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New Jersey: Navigating the Next Frontier of Cannabis

New Jersey is the most exciting cannabis market in the country. With 9.2 million residents, over 114 million annual tourists, and a significant rate of cannabis consumption, the total addressable market of the state is remarkable. Experts project that the New Jersey market will reach $2.1 billion at maturity. Paired with steep barriers to entry, the market dynamics create fertile ground for savvy and experienced operators to flourish.       

As of October 11, 2023, there have been 53 standard cultivator licenses and 133 retail licenses awarded. This trend is expected to continue in the coming years with retail outlets steadily outstripping the number of producers. States like Nevada turned this beneficial dynamic on its head when the cannabis regulatory body awarded more cultivation licenses than retail licenses from the earliest days of the market, driving producers to quickly race to the bottom with their pricing. While many states followed Nevada’s example, the New Jersey market is charting a new path. This can partially be attributed to the regulators’ foresight in structuring the licensing process, and partly to high barriers to entry for producers.

The New Jersey market is nascent, and the majority of licensees are not yet operational. As such, the competitive landscape is sparse. The earliest operators are fully taking advantage of the oligopolistic scenario and have fallen short in providing consumers with the product quality and pricing demanded. The current operators seem to be taking the stance that they will make hay while the sun shines, but unfortunately for them, that is not a winning long-term strategy. Those operators are often skipping critical steps in post-harvest processing to get more product to market, then charging exorbitant prices for the resulting sub-par quality. For illustration, the average price per gram in New Jersey is $17.14, which is well above the average price in other recreational states.  

This is where Fresh Cut comes in. The founders have been instrumental in launching cannabis companies in 9 states and have learned many lessons in achieving success in a tough industry. Rather than focusing on producing the most volume, Fresh Cut is committed to producing the best products. To this end, Fresh Cut has designed a purpose-built facility to support every facet of cannabis cultivation and manufacturing.

Fresh Cut believes that cannabis will follow the path of other consumer packaged goods and customers will gravitate to the best tasting products. By blending cutting edge environmental control, lighting, and extraction technologies with a handcrafted approach, Fresh Cut will create cannabis products that promote flavor and a highly desirable user experience. In the way that craft beer and fine wine are designed to be enjoyed, cannabis producers need to prioritize experience as well. In a market where many producers’ sole aim is to pump out more volume, those that listen to their consumers’ wants and have the tools to accommodate them will rise to the top. For operators like Fresh Cut that have a clear focus on product quality and the operational know-how to execute, the New Jersey cannabis market is shaping up to become the perfect landscape to achieve success.

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