Analysis of Trulieve

Prepared for

Dr. Priscilla Berry

Prepared by

Logan Custer

March 2022

‘
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TO: Dr. Priscilla Berry

FROM: Logan Custer

DATE:

SUBJECT: An analysis of Trulieve’s internal and external business environment. Here is the

report on Trulieve’s potential in the marijuana industry.

This report outlines the history of the company, difficulties, and opportunities traversing

a newly emerging marijuana market, a SWOT analysis, and details on how Trulieve can remain

relevant as one of the original dispensary chains and has dominated Florida’s medical marijuana

market.

I have done research that highlights where Trulieve is having a lot of success and areas

that could see improvement. In an industry that has only been able to operate legally in most

states in the last 10 years things are evolving rapidly, it is important to stay at the forefront of

innovation to maintain a reasonable market share. Thank you for reviewing this report I am

confident you will be able to use its information as means to enact appropriate organizational

changes that will help Trulieve in the long run.

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 Table of Contents
Title Page……………………………………………………………………………………….1

Table of Contents……………………………………………………………………………….2

Executive Summary…………………………………………………………………………….3

Introduction…………………………………………………………………………………….4

Mission Statement……………………………………………………………………………...6

Cultural Ethos…………………………………………………………………………………..7

Current Status of Company…………………………………………………………………….7

Today’s Cannabis Scene……………………………………………………………………….8

PESTEL………………………………………………………………………………………..10

SWOT…………………………………………………………………………………………..12

CONCLUSION…………………………………………………………………………………16

REFERENCES…………………………………………………………………………………17

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 Executive Summary

Trulieve currently holds roughly 50% of Florida’s market share and has expanded to

other states in the U.S. (Marijuana MSOs on a buying spree in Florida in bid to take on Trulieve,

2021). This report aims to give an overview of the current climate of the marijuana industry

and how Trulieve stands.

As of now, marijuana remains federally illegal which means that selling it from state to

state in a legal manner comes with its slew of problems. There are currently 38 states and

Washington DC that allow medical marijuana and of those 18 of them along with DC allow the

use of recreational marijuana. There is a lot of difficulty from state to state when it comes to

dispensaries working with banks and this is another challenge. However, with all the challenges

marijuana remains very lucrative because there is such great demand. People understand its

benefits and want to buy it.

Trulieve gained early footing by opening the first medical marijuana dispensary in

Florida and has since dominated its legal market. In Florida and nationwide, Trulieve has 155

stores in the US after it acquired Harvest. It holds locations in:

 Arizona

 Florida

 California

 Connecticut

 Maryland

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  Massachusetts

 Pennsylvania

 West Virginia

Trulieve is one of the nation’s largest dispensary chains with the potential to grow even larger.

This report will outline how Trulieve has become so successful and hopefully provide some

clarity on what changes can be made to innovate and make the company more successful.

Introduction

Trulieve was established in 2016 when legislation was passed allowing legal medical

marijuana use in Florida. Trulieve has since gained most of the market share there and

reasonable holdings in other states as well. The dispensary chain has the largest cultivation

acreage of any dispensary in the nation and they are also vertically integrated. After having over

100 locations Trulieve announced its acquisition of popular competitor Harvest. They gained

more than 20 retail locations in Florida alone. “Because Florida law does not allow medical

marijuana operators to hold more than one license, Harvest auctioned off its license to pave the

way for its sale to Trulieve. Planet 13, which operates in Nevada and California, paid $55 million

in cash for the Harvest license.” (News Service Of Florida, 2021). Trulieve has continued to

make moves that have yielded the company great success.

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 The Mission Statement

Trulieve has remained committed to providing a quality product to customers in an

efficient way.

“We started this company with patients in mind and with an absolute

dedication to a steadfast focus on providing access and medical cannabis to

patients in the state of Florida, specifically. So that mission hasn’t changed,”

Rivers told The News Service of Florida in a phone interview.

(News Service of Florida, 2021)

This mission expands to different states and applies nationwide. Trulieve has adopted a “hub

approach” in three of the five regions in the U.S.

 Southwest

 Southeast

 Northeast

The infrastructure in these areas makes it easier for assets to be added within its hubs (Pallardy,

2021).

