Trulieve CEO: Company in ‘solid’ shape as Floridians hit the polls
As Election Day kicks off, Florida will soon know whether it’ll stand up a fully fledged recreational cannabis program next year. And Trulieve Cannabis Corp. (OTC: TCNNF) has been a driving force behind the Yes on 3 campaign, pouring millions into the effort.
If the measure passes, CEO Kim Rivers said the company is shooting for a May 5, 2025, launch date, as ascribed in the measure’s language, with preparations already underway.
“This doesn’t happen overnight,” Rivers told analysts and investors Tuesday during the company’s third-quarter earnings call, describing what she called “a four-dimensional jigsaw puzzle.”
For example, the company conducted retail pilot studies to test higher customer traffic scenarios and completed major technology overhauls, including upgrades to its web platform and SAP systems.
“None of these things are flashy or necessarily really exciting, but they provide the infrastructure to enable us to handle transactions in a faster manner,” Rivers said.
The company maintains more than 3 million square feet of production capacity in Florida and operates 156 dispensaries across the state. Rivers said the company’s “modular” production facilities can “quickly ramp” capacity if Amendment 3 passes.
Rivers also said that pricing would be key when it comes to converting Florida’s illicit market consumers into legal customers, drawing on the company’s early strategy in medical markets.
“The whole goal here is to get folks off of the street and out of the black market and into a regulated environment,” she said.
Trulieve hasn’t slowed its aggressive store expansion, opening 14 new Florida locations in the quarter. Rivers described “robust modeling” that considers traffic counts and anticipated demand, noting that older locations often have space limitations.
“Some of our earlier locations were very restricted in terms of where we could go,” she explained, such as fewer registers or smaller storage areas versus newer locations.
“We’ve done a whole bunch of modeling as it relates to retail efficiencies… I feel like we’re well positioned and candidly, those investments serve us kind of regardless.”
Rivers pointed to the company’s experience with Ohio’s recent recreational launch as valuable preparation. Traffic increased 60% at Trulieve’s three Ohio locations following the August start of adult-use sales. Florida’s cannabis market could reach $6 billion in annual sales.
“We’ve made significant investments in production, retail and technology in preparation for catalysts such as this one,” Rivers said.
