Fluent Shutters New York Cultivation Facility, 37 Jobs Cut

Fluent Cannabis is closing its Etain-branded cultivation and packaging facility in Chestertown, New York, eliminating 37 positions as the company streamlines operations ahead of its pending merger with Vireo Health.

The Florida-based multistate operator acquired Etain, one of New York's original medical marijuana licensees, but is now consolidating its Empire State footprint. The Chestertown facility closure marks a significant retreat from cultivation operations in a state where cannabis companies have struggled with oversupply and pricing pressures since adult-use sales launched in late 2022.

Fluent announced its merger agreement with Vireo Health in December 2024, a deal that would combine two companies with deep roots in New York's medical program. Vireo operates cultivation, processing, and retail locations across the state under the Vireo and Goodness Growth brands.

Consolidation Wave Continues

The move reflects broader consolidation trends in New York's cannabis market, where numerous operators have scaled back or exited entirely. Adult-use sales have grown steadily—the state reported over $150 million in monthly sales by late 2024—but profit margins remain thin for many licensees.

Etain was founded in 2015 by the Etain family and became one of New York's first registered organizations under the state's restrictive medical marijuana program. The company operated multiple dispensaries and the Chestertown cultivation site in the Adirondacks region. Fluent acquired Etain in 2022 for approximately $34 million in stock, viewing it as an entry point into New York's anticipated adult-use market.

But the acquisition came just as market conditions deteriorated. New York's regulatory rollout has been chaotic, with illicit operators vastly outnumbering licensed dispensaries and wholesale prices plummeting as cultivation capacity outpaced retail build-out.

What the Vireo Deal Means

The Fluent-Vireo merger, expected to close in 2025 pending regulatory approval, would create a combined entity with greater scale in key markets including New York, Maryland, and Minnesota. Vireo's existing New York cultivation and processing infrastructure likely makes Etain's Chestertown facility redundant.

Fluent has been working to stabilize its balance sheet after reporting consistent losses. The company posted a net loss of $15.7 million in Q3 2024, though revenue grew 12% year-over-year to $44.6 million. Closing underperforming facilities and cutting costs are standard moves for cannabis companies navigating the current market downturn.

The 37 affected employees at the Chestertown facility join thousands of cannabis workers who have lost jobs industry-wide over the past two years as companies right-size operations. New York's cannabis workforce has been particularly volatile, with cultivators and processors bearing the brunt of layoffs.

New York's Oversupply Problem

New York regulators have issued over 130 cultivation licenses since launching the adult-use program, but retail licensing has lagged dramatically. The state has fewer than 200 licensed dispensaries serving a population of 19 million, creating a massive bottleneck.

Wholesale cannabis prices in New York have dropped below $1,000 per pound in some cases, down from $3,000-plus in early 2023. That price compression has made large-scale cultivation operations difficult to justify, especially for companies operating multiple facilities.

Fluent has not announced plans for Etain's retail locations, which remain operational. The company continues to serve New York's medical marijuana patients, a market that has shrunk as adult-use access expands.

The Chestertown facility closure is expected to be completed in Q1 2025, according to regulatory filings. Fluent did not immediately respond to requests for comment on whether additional consolidation is planned following the Vireo merger's completion.

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This article is based on original reporting by mjbizdaily.com.