Tag Archives: new york

The New York and New Jersey Cannabis Connection

By Pam Chmiel
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Market Maturity Brings Pricing Pressure

New Jersey’s cannabis market is showing signs of maturity, according to a presentation by Headset CEO Cy Scott at the recent Ignite NJ event, saying the overall revenue hit the billion-dollar mark in 2025 and is growing nominally.

Similar to other markets in the growth cycle, while more customers are visiting dispensaries and transactions are slightly increasing, many individual retailers are seeing declining sales. Scott said this disconnect reflects intensifying price pressure, as shoppers spend less per visit amid growing competition and discounting.

Other factors contributing to the squeeze include retail saturation. Because municipalities can opt out of cannabis businesses, some regions have become retail deserts while others face dense clusters of competing dispensaries.

At the same time, performance varies widely across operators: some stores are significantly outperforming the market, while others are struggling, highlighting the growing importance of location, strategy, and execution in a maturing landscape.

Comparisons with neighboring New York also suggest continued downward pressure on pricing as the two markets evolve side by side.

Scott warned that price compression is beginning to accelerate in the region. While New Jersey has been able to hang onto stable pricing, that advantage is starting to erode, particularly as neighboring New York loosens discounting rules, which typically accelerate margin pressure. In this environment, he emphasized that traffic and customer retention become critical: with smaller baskets becoming the norm, operators must focus on bringing shoppers back more frequently and building loyalty.

“The pace of New York growth is so extreme, I think it’s going to impact New Jersey,” says Scott.

Jeremy Rivera, CEO of Terp Bros., a dispensary in Queens, NY, said the two markets have long operated as a shared regional economy. Everybody from New York City travels to New Jersey, and we are in our legacy games. A lot of us in New Jersey are legacy operators who were purchasing cannabis from New York City and vice versa. “So right now, as I see it, as an operator in New York, a lot of us are trying to take our small mom-and-pop businesses, see opportunities in New Jersey, and expand and scale into a state that’s very close,” he added.

 

A Bi-Directional Cannabis Ecosystem

Panelists at Ignite NJ repeatedly emphasized that New York and New Jersey function less like separate markets and more like a tightly connected regional ecosystem. “It’s bi-directional,” said David Vautrin, noting that operators are actively sharing SOPs, business models, and branding strategies across state lines as multi-state footprints in the Northeast take shape. Retailers and brands are also expanding across state lines due to proximity and overlapping customer bases. Rivera said scaling into New Jersey is often the easiest next step: “Our easiest ability to scale is with our neighbor,” he explained, pointing to the constant flow of consumers, data, and brand awareness moving between the two states.

Speakers said each market also offers distinct advantages that shape cross-border activity. New Jersey provides a more stable operating environment and stronger margins for many businesses, while New York’s licensing structure has fueled a surge of smaller, niche brands. As a result, shoppers frequently switch between states based on selection, proximity, and price—but panelists stressed that long-term success depends less on pricing arbitrage and more on building strong brands, educating customers, and fostering customer loyalty. As Vautrin put it, “If you sell on price, you lose on price.”

Speakers noted that consumer behavior routinely crosses state lines, driven primarily by convenience, product selection, and market differences. Rivera said retailers in New York are actively targeting nearby New Jersey shoppers, particularly in border regions, and are seeing strong digital traffic from across the Hudson. He added that while New Jersey may offer slightly lower prices in some cases, New York is attracting consumers with a wider range of small-batch and niche brands made possible by its micro-license structure. “Consumers are consumers—they want good weed,” Rivera said, explaining that many are willing to travel for unique products they can’t find locally. Panelists agreed that proximity remains a powerful factor, with Jason Starr noting that purchasing patterns often reflect simple geographic convenience as much as pricing or regulation.

 

Brands, Consumers, and the Future Northeast Corridor

Panelists said brands operating across New York and New Jersey will need to balance two distinct—but increasingly overlapping—consumer priorities: strong branding and authentic local presence. Jeff Freeman, co-founder of Mfused, noted that both markets are evolving toward a mix of high-volume commercial products that “keep the lights on” and smaller, community-driven craft offerings that build loyalty. Over time, he expects operators in both states to demand deeper local engagement, experiences, and collaborations, trends that will likely favor smaller-batch and hyper-localized brands.

At the same time, speakers emphasized that branding remains especially powerful in New York. “New York is heavy, heavy branding—your brand speaks for you,” said Keshawn Warner, co-founder, Dazed Cannabis, explaining that many retailers entering New Jersey are initially selecting partners based on brand recognition and proven performance across the Hudson. That dynamic is increasingly working both ways, as retailers also seek to elevate emerging local brands that can eventually expand regionally, creating what Warner described as a “circle” of cross-border brand growth.

Still, panelists cautioned that not every brand will survive as the markets mature. Vautrin noted that many of the hundreds of licensed brands in New York exist largely “in name only,” arguing that long-term success will depend on consistent execution, retailer support, and meaningful customer engagement—not just marketing. Looking ahead, speakers agreed the two markets will grow increasingly interdependent, with shared consumers, supply chains, and business infrastructure gradually making them function like a single Northeast cannabis corridor, even as each retains its own identity.

 

 

 

 

 

 

 

New York’s Cannabis Boom Is Real, But So Are the Risks

By Hirsh Jain
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The Most Exciting US Market 

No cannabis market in the United States has experienced a more compelling growth trajectory over the past two years than New York. After a halting and often-criticized launch, the state’s legal adult-use market has accelerated at an unmatched pace. 

In 2023, New York generated a paltry $100 million in legal cannabis sales, far short of its expected market potential of (at least) $5 billion. In 2024, that figure expanded to approximately $900 million, nearly a tenfold increase. By 2025, sales climbed again to almost $1.8 billion, nearly doubling year over year.

Looking ahead, cannabis sales have the potential to approach $2.5 billion in 2026, reinforcing New York’s position as the most exciting growth market in U.S. cannabis. But rapid growth at the market level does not guarantee success for individual operators. 

In fact, the very forces driving New York’s expansion are also introducing a set of structural risks that cannabis businesses must be prepared to navigate.

Growth Fueled by Store Proliferation, and the Consequences

New York’s sales surge has been driven primarily by the rapid expansion of retail access. At the start of 2024, the state had approximately 50 licensed dispensaries open for business, far too few to adequately serve a state with a population of 20 million people.

By the end of 2024, that number had grown to more than 275 dispensaries, more than a fivefold increase. That torrid growth continued the next year; by the end of 2025, there were more than 525 dispensaries open in New York. Projections suggest the state will have more than 750 licensed stores by the end of 2026.

This dramatic increase in storefronts has undeniably improved consumer access, grown the legal market, and helped displace illicit sales. But it has also begun to strain retail economics. According to the New York Office of Cannabis Management (OCM), annualized retail sales per store declined from roughly $5 million in Q3 and Q4 of 2024 to approximately $3.8 million in Q2 and Q3 of 2025. 

Whether this decline persists remains to be seen. And it may be that there are other factors besides additional dispensaries driving the reduction in per-store sales. However, the recent decline has been significant and suggests that competition on a per-store basis may be intensifying faster than demand is growing.

If so, the implication is clear: simply opening a dispensary is no longer sufficient for financial success in New York. Retailers now face a much more competitive environment in which weak business practices, poor inventory management, undifferentiated product selection, or subpar customer experience can quickly threaten viability. 

The next phase of New York’s market will reward operators who invest in brand, service quality, and customer loyalty, and punish those who assume market growth alone will carry them forward.

