discounted products and shopper loyalty programs could be coming to a cannabis shop near you.

The state put forth new rules that would make it far easier to advertise cannabis products and drive sales.

The CCB amended outdoor signage requirements so that licensees are no longer limited to only two outdoor signs. This amendment is intended to benefit those in rural areas for whom billboards are prime advertisement space. 

Online advertisements must only be visible to those 21 years of age or older, including ads on social media. 

They also removed prohibitions on advertisements that promote price reductions, discounts, or loyalty programs — important tools for customer retention for cannabis shops. 

More licenses: The CCB approved 109 new licenses, four more than at the June 11 meeting — including 23 cultivators, 20 distributors, 23 microbusinesses, 22 processors and 21 retailers. 

That brings the total number of approved licenses to 729, with 143 open dispensaries. That’s a long way from the start of 2023, when there were only a handful of cannabis shops in operation.

In addition, 53% of adult-use licenses were issued under the Social and Economic Equity (SEE) program. 

By-the-numbers: Cannabis sales from May to June increased about $25 million, thanks to new licenses, store openings, and enforcement of illicit operators. 

Month-to-month sales were previously increasing only by $4-6 million each month. Total cannabis sales reached $421.2 million in June, and last month saw the weekly sales record broken for the second month in a row with $15.1 million.

Revenue from cannabis sales in the second quarter of 2024 eclipsed 2023’s totals alone.

What they’re saying: “If that’s not an indication of momentum then I don’t know what is,” John Kagia, ​​Director of Policy for the OCM, said.

Padlock please: Since Gov. Kathy Hochul announced the New York State Cannabis Enforcement Task Force, the state has padlocked 164 illicit cannabis operations and conducted 323 inspections. 

Over 4800 lbs of cannabis has been seized, per the state.

The state says this enforcement has led to significant revenue growth for legal cannabis stores. Downstate (read: New York City) stores reported a 50% revenue increase since enforcement first began — from the first week of May to the first week of June.

That illustrates the “positive economic impact of enforcement against illegal operations,” Daniel Haughney, the Director of Investigations/Enforcement said at the meeting.  

It’s New York: The meeting also contained the usual New York cannabis fireworks, particularly from CCB board member Adam Perry as he asked pointed questions of OCM officials over the speed of licensing, the status of Damian Fagon, the OCM’s Chief Equity Officer who has been placed on administrative leave (no real answer was given), and more. 

The public comment period was also surly, as prospective license-holders demanded more communication and specifics from the OCM.

Robert Griffiths, a Columbia Care/Cannabist employee, during the public comment period alleged anti-labor activities on the company’s part and said the company retaliated against employees who wanted to unionize via layoffs and reduced hours. (Ed note: We’re following the story and will have more on it, from both the company and employee perspective). 

Going green: New York is aiming to reduce the environmental footprint of cannabis packaging by limiting single-use plastics and other packaging measures.

Hmm: Felicia A.B. Reid, the OCM’s newly appointed interim director, was absent for the majority of the meeting, though she showed up at the very end. She missed a previous meeting as well, only appearing for the June 11 board meeting since taking over from former director Chris Alexander on June 10. 

(O Felicia, Felicia, wherefore art thou Felicia?)

The final word: Despite all the doom-and-gloom about New York cannabis, it’s always nice to see folks who’ve worked hard to do things the right way get awarded a license. 

Read more: Cannabis loyalty programs, discounts could soon come to New York’s legal shops

-CB

FROM THE OUTLAW REPORT*
Cease and desist orders given to four unlicensed D.C. dispensaries

Driving the news: Cease and desist orders were served to four popular unlicensed D.C. dispensaries on July 2, 2024, reports The Outlaw Report.

What happened: City investigators delivered the orders after emergency legislation passed last week to expand the Alcohol Beverage and Cannabis Administration’s power to close unlicensed operators. ABCA was already able to deliver cease and desist orders, but last week’s legislation gives the agency more power to follow up and force the business to close, including padlocking the stores like New York City officials.

Dive deeper: Read and subscribe to our partners at The Outlaw Report.

*Each week, Cultivated will bring you the most important and timely stories from Maryland, D.C., and Virginia in partnership with The Outlaw Report.

‘Lack of guidance and communication’ by OCM threatening cannabis delivery operators (Guest Column) | NY Cannabis Insider

Women who frequently smoke pot face higher risk of death from heart disease: study | New York Post