Market share trends in Florida (TCNNF, CURLF)
The Florida Office of Medical Marijuana Use (OMMU) releases updated cannabis data every Friday.
For the week ending July 31st, the number of qualified patients in Florida’s medical marijuana program grew 1.3% WoW or 28% YTD. THC in mgs sold grew 19.2% WoW to 134.5 million mgs, CBD in mgs sold grew 19.4% WoW to 3.9 million mgs, flower in oz. sold grew 6.8% WoW to 40,407 oz. sold.
Trulieve (TCNNF) continues its market dominance with a 51% share of mgs THC sold, 32% share of mgs CBD sold, and 52% of flower in oz. sold, while holding only ~20% of market share in units, on a 4-week moving average basis.
Florida’s medical marijuana marketplace is still in early stages with strong potential – the state’s medical marijuana program has yet to reach 2% of the population, smokable flower was just introduced to the market last year, and there’s a broad range of qualifying medical conditions, notably ‘severe and chronic pain’. The rising tide that is patient volume growth lifts all ships.
Curaleaf (CURLF) is on the Hedgeye Cannabis Long Bias List.
Trulieve (TCNNF) is a Hedgeye Cannabis Best Idea Long. For a replay of our Best Idea Long presentation CLICK HERE.
Rhode Island governor revives adult-use legalization plans
In an interview with NBC 10, Governor Gina Raimondo renewed her support for legalizing adult-use marijuana as a way to increase state revenue, saying, “"I was in favor of it last year, so I'm continuing to be in favor of it. I'm going to put it back again."
While the state doesn’t provide too much market opportunity, with the population just over 1 million, Rhode Island passing adult-use legalization could contribute to the domino effect of states moving towards legalization in the Northeast corridor.
Back in January, Gov. Raimondo included legalizing adult-use recreational marijuana as part of the state’s $10.2 billion budget for fiscal 2021. Her administration proposed a state-controlled distribution system, with the state owning dispensaries and contracting vendors to operate them. The plan proposed that the state would retain 61% of revenues and included $22 million in marijuana revenue. However, the Rhode Island House and Senate already indicated opposition to adult-use legalization before the January budget proposal.
Medical marijuana has been legal in the state since 2006.
After the delayed launch, Maine predicts recreational sales by yearend
Maine’s Office of Marijuana Policy recently announced that residents should be able to buy marijuana for adult-use by the end of 2020. The state initially planned to launch their adult-use market in June but delayed it due to COVID.
State officials predict that recreational sales will hit $118 million in fiscal 2022, the first full year of operations, based on the current volume of license applications. By fiscal 2023, the state budget office anticipates recreational sales hitting $166 million.
As of last week, the Office of Marijuana Policy reported:
- 342 marijuana business license applications received.
- 164 applications in Phase One – waiting on a conditional state license needed to ask their local host municipality for permission to conduct business.
- 151 applications in Phase Two – having acquired a conditional state license, waiting on local approval.
- 27 applications in Phase Three – having obtained both state and local authorization, undergoing a final state review that requires state approval of facility operations and an on-site inspection.