Supply-Chain Risk and the Danger of a Credit Bubble

Notably, retail pressure may not stay confined to the retail tier. As some New York dispensaries struggle to maintain margins and cash flow, downstream effects are already emerging. In some cases, retailers have fallen behind on payments to distributors and manufacturers, creating stress across the cannabis supply chain.

The industry has seen this movie before. In California, the collapse of distributor HERBL in 2023 sent shockwaves through the market, leaving cultivators and manufacturers with millions in unpaid receivables. Many of these businesses ended up folding along with HERBL.

Perhaps this is too alarmist. New York, one might argue, is not California. But the risk is analogous. Some distributors in New York are already reporting difficulties collecting from retailers, raising concerns about a potential credit bubble forming beneath the surface of the market’s headline growth.

As such, all participants (retailers, distributors, brands) need to exercise caution in choosing partners, setting payment terms, and managing credit exposure. Growth without discipline can quickly become destabilizing, especially in a young market where balance sheets are still fragile. 

At a minimum, New York operators should monitor the OCM delinquency list, also known as the “C.O.D.” (cash on delivery) list, to identify businesses that have failed to pay suppliers on time and help ensure they do not become entangled with business partners that are not creditworthy.

Discounting Comes With Rules

In November 2025, New York’s Cannabis Control Board (CCB) approved updated marketing rules that allow dispensaries, for the first time, to offer traditional retail promotions, including discounts, coupons, loyalty programs, reward points, bundled pricing, and temporary sales. As they face increased competition, New York retailers may attempt to remain competitive through this newly allowed practice of discounting. 

But discounting in New York is far from a free-for-all, and operators who misunderstand the rules risk costly compliance violations. For instance, cannabis products may not be sold below their “market value”, defined as the minimum retail price, set at 1.5 times the wholesale price paid by the retailer for the discounted product. 

In addition, when a product is discounted, the retail excise tax must still be calculated on the pre-discounted price. If a $10 item is discounted to, say, $8, the excise tax is still applicable to the pre-discounted price of $10.

This requirement means retailers must ensure their POS systems are properly configured to handle discounted pricing without underpaying taxes. This is a nontrivial operational challenge for businesses already stretched thin.

The Illicit Market Still Looms Large

Even as the legal market grows in New York, the continued presence of unlicensed cannabis retailers remains a major threat to legal operators. Illicit stores continue to siphon demand, depress legal prices, and undermine the regulated market’s ability to fully realize its potential. 

By the OCM’s own admission, enforcement against illicit cannabis operators stalled in 2025 – with just 2,017 “enforcement actions” undertaken in 2025, compared to 5,215 such actions undertaken in 2024. 

The OCM has cited the completion of a well-funded 2024 multi-agency enforcement task force as a key reason for the dip in enforcement in 2025. This lack of enforcement against unlicensed activity helps explain much of the 25% decline in annualized retail sales per store – from $5 million to $3.8 million – that occurred in New York in 2025.

Given this concerning reality, legal operators must immediately press policymakers, particularly Governor Kathy Hochul and New York City Mayor Zohran Mamdani, to enforce existing laws against illegal cannabis sales. Such a commitment was glaringly absent from Governor Hochul’s “State of The State” address on January 13th, where other cannabis priorities were mentioned but New York’s growing illicit cannabis market was not.

And the case for enforcement should not be framed solely as an industry concern. Under the Marijuana Regulation and Taxation Act (MRTA), passed with much fanfare in March 2021, legal cannabis tax revenue is earmarked for non-profits, community organizations, and social programs. And so, any lapse in enforcement that politicians enable directly jeopardizes those commitments.

Legal cannabis businesses should be proactive in communicating this message, in partnership with the local non-profits and social organizations that depend on cannabis tax revenue. Working together, these parties should make clear that enforcement against illegal activity is essential to delivering on the social justice goals that political leaders like Governor Hochul and Mayor Mamdani so frequently and poetically invoke in their discussion of cannabis policy on the campaign trail.

And they should make clear that rhetoric alone is not enough from politicians. They must insist, vocally, that sustained enforcement is the only way to protect the legal cannabis supply chain and the long-promised public benefits tied to it.

METRC, Product Inversion, and the Integrity of the Supply Chain

Another looming challenge is the continued risk of product inversion, cannabis from outside New York entering the legal supply chain. This threatens compliant operators, particularly in-state brands that are already operating with limited capital and thin margins.

The ongoing implementation of METRC, currently being challenged by a recently filed lawsuit, is essential to protecting the integrity of New York’s market. But it must be handled carefully. 

Going forward, the state needs to provide operators, especially smaller ones, with adequate guidance, training, and technical support to comply with the METRC system. A chaotic or poorly supported rollout could disrupt the supply chain and inflict irreparable harm on businesses that are attempting to follow the rules.

At the same time, indefinite delays in METRC implementation would prove problematic. Without a fully operational track-and-trace system, bad actors will be able to continue to invert illegal product and legal operators would be disproportionately harmed. New York must thread the needle: implementing METRC effectively, without perpetual delay, while ensuring it does not become another unintended obstacle to legal commerce.

In addition, S.8951, a bill recently introduced by Senator Jeremy Cooney, can also help keep illicit cannabis out of New York’s regulated market. As the Empire State Green Standard Alliance, which advocates for New York cannabis consumers, has noted, the bill clearly defines cannabis inversion, makes it explicitly illegal, and backs enforcement with real consequences, including major financial penalties, license revocation, lab accountability, personal liability for responsible executives, and strong whistleblower protections.

Taken together, these measures, if successfully implemented, can help address the inversion that has tainted New York’s legal cannabis market.

A Market Worth Betting On, With Eyes Wide Open

The growth in New York’s cannabis market over the past two years has been extraordinary, and the runway ahead remains long. But this is no longer a market where every operator will rise with the tide. The next phase will separate disciplined, well-capitalized, customer-focused businesses from those unprepared for competition, compliance, and financial pressure.

For operators willing to navigate these challenges thoughtfully, New York remains one of the most important cannabis opportunities in America. For those who mistake growth for inevitability, it may prove far less forgiving.

The Fight Against New York’s METRC Monopoly Heats Up

By Jason Ambrosino
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There is a growing fear among New York cannabis operators that the lawsuit challenging Metrc’s Retail ID program will “kill track and trace” and return the state to the chaos of inversion and inventory failures experienced last year.

That fear is understandable. It is also wrong.

Retail ID is not track-and-trace. Retail ID is a financing mechanism, and understanding how we arrived at this makes that clear.

How We Got Here

New York did not design its cannabis compliance system around Metrc.

The original seed-to-sale contract was awarded to BioTrack, whose system—like every other mature cannabis jurisdiction—tracked cannabis at the lot and batch level, not the individual retail unit. BioTrack’s New York implementation was fully digital and did not rely on physical RFID-based identifiers.

Under that contract, BioTrack was permitted to charge $0.10 per digital identifier, explicitly tied to:

  • lots,
  • batches,
  • and packages.

That $0.10 was understood to be a cost-recovery fee, intended to help maintain servers and software—not a profit center and not a tax on every gram sold. BioTrack bid and won the contract on that basis.

Then BioTrack exited the market, and Metrc acquired the New York contract.

This is the inflection point that matters.

 

Metrc’s Problem Was Never Safety — It Was Contract Math

Metrc was and is a batch-based company.

In 2024, Metrc announced a new product, Retail ID, a unit-level serialization layer that immediately faced resistance nationwide and has not been successfully rolled out at scale anywhere. New York is the first—and only—state where Retail ID has been made mandatory. Functionally, New York is the test market.

