Billions In Cannabis Sales Projected: New York's Legal Hurdle Lifted For 30 Retailers

Legal Hurdle Lifted For 30 New York Cannabis Retailers After Preliminary Injunction

A recent preliminary injunction by Judge Kevin Bryant could lead to a substantial increase in operational cannabis retailers in New York. With 23 marijuana retailers already in operation out of the approved 463 Conditional Adult Use Retail Dispensary (CAURD) licenses, the injunction might enable an additional 30 dispensaries to open soon.

The injunction, a result of a lawsuit filed by service-disabled veterans against the Office of Cannabis Management and the Cannabis Control Board, has temporarily halted the issuance of more retail licenses, while potentially paving the way for more CAURD licensees to seek exemptions to open.

Cannabis Farmers Markets Blossom Across New York, Easing Inventory Backlog for Growers

Over a dozen cannabis farmers markets, known as "grower's showcases," have been scheduled by New York marijuana businesses this summer and fall, aiming to alleviate the substantial backlog of over 582,000 pounds of cannabis products held by growers.

The most recent showcase, located near the New York State Fair, features nine licensed cannabis farmers selling directly to consumers daily until 9 p.m.

• The Office of Cannabis Management in New York revealed that there are around 582,000 pounds of cannabis flower and products ready for sale. Since the beginning of the adult-use marijuana program until October of this year, an estimated 600,000 pounds of cannabis were harvested.
• Out of the harvested amount, approximately 18,000 pounds have been sold so far.
• There are only 23 operational shops for selling these cannabis products.

Historic Launch of Cannabis Farmers Market Adjacent to New York State Fair

The Great New York State Cannabis Showcase is now open at the New York State Fair, allowing attendees to buy cannabis products from local growers, including hemp-derived cannabinoid products for the first time in 2023. Organized by the Cannabis Association of New York, this pop-up exhibit will run alongside the state fair from August 23 to September 3, featuring products from nearly a dozen participating producers.

New York City's Cannabis Sales Could Reach $1.2 Billion Annually, But…

A report from the New York City Independent Budget Office (IBO) projects that legal cannabis sales in New York City could potentially reach up to $1.2 billion annually, generating around $47 million in local tax revenue.

However, regulatory issues and the presence of unlicensed retailers could hinder the industry's growth potential. The report suggests that the pace of legal cannabis market expansion, successful mitigation of illicit shops, and the adoption of more retail licenses, particularly for social equity applicants, will play a crucial role in realizing the projected economic benefits.

Learn more about cannabis regulations, and supply chain, at the Benzinga Cannabis Capital Conference, the place where deals get done, which is returning to Chicago this September 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 by Giorgio Trovato on Unsplash.