Kimberly Redmond//March 11, 2024//
Joyleaf is co-owned by Jason Ackerman (right), the founder and former CEO of online grocery delivery service FreshDirect. The store is led by Dharshini Casinathen (left), a certified cannabis sommelier and CPA with over 20 years of experience. – PROVIDED BY JOYLEAF
Dot-com bust survivor creates new kind of cannabis dispensary in Roselle
Joyleaf is co-owned by Jason Ackerman (right), the founder and former CEO of online grocery delivery service FreshDirect. The store is led by Dharshini Casinathen (left), a certified cannabis sommelier and CPA with over 20 years of experience. – PROVIDED BY JOYLEAF
Kimberly Redmond//March 11, 2024//
As co-founder and former chief executive officer of popular online grocery service FreshDirect, Jason Ackerman went head-to-head with e-commerce giants like Amazon on a daily basis. Now, the Scotch Plains native is taking on a new challenge — establishing himself in New Jersey’s emerging cannabis market.
In launching Joyleaf as the first recreational dispensary in Roselle, Ackerman opened one of the 100-plus legalized storefronts that can now be found across the state.
Ackerman is no stranger to the industry. Following his 2018 departure from FreshDirect, he went on to serve as CEO and executive chairman of cannabis giant TerrAscend, a multistate operator that has nearly 40 dispensaries nationwide, including three in New Jersey (Lodi, Maplewood and Phillipsburg).
Now, he’s tapping into the expertise he gained in each sector to rethink the retail experience so that customers can engage with cannabis in a way that is both comfortable and empowering.
For Ackerman, running a cannabusiness “is not that different” from managing an e-grocery venture. “When you look at it, the merchandising, the growing practices, the product selection practices, the retail practices, knowing who your customer is, communicating to build loyalty and retention of customers is the exact same thing. It’s just a different product,” Ackerman said.
“The only thing about cannabis that is hard is obviously the regulatory components are unique in every state. And so, there’s that nuance about what may work in California may not work in New Jersey or in Canada. That was a new element because not every state is a good state depending on those dynamics,” he said.
Nearly three years after adult-use sales began in New Jersey, regulators are confident the market will eclipse the $1 billion point in 2024.
As part of an effort to move the industry forward, the state recently approved several highly anticipated measures, like a framework allowing on-site consumption lounges at medicinal dispensaries and recreational-use retailers as well as guidelines for the launch of cannabis-infused edible products, like drinks, candies and pastry-style treats. It also opened up three additional classes of business licenses: wholesale, distribution and delivery service.
“While a lot of independent stores are opening, the supply has not gotten very sophisticated or innovative, so we’re dealing with a lot of very similar menus,” Ackerman said. “What’s going to happen is you’re going to see a large amount of independent processors, growers, manufacturers and innovative products coming in the next 12 months that I think is going to rethink the landscape. It will allow retailers and brands to probably start to differentiate themselves, move away from these common large-scale producers and get more craft growers that can produce better quality products and more innovation. I think that will start to bring people in from the illicit market.”
“There’s going to be a big shift of what’s on shelf, the type of products on shelf, who’s supplying and how they’re supplying,” he said. “I think the new [license] winners are going to show up and it gives retailers a chance to curate products that could hone more into what consumers are looking for. It’s going to be very interesting over the next 12 months how that evolves.”
Coming home
Joyleaf opened December 2023 in a place that Ackerman is very familiar with. Located at 711 E. First Ave., the new store is in a shopping plaza built at the former site of Economy Color Card Co. Inc., a color sample factory that Ackerman’s family operated for over 50 years.
As a teenager, Ackerman pitched in at the factory and was ultimately in line to take over but instead chose to follow in the footsteps of his uncle, financier Peter Ackerman.
After graduating from Boston University, Ackerman became an investment banker with Donaldson Lufkin & Jenrette and Crown Capital Group, where he specialized in mergers and acquisitions and corporate finance primarily for the supermarket and specialty retail space.