When Metrc stepped into the New York contract, it inherited a system with three immovable constraints:

  • The digital ID fee was capped at $0.10,
  • Physical tag markups were restricted,
  • and the state did not fund ongoing system operations.

At the same time, Metrc introduced physical RFID tagging to a system that had none before. This created a new vendor choke point that did not exist under BioTrack and introduced significant operational and logistical burdens for license holders.

Critically, Metrc could not charge its usual rate for physical RFID tags. The $0.10 fee likely covers little more than manufacturing cost—if that—while licensees pay shipping and handling. The limited contract funding tied to the original bid was nowhere near sufficient to operate a physical-tag-based system at New York’s scale.

The contract, as written and priced, is not economically viable.

Retail ID was the escape hatch.

By pushing a reinterpretation of New York’s pre-established regulatory definitions—specifically expanding “lot” and “batch” to include individual retail units—Metrc could claim it was merely providing the same digital identifier BioTrack once provided, while “giving away” the physical RFID tag. In reality, this reinterpretation transformed the $0.10 digital ID from a marginal cost-recovery fee into the primary revenue driver of the entire contract, multiplied by hundreds of thousands or millions of units.

Retail ID did not emerge from a safety study. It did not follow a recall failure. It was not demanded by law enforcement.

It emerged because the contract could not otherwise be made to work.

 

Track-and-Trace Worked Before Retail ID — and It Still Can

This is the point most operators need to hear clearly:

Track-and-trace does not depend on Retail ID.

Track-and-trace has always relied on:

  • batch integrity,
  • package custody,
  • transfer manifests,
  • physical segregation,
  • and audits.

That is how recalls work in every other state. That is how they worked in New York before Retail ID. That is how they will work if Retail ID is removed.

The inversion and inventory failures New York experienced six months ago were caused by:

  • system transition instability,
  • naming and syntax enforcement errors,
  • and vendor rollout failures.

Retail ID did not prevent those failures. It arrived after them.

 

Retail ID Does Not Improve Recall — It Breaks It

Recalls are population-based.

You recall a batch because it shares:

  • inputs,
  • time,
  • conditions,
  • or contamination risk.

Retail ID atomizes that population into millions of individual records that must later be reassembled during a recall.

That is not precision. That is friction.

If Retail ID were removed tomorrow, New York would still be able to:

  • identify affected batches,
  • identify where they were shipped,
  • identify which dispensaries sold them,
  • and execute recalls faster, not slower.

Retail ID adds no recall capability beyond what batch-level tracking already provides.

 

The Real Cost Is Not $0.10 — It Is Labor

Even if New York paid every penny of Metrc’s fees tomorrow, Retail ID would still be devastating.

Because the real cost is human labor.

Retail ID:

  • multiplies scan events,
  • multiplies error surfaces,
  • multiplies reconciliation work,
  • multiplies training burden,
  • and multiplies audit exposure.

This system inherently favors:

  • large, automated operators,
  • conveyor lines,
  • machine vision,
  • and robotics.

It punishes small businesses, craft producers, and labor-driven operations—the very people New York legalization was supposed to protect.

 

New York is effectively operating as Metrc’s live pilot environment for Retail ID.

Retail ID was announced nationally in 2024. It encountered immediate resistance and has not been successfully deployed at scale elsewhere. In New York, it was made mandatory.

That reality explains:

  • inconsistent guidance,
  • missing or incomplete SOPs,
  • shifting interpretations,
  • and trial-and-error compliance with real inventory at stake.

In most industries, pilot programs are:

  • voluntary,
  • limited in scope,
  • and subsidized by the vendor.

Here, license holders are paying—in money, labor, and risk—to validate a system still being operationally proven.

That is not implementation. That is field testing.

License Holders Are Paying to Generate the Data That Powers the System

Retail ID also fundamentally changes who bears the cost of regulatory infrastructure.

Under this model, license holders:

  • pay per identifier,
  • absorb the labor of scanning and reconciliation,
  • and generate the data that gives the system its value.

That data:

  • trains workflows,
  • validates assumptions,
  • improves vendor tooling,
  • and enables future monetization.

In effect, New York licensees are:

  • financing the system,
  • operating it,
  • debugging it,
  • and supplying its data exhaust—

all while having no ownership stake, no pricing power, and no ability to opt out.

This is not a public utility model. It is private infrastructure built on compulsory participation.

 

Why the Lawsuit Matters

This lawsuit does not threaten public safety. It does not threaten compliance. And it does not threaten track-and-trace.

It challenges a system that forces license holders—especially small businesses—to subsidize a private vendor’s economic shortfall through:

  • per-unit fees,
  • uncompensated labor,
  • and coerced participation.

If Metrc cannot operate under the contract that was bid and awarded, the solution is not to quietly redefine compliance.

The solution is for New York State to fund its own regulatory infrastructure transparently, as other states do.

But even that is not enough, because even a free Retail ID system would still destroy small operators through labor.

 

The Choice in Front of Us

New York has two options:

Keep Retail ID

  • Accelerate consolidation
  • Crush small operators
  • Expand compliance labor
  • Centralize data in a private vendor

Remove Retail ID

  • Preserve track-and-trace
  • Restore batch-based recall
  • Reduce labor burden
  • Protect small businesses

There is no third option that works.

 

Final Thought

Retail ID is not about safety. It is not about recalls. It is not about diversion.

It is about who pays—and how quietly.

If you care about:

  • workable compliance
  • real recallability
  • small and mid-sized operators
  • and a sustainable legal market

This lawsuit deserves your support.

To learn more, ask questions, or get involved, email:  nystrackandtrace@gmail.com

Fear thrives in confusion. This lawsuit exists to replace confusion with facts. More than 20 license holders have already committed to the suit. What are you waiting for?

 

Listen to more of Jason’s insights on the New York market in his interview with the Innovating Cannabis Podcast.

 

Can NY’s Legal Stores Compete with an Eight-Billion-Dollar Illicit Market?

By Pam Chmiel
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The recent Business of Cannabis Summit in New York City brought together industry professionals at the trendy Wythe Hotel in Williamsburg, Brooklyn, for a day focused on tackling the cannabis industry’s toughest challenges: price compression, retail survival, and the slow but steady shift from legacy to legal markets. The conversations offered a candid look at what it takes to survive and thrive as New York’s regulated cannabis industry matures. Many speakers agreed that while consumer demand is there, the framework that supports retailers is still developing, creating a volatile environment.

Joanne Wilson, owner and CEO of Gotham Dispensaries, offered a candid take on the current retail climate, warning that now is not the time to buy when asked about future expansion plans. “The market’s going to fall,” she said, predicting that many New York dispensary owners, especially small operators who invested personal and family funds, will face financial hardship as taxes and operating costs outpace returns. “It’s really… the whole thing is just a shambles,” Wilson added. Many panelists throughout the day were blunt about their dissatisfaction with the Office of Cannabis Management’s rollout of the New York market. Several attendees said they remain hopeful, but stressed the need for more consistent enforcement and clearer rules of engagement for retailers and brands.

David Vautrin, CEO of Fluent, echoed her caution, advising new entrants to start small. “Go for a smaller space,” he said. “A lot of folks went big in the beginning, and the overhead is enormous. Your costs are only going up while your margins are going down. The tax situation is grim.” With sales volume softening and price compression tightening profits, Vautrin said retailers must operate lean and avoid getting “too far over your skis.”

