This is a synopsis of the Florida market based on reports by the OMMU
- Florida’s medical cannabis market is booming, with flower sales up 3.4x since last summer.
- Trulieve dominates with a majority market share in both flower and THC products like vape pens.
- Curaleaf, Liberty Health, and Cansortium also boast strong medical cannabis sales.
- Future growth will be driven partly by potential legalization of edibles, wholesale sales, and recreational cannabis (someday).
Florida’s cannabis market is enormous and continues to grow rapidly. Thanks to weekly government reports, this market also offers unmatched transparency: Investors can see cannabis sales figures published each week and broken down by each company.
Trulieve is the sole dominant player in Florida cannabis. They sell more than half of the cannabis in the state despite operating less than one-fifth of dispensaries statewide. Despite that strength, other cannabis companies also are very successful. For example, Liberty Health operates solely in Florida and has generated positive operating cash flow in each of the past two quarters and positive free cash flow last quarter.
I’m bullish on the Florida cannabis market and many of its market participants. Future growth will be driven by consumers continuing to switch to legal marijuana over black market weed, the addition of new product types like edibles, and by the potential for recreational cannabis legalization down the road.
The Sunshine State
This article is a synopsis of the Florida cannabis market based on weekly reports published by Florida’s Office of Medical Marijuana Use (“OMMU”). Florida’s medical cannabis market is (1) booming, and (2) more transparent than any other cannabis market in the country.
Each Friday afternoon, OMMU publishes weekly reports which provide statewide sales data and provide weekly sales data for each licensed operator in the state. These reports includes weekly sales of dry flower, THC concentrates, and CBD concentrates:
- Flower sales are reported in ounces of marijuana sold. Flower refers to ordinary cannabis, sold as a dried plant product for smoking, vaping, or other use. Florida began selling marijuana flower in March 2019 after a court challenge and subsequent bill.
- THC sales are reported in milligrams of THC sold. These figures include processed THC-based cannabis products like vape pods, cannabis wax, cannabis rosin, concentrates, cannabis powder, cannabis drops, tinctures, and other products. Everything that is prescribed for its THC content is in this category except for flower. Florida began allowing THC sales in 2016, so this market is more mature and slower-growing that the flower market.
- CBD sales are reported in milligrams of CBD sold. These products include a similar array as THC products. These sales only include sales through Florida’s medical marijuana program. CBD products are also sold online and in stores outside of Florida’s medical marijuana programs and those sales are not reflected in OMMU reports. CBD sales make up a small fraction (~1%) of Florida cannabis company revenue and I will ignore them herein for that reason.
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