Good morning and welcome back!
We’re sure you’re all digging out your inboxes, (circling back of course), so we’ll get right to it.
We’re going to change the structure of our daily newsletters a little bit. We’re aiming to keep it as quick and snappy as possible. That means more info in less time so you can get back to work, briefed on everything you need to know.
Drop a line and let us know what you think.
-JB, JR, ZH
Today’s newsletter is about a 6.5 minute read.
💡 What’s the big deal?
NY, NY
New York cannabis sales hit $2.5 billion 📈
Driving the news: New York cannabis sales are cooking, despite the rocky rollout.
Dispensaries in the Empire State sold $1.5 billion worth of cannabis last year, totaling $2.5 billion since sales began, according to the state Office of Cannabis Management’s (OCM) Annual Report.
New York cannabis by the numbers: The state has pulled in over $340 million in taxes since sales began in 2023 across both the medical and recreational market.
The number of stores in the state nearly doubled to 519 last year, up from just 34 in 2023.
Two hundred of those dispensaries are in New York City alone, and the five boroughs account for $1 billion of last year’s cannabis sales.
The state awarded $5 million worth of grants to social equity entrepreneurs to help them cover startup costs.
Annualized revenue per store evened out at about $3.8 million by the third quarter, with Long Island dispensaries by far the most profitable at nearly $30 million per year.
What they’re saying: “Surpassing $2.5 billion in adult-use sales is a major milestone,” Susan Filburn, the acting director of the OCM said.
“We expanded access to regulated, tested cannabis products, strengthened consumer protections, and continued to advance an equity-centered market framework.”
Why it matters: The annual report is full of fascinating data for cannabis policy nerds like us.
The OCM outlines market trends, consumer demographics, and tax revenue, and also released a dedicated Equity report and Enforcement report.
It’s a great snapshot of New York’s market structure evolving before our eyes, and should help regulators tweak cannabis policy appropriately to balance economic growth and social equity.
Still, New York’s cannabis industry was no stranger to controversy in 2025. A scandal involving a licensed processor selling illicit, out-of-state cannabis in the state brought down multiple senior officials at the OCM, including the former acting director.
While we don’t yet know who will lead the agency next year, it comes at a time of change: Gov. Kathy Hochul is up for re-election, and while the new mayor, Zohran Mamdani, isn’t in charge of the agency his priorities can certainly set direction.
We’ll be there to cover what happens next.
And more: Other states dropped their year-in-cannabis too.
Colorado consumers spent $1 billion on cannabis in 2025, bringing the total to $18 billion since the state legalized cannabis in 2012. The state has pulled in $3 billion in cannabis tax revenue over that period, the Center Square reports.
-JB
📣 Quotable
“They [the Trump administration] want to see safe, regulated, tested products,” Trulieve CEO Kim Rivers told CNBC in December.
“Millions of Americans are using medical cannabis. The president is very clear that he wants folks to be able to have access to safe, regulated, researched products in controlled environments.”
Rivers, along with other cannabis industry execs, was instrumental in getting President Trump to sign the executive order to reclassify cannabis to Schedule III.
✍️ Apply today
On January 29th, Gotham and Cultivated will host our inaugural event: The Highrise.
The Highrise’s goal is to host an event where attendees represent the full breadth and depth of the cannabis industry in New York and throughout the country.
To do that, we are asking would-be attendees to apply to attend. Only by identifying leaders throughout the industry can we truly create a representative group of attendees for The Highrise.
Spots are limited so get your application in today » thehighrise.nyc
⏩ Quick hits
If you read one thing today, make sure it’s the Wall Street Journal’s deep dive into how President Trump became cannabis’ “unlikely champion.”
Medicare patients will be able to cover up to $500 worth of CBD, Dr. Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services said.
Anti-cannabis group Smart Approaches to Marijuana hired former Attorney General Bill Barr to sue to reverse rescheduling.
Flora Cannabis settled with the Vermont Cannabis Control Board with regulators agreeing to roll back a de facto outdoor-ads ban, end prior review of in-store marketing, and allow social media promotion.
🚀 Deals, launches, partnerships
Vireo Growth said it will purchase Eaze in a $47 million deal that gives Vireo access to the California and Florida market. Eaze began as a venture-backed cannabis delivery company in California before pivoting to cultivation $VREO
🧪 Science & research
One-in-three mystery shoppers weren’t carded for purchasing intoxicating hemp products in Minnesota, according to a study from the University of Minnesota’s Cannabis Research Center (CRC). Read more.
Commentary from Dr. Ruth Fisher published in the journal Clinical Therapeutics calls for a standardized definition of a cannabis “user” to better inform future research. Read more.
📰 What we’re reading
Behind Oklahoma Cannabis Farms, New Yorkers With Ties to Beijing | The New York Times
Up in smoke | Business Insider
States made marijuana use legal. Now they should get it off the road. | The Washington Post
Trump Is Warming to Cannabis, but Investors Aren’t Impressed | The Wall Street Journal