Vautrin points to being brand-centric. “Because we’re restricted to three adult-use stores, our biggest opportunity has really been in wholesale,” he said. “Our wholesale business is growing very rapidly, and we’re servicing a few hundred customers already.”

From a retail perspective, Vautrin said success stresses the importance of having the right SKU selection to build sticky customer relationships. There is a dizzying number of strains available. “Retailers need to have a great menu, a good variety, and a very well-educated team in order to sell these products and help move people up the value chain,” he said. His team partners with SeedTalent to train budtenders so they can serve as informed guides for consumers, ideally emphasizing terpene profiles and product effects, not just high THC numbers.

 

Has the Market Reached Its Limit?

“I think we’re there,” said Wilson. “And what’s equilibrium anyway? In ten years, maybe, but five years from now you’ll see a lot of large brands—maybe Gotham will be one of them.” She went on to explain her vision for a balanced ecosystem similar to other mature retail sectors. “There will always be large department-store-style dispensaries, but you’ll also have smaller neighborhood shops, like the local wine or nail salons, where you know the owner and just need something quick. That’s where we’ll end up in terms of balance.”

Wilson said the illicit market remains a major issue. “Every cop in New York City knows where these underground places are, and they have to be stopped, because that’s business they’re taking away from us,” she said. “If you’re going to grow a business, then give us the tools to grow a business. If they did this in the tech industry, you wouldn’t have the big tech companies you have today. They would have all walked away.”

Vautrin countered that true equilibrium is still a long way off. “We’re far from that stage,” he said. “We haven’t even captured a material chunk of the illicit market yet. In the long run, it’s going to be a branding game—brands that can build authentic relationships with customers will end up winning.” He pointed out that “gummy consumers tend to be the most loyal because they want to repeat that experience, while flower consumers tend to be the least loyal because of the variability,” suggesting that future growth will depend on how brands educate and build brand awareness.

 

Bridging Legacy and Legal Markets

Vladamir Batista, co-owner of Happy Munkey dispensaries, offered a more optimistic take, praising the OCM for creating “bridges instead of moats” that allow legacy operators like himself to enter the legal market. “New York has created a program where somebody who was in the illicit market can create a brand, open their own dispensary, and come to the legal market,” Batista said. “I’ve already seen that happening with people I know, and it’s going to continue.”

New York’s legal market has generated around $2 billion in revenue so far this year, and many at the summit predicted the illicit market could be $4 billion. Batista thinks it’s far higher than official estimates and is worth $8 to $10 billion. “New York City is the highest-consuming cannabis city in the world,” he said. “I keep my ear to the ground, the legacy market is definitely shrinking—it’s not as conducive as it once was because price compression in the legal market also drives down prices in the illicit market.”

He believes that as more legacy creativity and customer loyalty migrate to the regulated space, the industry will strengthen rapidly. “As more of that creativity crosses over to the legal market, more consumer emails and databases will get converted to the legal market. It’s going to get really robust, really fast,” Batista said.

Despite acknowledging challenges, he credited the state for giving social equity entrepreneurs a chance to participate. “Without programs like this, you’d lose the battle against the legacy market every time,” he said. “At the end of the day, they’ve been around for 80 years. You’re not going to overtake them—you can only embrace them and help them cross over.”

Inside New York’s Cannabis Rollout: What’s Working, What’s Not

By Pam Chmiel
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A panel discussion at the recent Business of Cannabis event in NYC analyzed the serious issues still facing the industry rollout in New York. What has been touted as a social equity-first initiative has been riddled with significant challenges and lawsuits.

To date, the Office of Cannabis Management has awarded 56% of licenses to those who paid for the war on drugs. While this is the most any state has done to be fair, the road to success is still a long way off.

Panelist Ethan Nadelmann, Founder of the Drug Policy Alliance, called New York the epicenter of racial inequity, where young men of color were overwhelmingly arrested on marijuana charges. Even though it has been a rocky rollout, and New York was a laughing stock for a couple of years, he praised the accomplishment so far and reminded everyone that it wasn’t too long ago that the notion that people who have a marijuana conviction should even be allowed to get licensed was inconceivable. “So the kind of 180 on that, where people who actually have a conviction are in the head of the line, is a remarkable breakthrough development,” he said.

Nadelmann posed the questions: What will all of this look like 5 or 10 years from now? What percent will still be equity licenses? To what extent are just a small number of people benefiting from this equity thing? Will we see the continuing equity? Will it be meaningful? Were there better ways that equity might have been done? Should the OCM be given a time limit to accomplish its goals, similar to other industries?

 

The True Party of Interest Debate

The conversation then turned to one of the biggest sticking points in the state’s rollout — the True Party of Interest (TPI) rules, which determine who can invest and own across different parts of the supply chain.

Attorney David Feldman explained that while the rules were originally designed to prevent “Big Cannabis” from dominating the market, they’re now creating unintended barriers for small operators. “They’re actually hurting small businesses,” he said, noting that restrictions prevent multi-state operators and out-of-state investors from putting capital into New York dispensaries if they own cultivation or processing assets elsewhere. “Small businesses need access to experienced investors and operators to survive, and right now, they can’t raise that capital.”

Simone Washington, Head of Equity at the Office of Cannabis Management, defended the policy’s intent, emphasizing that the agency’s Trade Practices Bureau was established to monitor ownership and ensure the market remains rooted in equity. “We hear the concerns,” she said, “but we must protect the spirit of the MRTA and make sure this market primarily benefits people harmed by past drug laws.”

Nadelmann added that other states have found a more balanced approach. In Connecticut, for example, larger operators can hold minority stakes in equity businesses — a model he called a “net positive” that brings both capital and expertise. He also cautioned that the industry must prepare for broader shifts ahead. “If federal legalization comes — and it might — many of these restrictions could vanish overnight. We need to be ready for what a national market could mean.”

 

A Call for Unity

If the TPI debate highlighted how regulatory complexity is stifling opportunity, the next topic revealed an equally daunting challenge: the lack of unity across the industry itself. Despite sharing common goals, operators, activists, and policymakers often find themselves working at odds with one another — sometimes in court.

Moderator Sam Reisman noted that despite common ground under the pro-legalization umbrella, competing interests have fragmented the movement. Advocacy groups, equity operators, and businesses have pursued separate agendas, occasionally securing injunctions that slowed the entire rollout.

Ethan Nadelmann acknowledged feeling “deeply conflicted” as both a reform advocate and a board member of a multi-state operator, but emphasized that industry and activism have more in common than they think. “We all want intelligent regulation,” he said. “Bad regulation helps no one.” He praised collaborations like the Last Prisoner Project, which unites both sides to address lingering injustices from the War on Drugs.

Simone Washington called for more open communication, noting that “people are very siloed” and rarely come together to identify shared objectives.

Attorney David Feldman agreed, pointing out that the industry’s fragmented advocacy sends mixed signals to lawmakers. “What we need is a single, strong trade organization that represents all sides under one coherent vision,” he said.

 

The Double-Edged Sword of Federal Rescheduling

As talk of federal rescheduling continues to swirl, panelists debated what moving cannabis from Schedule I to Schedule III could mean for New York’s developing market. Moderator Sam Reisman noted that while the proposal has stalled, its potential ripple effects could be profound.

Attorney David Feldman outlined three major outcomes. First, eliminating IRS code 280E would allow cannabis operators to deduct ordinary business expenses for the first time — a “game changer” that could lower effective tax rates from as high as 80% to something sustainable. Second, rescheduling would open the door to expanded research, long hindered under Schedule I restrictions. And third, Feldman said, it could enable the FDA to establish a federally recognized medical cannabis framework without new legislation. That, in turn, could pave the way for interstate commerce, trademarks, and institutional investment.

