The Travel Agency on Fifth Avenue in New York City is an adult recreational marijuana dispensary.
Courtesy: Travel Agency
Marijuana consumption has reached a tipping point—and now it’s on Fifth Avenue.
Shoppers strolling along New York’s iconic retail mall can buy jewelry from Cartier, new yarn from Saks and pre-rolled New York state-grown marijuana cigarettes from a new dispensary.
In the 3 1/2 years since New York state legalized adult-use marijuana, licensed marijuana sales have grown significantly, topping $100 million last year. Now, legal access to cannabis consumption is gaining traction in the luxury market.
As New York officials crack down on hundreds of illegal stores across the city, 166 licensed dispensaries are open to shoppers across the state, including more than 50 in New York City, including one just across the street lululemon and Ted Baker.
The Travel Agency on Fifth Avenue is an adult-use recreational marijuana dispensary with a white interior, glass cabinets, a bevy of “flower girls” and plenty of marijuana.
The retailer’s look complements the chic storefronts of its neighbors, as well as sister stores in Union Square and downtown Brooklyn. All three stores have opened in the past year and a half, and founder Paul Yau said a fourth store is about to open in SoHo, another high-end shopping district in the city.
The Travel Agency on Fifth Avenue in New York City is an adult recreational marijuana dispensary.
Courtesy: Travel Agency
Yau said The Travel Agency’s average purchase includes two products, mostly gummies, cannabis flower or pre-rolls, with an average price of $80 to $90 per ticket. Products range from $3.50 for THC sodas to $150 for an ounce of flower, with accessories priced even higher.
Housing Works Cannabis Co., New York City’s first licensed dispensary, sells products at similar prices, but shoppers can spend more there, with an ounce of marijuana costing as much as $240. All proceeds from Housing Works Cannabis Co. support the Housing Works nonprofit organization in New York City.
The travel agency’s Union Square location donates 51 percent of proceeds to the DOE Fund, which supports formerly incarcerated people transitioning to life outside prison. The stores on Fifth Avenue and Brooklyn are run by store owners with experience in the justice system related to marijuana.
While the upgraded interior attracts both traditional and new shoppers, the ethical mission keeps customers coming back, Yau said. “It’s big and it just provides such an aura,” he added.
Reach “canna curiosity”
New York has always had what the industry calls a “traditional” customer base, those who used marijuana before it was legalized.
Now, with The Travel Agency opening locations in high-traffic and high-spending areas, Yau says he’s satisfying “canna curiosity” with carefully curated products and architecturally inspired spaces to facilitate access to the legal market.
The Travel Agency on Fifth Avenue in New York City is an adult recreational marijuana dispensary.
Courtesy: Travel Agency
“The 40-year-old female shopper is a very powerful group that is just emerging in New York,” Yau said, adding that the stores are designed with this new shopper in mind. “When people walk into our store, they know immediately it’s not an illegal store.”
One such customer, Katie, a 37-year-old advertising executive in New York who declined to give her last name, said the atmosphere and the staff’s expertise keep her coming back. “You feel like you’re in a boutique,” she said.
THC soda company Cann also hopes to attract curious consumers, especially those who have had negative experiences with marijuana in the past. Both Yau and Cann founder Jake Bullock told CNBC that marketing is key to overcoming the headwinds of canna curiosity.
THC soda company Cann sells 12-packs of 8-ounce sodas containing 2 milligrams of THC for $49.95.
Courtesy: Cann
“Part of the reason we make these little, pink and pastel cans is we’re trying to convey an approachable message to consumers, like you can drink the whole can. Don’t worry, it’s only 2 milligrams,” Bullock said. .
A 12-pack of 8-ounce Cann sparkling water, which contains 2 milligrams of THC, costs $49.95. By comparison, shoppers can find a 12-pack of White Claw alcoholic soda for well under $20.
The premium cannabis experience isn’t limited to THC products.
Luxury home designer Jonathan Adler sells cannabis home decor, such as marijuana storage jars and bowls, for nearly $300 each. Lifestyle brand Edie Parker sells everything from smoking-friendly bags to rolling papers, giant stained glass pipes and $450 desk lighters, many of which can be found at boutiques like The Travel Agency and Housing Works Cannabis Co. Legal dispensaries found.
Actor Seth Rogen’s lifestyle and décor brand Houseplant also caters to luxury cannabis users. Marble rolling trays and ashtrays sell for well over $200, and the company recently partnered with high-end clothing retailer Kith.
The Travel Agency on Fifth Avenue in New York City is an adult recreational marijuana dispensary.
Courtesy: Travel Agency
The collaboration is likely to continue. Yau said he sees dispensaries like The Travel Agency as promising partnerships for fashion brands looking to capitalize on the “coolness” of the booming cannabis industry.
Finding where luxury consumers are
Backers of THC soda company Cann are high-end in their own right, including actress and lifestyle entrepreneur Gwyneth Paltrow and two-time NBA All-Star Baron Davis . The beverage company is trying to attract consumers wherever they want to spend their money.
At New York’s Montauk Surf Inn, where guests pay at least $3,000 a night, they can now buy a cannabis-derived version of Cann soda, as well as local rosé wine and high-end spirits.
Cann co-founder Jake Bullock said his brand is targeting high-end consumers, primarily millennials, and competes with alcohol. Bullock and his co-founder Luke Anderson thought the partnership with Surf Lodge was the ideal way to introduce audiences through the Hamptons’ affluent crowd who were already addicted to big spending.
THC soda company Cann sells 12-packs of 8-ounce sodas containing 2 milligrams of THC for $49.95.
Courtesy: Cann
“It has some very classic customers, and Luke and I think the brand fits their lives,” he said.
Yau, who spoke to CNBC while working remotely near the Hamptons, is also aware of this target audience. “We think we’re still in the first inning of legal marijuana in New York,” he said.
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