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January 17, 2024October 17, 2024 By CWCBExpo

Why Do New York Cultivators Have An Oversupply of Cannabis?

Editor’s note: This is an ongoing story. We will update this blog as new information and updates come to light.

New York’s slow licensed dispensary rollout has affected cultivators with ample amounts of ready-to-sell product. With too much biomass and not enough licensed processing or retail capacity, many farmers feel frustrated that they have nowhere to legally sell their wares.

As New York’s Conditional Adult-Use Retail Dispensary (CAURD) program restarts and the state welcomes multi-state operators (MSOs) with open arms, could that problem soon change? Here’s a closer look at the challenges facing New York’s cannabis farmers and the ongoing attempts to provide them with support as the state’s cannabis industry continues to evolve.

A growing problem in New York’s cannabis industry

New York’s cannabis farmers have been sounding the alarm on oversupply since June 2023, after 300,000 pounds of cannabis was cultivated but without enough manufacturers to create product or retail capacity to offload it all. Many were already scaling back operations, growing fewer cannabis plants than legally permitted due to concerns about the ability to sell it.

“We are really under the gun here. We’re all losing money,” Seth Jacobs, a New York cannabis farmer, told the Associated Press. “Even the most entrepreneurial and ambitious amongst us just can’t move much product in this environment.”

The oversupply problems stem from the state’s sluggish cannabis industry rollout, which has been far slower than initially anticipated. Fortunately, the pace has quickened in recent months. According to the New York State Office of Cannabis Management (OCM), 48 licensed adult-use cannabis dispensaries have opened statewide, up from 26 in November 2023. While there is hope the rapidly expanding capacity could be enough to alleviate the oversupply, farmers remain in a tight spot until these retail operations ramp up.

Legal roadblocks have only created further challenges for the state’s farmers. Many of the currently operational retail locations were authorized under New York’s CAURD program, which prioritizes social equity applicants and “justice-involved” individuals. That program was frozen due to a court injunction issued in the wake of a lawsuit alleging the CAURD program’s prioritization of justice-involved applicants is unconstitutional. Although the lawsuit has since been settled and CAURD licensing resumed, the strain on farmers from months of delay remains.

Since June 2023, the problem has only worsened for New York’s cannabis farmers. A recent survey of more than 30 small-scale growers conducted by the Cannabis Farmers Alliance returned a unanimously grim outlook. Farmers in both the low-THC hemp and high-THC marijuana segments of the cannabis industry have reported physical and financial exhaustion in major part due to the lack of retail capacity.

“First, the hemp industry disaster created $500,000 in debt because we built the infrastructure and investment but got virtually no return for three years,” one respondent said. “Then, the cannabis license opened and we borrowed more money in hopes that we would make money. Because of the lack of dispensaries open and the entire structure of the program, we are barely getting by and sinking further into debt.”

Is relief on the way for beleaguered farmers?

The state already took an initial step to help relieve pressure on farmers by opening up local farmers markets to host Cannabis Growers Showcases. These showcases offer opportunities to licensed growers and manufacturers to sell their products at designated events. However, these events still require the participation of licensed sellers under the CAURD program; growers and processors are unable to sell directly to consumers at these events.

As the oversupply problem worsens, some elected officials are discussing the prospect of launching a relief fund aimed at supporting the cannabis industry’s agricultural arm. New York State Sen. Michelle Hinchey (D-Saugerties) and Assemblywoman Donna Lupardo (D-Binghamton) announced plans for a cannabis relief fund called the “Recompense Fund” to help alleviate farmers’ losses.

“Our farmers are sitting on a cannabis oversupply that is losing value by the day,” Hinchey said in a statement. “This situation is undeniably an agricultural emergency, and establishing a cannabis relief fund for our struggling farmers should, without a doubt, be part of the solution.”

According to Hinchey, the Recompense Fund proposal would likely be introduced in 2024 as part of the upcoming state budget.

The duo also introduced the Cannabis Crop Rescue Act on April 20th, 2023 – yes, on 4/20 – which would have allowed licensed cultivators to sell directly to consumers through Sept. 30, 2023. It would also have authorized the OCM to create loan and grant programs to support farmers processing biomass into distillate. That bill was vetoed by Gov. Kathy Hochul.

In the meantime, the state’s Cannabis Control Board (CCB) authorized resolutions that would allow medical dispensaries to enter the adult-use market, as well as pave the way for multi-state operators (MSOs) — cannabis businesses with active operations in other legal markets that are often much larger than their local counterparts — to enter the state as well. So, help is on the way for New York’s beleaguered cannabis farmers, though for many it cannot come quickly enough.

Unlicensed shops proliferate amidst CAURD injunction

Meanwhile, as the state’s licensed farmers are unable to move their products, unlicensed operations are flourishing in New York City. State officials estimate roughly 1,500 unlicensed shops are operating throughout the five boroughs, and enforcement actions have ramped up in recent months. While licensed growers and retailers are subject to stringent testing standards for contaminants like mold and heavy metals, these unlicensed shops are not. Contaminated cannabis products have been found in unlicensed stores.

As regulators and law enforcement attempt to corral these unlicensed shops and the OCM works to expand retail capacity, farmers are left awaiting a resolution that has been anything but swift. In the coming months, the state’s ability to expand retail capacity will determine whether the licensed cultivators are able to recoup their losses and move product at a scale that will be profitable to them. At least some remain optimistic.

“This all will get worked out,” Jacobs told the Associated Press. “And I want to be there when it does.”

Stay connected with the New York cannabis market

The cannabis supply chain affects everyone in the industry, and the plight of licensed cultivators throughout the state impacts everyone. We’ll keep tabs on this developing story to bring you the latest as New York looks to expand its manufacturing and retail capacity in the coming months.

To stay plugged in to all things cannabis, keep an eye on the CWCBExpo newsletter and our social channels. And don’t forget to sign up for our next trade show, taking place June 5 – 6, 2024 at the Javits Convention Center in New York City.

January 17, 2024October 17, 2024 By CWCBExpo

Unlicensed Shop Crackdowns and Cannabis Seizures: Impact on NYC’s Cannabis Industry

Editor’s note: This is an ongoing story, and this blog is updated as new information and updates come to light. For the latest, sign up for our email list.

As New York City grapples with unlicensed cannabis shops appearing throughout the five boroughs, state officials are heightening their efforts to curb the surge. In the face of the escalating issue, state regulators and law enforcement are turning their attention to these unauthorized establishments and ramping up efforts to bolster the city’s legal adult-use marketplace.