But not everyone was optimistic. Simone Washington expressed concern that rescheduling could jeopardize New York’s equity commitments. “This administration has shown it’s anti-equity,” she said. “If the federal government takes control, the businesses will swallow the market, and the equity operators will be pushed out.”

Ethan Nadelmann echoed her caution, adding that full federal legalization — depending on how it unfolds — could also accelerate consolidation. “When you open the door to interstate commerce, it’s not just the MSOs,” he warned. “It’s Big Alcohol, Big Tobacco, and Big Consumer Goods that come rushing in. That could wipe out the small operators entirely.”

 

Fixing the Fallout from Proximity Rules

Among the most contentious issues now facing New York’s cannabis rollout is the recent reinterpretation of the state’s proximity rules, which prohibit dispensaries from operating too close to schools and places of worship. The abrupt regulatory change has left several operators — who had already secured leases and invested heavily in buildouts — suddenly out of compliance, sparking calls for legislative amendments to the MRTA.

Simone Washington acknowledged the strain the new guidance has created. “We require people to have locations before they can even apply for a license, and that’s causing a lot of friction,” she said. With downstate real estate scarce and landlords taking advantage of operators desperate for compliant spaces, Washington said the Office of Cannabis Management is exploring ways to introduce lease protections and other structural reforms to prevent further exploitation. “It’s not necessarily about changing the MRTA itself,” she added, “but it does mean looking at solutions from a legislative standpoint.”

Attorney David Feldman called for more sweeping reforms. “The proximity rules need to be relaxed so more people can actually participate,” he said, also urging limits on local zoning powers that have allowed some municipalities, particularly on Long Island, to obstruct the state’s authority. Feldman argued that New York should rethink restrictions on ownership caps as well. “If someone builds one successful dispensary, why can’t they have four or five? No one tells Starbucks they can only open three locations in New York City.”

Ethan Nadelmann took a broader view, arguing that New York needs to learn from other states rather than repeating their mistakes. “I’d love to see New York take the lead in bringing together the most thoughtful stakeholders from both the industry and regulatory sides to really assess what’s worked and what hasn’t around the country,” he said. He also warned that regulators must be proactive in addressing the growing overlap between the hemp and cannabis sectors. “This hemp thing is a massive knuckleball coming into the industry,” he said. “One way or another, the two are going to merge — whether through drinks, flower, or something else. New York should be ahead of the curve instead of just reacting.”

Drug Policy Alliance Founder Fires Up The Audience At The Business of Cannabis Event

By Pam Chmiel
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The highlight of the Business of Cannabis event, held at the Wythe Hotel in Williamsburg, a hip neighborhood in Brooklyn, New York, was the keynote speaker. Ethan Nadelmann, founder of the Drug Policy Alliance, has since retired from his position but continues to mentor and serve on the board of Green Thumb Industries. He kicked off the afternoon panels with a fiery address that had the audience cheering him on.

 

“I’m guessing the vast majority of you have no idea who I am. Simplest way to say it is, I’m your fucking daddy, and you don’t even know.”

 

The crowd erupted with laughter as Nadelmann launched into a passionate reflection on his three decades leading the fight to end marijuana prohibition. He reminded the room that before there was an industry, there was a movement built on outrage, principle, and justice.

He recounted how, in 1996, he helped lead the campaign that made California the first state to legalize medical marijuana, and later founded the Drug Policy Alliance to fight the broader drug war and reframe addiction as a health issue rather than a criminal one.

 

“I didn’t do this for the industry,” he said. “I did it because I was pissed off—pissed that people were being arrested, discriminated against, lied to, and locked up for smoking a plant.”

 

He explained that the legalization movement was not driven by corporate interests but by philanthropists and activists from across the political spectrum who believed Prohibition was unjust. “From 1996 to 2016,” he said, “the role of industry in funding reform was almost zero.”

Nadelmann reflected on how unimaginable today’s market once seemed. In the 1980s, only 23 percent of Americans supported legalization. Dispensaries were not even a concept when he began organizing. “We knew marijuana had legitimate medical value,” he said, “but we had no idea how incredibly diverse this could become.”

Turning to the present, he noted that “half the country is now legal,” citing Virginia’s recent progress and growing optimism in Florida and Pennsylvania. “I know most of you focus on New York and New Jersey,” he added, “but I’m a big-picture guy.”

He warned that unresolved federal issues could reshape the industry overnight, particularly the ongoing debate around intoxicating hemp products. “Do we know what’s going to happen with the Farm Bill and that loophole? Will the whole thing be turned upside down? And if they close the Farm Bill loophole and allow the hemp beverages, will they actually enforce it?”

Nadelmann questioned whether hemp and cannabis markets might inevitably merge, given that THC from hemp and cannabis is virtually indistinguishable. “In blind tests, people cannot tell the difference between cannabis products and the hemp THC stuff,” he said. “From a health perspective, when they’re properly regulated, there is no difference. Doesn’t it seem inevitable that the markets are just going to eventually merge?”

He also raised concerns about price compression, competition, and the potential for market consolidation. “Is New York going to become like Michigan? Are we going to see a race to the bottom in terms of price?” he asked, noting that while the illicit market may eventually decline in a well-regulated system, its persistence continues to complicate state programs.

Reflecting on broader economic trends, Nadelmann wondered whether national legalization would lead to massive consolidation or a revival of small operators. He compared cannabis to other industries that evolved over time. “When I moved back to New York 30 years ago, there were hundreds of small coffee shops until Starbucks came along and wiped them out. Now there are more single-owner coffee shops than there were before. The same thing happened with alcohol after Prohibition—large corporations took over, then decades later, we saw the rise of microbreweries and craft distilleries. So we don’t really know how this plays out.”

When asked if legalization was truly “locked in,” Nadelmann cautioned against complacency. “We don’t have to worry about rollback, right? I don’t know,” he said. “Support for legalization peaked two years ago. A couple of polls show Republican support dropping 10 to 14 points just in the last year and a half. Some organizations are already trying to reverse ballot initiatives in states like Massachusetts. If they succeed, that affects the national picture. What happens in New York or Massachusetts matters everywhere.”

He warned that despite the industry’s success, public perception remains fragile. “We know cannabis is a psychoactive substance. We all know people who use it too much or who shouldn’t be using it. We don’t want kids waking and baking. We got lucky that teenage use stayed constant after legalization, but if those numbers start to rise, never underestimate the ability of this country to do something really stupid when it comes to drugs.”

Drawing on history, he reminded the audience that the United States was the only nation to impose a constitutional amendment banning alcohol. “That’s how stupid we were,” he said. “This country can do stupid stuff over and over again, and it’s therefore incumbent upon people in this industry to be smart about how we proceed.”

Still, he offered reasons for optimism, citing growing evidence that cannabis may substitute for opioids in pain management and that cannabis beverages appear to be replacing alcohol for some consumers, which he called a net public health benefit.

 

But he urged balance and responsibility. “We know more people are using cannabis daily. For many, that’s fine, but for some, it’s not. You talk to psychiatrists, and they’ll tell you they’re seeing more young people with cannabis use disorder. You can’t ignore that,” he said.