“That led to my familiarity with food and that was the connection to wanting to build an asset,” he said. “I consider myself an entrepreneur more than an investment banker, so once I hit 30, I really wanted to build my own company because I wanted to be more in control of my life and I wanted to take more risk.
“It was almost three full years of research and meeting with everyone and anyone in the industry around how to build a model that was sustainably different than everyone else. Everyone told me I was out of my mind, but that did not deter me one bit,” said Ackerman, who added, “When I started FreshDirect, I actually didn’t have an email account and I still used fax machines.”
During the dot-com boom in the late 1990s, several internet grocers, like Priceline, WebVan and Kozmo.com, burst onto the scene and expanded aggressively into various cities. But when the bubble burst, financing dried up and most of these companies went bankrupt.
Co-founded in 1999 by Ackerman and former Fairway Market CEO Joe Fedele, FreshDirect has defied the odds to become one of the oldest online-only grocery delivery players in the U.S. thanks to a model that relies on a combination of online ordering and central distribution.
While many other companies sought to link the power of the web to grocery shopping, FreshDirect focused on fresh food – not delivery technology – and to shorten the supply chain to produce a fresher product at a lower price.
“I did not start the business because I felt that people needed home delivery. The actual idea stemmed from understanding consumer trends and food, and the belief that consumers were looking for higher quality, fresh food. And that the grocery stores were doing a worse job as they were consolidating and that people were more interested in fresh food than canned food,” he explained.
“I migrated to the internet realizing that if I can build a system where I deliver for next day, I can completely rethink the entire supply chain of food production from farm to consumer in a way that was faster, fresher and made to order with better quality and lower prices,” he said.
Since being introduced to the New York market in 2002, FreshDirect has expanded across the metropolitan region, as well as parts of Central Jersey, Southern Connecticut and Eastern Long Island.
With a fleet of 400 trucks and a 640,000-square-foot production and distribution center in the Bronx, FreshDirect provides scheduled delivery of orders to homes or offices in the greater tri-state area.
Amid the surge in online ordering during the pandemic, multinational retail company Ahold Delhaize USA acquired FreshDirect in early 2021 for around $300 million. Last fall, ownership changed hands again when Getir, a Turkish food delivery startup, scooped up the company for an undisclosed sum as part of a bid to expand its U.S. presence. Under the terms of the deal, FreshDirect will keep its branding, according to Getir.
In announcing the sale, Ahold Delhaize executives said they believed that the company needed to step up its focus on both in-store and digital experiences — and that FreshDirect was standing in the way of strengthening its position as an omnichannel retailer.
JJ Fleeman, CEO, Ahold Delhaize US, called it “a difficult decision, especially given FreshDirect’s rich history in the New York City area.”
“However, our strength as a grocery retailer in the U.S. is the true omnichannel experience – a combination of online and in-store – where we have leading brands and market share, strong store density and online presence, and a deep heritage of customer loyalty and relationships.”
Ackerman described his time at FreshDirect as “an incredible experience” but exhausting.
“It was a huge success, but it was the hardest thing I’ve ever done,” he said. “Being a banker did not qualify me to run a company because the operational intensity and the human capital knowledge that it takes is not something banking trains you for. And so, I learned on the job and I had an amazing set of coaches along the way helping me really make sure I continue to improve my capacity as a manager and as a learner to keep up with it.”
In September 2018, Ackerman stepped down as chairman and CEO after nearly 20 years with FreshDirect. Then, from November 2019 through March 2021, he served as CEO and executive chairman of TerrAscend.
In making the move to TerrAscend, Ackerman said he knew he would eventually start his own cannabusiness.
“That’s in my nature – it’s not in my nature to work for people,” he said. “Because I have such a student approach to everything, I figured I didn’t want to do anything on my own until I ran something for at least two years and got to experience it, got my feet wet and really understood the day-to-day operations before I went on.”
Despite the steady stream of cannabusinesses launching in New Jersey, 60% of municipalities continue to opt out of allowing such ventures in their jurisdictions. And while the proposed location of Joyleaf was on property already owned by Ackerman in a town that permits cannabis companies, the approval process was not smooth, he said.
