Rino Ferrarese, proprietor of Affinity Grow and Affinity Health & Wellness, has called attention to the competitive disadvantage faced by legal cannabis businesses amid the proliferation of smoke-shop vendors selling unregulated cannabis. As a licensed cultivator and retailer, Ferrarese’s operations employ roughly 100 people across his indoor production facility and dispensaries in New Haven and Bridgeport.
Despite Connecticut’s January 2023 legalization of recreational cannabis, the industry has yet to reach projected profitability. Recent figures show a milestone of over $18 million in statewide recreational sales for the summer—yet still falling far short of initial forecasts.
Ferrarese identifies two primary factors undermining the legal market:
- Tax structure: Connecticut’s current model taxes cannabis based on THC content, which can drive up prices for flower and edibles. Ferrarese argues that selecting a pricing-based tax model—like that used in Massachusetts—would better align costs for consumers, reducing the incentive for them to cross state lines to purchase more affordable products.
- Illegal market actors: Smoke shops that illegally sell unregulated cannabis—potentially containing harmful contaminants such as pesticides or nitazenes—present health risks and siphon business from regulated dispensaries. Ferrarese urges stronger enforcement to curtail illicit sales and bolster the legitimacy of legal operations.
A noteworthy proposal under consideration in New Haven would impose fines of up to $30,000 for those caught selling illegal cannabis. Ferrarese expressed mixed feelings about penalties of that magnitude. While he supports holding lawbreakers accountable, he suggested a tiered approach: a lighter penalty for a first offense, with progressively stiffer consequences for repeat violations.
Ferrarese also reflected on how legalization has shifted societal attitudes toward cannabis. Although purchasing cannabis legally feels surreal to him—given his upbringing in Bridgeport where possession was heavily stigmatized—he believes that much of the cultural stigma persists. Meanwhile, he points out that legal cannabis businesses, with smaller means compared to large multi-state firms, are trying to compete with less financial firepower.
Dabbin-Dad Newsroom
