New York officials expect legal cannabis sales to top $800 million this year, but some have their sights set even higher: $1 billion in just the second full year of adult-use sales for the state.
John Kagia, director of policy for the New York Office of Cannabis Management, spoke at both the National Cannabis Industry Association’s New York Stakeholder event and the Cannabis Insider Conference held in Albany this week, where he told attendees that the state is on pace to report $470 million in sales before the end of the third quarter.
He said that the state has been logging roughly $21.5 million in sales per week to date, but that number has increased by about a million dollars every three weeks. If that trend continues, the state will reach $24 million in sales per week by year end.
“We are in a rocket ship,” Kagia said, although he was quick to add the state hasn’t achieved lift-off yet.
“Look where the New York market is going, not where it’s been,” Kagia said. He noted that there were 200 stores open and the state was on pace to open 21 stores in 23 days. He also pointed out that there are 500 brands in retail stores.
“Across the board, we are bullish for the outlook of the market,” he said, despite the challenges with resources in the department, which he characterized as a learning organism – one that is working to implement effective changes.
To that end, Kagia highlighted the OCM’s new locator map, which is intended to help potential licensees pick an acceptable location, and the ongoing consideration of the size of noncompete zones.
He said the OCM is also considering changes in packaging and advertising, with proposals on those topics out for public comment now. Currently, New York operators can’t legally advertise on billboards or offer loyalty programs, but one audience member said both are popping up.
Kagia acknowledged that the OCM’s enforcement group is focused on closing unlicensed operators versus targeting existing operators who are trying to drive business. However, he strongly urged licensees to follow current rules.
Regarding the enforcement push, Kagia said that the stepped-up efforts to close unlicensed operations had resulted in same-store sales for some operations increasing by 50%, with some outlets reporting a 200% increase in sales.
He also said he is continually asked about consumption lounge and event licenses, which are being worked on by the OCM. However, Kagia did not offer any estimates as to when they might be made public.
Kagia also highlighted that the OCM has reviewed 1,500 applications from the November pool. The department is looking to add more data people to the staff with the goal of providing the market with more information.
When asked about the DASNY investigation, he said he had no updates.
[[{“value”:”State officials say the sales trajectory has New York on pace to quickly reach $1 billion.
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