Last Monday, a New York State Supreme Court judge put a halt on all new retail marijuana licenses, just the latest hold up in the state’s cumbersome roll out of legalized marijuana.
After legalizing adult-use marijuana back in March 2021, lawmakers, retailers and growers have been at odds with various details on exactly how and to whom the first licences would be awarded, leaving many across the state quite literally - holding the bag.
However, a few select growers now have an opportunity to hit the market thanks to new guidance from the NYS Office of Cannabis Management.
The Cannabis Growers Showcase (CGS) initiative allows licensed cannabis growers and processors to showcase New York cannabis products to consumers at events where consumers can purchase those cannabis products from licensed retailers.
According to the OCM" "A CGS can take place in various locations, including standalone, temporary retail locations; licensed retail dispensary locations; licensed conditional cultivator or processor locations; or other approved event locations."
This includes Newark’s Honest Pharm Co., a licensed New York State marijuana and hemp cultivator that took over the former Jackson & Perkins/Newark Florist facility back in 2019.
Owner and CEO Jeremy Jimenez says it’s a big win for not only his company, but for Newark and the surrounding region as well.
"The revenue that could be generated for the state could be in the billions," revenue Jimenez says will flow directly back to Newark and Wayne County.
While it’s much too early to start counting up the tax revenue, Jimenez notes that Housing Works, a legal dispensary in NYC, did nearly $12 million in sales during their first six months open, signaling not only a demand for the product, but the public’s willingness to pay the (often hefty) price.
There’s currently a 13% state tax on the sale of legal cannabis products in New York State, which lawmakers said would bring in an estimated $56 million in tax revenue for fiscal year 2023.
However, a vacuum quickly emerged as retail rollouts continued to be delayed this year. Thousands of unlicensed, untaxed shops began popping up, offering a "gray market" opportunity for those shopping for pot.
These shops offered various ways to procure marijuana products including gummies, oils and flower, offered as a "free gift" with the purchase of either another non-cannabis product or as a sample provided with a "Marijuana consultation."
Since the stores were not technically selling the products, they continued to grow and expand across the state. Reports say there could be well over 1500 in the NYC area alone.
In recent weeks, the NYS Attorney General, alongside the OCM, have cracked down on many of these locations for various violations including several shops here in Wayne County.
With these showcase events, there’s now several legal opportunities in the area that will help local growers sell at least some of their crop for 2023. In addition, consumers can now find regulated, lab-tested products from area growers without having to travel to NYC or rely on unknown sources.
The caveat? These showcases are set to end on December 31st, 2023.
Many in the industry are hoping that retail licencing gets sorted by then, however Jimenez says he’s learned never to plan too far ahead in this business.
"Long-term plans are always a moving target. You can have something set in your mind, but the state has the final word." He says they’re in regular contact with the state OCM, making sure everything is above board.
Jimenez says he "hopes that people will enjoy having a safe and professional place to shop and leave educated and informed on the various products and potencies."
Honest Pharm Co. will be running their showcase event, featuring multiple area growers, Tuesdays-Sundays from 10am-7pm. Customers must be 21 or older with proper NYS identification. Honest is located at 621 E. Maple Ave in Newark.
For a full listing of local showcases around our area, visit cannabis.ny.gov/find-a-cgs.