Current state of unlicensed shops in NYC

Since New York legalized cannabis for recreational use in March 2021, the city has witnessed a surge in unlicensed vendors selling a variety of products like flower, edibles, and vapes. The allure of the booming market and the potential for significant profits have enticed numerous entrepreneurs to enter the industry without obtaining the necessary licenses. Moreover, the regulatory framework and licensing process have faced challenges in keeping pace with the demand, creating a gap for unlicensed entities to exploit.

The number of unlicensed shops has continued to grow rapidly. A report by New York City’s Independent Budget Office (IBO) determined an estimated 1,500 unlicensed retailers exist in the city, holding as much as $484 million worth of cannabis products. In many cases, consumers might not be able to tell these unlicensed storefronts apart from licensed dispensaries, as some have gone the extra mile to appear legitimate with branding, signage, and showroom floors. The New York State Office of Cannabis Management (OCM) maintains a list of authorized dispensaries on its website. The OCM also provides a QR code licensed dispensaries can post at the door for customers to scan and verify the establishment’s license.

Meanwhile, New York’s CAURD licensing framework was subject to a lawsuit and court injunction that froze the issuing of additional licenses. That lawsuit has since been settled and the injunction lifted, but the delay didn’t do the legal cannabis market any favors. The state’s Cannabis Control Board (CCB) has attempted to speed things along amid the injunction, adopting a resolution that allows existing medical cannabis dispensaries to get involved in the adult-use market.

Regulators have also moved to allow multi-state operators (MSOs) to enter the New York market as well, much to the chagrin of small businesses and social equity applicants. The latter’s licensing outlook remains uncertain and on pause. Despite these efforts, the rollout of New York’s legal adult-use cannabis market has been sluggish, creating a prime opportunity for these unlicensed shops to take root.

Recent enforcement actions against unlicensed cannabis shops

The Office of Cannabis Management launched its enforcement efforts in 2022, sending 52 cease and desist letters to unlicensed cannabis businesses warning them to stop selling cannabis without a license.

In June 2023, the Office of Cannabis Management (OCM) introduced enforcement legislation aimed at imposing penalties on unlicensed cannabis businesses. The legislation criminalizes the sale of cannabis and cannabis products without a proper license, with fines ranging from $10,000 to $20,000 per day, depending on the severity of the violation. Under the new law, the OCM is also authorized to request State court orders to shut down known repeat violators.

Underscoring the issue’s magnitude, recent inspections in October 2023 alone led to the seizure of approximately $6.2 million worth of cannabis from unlicensed shops. To date, the state has inspected a total of 289 locations and seized nearly $50 million worth of cannabis from unlicensed shops. The city is also going after landlords who allow unlicensed cannabis shops to operate in their buildings, issuing fines of up to $10,000 to those who knowingly lease commercial property for illegal cannabis sales.

Since June, the OCM has held 26 administrative trials and levied $220,000 in fines. Decisions are still pending in 10 other cases, reports Ganjapreneur. Most recently, the OCM, along with Gov. Kathy Hochul and Attorney General Letitia James, announced the closure of Big Chief Smoke Shop in Brooklyn, an unlicensed shop that ignored repeated warnings from the OCM. However, with so many unlicensed shops still operational, the state’s game of Whack-A-Mole continues.

Implications for the cannabis industry

The surge in unlicensed cannabis shops brings forth economic, safety, and reputational challenges for both licensed dispensaries and New York State.

Consumer safety concerns

Possibly the most pressing implication of unlicensed cannabis shops is the growing concern for consumer safety. Products from unregulated establishments often lack proper testing and quality control measures.

In fact, an industry-led study revealed that 40 percent of products from 20 unlicensed stores in NYC contained harmful contaminants such as E. coli, lead, and salmonella. The absence of oversight raises the risk of harmful substances or inadequate labeling of cannabis products and poses many health risks to unsuspecting consumers. Notably, the OCM requires testing for salmonella and other contaminants.

Economic challenges for licensed dispensaries

The proliferation of unlicensed cannabis shops in New York poses economic challenges for licensed dispensaries and the city as a whole. The presence of unregulated competitors leads to price undercutting, potentially diverting customers away from legal establishments and ultimately impacting the financial viability of licensed dispensaries. Meanwhile, licensed cannabis dispensaries are required to adhere to testing standards, transportation and storage regulations, tax implications, and security requirements that increase their cost of doing business — all regulations that unlicensed sellers can ignore.

Lost tax revenue for New York City

Further, the legal sale of the estimated $484 million worth of products, taxed at the state’s 13 percent rate, could have resulted in $18.4 million in revenue for the city, according to the IBO report. Under the existing regulatory framework, 40 percent of that revenue would have gone to education, 40 percent to community reinvestment initiatives, and 20 percent to drug treatment and education.

The battle against unlicensed pot shops is ongoing

Despite increased efforts by the state to identify unlicensed shops and impose consequences, regulators have only begun to chip away at the illicit vendors in New York City. Meanwhile, cultivators are left with 300,000 pounds of product that they can’t sell to unlicensed shops.

As the city establishes and regulates its legal marketplace, staying informed is imperative to the success of your cannabis business. For the latest developments on the unlicensed shop crackdowns and seizures, we encourage readers to follow reputable news sources like NY Cannabis Insider. And, of course, we at CWCBExpo remain committed to keeping you updated on cannabis news through our LinkedIn, Facebook, and Instagram channels.

Four CWCBExpo board members and strategic advisors are pictured. From left to right, Renata Serban, Leo Bridgewater, Kym B, and Dr. Ken Weinberg

January 5, 2024October 17, 2024 By CWCBExpo

CWCBExpo Experts Weigh In: What Will 2024 Bring for Cannabis?

Every year seems to be a transformative year in the cannabis industry — and for good reason. What other industries can say they’re at the forefront of a movement? Innovation, the legal landscape, and evolving social attitudes continue to shape what’s to come for cannabis.

At CWCBExpo, we’re taking a moment to reflect on the milestones, challenges, and remarkable shifts that shaped the past year while extending our gaze to what may lie ahead for the new year.

New York

In the Empire State, adult-use cannabis celebrated its first full year in operation. The first dispensary in New York City opened at the tail end of 2022, and several more throughout the city and the state joined its ranks throughout 2023.

Although court challenges and bureaucratic roadblocks have caused the New York market to roll out slowly, hundreds of dispensaries are expected to be approved in 2024. The Office of Cannabis Management (OCM) recently accepted license applications from all aspiring cannabis sellers, and officials say the general adult-use licenses will be issued using a lottery system and approved in batches during the first quarter of 2024 on a rolling basis.

According to Kym B., Co-founder and Chief Marketing Officer at TribeTokes, New York is poised for a significant, and exciting, shift.

