Inside the Omnium scandal rocking New York’s cannabis industry 👀

NY, NY
Inside the Omnium scandal rocking New York’s cannabis industry 👀

Driving the news: A product inversion scandal involving Long Island-based Omnium Canna has rocked New York’s cannabis industry, causing a statewide product recall and raising serious concerns about regulatory compliance, Chris Casacchia reports.

What happened: On October 20, the New York Office of Cannabis Management (OCM) issued a recall of cannabis products linked to Omnium Canna after an investigation revealed the company allegedly leased its facility to unlicensed brands to produce and distribute unregulated products.

The OCM is now seeking the revocation of Omnium’s processor and distributor licenses, along with civil penalties and the destruction of unlawfully produced cannabis. 

The scandal has forced retailers to pull affected products, and several brands affiliated with Omnium, including Stiiizy and Mfused, have seen sales drop dramatically. Oregon-based Grön, which had used Omnium’s facility, is also considering legal action against the OCM.

Zoom in: The recall and investigations are part of a larger regulatory crackdown on illegal cannabis activity in New York. 

With Omnium’s facility at the center of the controversy, the market is now grappling with the fallout of unregulated products entering the legal market. This incident underscores the ongoing challenges regulators face in keeping pace with a rapidly expanding industry.

What they’re saying: “This is racketeering, it’s trafficking, and it’s unfair to the New York State processor that’s playing by the rules,” said lobbyist Joe Rossi.

What’s next: While OCM’s response is still unfolding, the damage to consumer confidence and affected brands is already significant. The true scale of the scandal and its long-term impact remain uncertain.

“If it was so terrible how it was rolled out so slowly — and the last administration did nothing to get it done, which is terrible — my expectation is that this administration is just going to do nothing, too,” attorney Josh Schiller told Marijuana Moment.

Schiller is representing a group of cannabis companies that are suing the federal government over federal cannabis prohibition, a case he hopes will make its way to the Supreme Court.

Florida legalization campaign sues DeSantis 🦩

Smart & Safe Florida, the group behind a push to get cannabis legalization on the ballot in Florida, is suing Gov. Ron DeSantis, alleging his administration is trying to block the measure. DeSantis has been accused of improperly using state funds to defeat the legalization measure last year. The Washington Post has more. The Washington Post has more.

LIT ALERTS’ INSIGHTS
3 national vape and edibles brands winning in New York & New Jersey

Following up from a previous weekly insight, the Lit Alerts team continues to showcase the discrete and convenience form factor categories — vapes and edibles — in New York and New Jersey.

These are the categories where national and regional cannabis brands are breaking through to the Top 10 brands.

After previously showcasing the edibles brands breaking through, this week Lit Alerts is showing us the national and regional vape brands that are winning in these highly coveted East Coast markets.

Looking at estimated units sold in the last 90 days, 3 national and regional brand stand out:

Fernway | The East Coast's favorite vape brand. Originally launched in MA, Fernway's ascension to the #1 spot in NJ and #3 in NY (only behind NY powerhouses Jaunty and Ayrloom). Add a #1 rank in MA and it's clear why Fernway is the clear leader in the region.

Rove | Originally a California brand, Rove were very early entrants in NY and NJ and the hard work is paying off, currently ranked #7 in NJ and #4 in NY. What's more impressive about Rove is their presence in the Top 10 in markets in the Midwest and the West Coast as well.

Select (Curaleaf) | The cornerstone brand for one of the largest MSOs and one of the original medical operators in NY. Vertical integration in both markets helps Select claim the #3 spot in NJ and the #7 spot in NY.

It's important to note that for this series of data insights, Lit Alerts is highlighting national and regional brands that are in the top 10 in BOTH NY and NJ markets.

If you're looking to take share in the NY and NY vape markets, you'll have to go through one of these brands.

Have a look at Lit Alerts’ exclusive insights into the current 3 national vape brands winning in New York and New Jersey. 👇

To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.

Kindred acquires Green Hedge Education and Distribution Services 🤝

Toronto-based cannabis brokerage Kindred has acquired select assets of Green Hedge Education and Distribution Services, expanding its supplier network to include Canopy Growth, Adastra, and Mary Jones Soda. The deal, effective Nov. 3, brings Green Hedge’s team and CRM platform under Kindred, reinforcing its position as a leading broker in Canada’s cannabis market.

Curaleaf kicks off fifth annual fundraiser to fight food insecurity 🍜

Curaleaf has launched its fifth annual Feed the Block fundraiser to fight food insecurity in the communities it serves. Running through November and December across 12 states, the campaign invites in-store donations and volunteer participation, and has raised more than $450,000 since 2020. $CURLF ( ▼ 2.46% )

MariMed launches hemp-THC products 🌿

If you can’t beat ‘em, join ‘em. MariMed is launching hemp-derived THC versions of its top-selling Vibations beverages and Betty’s Eddies edibles, starting in Rhode Island in early 2026, as part of its plan to expand its brand nationwide. The company has partnered with experienced manufacturers, distributors, and marketing firms to build a full supply chain and capture a share of the rapidly growing hemp THC market. $MRMD ( ▼ 11.33% )

On Monday's Cultivated Live, Jay and Jeremy were joined by Aaron Miles, Chief Investment Officer at Verano to talk about the company, the settling of their ongoing lawsuit with Vireo, and their latest earnings report. $VRNOF ( ▼ 7.35% )

Cannabis policy and adolescent health 🧑‍⚕️

A new commentary in the Journal of Adolescent Health says protecting youth amid expanding cannabis legalization requires distinguishing between supply-side policies that limit access and demand-side rules that reduce appeal. The authors argue that clearer evaluation of these policy types is essential to better understand legalization’s impact on adolescent health. Read it here. 

Colorado lab testing is highly variable 🧪

A six-week blind study by researchers in Colorado found THC levels in flower, concentrates, and gummies varied wildly — sometimes by more than a third — both within and between labs. Compared to alcohol, which is tightly regulated and consistently labeled, Colorado’s cannabis testing is all over the place, leaving consumers guessing and honest businesses at a disadvantage. Check out the full study from Ripple.

It’s earnings season. We’ll get a clearer picture of the financials of the biggest cannabis firms, and how they’re faring under Trump, dealing with cannibalization from the hemp-derived THC market, and more.

Here’s this week’s schedule:

Nov. 4

SNDL - 10:00AM
Innovative Industrial Properties - 12:00PM
Jushi Holdings - 4:00PM
LEEF Brands - 4:00PM

Nov. 5

Aurora Cannabis - 8:00AM
Trulieve - 8:30AM 

Cresco Labs - 8:30AM
Turning Point Brands - 8:30AM
Scotts Miracle-Gro - 9:00AM
Curaleaf - 5:00PM 

Green Thumb Industries - 4:30PM

Nov. 6

MariMed - 8:00AM
Cronos Group - 8:30AM
GrowGeneration - 4:30PM
TerrAscend - 5:00PM
WM Technology - 5:00PM

Nov. 7

Canopy Growth - 10:00AM

Nov. 10 

Village Farms - 8:30AM
Ascend Wellness - 5:00PM

Nov. 11

Grown Rogue - 5:00PM