Industry Leaders to Know: Kaelan Castetter

In the infamous words of Penny Lane, "it’s all happening." Adult-use cannabis is legalized, cultivator licenses are being approved, and New York State has begun legal cannabis retail sales. With so much happening, it can be hard to know where to look–or who to look to–for leadership within the cannabis industry. Kaelan Castetter is one of these local leaders.

Kaelan’s investment into the cannabis industry began with his father, Jim, who launched the very first hemp-infused wine in 1997. After two years of success, the wine was federally repealed for its hemp label. The Castetters fought the ruling–and won. Thus, Sovereign Wines is still alive and well today. Kaelan himself went on to start the Castetter Cannabis Group, an advisory firm that helps businesses make well-informed strategic decisions as they enter the New York cannabis industry to set them up for long-term success. Castetter then co-founded the New York Cannabis Growers & Association, a lobbying group heavily involved in discussions around adult-use legislation, and even helped to draft the landmark Hemp Extract Law in 2019. With his own podcast and continuous involvement in political and industry events and conferences, we’re not sure when Castetter has the time to relax! Hopefully, cannabis helps with that.

Castetter’s resume is impressive, but that’s not all that makes him a great leader for the industry. He brings important conversations to the table that otherwise may be overlooked or undervalued. Such topics include the inadvertent impact of federal legalization and FDA regulation on small businesses, urban cannabis farming, the lack of conversation surrounding equity in medical cannabis, and more.

Castetter keeps a finger on the pulse of New York State’s challenges in cannabis legalization, offering a perspective that reaches beyond partisan issues. His involvement and passion for the industry have been key to keeping the conversation going–a critical piece of New York’s success in cannabis.

NYSCC: What are you currently focused on at the Castetter Cannabis Group?

Castetter: We are really focused on helping our clients with strategic business planning, raising capital, and policy development. Our team is doing [valuable] research on regulations in other states, gaining a lot of insight.

NYSCC: You’ve spoken out on federal legalization and its adverse effects on New York State. Can you elaborate?

Castetter: It’s the way they’re doing it that’s the problem. There’s too much red tape–compliance, TTB, FDA regulations, adding another level of taxation. It puts it out of reach for small businesses. Interstate commerce will drive down prices for NYS growers.

While federal legalization seems like the end goal, Castetter raises an important issue. The reality will almost certainly be different from the state's ideal. While federal legalization protects against criminalization, state-regulated cannabis actually helps small businesses and legacy brands remain successful in their local markets.

When asked about an ideal cannabis industry in NYS, Kaelan emphasized that the government needs to understand it is an existing market, noting that the cultivation tax should be removed entirely. Done correctly, existing small businesses would then have the ability to scale up effectively. Manufacturing hubs have the potential to succeed in cities both big and small, in both Rochester and Binghamton. Castetter also notes that not every state will have the ability to have a thriving cannabis industry, so the end goal would ideally be for NYS businesses to service those states with manufacturing or other industry needs.

NYSCC: What advice to you have for entrepreneurs entering cannabis?

Castetter: Get involved to gain perspective. Attend the Cannabis Control Board’s committee meetings or watch the archived meetings on their website. They also offer a "Get Ready, Get Set" workshop program [that] is important for anyone interested in obtaining a dispensary license.

NYSCC: Based on your resume, you’re a busy guy. What do you do outside of your career?

Castetter: Working in cannabis, I’m really able to mix work and [my] social life. There are so many great people in the industry. Outside of that, NYC has the best restaurants in the world. I love to discover new food, see comedy shows and music.

Originally from Binghamton, Kaelan says he spends as much time upstate as he can in the summers. And yes–like a true New Yorker, he is not only a Yankees fan but also a Bills fan.

You can keep up with Kaelan by connecting with him on Twitter.