The Benzinga cannabis industry conference returned to Central Jersey and featured panels with the NJ Cannabis Regulatory Commission (NJ-CRC) and leading experts on the local industry while many enjoyed themselves.
NJ-CRC Panel on Legal Weed Progress
Susana Puntel of the American Trade Association of Cannabis and Hemp (ATACH) moderated the panel with NJ-CRC Chair Dianna Houenou and NJ-CRC Executive Director Christopher Riggs.
“We’re going to live up to this reputation as the Garden State,” Houenou declared. “New Jersey is a national model for how to set up cannabis industry equity,”
She noted that NJ application fees are lower. Plus their rolling ongoing uncapped application process makes getting a state license easier.
Houenou said 212 dispensaries are open.
She noted progress in ownership statistics of Social Equity applicants who got caught for marijuana crimes, women, and minorities.
NJ Cannabis Lounge Details
Puntel noted the NJ-CRC has made progress with the legal cannabis consumption lounge application process allowing some eligible to apply already.
Houenou noted lounges need to be part of dispensaries.
“The (CREAMMA) law has some pretty tough restrictions on cannabis consumption areas,” she said.
“We really want businesses to have the freedom to decide what kind of activities they want to have. “You can host events. You can make them paid admission if you want to,” Houenou noted. “Businesses say they want to offer live music. That is totally fine.”
But she said the law says they can’t be like bars and grills selling food and drinks.
A bill to allow food and drink sales in dispensaries was passed by an Assembly committee last October 2024. But it hasn’t made much progress since.
“You could let patrons order food delivered to the consumption. You can even host food trucks outside right where patrons can then purchase food orders,” Houenou said.
She added only about a dozen out of the more than 200 pro-cannabis towns allow cannabis lounges.
“Once they see these consumption areas are viable, they’re not harmful. They’re run safely and responsibly, I’m hopeful we’ll have more towns opening up,” Houenou said.
Puntel noted the many towns against marijuana is one the biggest issues hurting the legal Jersey weed business.
Riggs said their new Government Relations Director Matt Craig is working on it.
He noted about 207 towns have opted in to allowing cannabis companies. That totals 37 percent since there are more than 500 towns in Jersey.
“He’s gonna have a lot more friends,” Puntel said.
“He needs more friends,” Riggs joked.
Intoxicating Hemp Issues
Puntel noted intoxicating hemp issues are very difficult. So a bill was passed to heavily regulate them, which led to a lawsuit.
“Can you give us an update? she asked.
Houenou said intoxicating hemp cannot be sold to those under 21, and they banned synthetic hemp.
“We can’t even prepare regulations related to the law while the litigation is still ongoing,” she explained. “I know this has caused a lot of angst. But right now, that is where things are.”
“These intoxicating hemp products pose a problem. They’re widely available, unregulated, and untested,” Houenou declared.
“It’s derived from the same plant,” she noted.
“Those intoxicating hemp should follow the same regulatory processes so that safe products get into the hands of consumers,” Houenou argued.
Cannabis Consumer Education on Terpenes & Cannabinoids Needed
Another Benzinga panel was held on the habits of NJ cannabis consumers.
Moderator and Rx Green Technologies Senior Vice President Amy Larson said consumers are driven by Price, Proximity, and Potency, the 3 Ps.
Flower is king with 43 percent of consumer sales.
Valley Wellness dispensary CEO and educator* Sarah Trent said bags of flower and pre-rolls are their most popular products, followed by concentrates and then edibles.
“The New Jersey consumer is still not that educated,” she explained.
“The terpenes and cannabinoids make it the best,” Trent noted about cannabis.
“Consumers associate potency with quality,” Vice President of Retail & Planning for the MSO IAnthus Kelly Heinichen explained.
She noted the need to educate consumers too.
Trent said most consumers probably don’t realize large cannabis companies growing and selling their own flower can sell it cheaper.
It’s like at the supermarket where the store brand is cheaper than name brands.
Medical Cannabis Issues
Larson noted medical program patients always drop significantly when adult-use markets launch. She added many adult-use consumers shop for pain relief and sleep.
NJ Leaf CEO Ritesh Shah said he had a chain of drug stores as a serial entrepreneur before opening a dispensary. He noted a medical marijuana prescription prescribing doctor he knew didn’t know much about cannabis to recommend specifically.
Shah said legal pills kill a lot of people due to overdose.
“I have not heard one story like that about cannabis,” he declared. “We make sure we educate them properly.”
“We take seriously our duty to serve med patients,” Trent said.
She added they take extra steps with consumers who were medical marijuana patients.
“Patients want selection,” she noted.
Heinichen said they prioritize patients and balance their inventory.
“The medical community isn’t necessarily looking for that high-potency product,” Trent said.
“Patients are very disappointed if we’re out of a product that tries and true for them,” she noted.
Shah noted many seniors don’t want to smoke.
“We have seen success with some topical products and gummies with the lower dosage,” he noted.
Price Issues Discussed
“Price compression is coming,” Larson said. “There’s a lot of markets are struggling. Everyone is looking for a discount. What are you guys seeing in terms of products and strategies to avoid this race to the bottom?”
Trent explained that the New Jersey cannabis industry has long been dominated by large corporate Multi-State Operators (MSOs). They got into recreational weed sales first, both with their dispensaries and their products. So, they had a great advantage.
“We have to give the new manufacturers and cultivators time to get off the ground,” she declared. “If we don’t support them, we will lose them.”
“A large percentage of retailers are going to fail,” Trent noted.
Trent didn’t think NJ cannabis consumers are very brand loyal.
“We call them wellness advisors. Education plays a key role,” Shah said about their retail clerks called budtenders.
He explained many nearby towns are against dispensaries, which helps him. He added wealthier people don’t care about price while someone who wants coupons does care a lot.
Tilting Cannabis Dispensary Sales
“What is not selling?” Larson asked. “Why do you think they didn’t succeed?”
Heinichen noted there is a program called SparkPlug where budtenders get a percentage of the profits of the items they recommend that are sold.
“SparkPlug shouldn’t be playing a role in what you recommend,” Trent said.
“We have to give new brands time. We have to pamper them. Those new brands are struggling,” Trent explained. “It breaks my heart.”
Benzinga Cannabis Conference Fun
Outside the panels, the Benzinga halls buzzed with conversation as people connected and reconnected. Many leading NJ cannabis industry figures spoke and attended the Benzinga conference.
Benzinga is one of many cannabis industry conferences on the circuit in New Jersey now, along with MJ Unpacked, NECANN, and Real Cannabis Entrepreneur later this year.
