New York set to sell $1 billion of pot by the end of the year

NY, NY
New York’s set to become a $1 billion market

What happened: New York’s cannabis market finally seems to be on track after years of turbulence.

State officials said at a Cannabis Control Board (CCB) meeting on Tuesday that the state is pacing to sell over $1 billion worth of cannabis since the market opened last year.

Check out the chart:

What they’re saying: “That’s a billion dollars worth of legal retail cannabis sold to adults in New York State. It’s a billion dollars of cannabis that is not being sold in the unregulated market,” John Kagia, the Office of Cannabis Management’s policy director, said. 

“And you know, at roughly 10 percent of taxes going into state coffers and state programs, it’s $100 million of revenue being generated to fund mission critical programs for the state. This is just the beginning — but what a start.”

And: “New York cannabis is fostering opportunities for communities and people historically impacted by cannabis prohibition to thrive in this growing industry, so this holiday season, please consider giving the gift of community support by shopping at your local licensed dispensaries,” CCB chair Tremaine Wright said. 

Zoom in: New Yorkers have bought $919 million worth of cannabis since the first stores opened their doors at the very end of 2022. The state has opened 261 legal dispensaries — there was only one operating in January of last year — and has opened almost 40 stores in the last 30 days. 

And Green Wednesday, the day before Thanksgiving that is traditionally the second-best performing cannabis sales day (behind 4/20 of course), was a “blockbuster,” Kagia said, with over $29 million worth of cannabis sold.  

Elsewhere in the meeting, some groups encouraged the CCB to delay the December licensing queue so as to not overwhelm the market. And regulators also laid out the timeline for operators to comply with Biotrack’s seed-to-sale tracking system.

A looming problem: Some experts have raised concerns about market saturation. The average revenue per dispensary has been cut in half, from $900,000 to $450,000 a month. Some lawmakers expressed concern that too many stores would push some early social equity-aligned operators out of business. 

Jeffrey Hoffman, a cannabis attorney, told The New York Law Journal that rather than judging the success of New York’s cannabis social equity program on how many operators are able to open their doors, the program should be judged on how many are able to remain in business for the next decade.

“This is the prize, and we need to make sure that we keep our eye on it,” he said.

Why it matters: It’s finally time to be bullish on the future of New York’s cannabis market. It took far too long for regulators to stand up regulated sales, and the consistent tension between social equity goals and big business will continue.

But new dispensaries are opening their doors every day. Products that people love are hitting the shelves. And what happens in New York gets exported across the world. 

That doesn’t mean there aren’t problems, specifically as many social equity licenseholders struggle under burdensome loan terms and expensive compliance. And yet another lawsuit — the latest filed by medical cannabis firms seeking to get rid of the $20 million fee to convert to recreational sales — may gum up the works. 

Overall, however, it’s (finally) an exciting time in New York cannabis. 

-JB

Republicans kill SAFER Banking 👀

Senate Minority Leader Mitch McConnell and House Speaker Mike Johnson blocked Senate Majority Leader Chuck Schumer’s attempt to pass the SAFER Banking Act, a cannabis banking bill, in a spending bill, reports Marijuana Moment. Schumer can still put the bill to a full floor vote — but the chances of passage look slim before the end of the year. 

Advocacy groups release memo aimed at Trump’s cannabis policy 🌿

Two prominent cannabis advocacy groups, the Marijuana Policy Project and the National Organization for the Reform of Marijuana Laws, released a memo on Tuesday advocating for President-elect Donald Trump to end the federal criminalization of cannabis — and let states decide whether to establish regulated markets. Read more. 

Flora Growth appointed Sammy Dorf, the cofounder of Verano, as Executive Chairman. 

Boston Beer Co, the maker of Sam Adams, launched “Emerald Hour,” a line of cannabis-infused cocktails in Canada.

This one comes from Viridian Capital Advisors. Read more.  

After marijuana measure’s failure, Florida’s hemp shops stand to benefit | Tampa Bay Times

Portugal to become the new ‘El Dorado’ of medical cannabis in Europe | Fortune

In pursuit of hemp compliance, Colorado AG settles with one company, sues another | Hemp Today

Texas THC debate heats up ahead of legislative session, supporters defend benefits, oppose ban | KWTX

VA Woman Could Face Lifetime in Prison for Mushroom, Cannabis Sales | Filter