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Florida's Pot Pros Expect Edibles To Be A Boon For Sunshine State's Medical Market

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Florida's Pot Pros Expect Edibles To Be A Boon For Sunshine State's Medical Market

Florida's $750 million medical marijuana market is slated to experience another wave of growth now that the state's Department of Health (DOH) has permitted the sale of edibles — with certain rules.

A Conservative Approach

Kim Rivers, CEO of Trulieve Cannabis Corp (OTCQX: TCNNF) told Benzinga, "It has been a long time coming, but the DOH took a thoughtful approach and patients in the state who have had trouble with other ways of accessing medical marijuana now have a better option."

Florida regulators put forward rules to make sure edibles can't be mistaken as treats for children. Alex Levine, chief development officer for Green Dragon, a brand expanding into Florida this month, elaborated on these guidelines.

"Even under the new approval, Florida's rules ban any edibles that look like candy or come in bright colors," he said.

The restrictions have not appeared to deter early sales. Trulieve made its first edible sale on Wednesday, Sept. 2, Rivers said. The company is still waiting on the approval of its full line of branded and partner products.

Meanwhile, AltMed Florida is gearing up to offer edibles via a partnership with Wana Brands.

Optimistic Market Expectations

420 Investor's Alan Brochstein expects edibles to boost the market as the competition eventually lowers flower sales.

"As [Florida] gets more competitive, and flower prices come down, [edible sales] will help offset some of that margin pressure," Brochstein said, noting that prices on products like branded items tend to fluctuate less.

For Green Dragon, edibles served as the go-ahead for the Colorado brand to expand into Florida. Noting the brand's history of edibles in Colorado, Levine explained that the company has been ready and waiting for such an opportunity.

"The availability of edibles in Florida is the green light for Green Dragon to bring our full line of products to patients across the state," he said, citing how the start of sales will also open up the medical program to new patient demographics and drive growth for the program.

"People who were on the fence about getting a medical marijuana card might now decide to try cannabis as a solution," Levine said.

Trulieve's Rivers also sees edibles as a significant option for the brand.

"[Edibles] has the potential to account for upwards of 20% of our product mix, on par with other states that have edibles," she added.

With expectations seemingly optimistic across the board, Rivers explained that the rollout of edibles is not expected to affect sales of other SKUs all that much.

"We believe edibles will become a selection process for many patients and also as an additive product to baskets as patients look to try something new," Rivers said.

Related links:

A Snapshot Of America's Medical Marijuana Markets: Florida

How To Obtain A Medical Marijuana Card In Florida: A Guide For Cannabis Patients  

 

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