NJ-CRC Fines Prolific Growhouse for Kid Friendly Package, Launching New Testing Rules

Prolific Growhouse fined by NJ-CRC, new cannabis testing labs rules introduced at meeting

NJ Cannabis Regulatory Commission (NJ-CRC) fined Prolific Growhouse for kid-friendly packaging and shared new cannabis testing rules.

Action Against Prolific Growhouse for Kid-Friendly Packaging

The NJ-CRC had an issue with the minority cultivator Prolific Growhouse touted by Governor Phil Murphy as progress.

“They were packaging flower under their fruity pebbles label in a package that resembled or looked like a fruity cereal for children,” Acting Executive Director Christopher Riggs explained.

“We are recommending an enforcement action for the violation,” he noted.

“The violation here was, um very unfortunate for the business that put together packaging that so clearly mimics the cereal,” NJCRC Chair Dianna Houenou said.

She noted that Prolific Growhouse tried to distort the NJ-CRC’s regulations. Houenou called their arguments “absurd and utterly unacceptable.”

She said they don’t want to make cannabis products look attractive to children as a compromise of cannabis legalization.

Unfortunately, adults are also attracted to the same sort of packaging.

“This is not the first time we’ve called out packaging that uses inappropriate imagery or packaging in a way that is reasonably enticing or attractive to children,” Houenou said.

Commissioner Maria Del Cid-Kosso agreed with her.

“There are rules in place as to what we’re looking for,” she said.

The NJ-CRC approved a $3,500 fine for Prolific Growhouse 4-0 with Commissioner Charles Barker absent.

New Lab Testing Standards Established

Commissioner Krista Nash explained that they have developed guidance for NJ cannabis testing labs. She noted the NJ-CRC adopted Maryland’s guidance on cannabis testing labs in 2021.

In 2022, the batch size was increased from 10 lbs. to 100 lbs.

“So businesses could increase the supply of cannabis and cannabis products to consumers,” Nash noted.

“New Jersey’s current batch size is 100 lbs. It is the highest in the nation,” she said.

Nash explained they want to reduce the size down to 33.3 pounds and incremental sampling of usable and unusable cannabis.

She also noted they want to develop standards for a lot of newer products to ensure quality products.

The changes will take place in waves in March and May.

Houenou said this will make products safer.

The NJ-CRC then approved the new cannabis testing lab guidance 4-0.

Annual NJ Cannabis License Winners

Riggs noted the annual license winners included 1 testing lab and 1 wholesaler:

1 Green Gem Industries, Inc. Manufacturer Microbusiness

2 Indigo Dispensary LLC Manufacturer Standard

3 Royal Roll LLC Manufacturer Standard

4 RPI Partners Manufacturer Standard

5 The Happy Farmer LLC Manufacturer Standard

6 Authorized Dealer Dispensary Retailer Standard

7 Herb’s Wellness Retailer Standard

8 Natures Bliss LLC Retailer Standard

9 Northeast Alternatives NJ LLC Retailer Standard

10 Southern Jersey Bud LLC Retailer Standard

11 Integrated Analytical Solutions Testing Lab Standard

12 Talaria NJ LLC Wholesaler Standard

The NJ-CRC approved them 4-0.

Conversion License Winners

Riggs noted that their awarded conversions of conditional licenses to annual licenses needed to open included 2 wholesalers and 2 delivery companies:

1 Glue Lagoon Farms Cultivator Microbusiness

2 Ganja Manja LLC Cultivator Standard

3 Royal Beverages, LLC Cultivator Standard

4 Vetae Pharms NJ Cultivator Standard

5 High Rollerz LLC Delivery Microbusiness

6 TerpTaxi LLC Delivery Standard

7 Twister Cannabis LLC Manufacturer Microbusiness

8 Ganja Manja LLC Manufacturer Standard

9 Herb Haus LLC Retailer Microbusiness

10 The Leaf and Seed Company Retailer Microbusiness

11 Tree Breeze Retailer Microbusiness

12 BWell Holdings NJ Inc. Retailer Standard

13 Authorized Dealers Wholesaler Standard

14 Kush Express Wholesaler Standard

Conditional License Winners

Riggs explained their thorough review process before announcing the winners including one delivery license:

1 Frequency Cannabis Cultivator Microbusiness

2 Jersey OG’S LLC Cultivator Microbusiness

3 LLC Cultivator Standard

4 Black Cannabis Cultivation Cultivator Standard

5 Chunk’s Trees LLC Cultivator Standard

6 Dr Quest Laboratories Cultivator Standard

7 Savage Gardens NJ Cultivator Standard

8 Sea & Leaf Cultivation LLC Cultivator Standard

9 QueRated Delivery Standard

10 Good Feeling Gummies Manufacturer Microbusiness

11 Royal Beverages, LLC Manufacturer Microbusiness

12 Pufftuff Retailer Microbusiness

13 Still Dubbin LLC Retailer Microbusiness

14 Thriv3 LLC Retailer Microbusiness

15 Kisan Herbal Health Hub LLC Retailer Standard

16 Lady Bud Cannabis Dispensary LLC Retailer Standard

17 Local Flower LLC Retailer Standard

18 Serenity Grounds Retailer Standard

They were approved 4-0.

Breakwater to Sell Medical and Adult-use Recreational Cannabis

Riggs explained that Breakwater Wellness wants to enter the adult-use market.

