Jetty Extracts Eyes New York Expansion After California Survival

California extract maker Jetty Extracts is pushing into New York's adult-use market after weathering years of consolidation and price compression in its home state. CEO Nate Ferguson said the company's focus on medical patients and sustainable practices helped it survive when competitors collapsed.

"We've always been patient-focused first," Ferguson told High Times. "When everyone was racing to the bottom on price, we stuck with quality and the medical community."

The company launched in 2013 as one of California's early extraction brands, building its reputation on solventless concentrates and strain-specific vape cartridges. While many California brands expanded aggressively during the 2018-2021 boom—only to retreat or shutter during the subsequent bust—Jetty maintained steady growth without overleveraging.

The California Survival Strategy

California's legal cannabis market has seen wholesale prices drop more than 50% since 2021. The state's Franchise Tax Board reported that total cannabis sales fell to $4.4 billion in 2023 from a peak of $5.2 billion in 2021. Dozens of extraction brands either consolidated or closed entirely.

Ferguson attributes Jetty's survival to three factors: maintaining relationships with medical dispensaries even as adult-use took off, investing in sustainable extraction methods that reduced costs long-term, and avoiding debt-fueled expansion.

"We watched companies raise massive rounds and then couldn't service the debt when margins compressed," he said. "We grew at a pace our revenue could support."

The company now operates in California, Oregon, and Nevada, with New York representing its first major East Coast push.

Building in New York

New York's adult-use market launched in December 2022 but has faced significant growing pains. The state has issued roughly 150 dispensary licenses, far fewer than the 500-plus originally projected for year one. Legal operators compete with an estimated 1,400 unlicensed shops across New York City alone.

Jetty plans to enter through manufacturing partnerships rather than direct retail ownership. Ferguson said the company is in talks with several licensed New York operators to produce its vape and concentrate lines locally.

"New York's Conditional Adult-Use Retail Dispensary program prioritized justice-involved applicants, which we fully support," Ferguson said. "But those operators need experienced manufacturing partners who understand compliance and quality control."

The state requires all cannabis products sold at licensed dispensaries to be manufactured in-state, creating opportunities for established brands to partner with New York licensees.

The Compassion Angle

Uncommon for a cannabis executive interview, Ferguson spent significant time discussing the company's medical program discounts and patient education initiatives. Jetty offers a 20% discount for medical cardholders and has donated more than $500,000 to cannabis research and patient advocacy groups since 2016.

"The industry got very bro-y and investor-focused for a few years," Ferguson said. "But we're still a medicine for a lot of people. That can't get lost in the business side."

The company also maintains a sustainability program that's tracked its carbon footprint since 2015—rare for a cannabis brand. Jetty reports using 100% renewable energy for extraction and has planted more than 100,000 trees through reforestation partnerships.

What's Next

Ferguson said Jetty will announce its New York manufacturing partner within 60 days, with products expected on dispensary shelves by late Q2 2025. The company is also exploring opportunities in New Jersey and Massachusetts, though no deals are finalized.

The focus remains on vape cartridges and live resin products, which represented 68% of U.S. cannabis concentrate sales in 2024 according to Headset data. Jetty recently launched a line of high-potency live rosin cartridges priced at $45-55, positioning between budget and ultra-premium tiers.

"We're not trying to be in 20 states," Ferguson said. "We want to be in the right states with the right partners, doing it properly."

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