After troubled start, New York is shaking up its legal marijuana market with new competitors

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CORRECTS TO STATIS NOT STATES CANNABIS COMPANY Alex Silecchia, left, a marijuana"budtender," also known as a sales associate, serves a customer at Statis Cannabis Company dispensary, Friday, Sept. 29, 2023, in New York.

"My concern is that they have all the money to bleed us out," said Coss Marte, whose opening of CONBUD dispensary in Manhattan was pushed back by a lawsuit against state regulators. "They’re vertically integrated. So now what they could do is ... grow their own product at the cheapest price and basically outbid all the farmers, all our products and all our pricing."to help applicants open shops.

Reginald Fluellen, senior consultant with the Cannabis Social Equity Coalition, blamed the state for a botched rollout. "We expect New York to be the hub, or one of the hubs, for legal cannabis on the East Coast," said Curaleaf CEO Matt Darin. "And so we’re very bullish and we’ve invested a lot of capital and time to be able to maximize the opportunity."

To guard against retail monopolies, the medical providers will be limited to three retail outlets. And in a nod to farmers, their shops will initially have to devote half their shelf space to products grown and processed by independent businesses. While acknowledging there was some "frustration" in getting retail stores open, Alexander said the state has shown a market supplied by small farmers can work.

 

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