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 Cultural Ethos

To dominate the market share in Florida since the market emerged in 2016 Trulieve has

had to maintain a company culture based around the customer. That is along with the care of all

of the customers’ needs. Trulieve maintains a very clean look with superior customer service and

generous return policies. Trulieve does well to make a customer feel as though their needs come

first from free water bottles in the lobby to free consultations with clinical cannabis advisors to

help patients find what product will best suit their needs. “[Kim Rivers] also said Trulieve —

which operates in states where recreational use of marijuana is legal as well as others where

marijuana is restricted for medical use — has a 75 percent retention rate among customers.”

(News Service of Florida, 2021).

Current Status of Company

Trulieve has remained profitable for the last 4 years and had a record third quarter in

2021. “Rivers continued, "Our team closed the Harvest acquisition in under five months while

simultaneously meeting expansion targets in several markets. We are excited to keep the

momentum going into 2022 as we fully integrate Harvest while further building scale and depth

in our cornerstone markets."  (Trulieve Cannabis Corp, 2021).

Financial Highlights

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 For the Three Months Ended For the Nine Months Ended

September September change September September change

30, 2021 30, 2020 30, 2021 30, 2020

$ 224.1 $ 136.3 64% $ 633.0 $ 353.1 79%

$ 153.9 $ 102.2 51% $ 433.7 $ 266.5 63%

  69%   75% -6%   69%   75% -7%

$ 87.7 $ 42.7 105% $ 218.6 $ 112.1 95%

  39%   31% 8%   35%   32% 3%

$ 18.6 $ 17.4 7% $ 89.6 $ 60.0 49%

$ 98.0 $ 68.7 43% $ 283.7 $ 178.7 59%

(Trulieve Cannabis Corp, 2021)

Today’s Cannabis Scene

In 2022 at least in the states where cannabis is recreationally legal cannabis marketing
has grown leaps and bounds. A culture has lived around cannabis since before it was legalized,
and marketing practices today have capitalized on that with different forms of packaging and
different gimmicks to get customers to purchase their products. Some cannabis brands have
transcended the industry of cannabis itself and become pop culture icons like popular cannabis
brand cookies. There is a range of social media influencers now who also make a living from
creating marijuana content. Cannabis is seen everywhere in pop culture and now that it is on
shelves to be sold legally companies are scrambling to find their niche.
A lot of companies have begun looking externally to market their products through
modes such as affiliate marketing with previously mentioned social media influencers or
celebrities. Some celebrities have begun working with pre-established marijuana companies to
release their own line of products with the company and some have started brands of their own.
Cannabis is a growing industry with a lot of room for opportunity.
Since legalization has begun across the country Trulieve has become a nationwide
competitor however the seen remains very competitive on the west coast where Trulieve has
little presence. Here is a list of the top-selling dispensaries in the United States as of now.
Updated for filings through 03/08/22
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 Qtrly Sales
Non-U.S. Qtr Q/Q
Company Name U.S. Stock Symbol (USD in Y/Y Growth
Symbol Ended Growth
millions)

