NJ Cannabis Consulting

The New Jersey cannabis market is about to explode and the build up has had investors, multistate operators, stakeholders, advocates, Social Equity candidates, patients, legislators, municipalities and the general public on high alert for what is now years.

We are less than six months away from the CRC releasing rules for delivery operators. "cannabis delivery near me" is obviously already a thing, but now the licensed market will be firing on one more cylinder, generating more tax revenue and creating more jobs.

As inaugural licensing for all six classes rolls out over the next 24 months, real estate has alrady been secured and the wait begins.  With the economic downturn drying up capital and supply chain disruption making lead times on material catastrophic, getting up and running with a cannabis business is a monumental task.

The MSOs being allowed to sell to adult-use starting 4/21/22 got the market moving and the revenue streaming but it is still moving way too slow for independent operators, patients, advocates and SE applicants.

The adult-use cannabis market in our new convenience-based economy is forcing dispensaries to redefine the next generation of retail.

Natural price compression caused by maturing state micromarkets combinded with sagging sales did a number on lots of operators as Q2 2022 revenue figures came in.  The MSO's made out okay because of their large footprints and emerging markets.  

New Jersey revenue helped boost the revenue of a few operators (GTI, Curaleaf, Ascend, Verano, Columbia Care and TerrAscend), pushing the sequential revenue figures up 9% on average.  Wholesale prices dropping are another story and are hurting bottom lines across North America.

Inflation and fears of a recession left many scrambling and trying to secure debt financing at one of the worst times in history.  Startups often have only the option of self-funding through family and friends or other private equity.  

There is a tremendous amount of risk and more uncertainty and delay than most care to stomach.
The waiting game of sitting on real estate with triple net leases while regulatory bodies slug along is an East Coast speciality and most can't afford to get in early enough, stay in long enough or both..  The MSOs make plenty of mistakes, but they can afford it because of their early footprints in limited license states or wide footprints in robust medical markets.

If you are a prospective cannabis operator in New Jersey, you can use my help.  Whether it is community outreach in advance of a license application, competitor research and area demographics, avoiding the pitfalls of predatory financing, digital marketing, industry intelligence or forecasting operational cash flow.  

To start a conversation about your place and timing in the New Jersey adult use cannabis market, call Jamie at 302-750-9678, use our contact form or book a call.