New Yorkers Love Weed, First Legal Shop Rakes In Millions After Only Six Months Of Sales

Housing Works Cannabis, the first licensed New York retailer selling recreational cannabis sold roughly $12 million worth of weed during the first six months of operations.

Since the store opened in lower Manhattan on Dec. 29, 2022 the shop, run by Matthew Bernardo has been directing the dispensary's sales proceeds to help New Yorkers with healthcare, housing, job training, harm reduction, health equity and social justice initiatives, LGBTQ+ youth programs and sexual health services.

"Our goal, going back over 30 years ago through Housing Works, has been to empower New Yorkers through advocacy and bridge communities to life-saving services," said Sasha Nutgent, retail manager at Housing Works. "From the resources we've rolled out to the brands we carefully select for our customers, everything we do here has a greater purpose and we're humbled to see the support our mission is receiving."

In an earlier interview with Benzinga's Nina Zdinjak, Nutgent said that New York's nascent cannabis industry lacks options for loyalty programs with perks like discounts.

"This would also help generate more sales and give us more of an edge against the illicit market," she said, by allowing "legal dispensaries to build a comprehensive opt-in customer relationship management (CRM) database."

Bernardo, who spoke at Benzinga Cannabis Capital Conference this past April, praised New York's Office of Cannabis Management (OCM) for being supportive during the process of the recreational marijuana market launch.

Even though the process has been frustrating for many, Bernardo said in April that Housing Works has been "successful" and "profitable after 280e."

The Oversupply Issue

Still, there are a little over a dozen operational retailers in New York selling weed, which means challenges for cannabis growers.

Farmers in upstate New York voiced their concerns earlier this year, revealing they've produced nearly 300,000 pounds of cannabis, valued at three-quarters of a billion dollars. With more licensed farms than dispensaries, there is a vast surplus of unsold cannabis.

OCM had a few aces up its sleeve that sought to address the issue, like cannabis farmers' markets. That initiative sought a minimum of three growers and a retailer to organize events where cannabis flower and pre-rolls could be sold at non-storefront locations. However, New York Gov. Kathy Hochul's administration recently hit the pause button on that plan.

Shortly after, New York announced that it would accept applications for cannabis farmers' markets after all.

The new push dubbed the "Cannabis Growers Showcases" (CGS), are events set to transform various locations across the state into green hubs of innovation and commerce.

They would be permitted in various locations, while applicants are obliged to have at least three licensed adult-use cannabis cultivators and one conditional retail licensee, with additional vendors required for every three cultivators. 

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Courtesy of Budding . on Unsplash