The Multi-state operators controlling the New York cannabis market
The largest cannabis company in New York surpassed $1 billion in revenue last year. And that is just in medical cannabis sales.
Despite recreational cannabis being legalized in 2021, New York has yet to launch their adult use industry. This leaves only medical cannabis, which is only accessible to those with a medical cannabis patient card.
That however hasn’t stopped the state from raking in over a billion dollars in revenue thanks to its top medical cannabis retailers. But there’s one thing that distinguishes these top performers from other medical cannabis states that have also been successful.
Nine out of the ten highest profiting cannabis companies in New York are multi-state operators.
Curaleaf Holdings, a publicly traded multi-state cannabis company, brought in $1.2 billion on its own in 2021. That was a 93% increase from 2020. They also have 126 dispensaries in 23 states across the country.
Additionally, all but two of the top ten companies are publicly traded.
The next top players in New York currently are Green Thumb Industries ($893 million in revenue) and Cresco Labs ($822 million in revenue), bother operating in at least 10 states themselves.
It is no surprise that such massive operators would be seeing the most success in New York’s limited medical industry. However potential small business owners that are hoping to get their hands on an adult-use retail cannabis license may be competing against these behemoths when licenses are rolled out.
A common practice among states that legalize recreational cannabis after already having a medical cannabis industry is to give priority licensing to medical cannabis businesses that wish to either transition to recreational, or hold both licenses.
As is stands, the New York Office of Cannabis Management has given conditional cannabis cultivation licenses to already licensed hemp farmers in the state. The office also announced plans to give half of the licenses to disproportionately impacted individuals, i.e. those who were victims of the failed war on drugs in the state.
While the state hasn’t announced plans to give priority licenses to medical cannabis businesses yet, there’s a fair chance it will be announced around the same time as the general application process near the end of 2022.
Below are listed the top ten most profitable medical cannabis businesses in New York, as of 2021:
Curaleaf Holdings (CSE: CURA) (OTCQX: CURLF)
Revenue: $1.2 billion, up 93% from 2020
Locations: 126 dispensaries in 23 states
Headquarters: Wakefield, Massachusetts
Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF)
Revenue: $893.6 million, up 60.5% from 2020
Locations: 73 dispensaries in 15 states
Headquarters: Chicago
Green Thumb Industries acquired Fiorello Pharmaceuticals, which owned the Fp Wellness brand, in 2019.
Cresco Labs (CSE: CL) (OTCQX: CRLBF)
Revenue: $822 million, up 73% from 2020
Locations: 50 dispensaries in 10 states
Headquarters: Chicago
Cresco Labs acquired the membership interests of Gloucester Street Capital, the parent entity of Valley Agriceuticals, in 2019.
Columbia Care (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP)
Revenue: $460 million, up 156%
Locations: 99 dispensaries in 18 states and the European Union.
Headquarters: New York City
iAnthus Capital Holdings (CSE: IAN) (OTCPK: ITHUF)
Revenue: $203 million, up 34% from 2020
Locations: More than 40 dispensaries in six states
Headquarters: New York City
iAnthus acquired Citiva for $18 million in 2018.
Acreage Holdings (CSE:ACRG.A.U, ACRG.B.U) (OTC: ACRHF, ACRDF)
Revenue: $188.9 million, up 65% from 2021
Location: 28 dispensaries in 10 states
Headquarters: New York City
Acreage Holdings acquired New York Canna, which owned The Botanist brand, in 2018.
MedMen (CSE: MMEN) (OTCQX: MMNFF)
Revenue: $145.1 million, down 6.6% from 2020
Locations: 31 dispensaries in seven states
Headquarters: Culver City, California
MedMen Enterprises acquired Bloomfield Industries in 2017.
Goodness Growth Holdings (CSE: GDNS; OTCQX: GDNSF)
Revenue: $54.4 million, up 10.6% from 2020
Locations: 18 dispensaries in five states
Headquarters: Minneapolis
Goodness Growth owns Vireo Health, which operates four dispensaries in New York state.
PharmaCann (private)
Revenue: CEO Brett Novey told a cannabis industry publication last year that revenue had been $75 million in 2019 and the company expected to double that in 2020.
Locations: 29 dispensaries in six states
Headquarters: Chicago
Etain (private)
Revenue: Not disclosed
Locations: Four dispensaries in New York state
Headquarters: Katonah, New York
Etain is preparing to expand into New Jersey.