The New Jersey Assembly Oversight Reform and Federal Relations Committee passed a bill recently allowing weed dispensaries to sell a limited number of snacks and drinks.
Dispensaries would be allowed to sell non-intoxicating snacks and drinks as long as they are not more than 30 percent of their gross sales.
The bill says, “The holder of a Class 5 Cannabis Retailer license who sells 12 non-intoxicating products in accordance with subsection a. of this 13 section shall not sell non-intoxicating foods or beverages in excess 14 of thirty percent of the store’s annual gross revenues, except that 15 the limitation on annual gross revenues shall not apply to the sale of 16 coffee or water by the Class 5 Retailer.”
Legislation Details
The bill is A 4760. It was sponsored by Assemblyman Joe Danielson (D-17), who represents part of the New Brunswick area in Central Jersey.
Danielson has been a consistent supporter of cannabis legalization for some time. His district includes Franklin Township which has a great cluster of dispensaries.
There are no other sponsors of the bill. Nor does it have a companion in the State necessary for it to be signed into law by Governor Phil Murphy (D).
So those are not good signs that it could pass soon. However, it is a good sign that it passed the committee.
Hearing on Bill to Sell Snacks and Drinks at Dispensaries
Notably, there was no one at the hearing to testify in favor of or against the bill. Usually, at least one lobbyist or policy expert is there to support it. Also, none of the Assembly committee members had any questions about it.
Assemblyman Michael Inganamort (R-24) said, “I wish there were folks testifying. I had a couple good questions. I had a feeling the conversation might have been about the vibe.”
“(Also) I would like to learn more about that impact in the industry, this new industry, and whether the current revenues are not up to expectations, or dare I say, commitment to municipalities and taxpayers,” he explained. “I’m a no.”
“Your concerns are duly noted. If you would like to reach out to the sponsor, you most certainly can,” Chair Reginald Atkins (D-20) of Union County said.
It passed 4-2, with 4 Democrats voting yes and Inganamort Assemblyman Gregory E. Myhre (R-9) of Ocean County voting no.
Legal Cannabis Economics
Cannabis consumption often makes you thirsty, known as cotton mouth. So, even a non-lounge weed dispensary being allowed to sell drinks to go with cannabis makes the most sense in the world.
Furthermore, cannabis consumption also gets you hungry often, known as the munchies. So, once again, it makes perfect sense to allow a dispensary to sell snacks as well.
Plus, even stores like Best Buy and Staples, devoted to selling electronic equipment and office supplies sell soda and snacks at the front.
Socially conservative opposition probably thinks people who get high on weed will be like heroin junkies in gutters and alleys or rowdy, stupid, or violent drunks. But that is not how cannabis consumers usually act.
Many dispensary owners are also looking to open legal cannabis consumption lounges or cannabis cafes once the NJ Cannabis Regulatory Commission (NJCRC) allows them.
However, many are concerned about the business model. Someone might just sit around after buying a small of cannabis products to get high and hang out. Plus, there are limited hours they can operate set by towns.
In a bar, people buy drink after drink to get drunk. So, the bars make good money. Thus, many potential lounge owners were hoping to adopt a more “bar and grill” type model.
However, the existing New Jersey cannabis laws do not permit dispensaries to sell food or drinks.
Legal NJ Weed Dispensaries Sales Issues
Heady NJ has heard from many owners. Dispensaries with good locations and/or funds for marketing (like advertising here at Heady NJ and elsewhere) and publicity are doing well.
A lot of South and Central Jersey dispensaries are doing well. They are getting Pennsylvania traffic since they only have medical cannabis sales there.
Those with distance issues and/or those unfamiliar with promotion are not doing as well.
To make matters worse, federal marijuana prohibition makes the tax rate for licensed cannabis companies high since they cannot deduct their expenses. Doing so is a common business practice.
At least one of them will inevitably fail within the next 12 months max. But that’s the nature of business.
