CannabizTeam - Executive Search and Staffing’s Post

Is this the ''#light at the end of the tunnel'' for New York's #battered & beleaguered legal Cannabis license holders? Will #NY Governor Hochul's latest move close down the thousands of #illicit Cannabis stores that you see literally everywhere in Manhattan? The #cops think so. '''It’s not just the cost of doing business anymore. They’re going to feel this,”” —said Sheriff Anthony Miranda in The New York Times article below. Previously, #unlicensed Cannabis shops could quickly #reopen after being closed, as authorities needed court orders for #permanent closure. Now, the Sheriff’s Office can shut them down for up to a year immediately by declaring them a public #threat—cutting off their income. While some shops evade detection or switch to #delivery, many have ceased operations. Between May 7 and June 3, the city closed 329 shops, seized $10.4 million in products, and issued $23.4 million in fines. However, this action by the cops, has little to no affect on #supply. Potentially many of the 329 #illicit-dispesnary employees & customers are absorbed by the remaining 2571 #stores. Indeed, there are only 62 legally #licensed stores. An illicit market thrives when the legitimate market does not provide for the #consumerdemand. And there's definitely consumer demand for Cannabis in New York. Even with a #limited launch, New York is still expected to be the biggest new legal market. #BDSA predict New York will soon see >$1 billion in taxable sales p.a. Read on in this article below from the NYT—and how #critics claim this approach infringes on constitutional rights by preemptively shutting businesses before a court ruling. #Cannabis

The proliferation of grey market shops informs us, in very broad terms, that "the market" will bear many more shops than regulators have mapped out. Naysayers will tell me, "Oh -- but they are not paying taxes." True. But that's on the business owner to determine if they want to open on a block that is already crowded. Originally, I thought the regulators were modeling the SLA distance requirements out of a concern for health and safety, children, general looks of an area, and so forth; not out of concern for protecting business owners from financial ruin. A crowded block might become a destination for consumers, and an indication that lots of shoppers in that area want to buy cannabis. And can OCM really play this role of protecting the business owners at this late point in the game? At this late point in the game, we have missed out on hundreds of millions of dollars in tax revenues while the unlicensed market flowered (pun intended). And the fact that some blocks have as many as 5 shops and they maintain profitability leads me to believe that perhaps 2-3 licensed shops in a block could make it work. https://lnkd.in/gTQHMDtZ

On Jan. 1, the Ontario government updated its rule regarding single-store ownership, increasing the cap from 75 to 150 outlets per chain. How does this affect Independent cannabis stores? More in my article from the Toronto Observer below https://lnkd.in/edgUcBHD

If you are applying for a retail license in NY and would like priority processing take a look at this... NY requires that a notice of intent to apply is submitted to a local municipality 30 days BEFORE a state application is submitted. AND the priority processing deadline is November 3. This means that groups that have not sent letters of intent to apply by October 4 WILL NOT receive priority processing. Since few groups know about this the state will receive far fewer applications and the groups that do know about it will have a big advantage in being the first to plant a flag and get a retail license. Being first will allow a buffer around a store to box out the competition. What does this mean for you and how did CannDev get ahead of this situation? CannDev has access to over two dozen properties around NY that have had letters submitted before October 4. These sites span the 5 boroughs, upstate areas and nearby border towns. This is one of the best opportunities we've have seen in a long time for cannabis retailers looking to aggressively expand. Working with us on these locations will give you a great advantage in securing a retail license. To review our available properties please reach out! #cannabis #retail #newyork #ny #dispensary #license #realestate

With only 36 licensed retailers for a population of over 9 million in New Jersey, demand is soaring. In Q1 2023, each retailer generated $5 million in sales, a staggering figure compared to other markets. As licenses expand, the window for a competitive edge is closing. In NJ, "wait time" is a top factor for choosing a dispensary. Understanding and addressing this challenge is key for sustained growth. Explore the innovation opportunity of New Jersey's wait times in our latest blog: https://hubs.la/Q023kCvK0

Check out this article in Cardinal News addressing pop-up shops and the illegal gifting and sharing of cannabis in Virginia – https://lnkd.in/gNA72iez. For more information on these topics, explore CCA resources at cca.virginia.gov/resources.

