Cannabis industry targets luxury consumers in New York

Cannabis consumption has turned a corner — and now it’s on Fifth Avenue.

Shoppers walking along the iconic New York stretch of retailers can pick up jewels from Cartier and new threads from Saks, as well as pre-rolled, New York state-grown marijuana joints from a new dispensary. 

In the 3½ years since New York state legalized adult-use marijuana, licensed cannabis sales have taken off, topping $100 million last year. And now, legal avenues for cannabis consumption are gaining traction in the luxury market. 

As New York officials crack down on the hundreds of illicit shops throughout the city, 166 licensed dispensaries are open to shoppers across the state, including over 50 in New York City — and one just across the street from Lululemon and Ted Baker. 

The Travel Agency on Fifth Avenue is an adult-use recreational marijuana dispensary outfitted with white interiors, glass cabinetry, a host of “budtenders” and a lot of marijuana.

The retailer’s exterior fits in with the chic storefronts of its neighbors, and with its sister locations in Union Square and Downtown Brooklyn. All three stores opened in the past year and a half, and founder Paul Yau said a fourth is coming soon to one of the city’s other high-end shopping districts, SoHo.

At The Travel Agency, Yau said the average purchase includes two products, largely gummies, marijuana flower or pre-rolls, at the average price of $80 to $90 a ticket. Products range from $3.50 THC seltzers to flower selling at $150 per ounce, and accessories go for even higher price points.

New York City’s first licensed dispensary, Housing Works Cannabis Co., sells products at rates that are similar, but a shopper can spend even more there, paying up to $240 on one ounce of marijuana. All of Housing Works Cannabis Co.’s proceeds support the Housing Works nonprofit in NYC. 

The Travel Agency’s Union Square location donates 51% of its proceeds to the Doe Fund, which supports formerly incarcerated people transitioning to life outside of prison. The Fifth Avenue and Brooklyn stores are run by owners with a past in the justice system related to cannabis.

While the elevated interiors get legacy and new shoppers through the door, Yau said the ethical mission keeps customers coming back. “It’s huge, it just provides such a halo,” he added.

New York has always had what the industry calls the “legacy” customer base, or those who used marijuana before it was legalized.

Now, with The Travel Agency locations in high-traffic, high-spending areas, Yau said he’s reaching the “canna-curious” with curated product offerings and an architecturally inspired space to ease onboarding into the legal market.