What’s next for the $4.2 billion New York cannabis market?

On March 31st, recreational cannabis use became legal on both sides of the Hudson River, following the signing of the Marijuana Regulation and Taxation Act by New York Governor Andrew Cuomo. The law, which many saw as a long time coming, made it immediately legal to smoke cannabis in public wherever smoking tobacco is legal, but retail sales might not begin until 2022. 

So now that's an almost $4.2 billion market (potentially larger than California) will soon be on the table, what comes next?

For starters, brands should know that it will take some time to flesh out regulations and infrastructure related to the sale and marketing of cannabis in the state. Fyllo’s regulatory team has recapped everything you need to know about New York’s legalization bill as of April 2021 here. 

To that end, Governor Cuomo announced the creation of The Office of Cannabis Management, which will provide critical preliminary information pending the creation of the Cannabis Control Board, both of which will provide vital information and legislative updates for the industry going forward. 

But this lame-duck transition period is not the time for brands to rest on their laurels and wait for updates as they come, but rather the chance for ambitious forward-thinking operators to spin up their messaging, loyalty platforms, regulatory databases, and more. 

The most important asset for any brand looking to dive into the New York cannabis market once it is fully operational is data. 

Fyllo, which has the largest collection of second-party data on cannabis and CBD audiences can help brands determine exactly who to target, and where, to maximize the return on every dollar of ad spend.

But even more important than knowing who to target, is knowing how to avoid becoming a target oneself. 

Details of exactly how the sale and marketing of cannabis will be handled in the state are still emerging, but it is important to note cannabis remains illegal at the federal level. This, alongside what will likely be a very fluid legislative process means that brands looking to enter New York should look to have every “i” dotted, and every “t” crossed. 

As such, brands, both incumbent and up-and-coming, should tread carefully in this newly opened and gainful market with the help of legislation trackers designed to keep brands from running afoul of a rapidly shifting judicial landscape. 

Once companies have compliance under control, the next step is go-to-market strategies. Many companies have created successful playbooks in states like Colorado and California. However, the East Coast consumer is demonstrably different, making insights critical to finding and delivering the right message to the consumer at the right time.   

Although recreational sales are not set to begin in New York for some months, the systems put in place today will give brands a winning edge tomorrow. 

Want to learn how Fyllo can help you to capitalize on and keep pace with New York state’s legalization? Send me a note or get in touch today.