“I think we’re going to go from being a startup in New York to starting to actually be revenue positive,” she explained. “A lot of dispensaries opening, coupled with more licenses being given out, will help a ton. With this in place, we can actually create an industry in New York where cannabis is truly competitive.”

A few new states joined New York in the adult-use legalization movement in 2023, including Delaware, Minnesota, and Ohio. Others, like Connecticut, Missouri, and Maryland, realized their first recreational sales. This means that now, more than half of the U.S. population resides in areas where cannabis is legal for recreational use. Notable is the recent Annual Report previewed at a December meeting by the New York State Office of Cannabis Management where they reported that marijuana revenue sales in NYS was expected to reach $150MM by the end of 2023.

All eyes on the election and how it shapes cannabis policy

Discussion of federal legalization, descheduling, and rescheduling bounces throughout Capitol Hill every year, and 2023 was no different. But what did come to fruition this year was a recommendation from the U.S. Department of Health and Human Services to reschedule cannabis on a federal level. If progress continues on this forefront, 2024 could bring the most significant shift in national cannabis policy since the passage of the Controlled Substances Act in 1970. This change would give the FDA industry oversight and cut down the 280E tax code that currently plagues the industry.

As we look ahead to 2024, other potential shifts in legislation include:

Senate Majority Leader Chuck Schumer (D-NY) continues to push for banking reform. During a recent floor speech, he listed “SAFE Banking and cannabis reform” as a top 2024 priority.
On the state level:
- The Florida Marijuana Legalization Initiative could appear on the ballot as a constitutional amendment in November.
- The Nebraska Cannabis Legalization Initiative, which would legalize cannabis consumption, may appear on the 2024 ballot as a constitutional amendment if enough signatures are collected.
- South Dakota residents voted to legalize recreational cannabis in 2020, but that effort was overturned by the courts. Governor Kristi Noem remains a staunch critic of recreational cannabis. However, The South Dakota Marijuana Legalization Initiative may still appear on the ballot in South Dakota as an initiated state statute.
- Representative Jesse Chism (D-TN) has introduced a bill that would add cannabis-related questions to the 2024 election ballot to assess interest in medical and recreational cannabis consumption.

As an election year, cannabis takes an even more significant national stage this year. Leo M. Bridgewater, the National Director of Veteran Outreach for Minorities of Medical Marijuana, emphasized the importance of aligning political engagement with business strategies in 2024. And that’s not limited to Washington, D.C. — that involves engaging elected officials right here at home.

“Local mayor and city council seats will be up for grabs in 2024,” he noted. “A deeper understanding of the difference between legislation and regulation will also be paramount as policy will be developed by the understanding and education of local politicians. The cannabis vote must be made real and respected if we are going to prosper in the years to come.”

Support for small business will be essential for a thriving industry

Citrin Cooperman Cannabis Advisory Services manager Renata Serban conveyed the need for education for operators.

“[The] cannabis industry is one of the most regulated in the country and unique in the fact that it is illegal at the federal level and legal at the state level,” Serban explained. “Even experienced business owners entering the cannabis space face many challenges associated with high compliance.”

Serban credited the Cannabis Compliance Training and Mentorship Program in New York City as a great place for entrepreneurs to begin their journeys. “I think the state needs to continue similar initiatives and provide resources to small businesses,” she added.

A focus on patients in an increasingly-recreational landscape

Kenneth R. Weinberg, founder of Cannabis Doctors of NY, shed light on patient needs within a landscape that puts a lot of focus on recreational sales. A fierce patient advocate, Weinberg expressed a hopeful expectation that the broader market dynamics will bring about positive changes for patients, even as those dynamics are heavily influenced by the recreational market.

One such way is in price: As more dispensaries open, the price of flower and manufactured products is likely to come down. In fact, we’re already seeing that trend in New Jersey, where flower prices fell by $42 per ounce in 2023 as more dispensaries opened. Weinberg said he hopes to see prices decline, making medical cannabis more accessible and affordable for those seeking it.

What other notable shifts in 2023 might influence 2024?

As we peer into the future of cannabis, social and cultural shifts make for a continued surge of acceptance. A November 2023 Gallup poll found that seven in 10 Americans support cannabis legalization, an unprecedented high since the poll’s inception in 1969. This shift signals a broader societal acceptance of cannabis and a transformation in attitudes that will likely continue into 2024.

Of the notable occurrences from this year, standout moments reflecting on shifting societal acceptance of cannabis include:

The American Nurses Association (ANA), representing more than 5 million nurses nationwide, officially recognized cannabis nursing as a specialty.
The U.S. Census Bureau is adapting its economic survey to include companies operating within the cannabis industry, legitimizing their presence and impact on the national economic landscape.
A Gallup poll revealed that half of Americans have tried cannabis at some point in their lives.

Navigating 2024 cannabis with CWCBExpo

As we stand at the threshold of a new year, allow CWCBExpo to be your source for navigating the exciting twists and turns of the cannabis landscape. Whether through our monthly news updates or our annual in-person expo in NYC, stay tuned, stay informed, and join us on the journey ahead.

Industry Yacht Party, Liberty Island, 2022

December 21, 2023October 17, 2024 By CWCBExpo

NY and NJ Markets Continue to Expand

Each month, Cannabis World Congress & Business Exposition (CWCBExpo) offers a convenient roundup of the biggest cannabis news stories and hemp headlines emerging across the nation. Get these updates in your inbox by subscribing to our email newsletter, or follow us on Instagram, LinkedIn, Facebook, or Twitter (now X) to get the most recent edition when it’s published.

Step into the final stretch of 2023 with our December regional cannabis news update. The edition spotlights a game-changing decision by New York’s Cannabis Control Board, as well as the flourishing market in New Jersey. As we close out the year, witness the expansion of markets across the Northeast as we unpack the details of some of the most pivotal moves in our area.

MSOs approved to enter the New York adult use market

Following the state’s Supreme Court decision on December 1st to lift an injunction hindering the issuance of new Conditional Adult-Use Retail (CAURD) Licenses, the Cannabis Control Board (CCB) in New York has officially given the green light to multistate operators (MSOs) with medical marijuana licenses to enter the adult use market on December 29th, 2023.

The decision comes exactly one year after the state launched recreational sales. Thus far, the CCB approved the following six organizations to join the adult use market:

Columbia Care NY, whose parent is New York-based MSO The Cannabist Co.
Curaleaf NY, part of New York-headquartered MSO Curaleaf Holdings
Etain, owned by RIV Capital, a Toronto-based investment firm
NYCanna, part of New York-headquartered MSO Acreage Holdings
PharmaCann of New York, whose parent is Chicago-based MSO PharmaCann
Valley Agriceuticals, whose parent is Chicago-headquartered MSO Cresco Labs

While the waiting period had been adopted to provide a first-to-market advantage to social equity retailers and smaller supplies, gears have shifted in an effort to expand retail options as hundreds of unlicensed shops continue to plague the market.

