Conventional wisdom says: Bigger is better. More stores mean more sales. Premium prices can’t survive in a tough economy.
But Florida’s cannabis market apparently hasn’t been listening. Smaller companies in the state are outperforming traditional retail metrics, with new operators likely to shake things up further.
While market leader Trulieve Cannabis Corp. (OTCQX: TCNNF) maintains its dominance with 38% of flower sales, boutique operators are achieving comparable per-store efficiency with a fraction of the retail footprint. For example, state data shows privately owned Jungle Boys, which has just 1.12% of the state’s dispensaries, has captured 3% of the market.
The Flowery, another boutique player with 10 locations, built its business on premium products and extensive delivery coverage rather than retail ubiquity. Its stores function as regional service hubs across Florida, eschewing the corner-store approach favored by larger operators.
(Data provided to Green Market Report by Andrew Livingston of Vicente)
The success comes as Florida’s medical cannabis program, which now serves 900,000 patients, sees some unexpected resilience against greater headwinds and a supply-rich scene. But it’s hard to tell exactly to what degree increased demand versus falling prices has driven the consistent rise in spending.
The state doesn’t track pricing, which makes it difficult to determine whether rising per-patient purchases reflect increased consumption, according Andrew Livingston, director of economics and research at Denver-based cannabis law firm Vicente.
“If we had a situation where the increase in patients was just people who used to buy through friends now getting cards themselves, the average sale per patient would drop,” Livingston explained. “But we’re not seeing that. We’re seeing sales per patient continually increase.”
(Data provided to Green Market Report by Andrew Livingston of Vicente)
The number of licensees in Florida remains limited, but the network of dispensing locations is vast. No other state has companies managing 60-plus stores, making even “smaller” Florida operators equivalent to major players elsewhere.
The average dispensary in Florida serves 1,200-1,300 patients, yielding $2.3 million to $3 million annually at conservative spending estimates.
(Data provided to Green Market Report by Andrew Livingston of Vicente)
Trulieve’s own market position goes past store count. While controlling 21% of retail locations, the company commands 31% of the concentrate market alongside its flower sales dominance. Yet the market increasingly accommodates various business models, from high-volume operators to premium niche players, especially if it opens up horizontally with adult-use.
“Would they be able to keep that quality and price points if they had a lot more stores and had to triple or quadruple the size of their grows?” Livingston said regarding boutique operators potentially scaling up under adult use.
(Data provided to Green Market Report by Andrew Livingston of Vicente)
Still, some segments have effectively disappeared. Low-THC medical cannabis sales dropped 90% over two months, though this likely reflects reporting changes rather than consumer behavior, sources previously told GMR. Meanwhile, traditional medical cannabis sales continue climbing despite competition from hemp-derived products – a newly controversial channel that Gov. Ron DeSantis and state GOP leadership has cozied up with as of late.
With nearly 500 dispensaries operating statewide, this year appears focused on optimization rather than expansion for most here. Success increasingly depends on execution rather than footprint – whether through Trulieve’s scale advantages, The Flowery’s premium positioning, or somewhere in between.
Florida’s regulatory framework has created scale unseen in other state markets. Read More
