The Travel Agency on Fifth Avenue in New York is a recreational marijuana dispensary for adults.
Courtesy: The Travel Agency
Cannabis consumption has taken a turn — and now it’s on Fifth Avenue.
Shoppers walking along the New York retailer’s iconic section can pick up jewelry 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 marijuana for adults, sales of licensed cannabis have taken off, topping $100 million last year. And now, legal avenues for consuming cannabis are gaining ground in the luxury market.
As New York officials crack down on the hundreds of illegal shops across the city, 166 licensed dispensaries are open to shoppers across the state, including more than 50 in New York City — and one right across the street Lululemon and Ted Baker.
The Travel Agency on Fifth Avenue is an adult recreational marijuana dispensary equipped with white interiors, glass cabinets, plenty of buttenders, and lots of marijuana.
The retailer’s exterior matches the sleek storefronts of its neighbors and 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 in one of the city’s other upscale shopping districts, SoHo.
The Travel Agency on Fifth Avenue in New York is a recreational marijuana dispensary for adults.
Courtesy: The Travel Agency
At The Travel Agency, Yau said the average purchase includes two products, mainly gum, marijuana flower or pre-rolls, at an average price of $80 to $90 per ticket. Products range from $3.50 THC seltzers to flowers selling for $150 per ounce, and accessories are priced even higher.
New York’s first licensed dispensary, Housing Works Cannabis Co., sells products at prices that are similar, but a shopper can spend even more there, paying as much as $240 for an ounce of marijuana. All proceeds of Housing Works Cannabis Co. they support the nonprofit Housing Works in New York.
The Travel Bureau’s Union Square location donates 51% of its proceeds to the Doe Fund, which supports ex-prisoners transitioning to life outside of prison. The Fifth Avenue and Brooklyn stores are run by owners with backgrounds in the cannabis-related justice system.
While the elevated interiors pass on heritage and new buyers, Yau said the ethical mission keeps customers coming back. “It’s huge, it just provides such a halo,” he added.
Getting to the “kanna-weird”
New York has always had what the industry calls a “legacy” customer base, or those who used marijuana before it was legalized.
Now, with Travel Bureau locations in high-traffic, high-spending areas, Yau said he’s reaching out to “strange hemp” with curated product offerings and an architecture-inspired space to ease entry into the legal market.
The Travel Agency on Fifth Avenue in New York is a recreational marijuana dispensary for adults.
Courtesy: The Travel Agency
“The 40-year-old female shopper is a really strong demographic, and that demographic is just emerging in New York,” Yau said, adding that the stores were designed with this type of new shopper in mind. “When people came into our store, they knew right away that it wasn’t an illegal store.”
One such female patron, Katie, a 37-year-old advertising executive who works in New York and declined to give her last name, said the atmosphere and the expertise of the workers keep her coming back. “You feel like you’re in a boutique,” she said.
THC seltzer company Cann also hopes to appeal to curious consumers, particularly those who have had a negative experience with marijuana in the past. Both Yau and Cann’s founder, Jake Bullock, told CNBC that marketing is key to navigating this headwind to mainstreaming queer cannabis.
THC seltzer company Cann sells a 12-pack of 8-ounce seltzer with 2 milligrams of THC for $49.95.
Courtesy: Cann
“Part of the reason we made these cans, small and small and pink and pastel, is because we’re trying to communicate accessibility to the consumer, like you can drink the whole thing. Don’t worry, it’s only 2 milligrams.” Bullock said.
A 12-pack of 8-ounce Cann Seltzers with 2 milligrams of THC costs $49.95. By comparison, shoppers can find a 12-pack of White Claw spirits for well under $20.
The luxurious marijuana experience is not limited to THC products.
Luxury home designer Jonathan Adler is selling marijuana-themed home decor items like marijuana storage containers and bowls for nearly $300 apiece. Lifestyle company Edie Parker sells everything from smoker-friendly bags to rolling papers, giant colorful glass pipes and $450 table lighters, many of which you can find in boutiques and law offices like The Travel Agency and Housing Works Cannabis Co.
Actor Seth Rogen’s lifestyle and decor brand Houseplant also caters to the luxury cannabis user. Marble scroll trays and ash trays cost well over $200, and the company recently partnered with high-end clothing retailer Kith.
The Travel Agency on Fifth Avenue in New York is a recreational marijuana dispensary for adults.
Courtesy: The Travel Agency
Partnerships will likely continue. Yau said he believes dispensaries like The Travel Agency offer promising partnerships for fashion brands hoping to capitalize on the “coolness” of the growing cannabis industry.
Finding luxury consumers where they are
THC seltzer company Cann has high profile endorsers including actress and lifestyle entrepreneur Gwyneth Paltrow and two-time NBA All-Star Baron Davis. The beverage company is trying to catch consumers where they are willing to spend.
At the Montauk Surf Lodge in New York, where guests pay at least $3,000 for a one-night table, they can now buy a hemp-derived version of Cann’s Seltzers along with local rosé and premium liquor.
Cann co-founder Jake Bullock said his brand’s target audience is a premium, largely millennial consumer, and its competition is alcohol. Bullock and co-founder Luke Anderson see the Surf Lodge partnership as an ideal introduction to that audience — via the Hamptons’ affluent crowd that’s already enjoying and spending big.
THC seltzer company Cann sells a 12-pack of 8-ounce seltzer with 2 milligrams of THC for $49.95.
Courtesy: Cann
“It has the very classic customer that Luke and I thought the brand fits into their lives,” he said.
Yau, who spoke to CNBC while telecommuting near the Hamptons, also knows that target audience. “We think we’re still in the early stages of New York legal cannabis,” he said.
