The large corporate Multi-State Operator (MSO) Verano made a unique deal to open the Zen Leaf Mount Holly dispensary in Burlington County, their 4th in New Jersey.
There are already 3 locally owned dispensaries operating in the modestly sized town.
According to the corporation’s press release, “the Company’s new Mount Holly location will join all Zen Leaf locations in the Garden State in offering daily promotions including a standing 22% discount for Veterans, as well as discounted rates for seniors, college students, and more.”
They say they want to offer a discount of “30% off on select Avexia™, BITS™, Savvy™, Verano™, and (the) Essence™ items.”
The place was formerly a Burger King.
Limited Product Selection
Most of the products they sell are their brands. For example, their flower menu consists mostly of their own brands. The only others are Illicit by Illicit Gardens of Missouri, which took over Harmony and got a license, and Garden Greens, one of the largest local growers.
“We are thrilled to open Zen Leaf Mount Holly,” said Verano CEO George Archos in a press release. “Zen Leaf Mount Holly broadens our retail footprint in the growing New Jersey market.”
Zen Leaf Holly so far has had a quieter soft opening. They want to hold a Grand Opening on Black Friday next week.
As a Treatment Center (ATC), Zen Leaf had medical dispensaries in Elizabeth in Union County, Neptune in Monmouth County, and Lawrence Township in Mercer County. They converted to recreational adult-use cannabis sales, which was renewed at the NJ Cannabis Regulatory Commission’s (NJCRC’s) June meeting.
Zen Leaf Dispensary Chain
Zen Leaf is one of the largest MSO dispensaries in the State.
The opening of the recreational adult-use New Jersey cannabis market was held at the Elizabeth Zen Leaf dispensary in April 2022 and demonstrated the nature of their influence.
According to their press release they have a, “state-of-the-art 120,000 square foot cultivation and processing facility in Branchburg. The company produces its signature Verano™ Reserve flower, Swift Lift™ pre-roll joints and vapes; (the) Essence™ and Savvy flower, edibles and vapes. On the Rocks™ Live Rosin vapes and extracts; BITS™ low-dose high-function edibles. And Avexia™ RSO, topicals, tablets and tinctures.”
MSO Verano Holdings Corp.
It is traded as a publicly owned company as (Cboe CA: VRNO) (OTCQX: VRNOF). They say they are “one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope, and brand performance, is a vertically integrated, Multi-State Operator.”
The release said Veranos owns “the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers.”
They noted they own the brands (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™.
The Verano press also said they operatre in 14 states with “15 production facilities with over 1.1 million square feet of cultivation capacity.”
Large MSOs Hustles
According to a spokesperson for the NJCRC, “Verano NJ is a part owner of Zen Leaf Mount Holly. However, the retail location operates as a separate entity outside of Verano’s vertical structure and three-location limit for Alternative Treatment Centers (ATCs). This complies with statutory guidelines. Which allows for existing entities to be part-owners of up to 35% interest of a diversely owned retail establishment under certain conditions.”
The NJCRC issued Zen Leaf Mount Holly annual dispensary license needed to open at their October meeting.
The NJCRC sent their award letter to the hustle of Zen Leaf Mount Holly to James Leventis. He is the Executive Vice President of Verano Zen Leaf, is based in Chicago, IL, according to his LinkedIn.
Zen Leaf is based in Illinois.
The letters almost always go to the majority owner.
The press release did not reference any figure but Verano CEO George Archos.
NJ Cannabis License Issues
A bill passed by the New Jersey legislature might have allowed this sort of hustle. But it was intended for minority, women, and disabled-owned companies could find investors. They qualify as “diversely owned.”
Access to capital or money for struggling companies remains a problem his bill did not solve. The NJ Economic Development Authority (EDA ) gave several companies grants but will not disclose the list. They also have not said when more grants will be available.
Zen Leaf has been fined more than once for ignoring medical cannabis patient regulations to prioritize them. Like many MSOs, they have issues. Underground legacy operators and cannabis consumers have accused them of selling overpriced, mediocre cannabis products or mids for years. Like most MSOs.
But many of the merely canna-curious likely don’t know the difference between an MSO selling overpriced mids and a locally owned dispensary selling craft cannabis.
Mount Holly Cannabis Dispensary Cluster
MH already has Mass Grown, Fire and Oak, and Voltaire Cannabis dispensaries open. The mainstream media company radio station 101.5.com noted this as well earlier this year in March.
Unlike Zen Leaf, all three are owned by Jersey residents.
While the great legal cannabis dispensary deserts in New Jersey have happily shrunk, making it easier for consumers and medical marijuana patients.
However, great clusters have developed in several towns, which might help consumers but likely will hurt the smallest companies. In many towns, dispensaries are too close to each other.
It’s difficult. The intense competition is going to put those with less income, cash, and marketing experience out of business.
Legal Partnership Chain Deals
The MSOs are not the only sorts of companies that want to open dispensary chains.
A lot of New Jersey cannabis dispensaries want more than one location.
New Jersey has certain rules limiting the growth of chains to stop one large MSO from completely dominating the market.
So, in one common deal, one person will be the majority shareholder owner in Dispensary A. Then a person with less than 51 percent of ownership of Dispensary A is the majority shareholder in Dispensary B.
It is a goal of several New Jersey cannabis dispensary entrepreneurs, including locals, women, and minorities.
Some, in fact, already have their Dispensary B, or it’s in the works.
It’s called “ZEN LEAF MOUNT HOLLY, LLC” on their cannabis dispensary license. So it seems they have one of those deals.