These six companies will eventually be permitted to set up co-located adult-use sales at up to three of their existing medical dispensaries. For the time being, however, each was approved for a single shop that can open by the end of the month. The CCB also approved new medical-only locations for both Citiva and Fiorello.

New Jersey sales increase as prices drop

New Jersey cannabis sales are stacking up high, as the recreational market recorded $206.1 million for Q3 2023. This brings the state’s total legal market revenue for the year to $762.9 million. The New Jersey Cannabis Regulatory Commission (CRC) reported a 10% increase in sales in the same quarter, from the $160.2 million in adult use cannabis revenue generated from April through June.

According to CRC Executive Jeff Brown, consumers are attracted to the licensed marketplace, which includes 70-plus adult-use dispensaries statewide. As a result, prices for products are starting to come down. The average flower price dropped to roughly $354 per ounce at adult-use retail, representing a 10.5% decrease from January’s average price of $396.

“New Jersey’s market continues to grow,” Brown said during the commission’s regular meeting on Dec. 7th. “For the first time in history, legal cannabis sales in New Jersey eclipsed $200 million in the third quarter of 2023. That includes just shy of $177 million of adult-use sales and just shy of $30 million of medicinal sales.”

New Jersey’s adult-use sales accounted for nearly 86% of all sales for the third quarter of 2023. The state’s medical market continues to shrink due to expanded opportunities for consumers.

More dispensaries are opening across New York

Gov. Kathy Hochul (D-NY) has announced the opening of one dozen new adult-use dispensaries from Brooklyn to Buffalo. By the end of December 2023, the state anticipates having at least 37 adult-use dispensaries open for businesses. Among the opening locations, eight are majority Black-owned, five are Hispanic-owned, and nine are woman-owned.

“As New York expands the most equitable cannabis market in the nation, my administration remains committed to building a safe industry for all New Yorkers that will grow our small business community,” Governor Hochul said in a press release. “These new dispensaries continue our mission of strengthening our legal market while at the same time helping to push out the bad actors who skirt our laws and undermine all we are trying to accomplish.”

Below is a list of the dispensaries that have recently opened or are set to open this month. Opening dates are subject to change:

Hush – 2460 Williamsbridge Road Fl 1, Bronx 10469, (Opened on Thursday, Dec. 14, 2023)
Grow Together – 2370 Coney Island Ave., Brooklyn 11223, (Opened Tuesday, Dec. 19, 2023)
Dagmar Cannabis – 412 W Broadway, New York 10012, (Opening on Friday, Dec. 15, 2023)
THC Herbal Care – 1412 Lexington Ave., New York 10128 (Tentative opening, Jan. 4, 2024)
Happy Days – 105 Route 109, Farmingdale 11735 (Tentative opening on Saturday, Dec. 23, 2023)
Elevate – 127 S Terrace Ave., Mount Vernon 10550 (Opened on Monday, Dec. 11, 2023)
The Highest Peak – Village of Potsdam, 5 Market St., Potsdam 13676 (Opened on Thursday, Dec. 7, 2023)
The Firehaus – 7479 US Highway 11, Potsdam 13676 (Opened Wednesday, Dec. 13, 2023)
420 Bliss – 740 Hoosick St., Brunswick 12180 (Opened on Thursday, Dec. 7, 2023)
Capital District Wellness – 997 Central Ave. Suite 200, Albany 12205 (Opened on Friday, Dec. 8, 2023)
Amsterdam Cannabis – 1451 State Highway 5S, Amsterdam 12010 (Opened on Friday, Dec. 9, 2023)
Premier Earth Corp – 1297 Hertel Ave., Buffalo 14216 (Opened on Wednesday, Dec. 13, 2023)
MJ Dispensary – 900 Jefferson Rd Ste 902, Rochester 14623 (Opened on Tuesday, Dec. 12, 2023)

Embrace growth with CWCBExpo

December marks a transformative period for the Northeast’s cannabis landscape. As we bid farewell to 2023, the region is poised for continued growth and innovation. Stay up to date with our latest updates and join us for insightful discussion at our upcoming in-person conferences – where the pulse of the industry will continue to beat strong in the new year.

December 19, 2023October 17, 2024 By CWCBExpo

Dispensaries Can’t Have Sales in NY. What Can You Do Instead?

The cannabis industry in New York is subject to some strict regulations, especially when it comes to running promotions and offering discounts. While businesses in other industries use sales and similar promotions to capitalize on the influx of holiday shoppers, cannabis retailers are unable to do the same. So, what can you do during the holiday season when plenty of shoppers are likely looking for gifts for cannabis-consuming friends and family? It’ll take some creative thinking, but there are solutions.

What are the regulations regarding sales and promotions?

In New York state, licensed cannabis businesses are prohibited from advertising sales or promotions based on the regulations set forth by the New York Office of Cannabis Management (OCM). This includes giveaways, discounts, and customer loyalty programs.

The precise language of guidance issued by the OCM is as follows:

Licensees cannot give away, including through donation, any cannabis products. Licensees cannot advertise giveaways, discounts, price reductions, points-based reward systems, or customer loyalty programs including, but not limited to, by using the words “sale”, “free”, “price drop”, or “discount” on a menu, in any communications to customers, or elsewhere. This does not prohibit licensees from changing the price of cannabis products or otherwise “discounting” products.

Of course, this doesn’t mean retailers are unable to change the pricing of their products — you just can’t advertise the discount, which sort of defeats the purpose from a marketing perspective. However, reducing prices and other clever sales tactics can still offer a benefit to your customers and your sales numbers.

5 promotions to try when you can’t have a sale

Although you’re not able to advertise holiday sales to your audience — or any other sales for that matter — there are still some reasons you may want to reduce pricing as holiday shopping shifts into high gear. Additionally, there are some ways you can use to remain compliant with New York state law while availing your customers to wallet-friendly options. These five tips can help you drive business and ensure your customers have truly happy holidays at your dispensary.

1. Feature your best-selling and most profitable products

You don’t have to necessarily advertise price drops or discounts to bring in customers. Feature your best-selling products or those with the highest profit margin in your marketing materials as the holiday season approaches. These products may be enough to bring customers in and drive more sales of your most lucrative products without running afoul of New York state law.

2. Bundle products together based on a theme

The holiday season could be a great time to pair some items together based on a theme, such as items that offer a similar effect or those that complement each other nicely. For example, you could offer a “DIY R&R” bundle that contains a stress-busting strain, topical products that ease aches and pains, and edibles that help with relaxation.

