Market share trends in Florida (TCNNF, CURLF, GTBIF, CCHWF)

The Florida Office of Medical Marijuana Use (OMMU) releases updated cannabis data every Friday.

For the week ending October 8th, the number of qualified patients in Florida’s medical marijuana program grew 0.7% WoW or 42.8% YTD to 427,181 qualified patients with active ID cards. Following last week’s report, which marked a new record for THC in mgs sold since the medical marijuana program’s incipience, THC fell -15.2% WoW with THC in mgs sold declining 123.7 million mgs. CBD in mgs sold declined -7.2% WoW to 3.3 million mgs, while flower in oz. sold grew 9.4% WoW to 48,019 oz. sold, a new record for the state. Trulieve drove the powerful results with 54.6% share of flower in oz. sold for the week. Columbia Care, Fluent, and Trulieve (two locations) were approved for new dispensary locations, bringing the statewide total to 282 approved dispensing locations.

On a 12WMA, Trulieve’s THC in mgs sold per dispensing location declined by -178 bps. In terms of flower on a 12WMA, Trulieve gained 110 bps, while Surterra Wellness jumped by 382 bps. On a 4WMA, Trulieve maintains a disproportionate market share, with 51.4% share of mgs THC sold, 35.2% of mgs CBD sold, and 52.2% of oz. in flower sold, at just 21.5% share of dispensing locations. 

Yesterday, Trulieve announced that it opened its 62nd store in Palm Harbor. 

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, edibles were just introduced to the market in August, 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.

Cannabis Insights | Florida market data (TCNNF, CURLF), Alcanna drops CGC, and GRWG expands in AZ - Slide1

Cannabis Insights | Florida market data (TCNNF, CURLF), Alcanna drops CGC, and GRWG expands in AZ - Slide2

Cannabis Insights | Florida market data (TCNNF, CURLF), Alcanna drops CGC, and GRWG expands in AZ - Slide3

Alcanna drops Canopy Growth products as the company expands westward (CGC, LQSIF)

Canadian alcohol and cannabis retailer Alcanna said it would stop selling cannabis products made by Canopy Growth. Alcanna cited Canopy Growth's expansion into Western Canada as the reason. In August, Canopy said it would open ten new stores in Alberta under its Tweed and Tokyo Smoke banners. Alcanna operates 32 cannabis stores in Alberta. Canopy products represent 10% of Alcanna's sales. Alcanna had C$15.6 million of sales in Q2. There are 1,100 cannabis stores in Canada, but roughly half of them are in Alberta. Opening ten stores in a market of ~550 will not make a significant difference, but it must be the principle of the matter for Alcanna. Canopy would generate more in revenue from ten stores than it would from wholesale, but the returns will be lower in a crowded market.

In an interview with BNN Bloomberg, Marcie Kiziak, the head of Alcanna’s cannabis retail division, commented, “The problem is having a [licensed producer] open stores in our backyard, especially in areas where we're struggling to get a foothold. [Canopy] has chosen to locate some stores in smaller bedroom communities that don't make a lot of sense to me. I can get behind a [Canopy-owned] flagship store. Still, I can't get around my head of a [licensed producer] opening stores in an already saturated market where it's difficult enough to get a foothold in the province."

Canopy inks new agreements with U.S. alcohol distributors for BioSteel (CGC, STZ) 

In the U.S., Canopy signed two new distribution agreements to bring its sports hydration brand, BioSteel, to U.S. consumers in a ready-to-drink format. BioSteel was co-founded by John Celenza, a former sports marketer, and Mike Cammalleri, a former NHL player. The company began as a powdered beverage maker that promoted a sports drink alternative that had zero sugar and amino acids. Last year, Canopy Growth took a 72% majority stake with an agreed upon path to total ownership. BioSteel will use Constellation Brands’ distribution network for its ready to drink product. Earlier this week, two of Constellation Brands’ most important distributors, Manhattan Beer and Reyes Beer, announced they will carry the line with stores displaying the product in one to two months. BioSteel has partnered with several athletes to grow awareness and trial including the NFL’s Patrick Mahomes. BioSteel got its start in hockey stores, but growth in 2020 will be driven by NFL endorsements and in 2021 with NBA endorsements. It would not be a surprise if sales for BioSteel exceed that of the company's THC beverages in 2021.