Mixed bag of news coming outta New York by way of A new report filed by the state’s Office of Cannabis Management (OCM) and the Cannabis Control Board (CCB) this week, showing that there HAS been significant growth in empire state's legal cannabis market; which has generated nearly $654 million in sales, despite a number of highly publicized setbacks over the past 21 months.
OG Article: here
View our Fair Use Policy: here
Watch the Live Show HERE
Watch the Commentary Here
However… the report also revealed that over 200 "justice-involved" retail license holders remain in limbo; facing difficulties in securing funding and compliant retail spaces.
Sound familiar, California?
The report highlights several challenges in New York’s cannabis industry, including gaps in the regulatory system, enforcement against unlicensed businesses, and financial obstacles for social equity applicants.
Of the 1,704 permits issued, 205 were Conditional Adult Use Retail Dispensary or (CAURD) licenses aimed at justice-involved individuals.
Out of 205 (CAURD) licenses, only 150 were operational by mid-September.
The Cannabis Social Equity Investment Fund, originally set to provide $200 million dollars for approved applicants, has only supported 20 CAURD licensees, despite 463 being eligible.
Additionally, licensed medical operators have been slow to enter the recreational market, with only four of the 10 eligible companies opening dual-use dispensaries.
Legal sales have steadily increased, hitting a record $97.4 million in August, partly due to crackdowns on unlicensed businesses.
The report closed out by recommending several policy changes, including reducing regulatory costs for licensees, offering more financial support to social equity businesses, expanding enforcement efforts, and revising packaging rules to favor environmentally sustainable practices.
Changes both agencies say will strengthen New York’s legal cannabis industry, while addressing ongoing challenges.
Now I’m not gonna beat a dead horse, and say I told you so like I ain’t already done that every time we bring up social equity in New York, but damn… If these numbers ain’t indicative of HOW ineffective social equity programming in cannabis is, has been, and will most likely continue TO BE, I dunno what is..
New York was supposed to be different… the market was actually built around a community of legacy players that had a say in everything in regards to how things SHOULD be.
Kathy Hochul was with it from the start.
Before she got into office, it took a bit of arm-twisting, but Cumo was down too.
There are WAY too many issues at hand with the cannabis industry as a whole- even if you remove the social equity component.
But my gripe remains with the system and those building it continuing in EVERY market to over-promise and under-deliver to the people and communities who’ve been screwed over time after time after time again.
Black and brown folks WILL continue to buy from Black and brown folks in every industry, including cannabis.
That ain’t the issue.
The issue is government agencies and entrepreneurs continuing to SUGGEST that throwing licenses and “opportunities” at folks that the systems Y’all have thrived in for generations at us like the game ain’t already rigged from the jump.
Kill the whole generational wealth shtick. We know that ain’t happening.
I wanna end things by saying this- not ALL social equity stories have ended bad.
However, looking at the big picture, Social equity, and how it’s been rolled out across the country so far… continues to give false hope, waste peoples’ time, and in my opinion put people in worse positions than they were in before deciding to play their hand.
Congrats to all that’ve made it, I have NOTHING but respect for y’all’s tenacity, grit, and willingness to push forward and WIN against all odds.
I wish you ALL the best of luck and positive vibes going forward.
But you all are truly special and exceptions to the rule.
But hey - $654M in legal sales to date, New York, congrats!
Missouri did that in like a month. What’s the next 2 years gonna look like? Will they eventually live up to their potential?
Comments