 

As he closed, Nadelmann widened his focus to the broader “psychedelic renaissance,” calling it one of the most exciting social and scientific movements of the past few decades. He drew parallels between today’s psychedelic reform efforts and the early days of marijuana legalization, with states like Colorado and Oregon already leading through therapeutic programs. He predicted a multi-billion-dollar medicinal psychedelics industry on the horizon. He suggested that pharmaceutical companies—once obstacles to cannabis reform—could now play a positive role in legitimizing plant-based medicines.

 

“They may, in fact, be playing a helpful role,” he said, “because as they figure out which components of the cannabis plant are truly medicinal, they’ll help to legitimize cannabis as something positive.”

 

He then challenged the audience to think even bigger: “Are we going to become a society that allows people to use the substances they want to alter their state of consciousness without being punished, and regulate it in a smart way? Or are we going to find ourselves rolling back suddenly?”

Nadelmann likened the cannabis movement to the fight for marriage equality—two social revolutions that seemed impossible a generation ago but are now broadly accepted.

“These things were inconceivable 40 years ago, and they now seem locked in,” he said. “But they’re not totally locked in. We have to pay attention.”

 

An MSO’s Perspective on the New York Market

By Pam Chmiel
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At the recent Business of Cannabis event in New York, Robert Sciarrone, Chief Revenue Officer at Curaleaf, shared an MSO’s insider view on why he believes New York is poised to become the best cannabis market on the planet.

Sciarrone began by reflecting on his early years as a cannabis-focused venture capitalist. Through his firm, Measure 8 Partners, he has deployed more than $550 million across 20-plus cannabis companies globally, including dispensaries, delivery services, and technology platforms, with investments spanning California, Arizona, Nevada, Canada, and Europe.

After joining Curaleaf two and a half years ago, recruited by Executive Chairman Boris Jordan, Sciarrone transitioned from investor to operator, now overseeing revenue across 18 states in both retail and wholesale. He admitted the operational grind has given him a new respect for the business side of cannabis, but emphasized that passion for the plant and its customers remains the heart of the industry.

Looking back on the “freewheeling” investment era of 2019, when $100 million deals were being done daily, Sciarrone contrasted that speculative period with today’s market. “California’s day is over,” he declared, suggesting that the West Coast market’s oversaturation and regulatory struggles have created space for New York to lead. With its cultural influence, economic strength, and growing consumer sophistication, Sciarrone believes New York can set the standard for how cannabis culture and business shape the global industry.

As a born-and-raised New Yorker, Sciarrone expressed deep pride in being part of that evolution: “It’s my passion to be here and watch this market unfold.”

 

Curaleaf’s Early Bet on New York

Sciarrone highlighted Curaleaf’s early commitment to the New York medical market. The company was among the first Registered Organizations (ROs) to invest heavily in infrastructure, opening four medical dispensaries and building a state-of-the-art cultivation facility in Ravena, just south of Albany, in 2018. “It’s one of the nicest cultivation centers I’ve seen,“ he said, noting that Curaleaf “believed in New York early.”

However, as the state prepared to transition to adult-use, Sciarrone recalled a divide that formed between corporate medical operators and new entrants under the CAURD program. “The market was divided, and it never should have been,“ he said. Fragmentation, he argued, weakened the industry’s collective voice at a time when it needed to work together to navigate taxes, regulations, and constant policy changes.

Today, Sciarrone sees signs of progress. “The market is starting to slowly come together,“ he said, adding that Curaleaf’s approach in New York is focused on wholesale partnerships with other retailers.

He also acknowledged that Curaleaf had to earn back credibility on product quality. “When I came in, Curaleaf didn’t have a lot. People probably remember that our product quality was lacking,“ he admitted. Like many MSOs in the early days, Curaleaf had relied on scale and storefronts to drive sales. But as the market matured, so did the company’s mindset. “We’ve had to think critically about our brands, about what we’re putting in the jar—the genetics, the nose, the story,“ Sciarrone said.

 

“We’ve had a complete 180 in Curaleaf’s journey, and it started with our efforts in New York.”

 

As operators unite around shared goals of keeping stores open, expanding access, and stabilizing supply, Sciarrone said New York’s cannabis industry is beginning to find its footing. He believes collaboration between the different groups has made it one of the fastest-growing and healthiest markets in the country.

 

“If we stay the path,” he concluded, “New York will be the biggest cannabis economy in the United States.”

 

The Potential of New York Brands

Sciarrone also shared his perspective on the potential of New York cannabis brands. He noted that while West Coast brands were once expected to dominate, consumer preferences differ by region. New Yorkers are proud of their local products, and homegrown brands have a strong story that resonates with consumers, budtenders, and store owners.

 

“California brands have cachet, but we have our own stories to tell in New York,“ he said.

 

While the consistency and quality of California brands give them an advantage in some markets, Sciarrone believes that as New York cultivators and operators collaborate, local brands will thrive. He highlighted that formulated products, such as edibles and beverages, may be one area where California brands see success, but in flower, New York brands have the edge.

 

“The more that cultivators open up their doors for brand partnerships, the more opportunity there is for some really great brands to merge, and we will see true New York brands make a run at it,“ he said.

 

Track and Trace, the Illicit Market, and the Path Forward

Sciarrone also addressed the upcoming New York track-and-trace system, expected to be implemented in early 2026. He sees it as a crucial step for a fair and regulated market. “Anybody operating in New York or any regulated market should be operating with a license,“ he said. Without track and trace, unlicensed operators have easy access to the market, avoiding taxes and regulations, which undermines legitimate businesses.

The system, he explained, will provide relief to licensed operators, including microbusinesses, microprocessors, and outdoor farms, by helping them move products more efficiently and transparently. It will also give consumers confidence in the origin and safety of the cannabis they purchase. While he acknowledges that some will try to work around the system, he emphasized that track and trace is a necessary step toward maintaining a healthy, fair, and thriving market.

 

“Listen, it’s a step in the right direction,“ he said. “It will help us keep a really great economy going and prevent giving people a free swing in the market.”

 

Price Compression and Market Equilibrium

On the topic of pricing, Sciarrone noted that predicting supply and demand in New York is challenging. The market is growing rapidly, but price compression is a reality in a sector where cannabis prices are not regulated. “Price is going to come down,“ he said, and any market that expects stable high prices has never existed because supply, investment, and competition constantly influence it.

He emphasized the importance of building confidence among local operators. Micro and outdoor farms in New York are producing good-quality products. As the local supply base stabilizes without too much out-of-state competition, operators may feel more comfortable investing in cultivation and expanding capacity. “We’re hopeful that people will see it as investable,“ he said. Curaleaf itself continues to invest carefully, weighing expansion decisions against market uncertainty. Stabilization of supply, he believes, will ultimately support a healthier, long-term market.

The Hemp Equation

Sciarrone also addressed the emerging hemp space, where Curaleaf has begun experimenting with beverages and a small retail presence in Florida. While he does not oversee the hemp business directly, he emphasized its significance and complexity. The hemp market has reached $30 billion in value, growing faster than the regulated cannabis channel. It is widely available in convenience stores and major retailers, which means it is attracting new consumers who might otherwise enter the regulated market.

 

“The hemp channel is stealing our new customers,“ Sciarrone said.

 

Many consumers who are trying cannabis for the first time are turning to hemp beverages and edibles instead of licensed dispensaries. Large investments and strong lobbying by farmers have accelerated this growth, creating a reality that cannot simply be legislated away.

Sciarrone believes that the regulated and hemp industries will eventually converge, whether through national or state-level licensing. Curaleaf’s strategy is to understand the hemp market while protecting the regulated channel, where its distribution assets and customer relationships reside. “We will fight to make sure we protect the regulated channel,“ he said, noting that brand work and product development, particularly in beverages, are ongoing priorities to maintain market share.