I have a different take from the free market argument that is in place for NM cannabis market equilibrium and stabilization. I am not advocating a position one way or another with respect to a pause in retail license issuance, but the data speaks for itself, and the data suggests that a pause in the issuance of retail licenses makes sense for the success of the overall cannabis market in NM. To be clear, I believe in the free market as well. But, there is this fallacy that everyone should be able to play in the sandbox just because it is cannabis. There is a risk of significant financial pain and loss for the operators who are severely under-capitalized, lack the basic business acumen to legit grow a real business, and are amassing debt. Some retailers in NM take 6+ months to open their storefront when they receive their license. Some are taking longer. That's six months of rent, initial buildout, securing viable amounts on inventory to open a store, hiring and training staff, paying insurance, utilities, canna-tech, biotrack, taxes, etc...there is no margin for error. WHY NOT stop financial ruin for some of these operators? The storefronts reporting sub $25k monthly sales will not be in the marketplace next spring. They will hemorrhage all of their cash and need more revenue to fund inventory re-orders, etc... Consider this: ➡ 41.9% (August: 39.8%) of licensed AND operating dispos statewide earned <$25k in AU sales in September (635 retail storefronts reported September sales to the CCD).  These 266 (August: 240) reporting dispos recorded $2.92mm (August: $2.80mm), or only 8.4% of total NM AU September sales. The mean sales figure for this group of retailers was $10.98k/month.   ➡ 77.3% of all licensed (open and not open) dispos statewide earn less than $50k in monthly sales. (August: 75.8%; July: 77.3%, June 67.7%). Conversely, the # platinum (>$200k &< $300k) and diamond level (>$300K) licensed dispos who report to the CCD fell to 3.6% of the total storefront units in September BUT these 23 dispos brought in $7.83 million in sales (August: $7.65mm), or 22.6% of total AU sales in September. #newmexicocannabis #cannabisdata The Data Heard

CHESTERFIELD COUNTY, VA - The former home base of a once-fast-growing local e-cigarette company has been purchased by Richmond’s tobacco king. An arm of Henrico-based Altria Group recently bought AVAIL Vapor’s former headquarters and manufacturing facility at 820 Southlake Blvd. in Chesterfield for $4.1 million, according to online county land records. The roughly 40,000-square-foot facility is situated on a 4-acre property in the Southport Office Park and had once been the nerve center of Avail’s operations. The company at its peak had more than 100 retail locations in a dozen states before its ceased operations in late 2021 in the face of changing FDA regulations. Avail launched in 2013 and bought the Southlake property for $1.6 million the following year. It began operations there in 2015. The property was most recently assessed at $1.8 million. An LLC tied to Avail was the seller in the deal with Altria, which was recorded with the county in late December. Avail founder James Xu declined to comment on the deal, citing a nondisclosure agreement. Altria subsidiary Altria Client Services is listed as the buyer of the property. An Altria Client Services spokesperson confirmed the acquisition but didn’t comment on the company’s plans for the facility. Altria Client Services provides corporate functions for Altria and its other subsidiaries: Philip Morris USA, U.S. Smokeless Tobacco Co. and e-cigarette company NJOY, among others. Those services include things like digital marketing, financial services, communications, government affairs, procurement and packaging design. Altria Client Services has about 1,600 employees, most of which are based locally. The Southlake Boulevard facility served as a manufacturing plant for Avail’s cartridges of nicotine-infused liquid used in vape pens, as well as its Leafana Wellness line of CBD products that rolled out in 2019, about four years after the plant began operation. In addition to production operations, the property was Avail’s headquarters for years. Blackbriar Regulatory Services and Blackship Technologies, which were spun out of Avail in early 2020, also operated at the property. Online retailer Giant Vapes, which was formerly owned by Avail, leases the Southlake property. Whether the company was actively operating in the space was unclear Wednesday. Attempts to reach Giant Vapes for comment were unsuccessful. Avail ceased operations in 2021 after its unsuccessful attempt to secure federal approval to continue to sell its e-liquids after years of operating in what had been an unregulated market. In May 2023, Avail filed a request for the U.S. Supreme Court to review a lower court’s ruling against an appeal Avail had filed in the wake of the Food and Drug Administration’s rejection of Avail’s application to continue to sell its vape products. For more, click on the article below. #escrowcredirt #newmarktitleservices

Do you think Green Thumb Industries (GTI) could operate in a competitive market like California with the same success? I know they can’t. And eventually interstate DTC is gonna eat Ben’s breakfast, lunch, and dinner. I’m still waiting for someone, anyone, to present a scenario where the bulk of cannabis is NOT grown where it’s better suited, just like every other ag product, and that’s California. I hate to admit it, but the glasshouses of the west can send deps better than GTI’s ins at 1/4 the cost. Even with a fat tax it’ll still be a superior product at a lower cost. How does corporate mids survive once their poorly crafted moats dry up?

We have a few more windows left y'all. Does your brand have $250 in marketing dollars to be directly in front of your audience during the biggest week for Cannabis in Vegas? Let's talk this week!