A Deep Dive into the Top Cannabis Retailers in Florida
Since Florida legalized medical marijuana, business is booming. In September, the state had 22 licensed vertically integrated medical cannabis operators.
Dec. 6 2019, Published 2:37 p.m. ET
Medical cannabis has a stronghold in Florida and has flourished in the state since 2016. Currently, cannabis proponents in Florida are working to legalize recreational marijuana. We have discussed in detail both medical and recreational cannabis legalization in the state. Today, we’ll look at the top cannabis retailers in Florida.
Florida’s medical cannabis is booming
The medical cannabis industry has touched new highs. Since Florida legalized medical marijuana, business is booming. According to Marijuana Business Daily, as of September 2019, the state had 22 licensed vertically integrated medical cannabis operators.
Furthermore, the Marijuana Business Factbook 2019 estimates show medical cannabis sales in Florida could touch $425 million–$525 million in 2019. Meanwhile, October statistics show that Florida has over 250,000 patients registered. The state has 2,200 certified doctors under the medical cannabis program.
Top cannabis retailers in Florida
As of November, Florida operates 205 dispensaries. On November 28, the top seven cannabis retailers in the state were:
- Trulieve: 40 dispensaries.
- Surterra Wellness: 36 dispensaries.
- Curaleaf: 28 dispensaries.
- Liberty Health Sciences: 19 dispensaries.
- Fluent with 18 dispensaries.
- Cresco Florida: 13 dispensaries.
- Grow Healthy: 11 dispensaries.
Among the top seven retailers, Trulieve dominates the Florida medical market with 40 dispensaries. Last month, it opened a location in Lakeland for its 40th dispensary. In Cannabis Laws in Florida: Everything Investors Need to Know, I noted that Trulieve holds 50% of total medical cannabis sales in Florida and has the highest sales-per-store average.
According to Marijuana Business Daily, four factors help Trulieve maintain its position in the market:
- Strong marketing approach.
- Customer loyalty.
- Efficient supply-chain.
- Variety of products available.
Recently, Trulieve leased a 150,000-square-foot five-building marijuana cultivation center in Florida from cannabis-REIT company Innovative Industrial Properties (IIPR).
The other dispensaries are ramping up to keep up with Trulieve. Surterra, Curaleaf, and Liberty Heath now have more dispensaries compared to the number of dispensaries in September.
Curaleaf (CURLF) reported third-quarter earnings last month. The company attributed its organic growth in Florida and New York to its 189% YoY sales growth in the third quarter.
What products are available at Florida’s dispensaries?
Florida’s dispensaries offer a wide variety of products for medical cannabis patients. In particular, they offer CBD oil, THC oil, tinctures, topicals, and oral syringes. Additionally, they offer vape cartridges, capsules, concentrates, flowers, and edibles in limited varieties. The stores also offer accessories like vaporizers, vaporizer pens, and batteries.
Once recreational marijuana is legalized in the state, Floridians can expect more types of edibles in the market. FL Dispensaries provides detailed information on dispensaries located in each city in Florida.
Individuals who hold a medical marijuana card can purchase these products. A state-certified doctor can qualify a patient for the program depending on the criteria and eligible medical conditions.
Florida’s dispensaries meet customer demands
Among the patients in Florida, the demand for smokable whole marijuana flower is higher. This preference could result from smoking’s greater effectiveness for pain relief than any other form of marijuana.
On December 2, the South Florida Sun-Sentinel reported that cannabis retailers in the state are now pacing the cultivation of whole flower to meet demands.
As the dominant player, Trulieve has a 52% market share in the nonsmokable cannabis market. However, its hold on the smokable market has declined since July while the demand for the product is rising.
Trulieve CEO Kim Rivers recently noted during an analyst call, “Demand for flower has been extraordinary.” According to the South Florida Sun-Sentinel report, the “whole flower makes up about 50 percent of Trulieve’s product mix, and dispensaries can’t meet consumers’ demand for it. The medical marijuana company, based in Quincy, Florida, near Tallahassee, says it already operates 1.7 million square feet of cultivation and has 120,000 square feet of growing space under construction.”
Moreover, the South Florida Sun-Sentinel noted that other dispensaries like GrowHealthy have been pushing their operations to expand whole flower production. Surterra Wellness plans to open 350,000 square feet of greenhouse space and 100,000 square feet of indoor cultivation space in Tampa next year.
Furthermore, MedMen (MMNFF) (MMEN) is keeping up to strengthen its footing in Florida. Currently, MedMen operates 10 dispensaries. Last month, MedMen reported its earnings for the first quarter of fiscal 2020. To learn more about the company’s results, please check out Key Takeaways from MedMen First Quarter Results.
The company stated in its press release that it opened three new dispensaries in Florida. The new stores are in St. Petersburg, Key West, and Pensacola.
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