The State Of New York’s Cannabis Industry 2025

By Pam Chmiel
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Jason Ambrosino, a disabled Army veteran and founder of Veterans Holdings, entered the New York market in 2019 under the state’s hemp program with the goal of cultivating and manufacturing cannabis. But despite holding a 5,000-square-foot indoor cultivation license, he decided not to build out his facility. The reason, he says, is simple: “The registered organizations (ROs) in New York State own the flower industry. They own it. You’re not going to break in.”

Ambrosino explained that the state’s vertically integrated ROs, many of which started as medical operators, dominate the adult-use flower market with massive 100,000-square-foot indoor canopies and the ability to negotiate favorable energy rates. “The number one driver of indoor flower price anywhere is electricity cost,” he said. “Where I am in New York State, it’s 23 cents a kilowatt hour. The ROs can negotiate directly for 7, 8, or 9 cents per kilowatt-hour because of their size. There will never be a day when I can operate in the market alongside them, because it costs me twice as much to grow as it does them.” He said that disparity makes small-scale cultivation unviable for most new entrants.

Ambrosino estimates that it could cost him roughly $600 per pound to grow cannabis, while the ROs can do it for about half that. “You don’t really think about it until you end up paying for a license, only to find out the utility prices are so high that you can’t make it work,” he said.

He believes the state’s adult-use rollout created an illusion of opportunity for small hemp farmers and microbusinesses. “They used the illusion of inclusion to gain public support,” he said. “They built protections that were meant to keep ROs out for three years to create a level playing field, but these protections were stripped away after enough lobbying dollars were spent.”

According to Ambrosino, large operators pressured lawmakers by withholding financial commitments to social equity programs until they received favorable terms. “They held them hostage,” he said. “They told lawmakers, ‘We’re not going to pay you any of that money until you give us a more favorable law.’ So, they changed it.”

The result, he says, is a market where ROs hold most of the canopy, while smaller cultivators face high costs, limited access, and few realistic paths to profitability. “Right now, microbusinesses are structured for failure,” Ambrosino said. “They’re trying to sell flower at $60 when dispensaries can get indoor-grown product from ROs for $30 or $35. You can’t compete with that.”

Mismatched Policy, Manipulated Data, and a Market Set to Run Dry

Ambrosino says the Office of Cannabis Management (OCM) has failed to recognize the growing imbalance between large registered organizations and small cultivators. “The data OCM puts out is very manipulated and questionable,” he said. “They conflict with what they report from one day to the next. One day, there’s not enough canopy, the next day, there’s too much. It’s all over the place. They’ll show you all the potential canopy of adult-use license holders, but the reality is 80% of them aren’t growing, or they’re only using part of their allotted space. Meanwhile, the ROs are operating at a massive scale.”

He believes this disconnect has led policymakers to think there’s an oversupply problem when in reality there’s a shortage of affordable biomass. “OCM looks at flower canopy, not biomass canopy,” Ambrosino said. “We don’t have enough biomass to produce distillate, and distillate is what sets the price for everything.”

Ambrosino, who sits on the board of the Association of New York Cannabis Processors, says the solution starts with expanding outdoor cultivation. “We’ve been lobbying the state to raise the outdoor cap from one acre to five,” he explained. “They keep saying there’s enough canopy, but that’s not true if you want a functioning processing and manufacturing sector.”

He also believes OCM steered small farmers in the wrong direction. “They convinced these guys to grow indoors when they had no capital to begin with,” he said. “Outdoor grows are cheaper, more sustainable, and can produce terpene-rich material that’s perfect for extraction. Giving up those outdoor licenses was the worst thing they could have done.”

Ambrosino sees the industry’s structural problems fueling a deeper issue: product inversion. “Inversion is like a cancer tumor,” he said. “Everyone — dispensaries, processors, cultivators — is supporting it. If OCM just cuts it out overnight, the market will bleed to death. We have to shrink the tumor first. The only way to do that is to expand cultivation enough that it doesn’t make sense to invert.”

Licensing Gridlock and Market Whiplash

Dispensary operators say New York’s market isn’t just constrained by bureaucracy, it’s tangled in its own rules. Jon Paul Pezzo, owner of NYC Bud dispensary, believes the state’s proximity restrictions have unintentionally frozen the licensing process. “You have a lot of people that are holding proximities because they’re in the December queue or they just have a proximity,” he explained. “Some may have abandoned their license or run out of money, but those spots are still locked up. That means someone with an actual license can’t move forward.” Pezzo said that while rolling out the market slowly may have helped at first, the process has caused problems on all sides.

Now that the agency is considering waiving its 1,000-foot proximity rule to allow more dispensaries to open, Pezzo worries it’s too soon for such sweeping changes. “The industry isn’t even five years old,” he said. “Let it play out before you start rewriting the rules. If we had known these laws would change this quickly, maybe we would have invested differently.”

He added that while OCM claims to solicit feedback from operators, the process feels one-sided. “I’ve been to many OCM meetings where everyone’s frustrated, and the regulators just sit there getting yelled at,” he said. “At some point, they just shut down. I don’t think they’re really listening to logic.”

The Data Gap: METRC, Testing, and a Lack of Standards

Ambrosino believes New York’s lack of standardized testing and tracking has left the industry vulnerable to chaos. “If you want a juicy nugget, I’ll tell you where to look,” he said. “It’s in the testing, and it’s in the labs. If you dig deep enough, you’ll find that all of our labs are invalid because they were supposed to be updated by Wadsworth Labs, the state police lab that never got the equipment. Because of that, every lab is operating under its own standard. There’s no standardization between labs, and nobody knows.”

That lack of consistency, he warns, could have far-reaching financial consequences. When potency-based taxes were imposed, each lab’s different results meant the state effectively collected taxes on unverified data. “Don’t be surprised if people start demanding money back for what they overpaid in potency taxes,” Ambrosino said.

A long-promised track-and-trace system could have helped prevent some of this disarray, but the rollout has been repeatedly delayed. After three years, the agency now says METRC will finally be implemented in January.

Jon Paul Pezzo says the delay has left retailers struggling with manual systems that are prone to human error. “In a perfect world, this should work like a supermarket—product comes in, product goes out, and it’s all scanned into one universal system,” he explained. “Instead, we’re manually entering everything, and that leads to mislabeled products and bad data. For something that’s a controlled substance, that’s unacceptable.”

He believes a fully integrated METRC system could finally bring order to the process. “You’d have cultivators logging shipments, dispensaries scanning them in, and all the details automatically syncing,” Pezzo said. “It would make everyone’s life easier and protect the business as a whole. I just don’t understand why it’s taken this long.”

The Hemp Loophole is Undermining New York’s Legal Market

“The entire industry is using the hemp loophole,” Ambrosino said, describing a troubling double standard: OCM forced him to remove hemp-derived products from his website even though the regulations permitted out-of-state sales for products under the .3% threshold, while companies like Sluggers continue to sell high-potency “THCA hemp” products directly to New Yorkers online.

“This stuff they’re calling hemp, it’s not hemp, it’s marijuana,” he said. “We have to be smarter. It’s deceptive, and it’s hurting the legal operators who are trying to play by the rules.”

Ambrosino says that without proper lab oversight and product tracking, hemp-derived cannabinoids like THCA are slipping through regulatory cracks, further undermining the licensed market.