“It was horrifying and painful. There’s not a rewarding word to describe that experience,” Ackerman said of dealing with regulators. “I think one of the best ways I would describe it is that it was very uncharted for these local towns, so navigating an unclear path was time-consuming, challenging and expensive.”
“And quite honestly, because I’m fortunate enough to have access to capital and skills to navigate the stuff, I was able to get through it. But I will tell you that I can understand why people of less financial capability or less experience, this could be extraordinarily challenging to pull off,” he said. “Running the business is 10 times easier than getting through regulation and the real estate in the towns.”
Ackerman admitted that owning the strip mall in Roselle “made it a heck of a lot easier.” It also helped that the Ackerman family has longtime ties with the municipality, he said.
“If I had to go to a town with no relationship, that would be a lot harder. We did it at TerrAscend – we went and opened three stores in three towns that we’d never been to before. It was doable, but this definitely made it easier, for sure,” Ackerman said.
A ‘counter’ move
It took nearly three years to develop Joyleaf, a concept that Ackerman describes as “very education driven” and “very interactive.”
“The basic premise that I had on the retail side, particularly on the East Coast, is that you’re converting customers who really have not had exposure to a retail experience in cannabis. And so, they’ve got a very limited idea of what different products and different effects,” he said.
“I’ve always thought that the way that the Northeast approaches the stores is very overwhelming. You go to a counter and you can’t see the products. They may put some brands out on the shelves, but you can’t shop,” Ackerman said. “I’m used to retail – you walk into a store, you can see everything you’re buying ad you have the ability as a consumer to digest all the brands and all the choices.”
“Yet, here, you go to a counter and there’s a budtender trying to figure out how to help you find something while you’re looking at a computer screen and hopefully sorting it through. Most people don’t even know what questions to ask and they feel like they’re under pressure because there’s people behind them in line. I find that experience to be honestly quite horrifying for a customer who isn’t an expert,” Ackerman said.
“The simple premise [at Joyleaf] was to do what we did in food, which is to become experts on product,” he said. “I sent my partner Dharshini [Casinathen] to get her Ganjier license so that she was a cannabis expert with deep knowledge of the product.”
“Then, we wanted to approach it like a grocery store where you can browse the aisles. Every product we sell is organized on shelves for sale,” he said. “I also built a database … that has standardized product cards of every product we sell, with all the important information – price points, strengths and effects. We then put a huge amount of training in our staff so they can be walking next to you side-by-side on the floor, talking about the products and giving an unlimited amount of time to our customers to help them make the choice for the right product.”
“One of our focuses is the right product for the right moment for you. And it differs depending upon what you’re trying to accomplish,” he said.
Since opening, Joyleaf has earned dozens of positive reviews from customers praising the vast selection, affordable prices, quality products, level of employee knowledge and efficient service.
In an online review, one shopper described it as a “really amazing and unique experience.”
“Being able to browse every product around the store was really helpful to find ideas and compare my choices. The staff was very knowledgeable and friendly. Found my joy!,” they wrote.
Another guest said, “Education is very important when it comes to picking the right product for the individual person. Product numbers tell a small story of how a product will be felt and the people who work at Joyleaf understand that. They listened to what I liked, asked questions in regards to how I was feeling, and from that information was able to provide a product that was perfect for what I was looking for. Dispensaries can be overwhelming or sometimes intimidating and felt more like I was with friends and family from the moment when I walked in. If you’re curious about cannabis or are a regular user, Joyleaf is the place.”
Ackerman said, “Most of the customers are not experienced and a lot of them come in and say, ‘Well, I used to smoke this but I had a bad experience however I am having trouble sleeping or I’m getting older, but I want to do this.’ And that’s where we shine because the ability to explain to people … I feel like that is the heart and soul of what we’re trying to create, which is a safe reentry for the marketplace, while also elevating, taking away the stigma and giving people that kindness.”