Curaleaf OTC: CURLF CSE: CURA 12/31/21 $320.0 1% 39%

Green Thumb Industries OTC: GTBIF CSE: GTII 12/31/21 $243.6 4% 37%

Trulieve OTC: TCNNF CSE: TRUL 09/30/21 $224.1 4% 79%

Cresco Labs OTC: CRLBF CSE: CL 09/30/21 $215.5 3% 41%

Verano Holdings OTC: VRNOF CSE: VRNO 09/30/21 $206.8 4% 106%

Jazz Pharma NASDAQ: JAZZ 12/31/21 $193.8 21% 35%

Scotts Miracle-Gro NYSE: SMG 12/31/21 $190.6 -4% -38%

Columbia Care OTC: CCHWF CSE: CCHW 09/30/21 $132.3 29% 172%

Hydrofarm NASDAQ: HYFM 12/31/21 $110.4 -11% 26%

Ayr Wellness OTC: AYRWF CSE: AYR.A 09/30/21 $96.2 5% 112%

GrowGeneration NASDAQ: GRWG 12/31/21 $90.6 -22% 46%

Ascend Wellness OTC: AAWH CSE: AAWH 12/31/21 $88.5 -6% 63%

Innovative Industrial NYSE: IIPR 12/31/21 $58.9 9% 59%

Properties

Tilray NASDAQ: TLRY TSX: TLRY 11/30/21 $58.8 -17% 43%

WM Technology NASDAQ: MAPS 12/31/21 $54.2 6% 22%

Jushi Holdings OTC: JUSHF CSE: JUSH 09/30/21 $54.0 13% 117%

TILT Holdings OTC: TLLTF NEO: TILT 09/30/21 $53.4 10% 37%

Ianthus OTC: ITHUF CSE: IAN 09/30/21 $49.3 -9% 21%

TerrAscend OTC: TRSSF CSE: TER 09/30/21 $49.1 -16% 29%

Acreage Holdings OTC: ACRHF CSE: 09/30/21 $48.2 9% 52%

ACRG.A

Turning Point Brands NYSE: TPB 12/31/21 $46.1 9% 14%

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 Qtrly Sales
Non-U.S. Qtr Q/Q
Company Name U.S. Stock Symbol (USD in Y/Y Growth
Symbol Ended Growth
millions)

Greenlane Holdings NASDAQ: GNLN 09/30/21 $41.3 19% 16%

The Parent Company OTC: GRAMF NEO: 09/30/21 $39.7 -27%

GRAM.U

MedMen Enterprises OTC: MMNFF CSE: MMEN 12/25/21 $39.1 -2% 20%

Village Farms NASDAQ: VFF 12/31/21 $34.4 10% 169%

Marimed OTC: MRMD 09/30/21 $33.2 2% 147%

Planet 13 Holdings OTC: PLNHF CSE: PLTH 09/30/21 $33.0 0% 45%

Schwazze OTC: SHWZ 09/30/21 $31.8 4% 328%

Gage Growth OTC: GAEGF CSE: GAGE 09/30/21 $27.2 3% 120%

4Front Ventures OTC: FFNTF CSE: FFNT 09/30/21 $25.9 -4% 70%

Cronos Group NASDAQ: CRON TSX: CRON 12/31/21 $25.8 26% 51%
(New Cannabis Ventures, 2022)

PESTEL
POLITICAL

The policy currently causes conflict between state and federal governments on the legality of

marijuana. This makes it difficult to transfer cash and allows for the seizure of cash from

armored cars when it is being transferred from state-licensed marijuana institutions to banks or

credit unions. ‘From this traffic stop, a series of events unspooled that resulted in more than $1.2

million being seized in what an attorney describes in a court filing as “the repeated and

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continuing highway robberies of armored cars by government agents.” (Schrag, 2022). However

with more states looking to legalize it looks like the market is poised for growth.

ECONOMIC

While COVID-19 continues to make things hard economically on the world the cannabis market

has still thrived. Year after year the market continues to grow “The total U.S. economic impact

from cannabis sales is expected to reach $92 billion in 2021. That number will rise to $160

billion in 2025.” (Lipson, 2022). Inflation on items needed to cultivate products such as

fertilizers will make production costs higher and in turn, drive up prices of cannabis overall.

SOCIAL

A mainstream cannabis culture is present in pop culture that companies in a variety of industries

use to turn a profit. As legal support increases and more research is done the stigma around

marijuana is lessening and a lot more people are willing to try it as an alternative form of

medicine. Social media has also allowed a platform for cannabis enthusiasts to network and

further develop a recreational and medical marijuana community.

TECHNOLOGY

With the development of so many innovations being made in the cannabis space from cultivation

to actual consumption methods, the marijuana industry has been evolving rapidly. Technological

improvements with regards to how customers to shop have been made due to COVID-19 such as

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online deliveries and pick-ups. “Delivery sales dropped a little over the last 10 months but is

holding steady at 30% of all sales.” (Yakowicz, 2020).

LEGAL

Marijuana is medicinally legal in 38 states and recreationally legal in 18. Regulations around

running dispensaries and obtaining licenses are very difficult and costly.

ENVIRONMENT

Cannabis is often associated with nature and the environment. Cannabis culture is surrounded by

nature and living a more organic lifestyle. With the environmentally positive image of cannabis

in mind takes a lot of energy and water to cultivate cannabis. Heavy energy use can lead to

greenhouse gas emissions leaving a need for dispensaries to look to alternative energy sources

such as solar. (Zheng et al., 2021).

