The New York Cannabis Market Continues to Soar

The New York Office of Cannabis Management held a Control Board Meeting today that was broadcast online. Two months ago, we provided an update regarding the state’s strong growth in adult-use sales, and this extremely bullish story has become even more bullish. Sales growth is very strong, and the state is on track to do $1 billion in 2024:

John Kagia, Director of Policy, who was sharing the slides with the Board, pointed out that the November strength was overstated due to there being 5 weeks in November after 4 in September and October. He suggested that the $919 million year-to-date would be boosted in December to over $1 billion. The weekly sales have expanded from $12.9 million to $29.0 in six months. Two months ago, it was $22.4 million per week.

Growth is being driven by more stores and fewer unlicensed stores. In our newsletter in July, when we called the New York cannabis market booming, there were 144 open stores. Now there are now 261. This is a huge increase, but it is still a small number of dispensaries given the large population of the state.

Non-flower sales have expanded over the past two months from 52% of sales to 55%, and the medical cannabis companies, most of which are publicly-held, are the source of 23% of the flower sales.

I am very bullish on New York, but they can do a better job on getting the data out. Many states issue monthly updates and include the data on their websites. New York can do better on this front. Still, this big state has come a long way. Investors should be paying attention.

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email