Easy Entry into New York's Cannabis Industry
The application window for a Type 3 Branding License in New York is now open! The Office of Cannabis Management (OCM) is finally accepting applications for branding licenses. This is a huge opportunity for new and established brands that want to enter the lucrative New York cannabis marketplace. Here’s everything you need to know about the Type 3 branding license.
What is The Type 3 Cannabis Processor Branding License?
Type 3 Cannabis Processor license allows a third-party brand to enter white-label agreements with licensed cultivators, and other processors. This type of license allows a business to market their cannabis products in New York, without actually manufacturing any products or cultivating cannabis.
How Does Type 3 Differ From Type 1 & Type 2?
This application window for the Type 3 license is solely for branding and white labeling. This means that businesses who just want to white label products don’t need a commercial manufacturing facility. As a result, this is an easy entry point for brands that want to have their cannabis and cannabis products sold in the New York market. If processors plan to go beyond performing white-label agreements, here are two other processing activity types to consider:
- Type 1, which allows extraction (from cannabis plants) and activities under Types 2 and 3.
- Type 2, which allows infusing and blending (of extracts into cannabis products of different forms), and activities under Type 3, or…
Advantages of The Processor Type 3 Branding License
- Avoid the ‘lottery’. There is no limit to the number of Type 3 licenses granted by the OCM.
- Gives multi-state or multi-national corporations access to the NY market. the processor (Type 3) branding license might be the fastest way to penetrate the cannabis market in New York.
- Gain access to brand opportunities in New York. It has become an attractive option for brands to cut production costs while reaching new customers and increasing profits. It’s easy to enjoy the flexibility of creating various products through this as you allocate more of your time to identifying growth opportunities.
- Leverage the expertise of cannabis cultivators and processors. Type 3 license allows you to sell premium quality cannabis products under your brand name. As soon as you secure this cannabis branding license, it’s seamless to enter a white labeling agreement with another licensed processor authorized to conduct plant-touching processing activities.
- Dodge the troubles of investing in facilities. Type 3 cannabis processor license is perfect if you want to start or expand in New York without the hassle of investing in facilities. There’s no need to find a formal site location for cannabis branding. As soon as your application gets approved, you can start branding and selling cannabis products to licensed distributors.
Eligibility Requirements For Type 3 Cannabis Branding License
Before you apply, make sure you meet these eligibility requirements:
- Applicant must be of legal adult age, 21 years of age or older (the age requirement also applies to anyone in the ownership structure).
- You should be a US citizen or a permanent resident. If it’s a corporation, that’s applying, more than half of the directors should be US citizens or permanent residents.
- You should be in good standing with the OCM and should not have any disqualifying criminal records.
- Applicant must have a FEIN, or SSN if sole proprietor.
- Applicant must provide ownership, management, and financial information.
- As the state has a two-tier market structure, the entity that’s applying for a processing license cannot invest in a retail dispensary in New York.
Application & Licensing Fees
For those exclusively applying for a New York cannabis brand license, a non-refundable fee of $1000 must be paid upon application. Once the Processor Type 3 Branding license gets approval, $2000 must be paid for issuing the final license. Qualified Social and Economic Equity applicants and licensees may pay 50% of the value of the application and license fees. License fee reduction also applies to processors who have a distributor license.
Why Work With CannDelta?
CannDelta’s expertise provides an easy pathway for businesses that want to start a New York cannabis brand. As there is no set schedule for future rounds, CannDelta’s unparalleled service can ensure the completion of your application, assist with brand and business development, product commercialization, and introduce you to processors and cultivators who can bring your product to life. Contact CannDelta today to learn more.
Frequently Asked Questions
What is a New York Processor Type 3 Cannabis Branding License?
The New York branding license is a permit granted by the OCM so brands can legally enter branding agreements with in-state licensed cultivators and processors. Essentially and legally, it does not allow you to conduct cultivation and manufacturing. Type 3 processor license only allows you to brand, package and white-label cannabis products with your brand and sell them in the New York market.
How Much Does it Cost to Get a Type 3 Cannabis License in New York?
You can get a branding license in New York by submitting an application and getting approval from the Office of Cannabis Management (OCM). You must meet the eligibility criteria outlined by the OCM and pay the application fee for the Office to consider you for the license. As securing a Type 3 cannabis processor license involves a lot of intricacies, it’s recommended to consult professionals and experts in the cannabis industry to ensure compliance.
How Do I Get a Type 3 Processor Branding License in New York?
You can get a branding license in New York by submitting an application and getting approval from the Office of Cannabis Management (OCM). You must meet the eligibility criteria outlined by the OCM and pay the application fee for the Office to consider you for the license. As securing a Type 3 cannabis processor license involves a lot of intricacies, it’s recommended to consult professionals and experts in the cannabis industry to ensure compliance.