Pricing these bundles advantageously compared to purchasing each product inside individually could incentivize customers to buy multiple products instead of just one or two. They also serve to showcase the wide variety of cannabis products your dispensary has on hand. Who knows? Some of your customers may discover their new favorite product this way and come back for more in the future. Consider bundling new products or ones you expect to make a big splash as a way to get the word out about them.

3. Advertise cannabis delivery services

There’s no rule against advertising your cannabis delivery services, and holiday shoppers are often short on time. Let them know that you can bring their gift purchases directly to them when they place an order for delivery. That’s one less stop they’ll need to make during the busy holiday season and they’ll be grateful to your brand for helping them out. It’s also a great way to let people know that your dispensary delivers cannabis, which is a relatively new offering for New Yorkers. Taking advantage of the holiday season to spread the word could result in more sales to a wider area in the new year too.

4. Promote the product types shoppers look for during the holidays

Understanding how shoppers interact with cannabis dispensaries ahead of the holiday season is critical to success. While the biggest cannabis sales days of the year — 4/20 and Green Wednesday — are in the rearview mirror, there’s still time to make one last push before the year’s end.

According to data from Headset, the week before Christmas is a big shopping week in the cannabis industry. Expect shoppers to go for cannabis flower and vape products the most, as they usually do. However, you’re likely to see significant increases in the amount of topicals, cannabis beverages, and edibles. So push these products to make the most of the holiday rush — even though it’s cold outside, these product types are likely to be hot.

5. Showcase holiday-themed products

There’s no shortage of products that fit the theme of the holiday season. Whether it’s an edible in holiday-inspired packaging, a product flavor like peppermint or cinnamon that matches the winter weather, or a frosty-named strain, these products have obvious links to the winter holidays without ever advertising a sale.

Take advantage of the holiday season for your cannabis dispensary

The holiday season is a busy time of year for retailers everywhere, and just because dispensaries can’t have sales doesn’t mean there isn’t plenty of opportunity. By considering the tips above, you can make the most out of the holiday season, driving more sales, boosting customer satisfaction, and refining your strategy for the new year.

Christine Ianuzzi Show Floor Interview NY 2018

November 30, 2023October 17, 2024 By CWCBExpo

A Monthly Dive into Potential Shifts

Get ready to dive into the freshest insights involving the cannabis landscape with CWCBExpo’s latest national news update. This month unfolds with a U.S. senator’s call for Drug Enforcement Agency (DEA) action, a Gallup poll unveiling record-high support for federal cannabis legalization, and Congressional Democrats seeking more federal regulatory guidance for cannabis business owners.

Senator pushes DEA to act on cannabis rescheduling

In a recent letter, Sen. Kristen Gillibrand (D-NY) urged the Drug Enforcement Administration (DEA) to expedite the rescheduling of cannabis, a recommendation which was put forth by the U.S. Department of Health and Human Services (HHS) in August 2023.

In the letter, which was addressed to DEA Administrator Anne Milgram, Gillibrand expressed her belief in the complete descheduling of cannabis and emphasized the immediate necessity of rescheduling cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA).

“Marijuana is simply not comparable to other Schedule I substances like heroin, LSD, and MDMA. Moreover, marijuana enforcement has, for decades, disproportionately targeted communities of color,” Gillibrand stated in a press release. “This means that people of color are more likely to have criminal records for marijuana possession and to face needless barriers to employment, housing, and educational opportunities as a result. It is past time to end overly restrictive federal marijuana policy and I urge the DEA to do so immediately.”

The full content of Senator Gillibrand’s letter to the DEA is available here.

Public support for cannabis legalization reaches an all-time high

According to a new Gallup poll, seven in 10 Americans support cannabis legalization, an all-time high since the Washington, DC-based analytics and advisory company began polling on the topic in 1969.

In the first poll, conducted in 1969, only 12% of respondents supported cannabis reform. This year, 70 percent of U.S. adults say cannabis should be legal for adult consumption. It’s the first time support for legalization has increased since 2020, up from 68 percent in favor of legalization during the past three years of polling.

For the second year in a row, majority support for legalization was found among all demographics, including age, political party, and ideology. There were no notable differences in support by gender, race, or education. Only 29 percent of respondents said they think cannabis should not be legal, while one percent remain unsure.

Democrats seek federal guidance for cannabis business owners with prior convictions

A group of 20 Congressional Democrats have formally reached out to the Treasury Department urging a revision in guidance to alleviate constraints faced by cannabis business owners with prior convictions related to cannabis.

Since 2014, the Financial Crimes Enforcement Network (FinCEN) has directed financial institutions to consider various “red flags” before extending services to cannabis-related businesses. This includes all past cannabis criminal records and involvement in the illegal purchase or sale of cannabis, regardless of whether the act is now considered legal at the state level. Consequently, banks can view business owner’s convictions for simple cannabis possession as a reason not to provide financial services such as banking services or business loans, even in states where cannabis is now legal.

The group of lawmakers — led by U.S. Sens. Elizabeth Warren (D-Mass.), Jeff Merkley (D-Ore.), Raphael Warnock (D-Ga.) and U.S. Representative Earl Blumenauer (D-Ore.) — conveyed their concerns in a letter addressed to Treasury Secretary Janet Yellen and FinCEN Director Andrea Gacki underscoring the current guidance as “outdated.”

“The updated guidance should clarify that if a marijuana-related act has been expunged, pardoned, is no longer illegal under state law, or is not disqualifying for obtaining a state marijuana license or permit … then financial institutions should not consider that offense a ‘red flag’ when conducting customer due diligence of marijuana businesses,” the lawmakers said in the letter.

USDA may revoke hemp licenses for cannabis farmers

The U.S. Department of Agriculture (USDA) is taking a firm stance on hemp cultivation, reportedly revoking licenses for farmers engaged in the simultaneous cultivation of cannabis within state-approved programs.

Hemp cultivation was legalized in the 2018 Farm Bill, which enabled farmers across the country to begin producing hemp plants, defined as cannabis that contains 0.3% THC content or less. Since, some farmers in states where cannabis is legal have also begun cultivating marijuana containing higher levels of THC, something the USDA apparently wants to put a stop to. It’s unclear how many farmers have been contacted by USDA, however, the decision could have significant implications for farmers navigating the cultivation landscape.

Vermont-based farmer Sam Bellavance told Seven Days that he received an email from a USDA official months after he began growing marijuana under his state’s program. According to Bellavance, the email notes, “regulations don’t allow for a hemp-licensee to also be producing marijuana, even if licensed to do so by a state program,” and went on to tell Bellavance he would need to surrender either his federal hemp license or his state recreational cannabis license.

