Smaller dispensary chains show strong performance in Florida market

While everyone in the cannabis industry has likely heard of Trulieve Cannabis Corp. (OTCQX: TCNNF) by this point, some of the multistate operator’s biggest competition in Florida might be coming from some of the state’s smallest players.

According to the latest data from the state’s Office of Medical Marijuana Use, some of the smaller operators are solidly outperforming larger chains in per-store sales.

The OMMU’s July 19 report showed that The Flowery, which has only eight dispensaries, leads in per-store efficiency out of all 25 state licensees. The company sold an average of 709,836 milligrams of THC per store for the week of July 12-18.

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Trulieve, Florida's largest operator with 141 locations, came in second with 703,776 milligrams of THC sold per store. Despite the slightly lower per-store average, Trulieve maintains a dominant market share of 30.77%, dispensing a total of 99.27 million milligrams of THC during the reporting period.

Sunburn, another relatively small player with 14 dispensaries, ranked third in per-store efficiency, selling 701,176 milligrams of THC per location. The company moved a total of 9.81 million milligrams of THC, capturing a 3.04% market share.

While larger operators command significant market share, their per-store performance varies. Curaleaf Holdings (TSX: CURA) (OTCQX: CURLF), with 62 locations, ranks fourth in per-store efficiency, dispensing an average of 663,412 milligrams of THC per store. The company holds a 12.75% market share, nearly matching Ayr Wellness' (CSE: AYR.A) (OTCQX: AYRWF) 12.74% share.

Ayr, with 65 stores, ranks fifth in per-store efficiency with an average of 632,173 milligrams of THC sold per location.

Using an "efficiency ratio," which is calculated by dividing an operator's market share by its share of total dispensaries, shows that size doesn't always correlate with efficiency in Florida's growing cannabis market. The ratio compares operators' market performance relative to their retail footprint. A ratio above 1 suggests above-average efficiency.

The Flowery leads with an efficiency ratio of 1.44, followed closely by Trulieve and Sunburn, both at 1.43. This indicates that these companies are capturing more market share than their store counts would suggest.

At the lower end of the efficiency spectrum, several operators are performing below the market average. Colorado-based Green Dragon, with 38 locations in Florida, recorded the lowest efficiency among the major players. The company dispensed 3.56 million milligrams of THC for the week, averaging about 93,745 mg per store. This results in an efficiency ratio of 0.44, indicating that Green Dragon's market share is less than half of what its store count would suggest.

Cookies also ranks toward the bottom of the list with a per-store average of 87,482 milligrams THC - which equates to an efficiency ratio of 0.18 across 10 stores - considerably lower than most other operators in the market.

The Florida medical marijuana market's total THC sales for the week reached 322.62 million milligrams, according to the OMMU report. The OMMU report also shows that Florida's medical marijuana program now serves 884,844 qualified patients.

This analysis focuses solely on THC milligrams dispensed, not accounting for other products like CBD or smokable flower. It also represents only one week of data and doesn't account for factors such as store location, product mix, or pricing strategies.