Accelerate Cannabis held a regional conference in Philadelphia on legalization and the industry, featuring the NJ Cannabis Regulatory Commission (CRC) and other state regulators.
Table of Contents
Comparing Cannabis Markets in MD and NY
Longview Strategic consulting CEO Ellie Siegel was the MC of the conference, and a panel of state cannabis officials and an entrepreneur. She asked what Maryland’s adult-use cannabis legalization has been like versus New York’s.
Maryland Cannabis Administration Director Tabitha Robinson explained that she first worked in New York, which was very different.
“New York decided to lead with social equity. That led to certain challenges and litigation,” Robinson noted.
She said Maryland’s adult-use cannabis legalization and market implementation took 2 weeks due to strong support from the Governor, the legislature, and the agency.
“The executive support in Maryland had been unparalleled,” Robinson declared.
However, despite the problems, social equity progress in New York for minority and underground legacy to legal entrepreneurs is ten times better than in other states, according to her.
But Robinson made it clear Maryland did not value social equity as much as New York did.
“Sometimes what’s good for the new entrants isn’t good for the existing operators,” she later noted. “…There is enough space for every operator…”
NJ Cannabis Talk
Siegel asked CRC Acting Executive Director Chris Riggs about rolling applications versus a state cannabis license cap prominent in many other legal cannabis markets.
“Do you see it closing any time soon?” Siegel asked.
Riggs explained that town limits are a de facto state cap due to the great Home Rule law emphasizing town power in New Jersey.
“We can point the finger at 565 other people…,” he said.
Riggs’s comments seemed to reflect a demand by some operators for the CRC to impose a state cap.
“The market is still growing,” he argued.
Riggs said the numbers indicate the price of cannabis is falling in New Jersey as more is sold each week.
“Is there anything you wish operators knew about the CRC?” Siegel asked.
Riggs noted the need to follow a lot of rules. There can be no weed consumption on dispensary property, for example.
He said it doesn’t matter what he thinks about it versus the law that needs to be enforced. Riggs also acknowledged the difficulty of dealing with red tape.
“We’re here to help and grow the industry,” he argued.
No PA Weed Expert in Philly
Siegel noted that even though they were in Philadelphia, there was no state regulator available, even though they have a medical marijuana program.
Pennsylvania Senate Republicans have been holding up legal adult-use cannabis legalization for years. Legislation to allow state-run dispensaries this year didn’t satisfy many.
Legal New Jersey cannabis businesses are greatly benefiting due to Pennsylvania’s prohibition.
Regional Cannabis Industry Concerns
“The regulations being different is a huge industry challenge,” Siegel argued.
She said it makes it hard for companies that want to operate in many states easily.
Flower Agency Harrison Rosenblum explained that they help market both large MSOs and mom-and-pop businesses across the states.
Siegel asked him, as a multi-state agency owner, how that affects them.
“We want these new markets coming online to copy what’s good elsewhere,” Rosenblum said.
He noted marketing regulations are different. For example, New York doesn’t allow discounts to be promoted. But he didn’t think that rule is enforced well.
Rosenblum noted the need to showcase the merits of specific products to make many sales in a competitive environment.
(Heady NJ is a great place to advertise them!)
Navigating the Murky Waters of Legal DE Weed
Matrix NV CEO and Co-founder David Tuttleman noted he is a serial entrepreneur who moved into cannabis manufacturing in Nevada and has now done so in Delaware.
Tuttleman said he has made good progress in the Delaware adult-use cannabis market since it opened on August 1st.
“We get the support of the state… We get the support of the community,” he said.
“…I came into this to do good, and it’s going good,” Tuttleman argued.
Siegel was curious about strategies when the price goes down and competition intensifies.
Create a great product that gets in where consumers get them, Tuttleman argued. He explained the need for specific details of terpenes and cannabinoids for quality, full-spectrum cannabis products.
“Package it well. Don’t overspend. Manage the product as a consumer product. Not just as a stoner,” Tuttleman noted.
“It is not for the faint of heart. You have to have deep pockets,” he added. “…Sometimes you just can’t make it work out.”
Siegel said that happens.
Unfortunately, the underground legacy weed market remains far closer to the ideal of Main Street USA small business for many longtime consumers and entrepreneurs.
Unity in the Regional Cannabis Market
Siegel asked about unifying state cannabis regulators, to chuckles.
“We do have a Northeast regulators call,” Riggs noted. “…That’s one of the goals we all have.”
“The foundation that we’re all built on… is the issue,” Riggs noted. We’re trying to do the best we can…”
Siegel noted that local regulators talking is conducive to federal cannabis legalization.
Some in the industry told Heady NJ they think federal legalization could wipe out small businesses through regulations, or if large corporations utilize the benefits of no stigma.
So it is important to sustain the federal cannabis legalization movement for descheduling. Ideally, it would continue the small business and social equity protections in the existing regional cannabis markets.