SWOT ANALYSIS
Strengths

1. Leading market share in Florida, Pennsylvania, and Arizona

2. Consistently profitable

3. 75% customer retention rate

4. 155 locations nationwide

5. Limited competition in most states

Weaknesses

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 1. Low presence in West Coast

2. Limited Product Variety in recreationally legal states

3. Limited product advertisement

Opportunities

1. Affiliate marketing with social media cannabis influencers and or ad campaigns with

celebrities.

2. Open more locations since the company is consistently profitable.

Threats

1. Federal interference.

2. Customer complacency with products.

Conclusion

Trulieve has risen to be one of the top medical marijuana dispensary brands in the

nation. This in short is due to their early footholds in key geographical regions and not cutting

corners when it comes to customer satisfaction. With a high customer retention rate Trulieve

has established itself as a company with the ability to build a repertoire with its customers and

keep them coming back.

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 The marijuana industry is new and is changing at a rapid pace. As with any new industry,

there are constant technological improvements and trial and error. A great culture is based

around marijuana that spans from people who use it recreationally to people who use it for

their chronic pains and illnesses. With so many different products and such a great number of

people, the name of the game seems to be working with customers and finding them their best

products as a lot of customers are unfamiliar with consuming marijuana.

‘ Trulieve has done a great job creating a brand image that symbolizes cleanliness as well

as a welcoming atmosphere to ensure a positive experience for any customer. This report has

aimed to outline the cannabis industry and Trulieve’s place in it. The goal of Trulieve has always

been to offer access to medical marijuana in the best way possible and it is Trulieve’s continued

effort at providing the best services possible that has kept them at the top for so long.

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 References
Lipson, R. (2022, February 18). Council Post: Where Is The Cannabis Industry Headed In

2022? Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2022/02/18/where-is-

the-cannabis-industry-headed-in-2022/?sh=15b5c60372e2

Marijuana MSOs on a buying spree in Florida in bid to take on Trulieve. (2021, October 8).

MJBizDaily. https://mjbizdaily.com/cannabis-msos-on-buying-spree-in-florida-in-bid-to-

take-on-trulieve/#:~:text=Florida%2Dbased%20Trulieve

New Cannabis Ventures. (2019, February 27). Public Cannabis Company Revenue Tracker –

Ranking Cannabis Stocks... New Cannabis Ventures.

https://www.newcannabisventures.com/cannabis-company-revenue-ranking/

News Service Of Florida. (2021, October 1). Florida company Trulieve is now the nation’s

largest marijuana retailer. Tampa Bay Times. https://www.tampabay.com/news/florida-

politics/2021/10/01/florida-company-trulieve-now-nations-largest-marijuana-retailer/

#:~:text=Trulieve%20was%20one%20of%20the

Pallardy, C. (2022, December 22). How Trulieve is Evolving Beyond the Florida Medical

Cannabis Market. New Cannabis Ventures. https://www.newcannabisventures.com/how-

trulieve-is-evolving-beyond-the-florida-medical-cannabis-market/

Public Cannabis Company Revenue Tracker – Ranking Cannabis Stocks... (2019, February 27).

New Cannabis Ventures. https://www.newcannabisventures.com/cannabis-company-

revenue-ranking/

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Schrag, D. (2022, February 8). Police Seizure Of Marijuana Dispensary Cash Leads To Federal

Litigation. Marijuana Moment. https://www.marijuanamoment.net/police-seizure-of-

marijuana-dispensary-cash-leads-to-federal-litigation/

Trulieve Cannabis Corp. (2021, November 15). Trulieve Reports Record Third Quarter 2021

Results and 15th Consecutive Profitable Quarter | Trulieve. Investors.trulieve.com.

https://investors.trulieve.com/news-releases/news-release-details/trulieve-reports-record-

third-quarter-2021-results-and-15th#:~:text=Gross%20profit%20of

%20%24153.9%20million

Yakowicz, W. (2020, December 20). Legal Cannabis Delivery Companies Thrive Amid

Pandemic By Co-Opting Illicit Dealers’ Business Model. Forbes.

https://www.forbes.com/sites/willyakowicz/2020/12/23/legal-cannabis-delivery-

companies-thrive-amid-pandemic-by-co-opting-illicit-dealers-business-model/?

sh=7e3de8ab2427

Zheng, Z., Fiddes, K., & Yang, L. (2021). A narrative review on environmental impacts of

cannabis cultivation. Journal of Cannabis Research, 3(1).

https://doi.org/10.1186/s42238-021-00090-0

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