New York Cannabis Growers Showcase Starts Soon

The Cannabis Control Board (CCB) in New York State has recently kickstarted an initiative called the Cannabis Growers Showcase. The Cannabis Growers Showcase will allow for sales of medicated cannabis products at public gatherings, such as farmer’s markets or events. Off-site cannabis sales are typically few and far between. Regulated off-site cannabis sales have been seen in Michigan and California, however these events are still in their infancy. San Francisco, CA has specific regulations on which events are qualified to host on-site cannabis sales and are usually paired with regulated consumption areas. Michigan has issued few event licenses, but this is still quite rare in the state. New York will be moving forward as innovators in the cannabis industry by establishing a Cannabis Growers Showcase.

Naturally, the CCB will require retailers to obtain additional permits to be able to sell medicated product. There is a maximum margin regulation of up to 50% on flower and pre-rolls and no margin limit on non-flower or pre-roll products. Edibles, drinkables, vape, and concentrate products may be priced much higher than in-store menu listings. Flower and pre-roll products are traditionally the highest selling category in dispensaries. While there has been a rise in concentrates over the last few years, flower still overall accounts for over half of medicated products sold in stores nationwide. The margin cap may be a barrier to entry for dispensaries, as the overhead for participating in an off-site event will eat into overall operating costs. Additional staffing, portable retail space(s), promotion of the event, and licenses have the potential to make off-site events very expensive. The lack of margin cap on items such as edibles and vape products may cause these items to be more lucrative sales for operators.

Additionally, retailers would require a minimum of three cultivators to participate to ensure appropriate offerings to shoppers.

The regulations for participating Cannabis Growers Showcase also include:

• Applications to participate must include a full site plan, photos of the location, and staffing plans
• Municipal approval to ensure participants are in an area with authorized dispensary sales
• Proof that the sales will occur a minimum distance of 500 feet from a school, 200 feet from a house of worship, and 1,000 feet from an existing dispensary

The Office of Cannabis Management has also been clear that there are no opportunities to sample medicated product to shoppers. This does allow for non-medicated sampling of edibles, so flavored gummies or chocolate without THC content may be sampled.

All Cannabis Growers Showcase sales will still need to be logged in an approved Seed-to-Sale platform appropriately. Compliance is still at the forefront of this sales opportunity for cannabis operators. While taxes appear to mirror the same tax rates as regular brick and mortar sales, they may be more difficult to track as internet or other resources will be limited off-site. Inventory tracking is also a focus, as all licensees participating must comply with state-mandated inventory tracking regulations.

Alleaves is a full suite seed-to-sale software that is purpose built for growth and optimizing cannabis opportunities. For more, connect with one of our cannabis compliance experts today.