Good morning.
It’s the winter that never ends for our Northeast friends. We hope you all stayed safe and cozy over the last few days. We’ve never been more jealous of our California readers.
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 1,277 words or about a 9-minute read.
THIS NEWSLETTER MADE POSSIBLE BY:
💡 What’s the big deal?
UNIONS
New York operators sign labor deals with little-known union CEED 420
Driving the news: Unions are coming to cannabis, but as with any new industry, there are clear growing pains.
It’s not clear if the Cannabis Engineers Extractors and Distributors (CEED) Local 420 is still operating a functional union in the northeast, but at least two New York operators appear to have signed labor peace agreements (LPA) with the organization.
The question arose during the February meeting of the New York Cannabis Control Board and the Office of Cannabis Management after an operator alleged that OCM was blocking his attempts to renew his license after he signed with CEED 420.
What they’re saying: “According to two employers who had issues with OCM they both are allowed to continue operations under our LPA,” said CEED 420 Secretary Treasurer Guy James in an email.
The United Food and Commercial Workers and the Teamsters have traditionally claimed the turf of representing workers in the cannabis industries, but that has not stopped newer industry-specific unions from cropping up.
This has also resulted in claims that these organizations are “company unions” which often function to serve management over its workers.
Few records, at least one complaint: "Within the previous six months, the above-named labor organization has restrained and coerced employees in the exercise of rights protected by Section 7 of the Act by refusing to process the Charging Party's grievance for arbitrary or discriminatory reasons or in bad faith," said an anonymous complaint filed against CEED 420 in 2023 with the National Labor Relations Board.
The Ascend Wellness employee filed the complaint on April 24, 2023. The complaint claimed that CEED 420 was refusing to take action on complaints from employees about workplace conditions. Workers at Ascend Wellness joined CEED 420 in February, 2022.
Section 7 of the National Labor Relations Act guarantees a worker's right to self-organize. That complaint was withdrawn by the NLRB on May 8, 2023 at the request of CEED 420.
The Ascend Wellness facility was located in Montclair, New Jersey until June 17, 2024 when it shut down. A spokesperson from CEED 420 declined to clarify whether or not the union still has a labor contract with the company or if they have any other deals beyond labor peace agreements.
“We proudly represent workers who have chosen to organize in the cannabis industry. As the business expands its reach we will continue to advocate for fair treatment of all workers including livable wages, quality benefits and safe working conditions," said James in a statement.
New York, New Jersey and Connecticut require LPA for licensed cannabis businesses.
Connected to lobbyists: CEED 420 lists its address to an office in Trenton New Jersey that was also home to law firm Cammarano and Hagan. Pete Cammarano founded the New Jersey Cannabis Industry Association while Kevin Hagan founded the New Jersey Marijuana Retailers Association.
At least two Fine Fettle locations in Connecticut signed LPAs with CEED 420, which is still listed as an active cannabis union in the state's licensing database.
Representatives from another established union that frequently works in the cannabis industry voiced their suspicions about whether CEED 420 is a company union, but they were only willing to speak on background.
The final word: As more states mandate labor peace agreements, questions over unions like CEED 420 underscore a broader reality: the fight to represent cannabis workers is only just beginning.
-ZH
📣 Quotable
“Having built this category from the ground up it feels like extra pressure on us to keep it alive,” Cann CEO and co-founder Jake Bullock told The Wall Street Journal. “We have to survive for these Cann drinkers.”
LIT ALERTS*
Average Revenue Per Location in NY: A Market of Extremes
This week Lit Alerts breaks down the Average Revenue Per Location in New York for February 2026, categorized by deciles. A decile represents a 10% slice of the total locations in the Lit Alerts dataset (~500), ranked from the highest earners (Decile 1) to the lowest (Decile 10).
The data reveals a significant "winner-take-all" disparity in the market.
The Top Tier (Decile 1), representing the highest-performing 10% of locations, averages over $1 million per month, translating to an annualized revenue of $12 million. It's important to note that a few Long Island retail locations significantly outperform this average.
Locations in the middle of the pack (Deciles 4–6) earn between $160,000 and $250,000 per month, with annualized sales ranging from roughly $1.8 million to $3 million.
The lowest-performing 10% (Deciles 10) earn an average of only $30,000 per month ($330,000 annually), representing a 36x difference compared to the top decile.
There is a massive 58% decrease in monthly revenue between the 1st decile and the 2nd decile. The top 10% of locations generate more annual revenue than the bottom 60% of locations combined.
*To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.
⏩ Quick hits
Lawmakers in Missouri passed a bill last week that restricts access to unregulated hemp-derived products. In the absence of new strict regulations allowing the sales outside of licensed dispensaries, gas station weed and hemp-derived gummies and drinks will essentially be banned in the Show Me State.
Minnesota operators are reporting that the state's two testing labs are taking up to six weeks to process samples as lab openings struggle to keep up
Cannabis sales in Michigan plummeted 8.3% in January compared to January, 2025 amid massive snowfall and the state's new 24% wholesale tax on cannabis.
Kentucky Rep. James Comer and Agriculture Commissioner Jonathan Shell asked Sen. Mitch McConnell, the architect of the federal ban on hemp-derived THC, to support a bill that would delay the ban set to go into effect in November for two more years.
A group of social equity dispensary operators sent a letter to Los Angeles Mayor Karen Bass urging her not sign or adopt a draft ballot measure that would levy taxes on illicit cannabis sellers. They say priority should go to enforcement, not collecting revenue.
🤝 Deals, launches, partnerships
🧳 People moves
Dutchie is hiring for a field development representative in New York. Job description here.
The Arizona Dispensaries Association announced a new slate of board directors.
Cannabis staffing firm White Ash Group hired Reid Hanson as a recruiter, he said on LinkedIn.
🧪 Science & research
A study out of Virginia Tech has revealed driving trends among regular cannabis users, while also creating a research template for long-term research into how cannabis affects driving.
Researchers found that cannabis-caused “munchies,” are a real, biological phenomenon and could help people with various illnesses that keep them from eating. Perhaps surprisingly, beef jerky was the #1 choice for high snackers. The full study was published in the Proceedings of the National Academy of Sciences (PNAS).
😜 One fun thing
The world’s oldest trip?
📰 What we’re reading
U.S. Cannabis Rescheduling: A Victory or a Federal Trap? | Business of Cannabis
Would you trust a kiosk to pick your weed? | Green State