Meet The Female Founder Behind the Alibi Brand

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Behind The Brands with Alibi Cannabis

 

Q&A

Tell us about your product(s). What do you make or sell, and what should people know about it?

“Our roots are in cultivation, so everything starts with high-quality flowers.  In Oregon, our flower has won multiple awards, and we bring that focus on excellence to every product we offer.  Our New York product line-up is carefully crafted to include infused prerolls, preroll variety packs, and vapes to match your mood.”  

Please introduce us to the people behind the brand. 

Alibi’s founder, Marianne, was diagnosed with breast cancer in 2015.  Her story is: Cannabis helped me with my cancer treatments. I chose surgery, chemotherapy, and radiation to fight HER2+ breast cancer. While still undergoing cancer treatment, I bought some land and began building our farm. We assembled a fabulous team and have been growing amazing indoor cannabis since 2017.  I’ve just finished taking 10 years of drugs to prevent a recurrence.  Taking pills every day has been a constant reminder of that journey.  That is finally finished, and I’m so grateful to have cannabis as part of my wellness routine.

What inspired the launch of your brand?

Oregon had just legalized adult-use cannabis when I was going through cancer treatment.  Using cannabis to help with chemotherapy, I wanted to join the movement so people have quality options.  Sharing the power of plant medicine feels like a calling.  Education is at the forefront.  We like to empower people to make informed decisions about what to put in their bodies.  Encouraging questions and sharing details is all part of normalizing conversations about cannabis.

What makes your brand stand out? 

Alibi is for the curious, the bold, and anyone who knows that a great high should feel as good as it looks. It’s about slowing down in a place that never does. It’s about quality you can taste, feel, and trust—where every preroll, every puff, is crafted to elevate your everyday. As a woman-owned brand, we’re proud to bring West Coast craft to East Coast energy—blending laid-back vibes with high standards. Whether you’re catching golden hour upstate or ducking into a Brooklyn speakeasy, hiking the Catskills or hanging on a city rooftop, Alibi is your go-to for turning the everyday into something more elevated—with style, substance, and just the right touch of the extraordinary.

What challenges have you faced as a cannabis brand or entrepreneur, and how did you overcome them?

Owning a business in the regulated cannabis industry is not for the faint of heart.  Compliance (especially in Oregon) is time-consuming and challenging.  Price compression and market saturation additionally create difficulties.  We have responded by focusing on quality while reducing costs.  Our cultivation team is efficient, enabling us to increase yields while reducing costs.  We also encourage an attitude of constant learning and improvement.  

Our brand imagery has also undergone an evolution over the years.  Alibi is a bit edgy, a little rebellious, and a lot of fun.  

What’s next for your company? Any new products, partnerships, or big goals on the horizon?

So many things on the horizon!  Expansion is always the goal, but for now, we are 100% focused on New York.  Being successful is not just launching and checking the box.  We invest heavily in connecting with the communities and supporting local events and retailers.   We have some amazing products in the pipeline for 2026!

 

New York Craft with MFNY

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We craft single-source cannabis – live resin and live rosin vapes and concentrates, infused pre-rolls, tinctures, and gummies – out of our state-of-the-art, CGMP-certified facility in the Hudson Valley, New York.

Meet MFNY‘s founders, Michael Kandhorov and Natalia Kaminskaya:

Tell us about your product(s). What do you make or sell, and what should people know about it?
We craft single-source cannabis – live resin and live rosin vapes and concentrates, infused pre-rolls, tinctures, and gummies – out of our state-of-the-art, CGMP-certified facility in the Hudson Valley, New York. Our “Fire In, Fire Out” philosophy is simple: if you start with the highest-quality material, you end up with the highest-quality products. But more than that, every MFNY product is designed to spark creativity, helping people unlock new ways of thinking, making, and connecting, in true New York style.

Please introduce us to the people behind the brand.
MFNY was co-founded by husband-and-wife team Michael Kandhorov and Natalia Kaminskaya, both first-generation Americans who embody grit, resilience, and the belief in the American Dream. Michael left a successful real estate development business, and Natalia left a thriving career in luxury real estate and high-end hospitality, to go “all in” on cannabis. Together with an experienced and diverse team, we’ve built MFNY into one of New York’s leading cannabis brands while raising our two kids, which we like to joke makes MFNY our third child.

 

What inspired the launch of your brand? Was there a defining moment or problem that pushed you to create it?

When the 2018 Farm Bill passed, we saw an opportunity to merge our love of the plant with our backgrounds in business, real estate, and hospitality. What started as Hemp Farms of New York evolved into Marijuana Farms New York (MFNY) when the state legalized adult-use cannabis in 2021. We believed, and still believe, that New York deserves its own homegrown, high-quality cannabis brand that represents the innovation, creativity, and diversity of the state and the people who call it home. With a farm and facility just an hour north of the city, we committed to a single-source model that could elevate New York’s cannabis culture and make all New Yorkers proud. Our mission: to be the cannabis brand of New York that sparks creativity and brings people together — Ever Upward™.

 

What makes your brand stand out? From product quality to brand story—what sets you apart in the industry?
We’re single-source. That means we grow, harvest, and process everything ourselves, giving us complete control over quality. We control the whole journey, so we can hold (literally) unequaled standards. Our Riverway™ mark is a promise of authenticity: if it says 100% live rosin or live resin, it is – no shortcuts, no dilution. We champion consumer education (ask to see the COA) and push design forward, sophisticated packaging, and inclusive color systems for easy shopability, and are designed with New York’s creative culture in mind. From limited-edition Bagelhole pre-roll drops to collaborations with NY creators, MFNY treats our packaging and partnerships as canvases to ignite culture.

 

Walk us through your process. Do you grow, source, or extract in a unique way?
It all begins with genetics. We carefully select cultivars best suited for their terpene profiles and the products we intend to produce. We harvest at peak ripeness, fresh-freeze flower for live products, and use meticulous preparation methods that preserve flavor and potency. Both our solventless and butane labs are designed for precision, from low-temp washrooms to optimized workflows. We recently launched our Riverway™ line of live rosin and live resin premium cannabis vapes and concentrates – extracts derived from fresh-frozen cannabis to preserve the plant’s natural cannabinoids and terpenes – to help consumers differentiate authentic live products from misleading alternatives on store shelves. Every step of our process, from washing and pressing to curing and whipping, has been refined through R&D so consumers experience the full spectrum of flavor, aroma, and effect.

 

 What challenges have you faced as a cannabis brand or entrepreneur, and how did you overcome them?
Everyone told us we were crazy for getting into cannabis. Then the pandemic hit, and the pressure to give up was intense. At one point, we had an offer to sell — and almost everyone around us said we should take it. But we trusted our intuition and stayed the course. Navigating New York’s complex regulatory environment hasn’t been easy either, but we leaned on resilience, creativity, and the support of our team and community. Today, being among the first operators to bring legal, regulated cannabis to New Yorkers makes every challenge worth it. Our advice: don’t start with a logo, start with a solid infrastructure (real estate, operations, SOPs) that will allow for creativity and quality scale.

 

What’s next for your company? Any new products, partnerships, or big goals on the horizon?
We just launched Riverway™ Live Rosin, our premium solventless line, with a statewide tour to educate consumers about what real live rosin is (and isn’t). We’re also expanding our creative collaborations, from limited-edition packaging and products to accessories and more with New York designers. Looking ahead, our goal is to continue setting the standard for cannabis in New York while helping build a sustainable, responsible industry that all New Yorkers can be proud of. We’re elevating cannabis while keeping it authentically New York.