GrowGeneration focuses on East Coast expansion as New York moves closer to legalizing cannabis
GrowGeneration CEO Darren Lampert told CNBC Thursday the company is focused on expanding on the East Coast as New York state inches closer to legalizing recreational marijuana.
“You’ll see us entering the East Coast markets shortly,” he said in an interview with Jim Cramer on “Mad Money.”
New York legislators could bring a bill to legalize marijuana up for a vote in the Assembly as soon as next week, the Associated Press reports. If it passes, the bill is expected to be signed by Democratic Gov. Andrew Cuomo.
Next door in New Jersey marijuana is now legal for recreational use, though the state is still finalizing rules and regulations for sales. GrowGeneration, which operates dozens of grow shops across the country, is planning to open for business in New Jersey soon.
“We’re still waiting on confirmation of licensing, how large the licensing is going to be, how restrictive it’s going to be,” he said. “More importantly craft licensing … unlimited craft licensing, which is wonderful for GrowGeneration.”
GrowGeneration operates more than 50 grow shops in 12 states. Most are located in the western part of the country, with many in California. The company operates a handful of stores in Maine, Florida and Massachusetts.
The company sells the “picks and shovels” products, such as lights and hydroponic supplies, used to grow cannabis indoors, Lampert said.
“What you’re seeing right now, Jim, is a sea change [in] controlled environmental ag,” he said. “We sell the inputs. We sell the technologies, the solutions that control the environment that plants live in.”
On Wednesday GrowGeneration reported full-year revenues of $193.0 million in 2020, up 143% from the year prior. It was the third straight year the company saw triple-digit revenue growth. Executives expect business to more than double again this year.
