It’s a milestone for stoners.
New York is set to hit the $1 billion mark in cannabis sales since the legal market launched two years ago, state officials tell The Post.
“These numbers clearly indicate that New York is open for business. There’s strong momentum behind the market right now,” said John Kagia, policy director for the state’s Office of Cannabis Management.
Pot sales hit $863.9 million as of last week — and they could top the billion-dollar mark by the end of December, regulators say. The state surpassed $500 million in sales in August.
The market has ramped in recent months after a rocky rollout marred by lawsuits, a massive illegal market and enormous backlogs in the awarding of retail licenses issued by the often-criticized understaffed and overwhelmed OCM.
The turmoil and hiccups delayed the state’s timeline to develop the new legal market for marijuana.
Gov. Kathy Hochul ordered a management shake-up after a scathing report she commissioned in May issued blunt criticism of how the regulatory agency was run, and 64 new staffers were hired.
OCM currently employs 213 full-time workers, said OCM rep Taylor Randi Lee.
There are now 245 licensed retail weed outlets, up from 41 stores at the end of 2023.
Retail sales of weed have generated $22 million in combined tax revenues for local governments, including $7.9 million to New York City, according to state Comptroller Tom DiNapoli’s office.
More than $16.6 million in tax revenue from the pot business also flowed to the state treasury through June and is on pace to double last year’s total
Kagia said beefed-up enforcement and the padlocking of illegal pot shops under a new law approved by Hochul and the state Legislature had a big and immediate impact on boosting the bottom line of licensed cannabis retailers.
Sales more than doubled — soaring 105% — among cannabis retailers that were in business before “Operation Padlock” took place in the spring and afterward, a survey by OCM found.
Hochul’s office claimed the pot market is now reaching new highs.
“Thanks to Governor Hochul’s leadership, more than 1,000 illegal dispensaries have been shut down, and the legal market, nearing $1 billion in sales, is booming,” said Hochul spokesman Miguel Arreola.
“Her policies have helped transform the industry, increase revenues for local businesses, and spur reinvestments in the communities most harmed by historical wrongs — all while building the most equitable cannabis market in the nation,” the Hochul rep added.
But social-justice advocates complain that too few licenses have gone to operators in communities disproportionately impacted by the war on drugs when marijuana was considered a crime — 5% of those set aside for the “equity” market and 2.5% overall.
Still, Kagia said, “Any kind of conclusion is entirely premature. We still have a huge number of licenses to issue.”
He said the cannabis agency has instituted a better and more accountable licensing process, such as making a staffer ” a point of contact” responsible for handling an applicant or licensee.
More staff is being added to reduce the backlog of applications, too, Kagia said.
An analysis by LeafLink, an online platform where pot retailers buy their cannabis from wholesalers, said New York has turned the corner and is now an emerging market primed for growth.
“It’s clear New York is moving past some of its initial challenges and is on the path to meeting the lofty expectations that surround this market,” said LeafLink Vice President for Policy Rodney Holcombe. “Similar to other new markets, more work needs to be done to make sure businesses have the environment and proper tools at their disposal to run their businesses efficiently.”
New York can only go up. A recent study said it could support 1,000 new pot stores.
The LeafLink report shows New York is a cellar-dweller compared to other states that have legalized cannabis. Oklahoma, for example, has 1,900 licensed pot shops. New York currently has 245.
There’s also data on pot sales per resident: Alaska is tops with $350 per resident, and Michigan has sales of more than $300 per person.
New York sales are under under $50 per resident, about half of even neighboring New Jersey — even though both states legalized pot around the same time.
One Downtown Manhattan pot retailer said high times are ahead.
“New York’s cannabis market is certainly beginning to take off, especially here in New York City where the appetite for regulated, high-quality products is growing in tandem with efforts to curb the illicit market,” said Vanessa Yee-Chan, owner and founder of Atta Dispensary at 52 Kenmare St., the first weed retailer to open in Chinatown.
“Since our grand opening nearly two months ago, our customer base has consistently grown, and we’ve had to increase the frequency in which we place purchase orders for certain products to ensure we are keeping things in stock.”
This post was originally published on here