“They have certified they have sufficient medical cannabis products,” he noted.

The NJ-CRC noted they have two dispensaries

  • 2 Corporate Drive, Cranbury, NJ 08512
  • 154 West Westfield Ave, Roselle Park, NJ 07204

Plus, they grow and make cannabis products in the medical market in Cranbury and want to do so in the adult-use market as well.

The NJ-CRC approved it 4-0.

Annual NJ Cannabis License Renewals

Riggs noted several companies were up for their annual license renewal.

“The licenses are renewed annually,” he added.

The NJ-CRC then reviewed the renewal of annual licenses for companies that have been operating.

  • Blossom Dispensary LLC
  • OHM Theory LLC
  • High Rollers Dispensary
  • Urge New Jersey
  • Botera Union
  • Bay Street Greenery LLC
  • Timber 5 LLC
  • Zacate LLC
  • Flower & Flame LLC
  • The Dispensary of Somerset
  • The Dispensary of Union
  • BLOC (3)
  • HarvestWorks Farm Corp.
  • Township Green LLC
  • Jerzey Grown LLC
  • Sunnytien LLC
  • Blue Violets LLC
  • Golden Door Dispensary
  • Jersey Meds Management LLC
  • Plantabis Dispensary
  • Bakin’ Bad LLC
  • Cannaboy Treehouse LLC
  • Castaway Cannabis
  • Fresh Grow LLC
  • FullTilt Labs LLC
  • GDBS Distributors LLC
  • Green Oasis Dispensary NJ, LLC
  • Natural Apothecary
  • North Lake Supply LLC

They were approved to operate for another year 4-0.

Chair’s Report

Houenou laid out their goals which included lower the cost for consumers by 10 percent and making it easier to apply for a cannabis license.

“Where we can we want to reduce barriers to entry,” she noted.

Houenou added they cannot change the law to exclude some tedious paperwork.

She said they want to continue to incentivize corporate responsibility.

Houenou said they want to establish a reference lab to oversee cannabis laboratories. It would help bolster product safety and ensure accurate labeling of products.

She explained they want to figure out why the price of legal cannabis is too high.

They also want to study medical cannabis and find ways to reduce the cost.

Houenou said towns are changing the cannabis laws in the middle of the process.

“Disruption to the local approval process… can have sign impacts on our props entrepreneurs,” she noted.

Houenou said losing municipal support has hurt some applicants.

She added cryptocurrency scams are common in the New Jersey cannabis industry. Houenou said some have lost thousands of dollars.

Executive Director’s Report

“We have over 200 dispensaries open in the state,” Riggs noted.

He said they will hold medical cannabis town halls to get input on policy changes. They want to hear from patients and caregivers. But the dates haven’t been determined yet.

Riggs noted their progress in processing applications.

Riggs gave an update on the licensed NJ Cannabis industry and said there are 340 licensed cannabis businesses operating in Jersey currently.

He said there are about 65,000 medical cannabis patients now.

Updated NJ Cannabis Sales Statistics

Riggs presented sales statistics, too.

“In December, we finally got under 10 for price per gram,” he said. “The average place has fallen about 12 percent. Prices are trending downward.”

Riggs noted the prices have fallen in the medical cannabis market too.

Then, they broke products down by popularity. Flower is the most popular at around 40 percent.

Riggs noted that 1.5 million pounds of legal New Jersey cannabis flower were harvested in 2024.

He said 36 companies harvested cannabis last year.

NJ Cannabis License Ownership Demographic Data

Director of Diversity and Inclusion Wesley McWhite III said 228 annuals and 414 conversions to annual licenses have been issued for a total of 642.

1549 conditional licenses have been issued too.

McWhite said that 71 percent of licensed businesses are Diversity-owned. That includes Women-owned businesses and disabled veteran-owned businesses.

Seventeen percent have been awarded to Social Equity businesses.

He noted that New Jersey has made progress on women and minority ownership.

McWhite said they want the ownership of the NJ cannabis industry to reflect the diversity of the State.

Del Cid-Kosso noted they lost 1,000 patients in the last month.

“We can find ways to not just increase our patient enrollments numbers… so we can create a more robust program in the CRC,” she said.

Riggs said they want to change the rules to increase the number of patients.

SEEF Tax Townhalls Coming Up

Nash noted they set the Social Equity Excise Fee (SEEF) at $2.50. per ounce of usable cannabis to be paid by companies at their last meeting. She explained they would be holding town halls on where the money should go. The input will go into a report to the Governor and Legislature.

Nash said there was $6 million in the fund last August.

The NJ-CRC will be holding town halls soon on how the money should be spent.

Ownership Changes

Riggs said 3 companies wanted to change their ownership details.

“We have seen some licenses up for sale online,” he explained. “Board approval is required.”

  • Green Lightning-adding new owner
  • Honey Grove South-change in ownership structure
  • Mojo Botanica-change in ownership structure

The changes were approved 4-0.

Cultivators Want to Grow More

Riggs explained that Brute’s Roots and Hamilton Farms want to grow more cannabis. They needed approval from the NJ-CRC to do so.

The NJ-CRC approved it 4-0.

Microbusiness Conversions

Riggs said 2 micro businesses wanted to convert to standard size. He noted they had to be open for a year first. He explained they could increase their show floor size and hire more people.

  • Daylite Cannabis
  • The Cannabis Clubhouse

The conversions were approved 4-0.

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