Opening up
Ackerman believes public outreach and education is key to changing public perception of the plant.
“There’s just so much misinformation that [as a business owner] you have to go on an education tour of all the influencers in a town to help them visualize, see and understand a different vision of what it means,” he said. “And I had to do that even though we owned the property, we weren’t immune from convincing people that this was something they shouldn’t be afraid of.”
“We purposely built what we believe is one of the most beautiful stores in New Jersey besides being functional. It is a very, very, very high-end looking store in a middle-class neighborhood,” Ackerman explained. “In elevating the environment, it also elevates people’s perception of how we could be.”
Within the next three months, Joyleaf will begin offering delivery, he said.
“I’ve got a thesis on how to accomplish that different than others in the market, given my background. So, I plan on making that a big part,” Ackerman said.
At the 6,000-square-foot space, just under 2,000 square feet are dedicated to the sales floor. The remainder is split between the vault, dock, receiving room, office and reception area.
That layout, he said, was designed to “handle a large outbound delivery process” because Joyleaf does not plan to use any third-party services.
Looking ahead, Ackerman also hopes to expand the brand, starting with additional storefronts in New Jersey.
Joyleaf will also serve as a way to further Ackerman’s longstanding commitment to uplifting women in the workplace, a mission that dates back to his days at FreshDirect. “Initially, we had a lot of men running and building FreshDirect. For the women in my firm, I wanted to promote and get it to half female at the executive level, but I was having trouble and I couldn’t figure out why it was,” he explained.
“And so, I started spending a lot of time with the different female constituents trying to elevate them. And I realized that the role models that females had once they got into a more senior leadership was very limited and they were mimicking male leadership roles. That was not true to who they were and it was very unsuccessful,” Ackerman said.
“The second is that women, for some reason, believe that they didn’t belong at the table. There’s this confidence issue that they felt that they had to get invited, that they didn’t want to, where men just felt like they belonged. And third is that women were not nice to each other and shockingly not supportive of each other.”
“I realized that somehow I have to change the way that the environment works, the way women see themselves and to give different types of role models for them to find their own way of being a leader,” he explained. “For over 10 years, I just spent a lot of my personal time mentoring a bunch of female executives to elevate them and I did it very successfully.”
“And I find it very rewarding to see executives find their strength, find their confidence, find their capabilities. Because sometimes in life you need someone to believe in you in order to make leaps in what you’re capable of. And it’s a rare thing that people get that opportunity and that’s something I just love to do for people,” he said.
Ackerman continued: “It’s easy to say you want to, but if you don’t understand that you have to provide a different training platform or different environment then it won’t be successful. You have to do things differently and I think people really miss that point – it’s not a ‘check the box’ process. It’s really thinking through how to do it and create success with a support structure for that diversity.”
At Joyleaf, the store is led by Casinathen, a local resident, certified cannabis sommelier – thanks to the Ganjier license – and CPA with over 20 years of experience at companies including PepsiCo and KPMG Canada.
After first meeting Casinathen when she interviewed for a position during his tenure at TerrAscend, Ackerman said, “I just thought she had a spark and an intelligence that you don’t always see. When you’re an entrepreneur, sometimes you don’t know what jobs someone’s going to fill, but you can tell that they’ve got capabilities.”
“So I hired her … and I sent her to Canada to go run the Canadian operations. I trained her and she did a great job,” he said. “And talent is everything when it comes to running businesses and having trust that the people who work with you will run through walls.”
“I’ve had a 20-year mission to train and bring up females in the corporate world … and I thought she had the capability,” he explained. “I wanted to build a business that also was woman-led.”
Casinathen, whose passion and advocacy for the plant began as a medical patient, commented, “I personally experienced the transformative power of cannabis, igniting my journey in 2018. Our goal is to create a dispensary that is truly consumer-centric. Our mission is to create experiences of Joy by helping customers find the right product for the right moment for them.”
She also said, “We believe in the potential of cannabis to enhance lives, and we are excited to share that potential with the greater Roselle community.”
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