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 September 10th, the number of qualified patients in Florida’s medical marijuana program grew 0.6% WoW or 37.8% YTD to 411,996 qualified patients with active ID cards. This marks the first time that WoW growth has dipped below 1% since the first week of June. The Labor Day Weekend may have played a role in having less patient applications processed.
Trulieve was approved for its 58th dispensing location. THC in mgs sold grew 5.9% WoW to 127.4 million mgs, CBD in mgs sold grew 11.1% WoW to 4.5 million mgs, and flower in oz. sold slightly grew 0.1% WoW to 42,851 oz. sold.
On a 12WMA, Trulieve’s THC in mgs sold per dispensing location has hovered between 1.1M to 1.2M mgs since the beginning of May. While the company has an overwhelming lead compared to other operators, that number has been declined by an average of ~140 bps WoW for the past four weeks. AltMed Florida and Curaleaf are far below Trulieve’s efficiency, however, they are showing positive WoW growth for the past month or so. It’s a similar story in terms of flower – Trulieve has been selling close to 400 oz. per dispensing location since June. During that same time, Surterra Wellness, AltMed Florida, Curaleaf, and GrowHealthy have slowly been improving their flower sales by weight per approved retail units
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.
New Mexico Governor proposes recreational legalization again
New Mexico Gov. Michelle Lujan Grisham (D) called for recreational legalization again at a press briefing last week, framing it as an opportunity to alleviate the budget shortfall brought by the coronavirus pandemic. Grisham emphasized that she plans to have legislators to deal with the matter of legalization the next time the state legislature convenes. This isn’t the first time that the governor has brought up the issue of marijuana reform in her state, however, Grisham proposed that recreational tax revenues could partially fund the state’s Medicaid program.
Earlier in May, Grisham commented, “We have an opportunity. I think all of our policymakers need to think clearly—and they should expect me to be supporting in the next general election—we have to pass recreational cannabis in the state. We need to diversify our economy, we need to increase opportunity for recurring revenue and we have to rebuild an economy that has suffered dramatically during this public health crisis.”
Germany’s first domestic harvest of medical marijuana may be delayed to 2021 (APHA, ACB, SAMA)
While medical marijuana has been available by prescription since March 2017 in Germany, the country’s medical marijuana market is still dependent on cannabis grown abroad. The German government has limited domestic cannabis production to 2,600 kgs per year, not nearly enough to meet demand in the country. The country’s first domestic harvest was initially expected for this November, but COVID-related delays could push it to 2021. Canadian LP Aphria (APHA) and Germany-based Demecan noted that they anticipate harvesting by early 2021. This delay will lengthen Germany’s dependence on imports to meet their medical marijuana demand. A recent press release from Germany’s federal government estimates that medical marijuana imports are expected to reach 28,455 kgs in 2020, a 37% increase YoY, as seen in the chart below.
Germany’s reliance on imports makes it an exceptionally attractive market to Canadian LPs (APHA, TLRY, CRON, CGC, and ACB) seeking to gain a foothold in the country’s nascent market and the greater EU and to offload excess inventory. The German Federal Institute for Drugs and Medical Devices (BfArM) has authorized companies from Canada, the Netherlands, Austria, Switzerland, Portugal, Spain, Israel, Colombia, and Uruguay to export medical marijuana to Germany.
