N.J. adult legal weed tops $116 million in sales from July to September

Ascend Cannabis in Fort Lee opens its doors for recreational marijuana

A cannabis edible display inside Ascend Fort Lee during the dispensary's launch into adult weed sales on Nov. 17, 2022. John J. LaRosa | For NJ Advance

Demand for legalized recreational adult weed continued to grow in New Jersey as sales topped $116.5 million from July to September of this year.

The revenue amount announced by the New Jersey Cannabis Regulatory Commission on Friday represents a 46 percent increase from sales receipts of $80 million in adult weed revenue generated from late April to June, when 13 state dispensaries expanded to adult weed sales for the first time.

The statewide launch was on April 21 when New Jersey legalized recreational marijuana for those 21 and over. The upward trajectory on sales has been consistent.

For the first five weeks of adult weed, a dozen dispensaries sold $24 million in adult weed through May 26, or an average of $5 million per week in a state with 9.3 million residents.

By comparison, adult recreational weed generated about $80 million in total sales for the first 10 weeks between April 21 and the end of the fiscal year on June 30, according to numbers released by the CRC.

There are now 20 dispensaries in New Jersey selling recreational weed, all owned by eight giant national companies who are multi-state operators, also known as MSOs. The most recent was last month’s opening of Ascend Fort Lee where customers can pick up online adult weed orders at the brick-and-mortar location.


In addition, there are 10 dispensaries not owned by MSOs that sell medicinal cannabis to registered medical marijuana patients only. They include Harmony Foundation Inc. of New Jersey in Secaucus. The firm won approval to begin adult weed sales at the commission’s last meeting on Dec. 2 to become the first nonprofit medical dispensary to enter the adult weed market in New Jersey.

A spokesperson for Harmony said on Friday the company is waiting for a final permit after a site inspection by the CRC to begin adult recreational weed sales, which could come any day. When it does, Harmony is positioned to begin adult weed sales immediately, said the spokesperson.

The CRC said the addition of Harmony signals what could be the next chapter in the industry’s growth. With only 20 existing stores owned by MSOs selling adult weed in the Garden State, many industry experts have warned these stores won’t be enough to sustain demand for the long term and that other suppliers will be needed. Medical dispensaries could fill that gap as smaller operators secure annual licenses.

“New Jersey is only seeing the beginning of what is possible for cannabis” said CRC Executive Director Jeff Brown in a statement. “We have now awarded 36 annual licenses for recreational cannabis businesses to New Jersey entrepreneurs, including 15 for dispensaries.

“Those businesses alone will be a significant growth of the market,” added Brown. “With more locations and greater competition, we expect the customer base to grow and prices to come down.”

Verano Founder and Chief Executive Officer George Archos said New Jersey was meeting his company’s expectations. Verano, which operates under the Zen Leaf banner, has three satellite stores in Lawrence, Elizabeth, and most recently, Neptune Township which debuted adult weed on Aug. 5.

“We’re thrilled to see the continued success of the cannabis industry in New Jersey,” Archos said in an email to NJ Advance Media late Friday. “The impressive revenue growth figures the Cannabis Regulatory Commission released from the third quarter are no surprise, given New Jersey’s large and dense population, robust summer tourism season, and proximity to other states without existing legal adult use cannabis programs.”

When medicinal cannabis sales are included, total sales receipts were $177.7 million for the same three-month period, according to the CRC. That amount was also an increase from April to July’s revenue for medical cannabis.

“We are looking forward to seeing local, small business owners participate in this lucrative market,” said CRC Chairwoman Dianna Houenou in the same release. “Our priority application process, as well as new initiatives like the no-cost Cannabis Training Academy being launched by New Jersey Business Action Center in early 2023 are paving that path for them to be included.”

The state also benefits.The adult weed sales tax in New Jersey is 6.625 percent. Tax revenue from adult weed is used partly to fund CRC operations and hire new staff. Over half - 55 percent - is to go toward social equity programs.

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Suzette Parmley may be reached at sparmley@njadvancemedia.com or follow her on Twitter: @SuzParmley

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