Business Buzz
By Rich Baehrle
When New Jersey legalized the sale and growing of cannabis products back in February 2021, it was flooded with license applications. Corporations with operations from other states, as well as independent entrepreneurs wanted a piece of the action. The state issued 200 licenses; there are currently more than 120 active dispensaries.
Because the process of receiving the required local and state permits can be long (one year and often much more), costly and arduous, applicants have to be patient and persistent.
Attracted by the prospect of lucrative tax revenue derived from the sale of the products, many Garden State towns have approved the sale of cannabis for medical and recreational use. They can collect a maximum of 2% from every sale. And as of April 2024, 166 New Jersey municipalities or 29% had approved the sale of cannabis products, according to the Asbury Park Press.
The annual state fee for each business is $10,000. Generally speaking, from what I have learned, the licensing process from the towns has been streamlined because they want to tap into the revenue.
In addition to the license fee, the applicants have the tedious task of finding an ideal location that is visible and convenient to the consumer. The location also must be in a designated “green zone” established by the municipality.
Many of the businesses have learned that, even if they lease a store or building, the cost of getting up and running is substantial. People hear all kinds of stories of how much money the businesses are making. That may or may not be true, but the owners deserve what they make considering that the upfront investment can range from $400,000 to $2.5 million or more, and that is not accounting for the ongoing overhead.
Egg Harbor Township is one of the towns that saw the benefit of issuing cannabis licenses. It has issued four operation licenses. Two of them are for recreational sales only, and the other two are for what are called vertically integrated businesses which include retail sales and growing.
Two of the local businesses are owned by local independent entrepreneurs.
Brute’s Roots is located at 6206 Black Horse Pike and owned by Kelly Gatto, president, and her partner Jim DiNatale. The other business, the Conservatory Cannabis Company, is located at 2516 Fire Road and owned by Jon Fleishman, chief operating officer, and Kayla Montoro, chief executive officer.
Brute’s Roots had its grand opening in September 2023. The dispensary has been doing extremely well.
Gatto says, “Customers appreciate the comfort when they enter our store and they value the affordable products that we offer. We continue to gain customers on a daily basis.”
In addition to their affordable sun-grown products, they recently launched their premium flower which tested 38% total cannabinoids.
They take pride in their team going above and beyond to service customers. In less than a year of operation, Brute’s Roots has received numerous awards including 2023 and 2024 Dispensary of the Year, Best Staff and Best Pre Roll. Their very own Mike Davis won Budtender of the Year.
They were also nominated as Best Medical Dispensary, Best Rec Dispensary and Best Overall Dispensary in Best of the Press.
The EHT dispensary is conveniently located one mile from Exit 9 on the Atlantic City Expressway.
Both Kelly Gatto and Jim DiNatale are hands-on, working alongside their grown children, which truly makes it a family affair. As a locally owned and operated company, Gatto and DiNatale have the ability to offer their community a safe place to purchase hundreds of affordable cannabis products.
Brute’s Roots has quickly made a name for itself, offering the most affordable cannabis in the state. As a vertically integrated company, they manufacture and cultivate their own products and a majority of their in-house products are priced 30-40% below market value.
They say above all, their friendly, knowledgeable staff who offer incredible service, are the most valuable assets of their business.
It took more than three years for the approvals, but apparently the wait has been worth it. You can visit Brute’s Roots at 6206 Black Horse Pike or call 609-867-6112.
The other new Egg Harbor Township dispensary is the Conservatory Cannabis Company. The modern, 5,500-square-foot retail recreational cannabis dispensary had its grand opening in August.
Kayla Montoro says, “Our valued customers immediately notice the difference between our business and other businesses when they enter into our relaxing, safe foyer. They are greeted by our friendly staff who get acquainted with the customers’ needs and requirements.
“They then proceed into our retail area where they are greeted by one of our knowledgeable budtenders. We took pride during our over three-year planning process to establish relaxing comfortable private areas with the budtenders where the customer can learn and ask questions about any of our products.
“Overall, we have 14 experienced, knowledgeable team members in addition to Jon and myself. We visit the cultivation and manufacturing facilities ourselves to meet the team behind the products that we want to sell to assure the utmost quality.”
With combined experience of over 43 years, they provide professional advice on all of their 175-plus products. They pride themselves in having over 15 vendors and are constantly searching to make sure they offer the best quality flowers and other associated product lines.
During the initial planning phase, Fleishman toured various facilities in Colorado. There was previously a stigma about the industry that the retail operations were rundown. He pledged to himself that if or when he opened in New Jersey, it would be a safe, relaxing atmosphere. Both he and Kayla realized that there would be a great opportunity to provide a vast range of products that are not only for recreational purposes, but many of them serve as healing and soothing remedies.
Since the opening, it has been an ongoing education process, Kayla said.
“One thing we’ve learned is how much customers love our interactive flower stations. We use a technology called The Peak Beyond, which is only available in four operational dispensaries in New Jersey, which makes it exclusive to our area.”
Many of the customers are not knowledgeable about the various buds. The flower stations give them the opportunity to read about the growth process, smell the product and get an overall comfort with the THC content. The process gives the consumer confidence that they are making the right decision, which is reflected in the hundreds of positive reviews.
If you are looking for a memorable experience with your purchase of cannabis products, check out the Conservatory Cannabis Company.
You can stop by at 2516 Fire Road or go online at www.conservatorycannabis.com to read what people are saying about this great company started by Jon Fleishman and Kayla Montoro.
Hours are Monday–Saturday, 11 a.m.-8 p.m.; and Sunday, noon-8 p.m. Call 609-904-9409.
Rich Baehrle, of Berkshire Hathaway Fox and Roach, can be reached at 609-266-6680 or 609-641-0011. Email richardbaehrle@gmail.com or see www.getrichinrealestateSJ.com
