The Rise Of The Northeastern Cannabis Market, Profitability And Inclusion At Benzinga Cannabis Capital Conference

As the Northeast U.S. cannabis market takes the lead in growth potential, questions arise on how the region can transform the industry playbook. Can collaboration between legacy operators and established companies pave the way for a thriving, profitable future?

At the Benzinga Cannabis Capital Conference in Chicago, Rebecca Kirk, executive vice president of operations at cannabis company Acreage Holdings Inc ACRGF, emphasized the industry's evolving nature: "You have to be in this industry, not just to make it work but to excel at your craft. It's not merely about projections; it's about achieving profitability."

Vladimir Bautista, founder and CEO of cannabis company Happy Munkey provided further insight, describing the Northeast's cannabis market as a "sleeping giant" now stirring to life. He emphasized, "It's not solely about growth; it's about the cultural transformation and unique experiences we can offer."

Northeast Cannabis Market: East vs. West

The panel included Kirk, Bautista and Louis Magazzu from Weiner Law Group. It was moderated by Jeremy Berke, journalist and founder of cannabis-focused media, Cultivated News.

One of the key takeaways from the discussion was the unique characteristics of the Northeastern cannabis market compared to the West Coast.

"The Northeast's cannabis market is poised for a cultural and experiential revolution, setting it apart from the West Coast's production-focused approach,” Bautista said.

Jeremy Berke, Rebecca Kirk, Louis Magazzu and Vladimir Bautista

Kirk added the Northeast already has a mature consumption palette and suggested the region would adopt successful strategies from the West Coast while capitalizing on its significant consumer base.

"In the Northeast, we're building on a mature consumer base while incorporating successful strategies from the West Coast. It's about blending the best of both worlds,” Kirk said.

Magazzu discussed the differences in regulatory approaches between New Jersey and New York. New Jersey strongly emphasized local ownership, social equity and labor unions, but with a more flexible approach compared to New York's more stringent social equity requirements.

He also mentioned the challenges posed by the Home Rule system in New Jersey, where each municipality can set its own rules for cannabis businesses.

Breaking Barriers And Navigating Cannabis's Evolution

The panelists also discussed the importance of lowering barriers to entry for legacy market participants and the need for education, mentorship and financial support.

They suggested that both private businesses and state governments should play a role in helping legacy operators transition into the legal market.

"You're saying there's value in teaching people to fish and providing capital to level the playing field. Our experience in Oakland, California, showed that simply matching general and social equity applicants didn't work,” Kirk said.

"To break down barriers and bring legacy operators into the market, states must focus on education, mentorship, cost reduction and creating favorable tax environments. Without access to capital, no amount of mentorship or loans can bridge the gap."

Loans in New Jersey, like the quarter-million-dollar program for social equity applicants, are just the beginning, said Magazzu. "To truly support the industry, states must establish robust loan programs, potentially allocating hundreds of millions of dollars, with a strong sense of accountability,” Magazzu added.

“Investment in the cannabis market should be comprehensive, including funding, and should extend over a 10-year plan for long-term success, similar to incentives for traditional industries."

The panel highlighted the changing landscape of the cannabis industry, emphasizing the shift from a focus on growth and projections to profitability. As the industry matures, businesses are expected to operate more sustainably and rely less on continuous fundraising.

Want to know more about the Northeastern cannabis market and what it means for the industry? Tune in to the Benzinga Cannabis Capital Conference in Chicago live. For existing subscribers, you can get direct access through our research platform. For new users, you can get instant access here!

Photo; Nic Y-C on Unsplash; conference photo by Carlos Alvarez/Benzinga