With changes causing serious issues for cultivators, lawmakers, and industry stakeholders are considering potential changes to the next large-scale agriculture legislation to better serve hemp farmers. This includes proposals to free up hemp businesses to legally market products like CBD as dietary supplements and to remove industry restrictions on people with certain prior drug convictions.

Elevate your insights with CWCBExpo

When it comes to cannabis, being in the know is paramount for success. Keep your finger on the pulse by following CWCBExpo’s monthly news updates and mark your calendar for our annual in-person conference in NYC. It’s your golden ticket to participating in the evolving discourse of the industry. Don’t miss out on the chance to shape the future – join the conversation with CWCBExpo!

November 28, 2023October 17, 2024 By CWCBExpo

December 2023 national news update: Lawmakers and canna-businesses push for reform

As the year draws to a close, the cannabis landscape across the nation witnesses an array of pivotal updates. This blog explores these year-end developments, unraveling the initiative threads that weave together policy, public opinion, and legal intricacies within the dynamic realm of cannabis advocacy.

Medical cannabis access for veterans continues to be a part of spending bill negotiations

Bipartisan congressional lawmakers are urging the House of Representatives to ensure that a large-scale spending bill maintains language to allow U.S. Department of Veterans Affairs (VA) doctors to issue medical cannabis recommendations to veterans in states that have medical cannabis.

A letter sent to the House Appropriations Committee requested that leadership maintain this protection as a part of the final 2024 Military Construction, Veterans Affairs, and Related Agencies spending bill.

Both the House and Senate included provisions in their respective Military Construction, Veterans Affairs, and Related Agencies (MilConVA) measures that would permit VA doctors to make medical cannabis recommendations, but the letter asks for the adoption of the Senate version that Sen. Jeff Merkley (D-OR) secured as a part of his chamber’s bill.

“Thirty-eight states, the District of Columbia, and four U.S. territories have passed laws that provide for legal access to medical marijuana products,” reads the letter. “As a result, more than three million patients across the country, including many veterans, now use medical marijuana at the recommendation of their physician to treat conditions ranging from seizures, glaucoma, anxiety, chronic pain, nausea, and posttraumatic stress disorder (PTSD).”

Governors urge Biden to reschedule cannabis

Six state governors have jointly written a letter to President Joseph R. Biden, Jr., urging him to reschedule cannabis by the end of 2023. Signed by the governors of Colorado, Illinois, Louisiana, Maryland, New Jersey, and New York, the letter emphasizes that the rescheduling of cannabis would bring economic and tax advantages for cannabis businesses across the nation. It also highlights the potential to safeguard public health and bring government policy into closer alignment with public opinion.

“Rescheduling cannabis aligns with a safe, regulated product that Americans can trust,” the letter reads. “As governors, we might disagree about whether recreational cannabis legalization or even cannabis use is a net positive, but we agree that the cannabis industry is here to stay, the states have created strong regulations, and supporting the state-regulated marketplace is essential for the safety of the American people.”

The letter went on to explain that the recent Department of Health and Human Services (HHS) recommendation to reschedule cannabis “comes on the heels of 38 states creating their own state markets” and regulatory systems.

Feds and canna-businesses request extension on cannabis lawsuit

A coalition of cannabis businesses agreed to request a deadline extension for the filing of a lawsuit that seeks to block the enforcement of cannabis prohibition against state-legal activities.

Filed in the U.S. District Court for The District of Massachusetts, the lawsuit claims that enforcing prohibition in legal state-level markets is unconstitutional and creates public safety risks while preventing licensed businesses from accessing critical financial services and tax deductions. It alleges that while Congress initially prohibited cannabis through the Controlled Substances Act (CSA) to eradicate interstate commerce, lawmakers and the executive branch have since “abandoned” that mission as more states have enacted legalization.

The joint request says that the attorneys for state-licensed companies and the Justice Department mutually agreed to request that the court extend the deadline for the government’s response to the lawsuit by 28 days – pushing it from December 26th, 2023 to January 23rd, 2024.

“The parties respectfully submit that these adjustments are warranted in light of the obligations of counsel in other litigation matters and the holiday season,” the document says. “The parties agree that these requested extensions are reasonable, will not prejudice any party, and will not unduly delay resolution of this matter.”

Stay up to date with CWCBExpo

As we bid farewell to the year, the complex tapestry of cannabis news and reform reveals itself in a series of significant developments. As you transition into the new year, look no further than CWCBExpo for comprehensive updates on the industry’s latest happenings nationwide. Join the in-person expo to immerse yourself in the pulse of our industry, or check out our website for all the latest updates.

November 28, 2023October 17, 2024 By CWCBExpo

November 2023 Regional News Update: Triumphs in NJ and NY

Welcome to the November 2023 Regional News Update from CWCBExpo. This month’s edition brings major news regarding New York’s licensing program for adult-use cannabis businesses, as well as additional developments in the Empire State and New Jersey. Join us for a closer look at the headlines shaping the regional cannabis scene as the Northeast’s cannabis industry continues to flourish.

New York CAURD lawsuit settlement means licensing could soon resume

A settlement agreement has been reached in the lawsuits that led to a suspension of New York’s Conditional Adult-Use Retail Dispensary (CAURD) program. The terms have been approved by the state’s cannabis regulators, potentially clearing the way for hundreds of cannabis businesses that have faced operational hurdles due to the lawsuits and an injunction preventing the issuing of additional CAURD licenses.

During a recent meeting of the Cannabis Control Board (CCB), the group voted to approve an agreement to allow for the continuation of CAURD. While details remain confidential, the two lawsuits that would be resolved under the settlement are:

Carmine Fiore, et al. v. New York State Cannabis Control Board: Filed by military veterans to address concerns over the exclusion of disabled veterans from social equity licensing prioritization.
Coalition for Access to Regulated & Safe Cannabis v. New York State Cannabis Control Board: Filed by existing medical cannabis operators and prospective adult-use applicants to address the proper application of the state cannabis law. It asserts that regulators are misapplying the law and argues that current medical cannabis businesses should qualify for licensing as well.

The agreement must now be presented to the New York Supreme Court for approval. If the state’s high court approves the settlement agreement, the issuance of CAURD licenses will resume and licensees will be allowed to open storefronts.

Office of Cannabis Management (OCM) Executive Director Chris Alexander said in a press release on Monday that NY is now “one step closer to resolving litigation brought forth by equity entrepreneurs and medical operators.”

“Now that we have opened up licensing to all equity entrepreneurs and provided a clear pathway to participation in the adult-use market for our medical operators, we are able to continue to move this program forward together,” Alexander said.

