New York Launches New White Labeling Cannabis License

New York state recently introduced a new cannabis license opening the door for out-of-state cannabis brands to enter the market. Jason Little shared his insight with Green Market Report on what this means for the industry and how it creates new opportunities.

From the article:

Jason A. Little, who heads the cannabis practice team at Uniondale, New York-based Farrell Fritz, said, “We have 476-ish or so brands currently in New York. Now that we are getting retailers online and we have the medical folks kicking into about 12% of the sales, you’re starting to see the need and want for brand variation. As a result, this makes perfect sense.”

Consumers would have the chance to buy products they know from other states, but they would be produced by New Yorkers. It also gives processors a chance to increase their business by making someone else’s products.

“You have folks who have done this, who have created a noticeable brand, that is recognized, that is good, et cetera, and now they have an ability to get that into the New York market,” Little added. “And OCM can still say it’s regulated via the all-inclusive New York goal upfront by requiring that type one or type two processors are within New York. Our New York companies are the ones ultimately manufacturing and selling this.”

The license also opens opportunities for people with good ideas but without the operational know-how. For example, Little said a cultivator could use this type of license to get a specific strain into the market.

“He could theoretically use this type of license to get this brand out to a company who has the ability to manufacture it and market it to the masses,” he said. “He doesn’t have either the will or the infrastructure to be able to do it, but folks who are manufacturing now may have that. So it provides that stepping stone for creators of intellectual property to get that intellectual property into the market via type one or type two processing.”

Read the full article here (subscription required): New York launches new white labeling license