GrowGeneration is focused on east coast expansion as New York approaches cannabis legalization
Darren Lampert, CEO of GrowGeneration, told CNBC on Thursday that the company is focused on expansion on the east coast as New York State comes inches closer to legalizing recreational marijuana.
“You will see us shortly enter the markets on the east coast,” he said in an interview with Jim Cramer about “Mad Money”.
New York lawmakers could put a bill to legalize marijuana to vote in the congregation as early as next week, Associated Press reports. If passed, the bill is expected to be signed by Democratic Governor Andrew Cuomo.
Next door in New Jersey, marijuana is now legal for recreational use, though the state still has rules and regulations for its sale. GrowGeneration, which operates dozens of grow businesses across the country, plans to open stores in New Jersey soon.
“We’re still waiting for the licensing to confirm, how big the licensing will be, how restrictive it will be,” he said. “More importantly, the craft licensing … unlimited craft licensing, which is great for GrowGeneration.”
GrowGeneration operates more than 50 grow shops in 12 states. Most are in the western part of the country, many in California. The company operates a handful of stores in Maine, Florida and Massachusetts.
The company sells the “picks and shovels” products like lights and hydroponics that are used to grow cannabis indoors, Lampert said.
“What you are seeing now, Jim, is a fundamental change [in] controlled environment ag, “he said.” We sell the inputs. We sell the technologies, the solutions that control the environment in which plants live. “
On Wednesday, GrowGeneration reported total annual sales of $ 193.0 million in 2020, up 143% year over year. It was the third year in a row that the company had posted triple-digit sales growth. Executives expect business to more than double again this year.