New York cannabis businesses can now take tax deductions

New York Governor Kathy Hochul (D) has signed a bill allowing New York City cannabis businesses to deduct their business expenses for tax purposes. This measure will provide relief to those facing restrictions under the Internal Revenue Service (IRS) code known as 280E, which blocks them from making such deductions against their federal tax liability.

Although Hochul did sign a budget bill last year to allow state-level cannabis business tax deduction, NYC’s own tax laws remained unaffected. The new legislation would address that limitation and enable city-based businesses to benefit from state tax deductions as well. However, cannabis businesses would still be unable to take such deductions against their federal tax bill as IRS Code Section 280E remains in place federally.

“This bill would allow a deduction for business expenses, incurred by taxpayers authorized by the Cannabis Law to engage in the sale, distribution, or production of adult-use cannabis products or medical cannabis, for purposes of the unincorporated business tax (UBT), the general corporation tax (GCT), and the corporate tax of 2015, commonly referred to as the business corporation tax (BCT),” a summary of the bill reads.

A section of the city’s tax code would be amended to add sections allowing the deductions “in an amount equal to any federal deduction disallowed by section 280E of the internal revenue code.” So, while cannabis businesses remain unable to take federal tax deductions available to other businesses, the bill would allow them to recoup those costs at the city and state levels.

New Jersey’s first veteran and Latina-owned dispensary opens in Jersey City

The Cannabis Place, founded by retired U.S. Marine Osbert Orduña, celebrated the grand opening of its flagship dispensary in Jersey City on Nov. 9 at 4:20 p.m. The opening marks not only the state’s first veteran-owned dispensary but also its first Latino-owned establishment.

“We picked this week to open [because] it is symbolic in many ways,” Orduña said in a statement. “I am an Iraq veteran, [it is] the Marine Corps birthday and Veterans Day, too. To add the opening of Jersey City’s first service-disabled veteran-owned business to this makes this week even more special to us and our team.”

Prior to the opening, The Cannabis Place announced the completion of the first-ever cannabis retail pre-apprenticeship training program in the United States, in partnership with the United Food and Commercial Workers International Union (UFCW) Local 360. The program currently includes 22 local students, who are learning the basics of working in cannabis retail from UFCW Local 360’s own experts. Each participant in the two-week pre-apprenticeship course is guaranteed a job with The Cannabis Place to complete the 2,000 hours required for the full apprenticeship program.

“We want our business to serve the local community,” Orduña said. “That means running an ethical, unionized company and boosting the prospects and prosperity of our neighbors. This program does that and is more proof that workforce investment equals immediate positive community impact. People can start careers here, whatever their background and skill level, and regardless of their history.”

New York cannabis sales reach over $100 million

New York has officially surpassed $100 million in adult-use sales so far in 2023, according to the minutes of the Nov. 11 Cannabis Control Board (CCB) meeting. Despite a limited number of dispensaries (just 27 operational statewide since legalization), the state has already reached a major milestone.

Dispensaries drove the majority of those sales, but the milestone is thanks in part to the 54 Cannabis Grower Showcases (CGS), which allow licensed growers and processors to work with retailers to sell their products at events like farmers markets. Thus far, the CGS program has contributed $3.4 million in sales, helping expand cannabis access to even more New York City residents.

According to John Kagia, director of policy for New York State’s Office of Cannabis Management, the state’s regulated market is experiencing the “beginning of a rich brand diversification that’s only going to accelerate with more cultivation, processor, and distribution licenses” coming online in the future. Currently, there are 200-plus brands in the market and, as of November 2023, New York’s licensed retailers, on average, are carrying more than 50 brands. An estimated 72% of these dispensaries have more than 200 SKUs in their stores.

“This is a critical milestone for the market. It continues to reflect an incredible retail velocity, and with the extraordinary effort that our retailers have put forth in getting the stores up, securing diverse products, and getting the customers in, we continue to see strong growth amongst the operators that we currently have,” Kagia added.

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November 21, 2023October 17, 2024 By CWCBExpo

What Cannabis Retailers Can Learn From Last Green Wednesday

Green Wednesday, the day before Thanksgiving in the U.S., first emerged as one of the biggest sales days of the year in the legal cannabis industry in 2017. Since, it has become a landmark day for cannabis retailers everywhere, much like Black Friday for the retail industry writ large.

Now that Green Wednesday has become a fixture for the cannabis industry, retailers can analyze sales data from years past to spot trends and better prepare as this year’s Green Wednesday approaches. Below, we’ll help you parse the data from last year and spot what’s around the corner, so you can guide your cannabis retail business to success.

Cannabis sales on Green Wednesday last year

Sales data from last year’s Green Wednesday suggests the holiday is only getting bigger, as sales increased by more than 16 percent year over year to a total of $116.4 million, according to a report from business intelligence firm Akerna. The only day in which cannabis retailers grossed more was the renowned cannabis holiday 4/20.

A separate report from cannabis industry analyst firm Headset found that, in the well-established markets of California, Colorado, Massachusetts, Michigan, Nevada, Oregon and Washington, Green Wednesday drove 48 percent more sales than the three previous Wednesdays in November.

The Thanksgiving holiday weekend as a whole — which includes Green Wednesday, Thanksgiving Day, and Black Friday — drove $289 million in cannabis sales total, up 12.7 percent year over year, according to Akerna data. However, according to Headset, Thanksgiving Day is not a busy day for cannabis retailers, as sales last year declined by 65 percent over a typical Thursday.

Key takeaways from last year’s Green Wednesday

As a cannabis retailer, it isn’t enough to know that cannabis sales in general spike on Green Wednesday before subsiding on Thanksgiving. You also need to know what types of products consumers tend to look for when shopping on Green Wednesday. Moreover, it’s important to understand how your competitors are bundling and pricing products so you can maintain a competitive advantage that provides value to your customers.

Here are some important key takeaways from last year’s holiday season:

In the three-day holiday period spanning Green Wednesday through Black Friday, the product types that saw the biggest boost in sales were topicals, beverages, and edibles, growing at 15.3 percent, 13.2 percent, and 6.1 percent, respectively.
Takeaway: Promoting these products and creating bundles that feature them may offer an opportunity to capitalize on increased sales volume in these categories. They won’t be your biggest sellers, but you may need more inventory on hand than usual.

Inhaled cannabis products experienced a decrease in sales in the three-day period from Green Wednesday through Black Friday, according to Headset data. Concentrate sales were down 11.4 percent, flower declined by 10.8 percent, and prerolls fell by 6.4 percent. Still, these categories are major sellers, according to Akerna. Cannabis flower represented 48.7 percent of all sales, while cartridges and vape pens represented 32.3 percent of sales.
Takeaway: Consumers will expect these products to be available and you’ll still need plenty of inventory, especially on Green Wednesday. However, don’t expect them to move as quickly as they usually would during Thanksgiving weekend.

In states where discounts are legally permitted, the average discount was 19.8 percent, according to Headset. The average discount was even higher on Thanksgiving Day and Black Friday, at 22.2 percent and 23.7 percent respectively, as retailers tried to move inventory leftover from Green Wednesday.
Takeaway: In markets where discounts are legally allowed, you may have to compete with some pretty steep price reductions. And, if you’re left with surplus inventory after the Green Wednesday rush, you may need to slash prices even further to sell those products.

While Green Wednesday saw a spike in cannabis sales, the three-day holiday is actually slower by an average of 6.5 percent compared to other three-day periods throughout the year. That means taking advantage of the Green Wednesday rush is critically important to rounding out a successful November.
Takeaway: Understand and plan for the fact that while Green Wednesday brings with it a green rush, overall sales are likely to slow at the end of November. Bundle and price your products to move on Green Wednesday and consider whether closing your doors on Thanksgiving Day could cut costs in the face of slowing sales.

Supporting sales growth beyond Green Wednesday

After Green Wednesday, the largest cannabis sales days of the year are over — but that doesn’t mean cannabis retailers can check out until the new year. In fact, every cannabis product category sees an increase over typical sales in the week before Christmas, according to Headset. Unsurprisingly, flower and vape pens account for the largest volume of sales, but the largest sales increases are seen, once again, in topicals, cannabis beverages, and edibles.

Don’t fall into the trap of going through the motions in December. As sales begin to increase in the second week of the month and go into full swing in the week before Christmas, you can use this momentum in a final push to bolster the bottom line at the end of the year.

Remember that every market is unique in the cannabis industry, so examine these trends in the context of your state and locale. How these trends develop in New York, for example, may be very different from what’s happening in California. While these broad national trends are likely to impact your cannabis business wherever it is you operate, the specifics of how they influence your market will depend on the individual factors shaping the cannabis industry in your area.

Prepare for Green Wednesday and beyond with CWCBExpo

Cannabis retail is an exciting, dynamic, and challenging space, but with the right preparation you can set your business up for success. Although the landscape is always changing in the cannabis industry, there is a great deal of insight that can be gleaned from past sales data. Meanwhile, keeping an eye on trends shaping the future can help you stay ahead of the curve and at an advantage over your competition.

At CWCBExpo, we’ll help you stay plugged in to what’s happening in the cannabis industry and how it will impact your business. To learn more and connect with cannabis industry leaders from all over the country, claim your spot at our next cannabis trade show, taking place June 5 – 6 at the Javits Convention Center in New York City. We hope to see you there!

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November 17, 2023October 17, 2024 By CWCBExpo

Ohio Legalized Adult Use Cannabis. What Happens Next?

Ohio voters officially approved a ballot to legalize recreational cannabis on Tuesday, Nov. 7. As 57 percent of voters supported the measure, defying Republican legislative leaders who remain opposed to it in the legislature, the passage of Issue 2 made Ohio the 24th state to legalize cannabis for adult use.

What exactly did voters approve in Ohio?

Starting December 2023, Ohio residents aged 21 years old and older will be allowed to possess up to 2.5 ounces of cannabis and up to 15 grams of extract in the state. Individuals will be allowed to grow up to 12 plants in a private residence where at least two adults reside. Purchases from licensed dispensaries will be allowed as well, although it will be some time before adult-use dispensaries are open.

A 10 percent tax will be imposed on purchases. Those funds are earmarked to be spent on social equity and job programs, municipalities with cannabis dispensaries, an addiction treatment fund, and administrative costs.

Under Issue 2, consuming cannabis in “public areas” would fall under the state’s “smoking ban,” and land someone with a minor misdemeanor. Furthermore:

Property owners and “any public place” could decide for themselves whether to accommodate cannabis consumption.
Employers do not have to permit or accommodate an employee’s use, possession, or distribution of cannabis.
Someone who grows cannabis could give up to six plants to another adult, as long as no money is exchanged and the transfer is not advertised or promoted to the public.
The state’s current DUI laws will apply to those driving a car, bike, boat, or airplane while under the influence of cannabis. Passengers are also prohibited from smoking or vaping in the vehicle.

What does cannabis legalization mean for Ohio?

The new law would take effect on Dec. 7, 2023, allowing Ohioans to consume, possess, and grow cannabis starting that day. Regulators are expected to begin issuing retail licenses by late 2024, so retail sales are still a ways away.

An analysis from Ohio State University assessed the potential economic impact of legalization on the state earlier this year. It estimated that Ohio could see up to $403.6 million in annual cannabis tax dollars by the fifth year of sales. A separate analysis estimates that the passage of Issue 2 may create 3,300 new jobs in the first year.

Will there be changes to Ohio’s cannabis legalization rules?

It’s important to note that as a citizen-initiated statute, the law is subject to change. Within hours of the issue’s passage, Ohio’s top elected leaders have already expressed their intent to make alterations. Some objectives voiced by Gov. Mike DeWine (R) include restrictions to prevent accidental ingestion, public use, driving while intoxicated, and advertising. There are also requests to revisit the tax structure and use the revenue for county jails or police training.

“From our perspective, we want to make sure that we are maintaining the intent of the voters who passed Issue 2, but also being very thoughtful in giving flexibility back to our local communities in regards to how they use the revenues,” House Minority Leader Allison Russo (D) told Dispatch. Senate President Matt Huffman (R) said he also wants to assess the language regarding THC limits on cannabis products sold in the state.

While questions remain as to what the final language will look like, Gov. DeWine claims none of the finalized language should come as a shock. “I don’t think there’s any surprises out there,” he told reporters.

Still, many advocates are encouraging lawmakers to enact the law as passed in the ballot referendum.

“This vote presents a tremendous opportunity for the state where legal adult-use sales are projected to exceed $1 billion annually,” Policy Director Rodney Holcombe said in a statement. “This move puts Ohio in league with 23 other states that have taken this significant stride forward. We have witnessed firsthand the positive impact of legalized cannabis, including job creation, tax revenue for vital government services and unique business opportunities for entrepreneurs. We urge Ohio officials to promptly enact the law, allowing their constituents to reap these benefits without delay.”

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As Ohio embraces recreational cannabis, yet another hurdle has been cleared in the cannabis industry’s progress toward full legalization. To delve deeper into the world of cannabis, consider attending trade shows like the Cannabis World Congress & Business Expo in New York, which offer valuable information and know-how for any emerging market. Don’t miss the chance to expand your knowledge and network where the future of cannabis is unfolding. Visit our website to learn more and secure your spot at our next event, June 5th-6th, 2024.

June 4 - 5, 2025 Javits Convention Center