Zoning parameters for cannabis dispensaries, such as restrictions on operating near schools, churches and residential neighborhoods, often create an added hurdle for aspiring entrepreneurs in the space.
For those who plan on opening a retail facility in Tucson, Ariz., following the state’s April 8 lottery to issue 26 social equity retail licenses, special zoning rules for the winners could take six months.
But elected officials in the state’s second largest city said establishing exceptions for real estate locations is part of a plan to help ensure those who are supposed to benefit from Arizona’s social equity provisions in the state’s adult-use cannabis program are the ones who actually benefit, the Arizona Daily Star reported.
Tuscon Mayor Regina Romero and city council members voted unanimously last week to direct zoning department officials to begin drafting a special exception process that would impose certain conditions on adult-use facilities in the city limits, according to the news outlet.
While the Arizona Department of Health Services’ (ADHS) intent in issuing 26 social equity licenses is to uphold provisions in the state’s voter-approved Proposition 207 from the November 2020 election, Romero wrote in a memo that several people who were disproportionately impacted by prohibition were excluded entirely from applying for one of the licenses because a $4,000 application fee imposed by ADHS caused a barrier to entry for low-income residents.
ADHS officials said the department received more than 1,500 applications for the social equity licenses. Leaving leeway in the regulatory groundwork, Prop. 207 established that the 26 licenses be awarded to applicants impacted by prohibition.
The state’s rules governing those social equity licenses lack protective provisions, such as a ban on license transfers (preventing larger companies or multistate operators that wouldn’t otherwise have qualified for the licenses from acquiring the licenses), as well as a requirement that licensees’ expenditures and profits remain in their communities.
A lawsuit, filed in part by the Greater Phoenix Urban League, challenged those omissions in the rules, but a judge dismissed the lawsuit earlier this year.
Now, Tuscon elected officials are eyeing zoning regulations as a means to strengthen participation for social equity license winners and help the underserved communities the licenses were intended for, Romero said during last week’s council meeting.
“AZDHS didn’t really take into account the concerns that mayor and council had in terms of social equity licenses,” she said. “The process that AZDHS put together really allowed for corporate dispensaries to really take advantage of the AZDHS process. And so, I just want to make sure that we initiate the process and have a fair process in front of us.”
But the zoning process to enact special exceptions for social equity license holders could take roughly six months, Tuscon city attorney Mike Rankin told the Daily Star.
The established terms for where a social equity retail facility can operate then must be approved by the majority and council members.
Rankin told the news outlet that city staff will consider zoning conditions that encourage dispensaries to “bring business and commerce to those areas that were supposed to benefit from this structure, this idea of social equity in the first place.”
Valda Coryat, Chief Marketing Officer, Trulieve
Image courtesy of Trulieve
Foundational Leadership: Q&A With Trulieve Chief Marketing Officer Valda Coryat
One of few female executives in the cannabis industry, Coryat details how confidence, inspiration and upbringing played a role in her leadership.
Understanding the nuances of various customer journeys in the cannabis space has become increasingly pivotal among companies trying to gain a bigger share of a burgeoning market through brand recognition, exclusive partnerships and product offerings.
But understanding trends and habits of potential customers is one thing. Launching a marketing strategy to acquire those customers is another.
Since Valda Coryat took the reins in December 2019 as chief marketing officer at Florida-based Trulieve—one of the fastest-growing and most profitable multistate operators in the U.S., with an 11-state footprint and more than 160 dispensaries—the company has continued to thrive in ways big and small.
Specifically, Trulieve acquired Harvest Health & Recreation in a deal that had a $2.1-billion all-stock price tag when the agreement was first announced in May 2021. In addition, the company has launched brands like the Cultivar Collection, Muse, Sweet Talk, and Momenta, and struck exclusive partnerships with celebrities like Wiz Khalifa and Survivor: Africa winner Ethan Zohn as part of its strategic expansion.
Trulieve also set in motion a nationwide Supplier Diversity Initiative earlier this month that focuses on providing education and professional development resources while creating mutually beneficial business partnerships with a supplier base reflective of the customers and communities the company serves.
Those moves and more have been driven, in part, by key company insights that have helped shaped marketing plans that resonate with targeted demographics, Coryat told Cannabis Business Times.
As one of two women on a nine-member executive leadership team at Trulieve (in addition to CEO Kim Rivers), Coryat said her confidence in her professional life stems from her upbringing. And, regardless of title, building credibility is essential to gaining respect from work peers, she said.
Meanwhile, Trulieve's board of directors includes four women and four men.
But Coryat is somewhat of an outlier as a woman executive in the space. For example, a recent demographic survey conducted by Nevada’s Cannabis Compliance Board revealed a significant gender gap for the state’s cannabis industry workforce: Those who identified as members of a board of directors were 83.7% male and 14.1% female (some respondent chose not to answer).
On top of her work to further Trulieve’s strategic vision, Coryat details what it means to be a woman leader in the space and more in this Women’s History Month Q&A.
Editor’s note: This interview has been edited for style, length and clarity.
Tony Lange: As you look toward the latter three quarters of 2022, what are some of Trulieve’s planned undertakings that you’re most looking forward to? Why?
Valda Coryat: I’m excited about our latest brand-building initiatives via integrated marketing campaigns that drive awareness, engagement and sales. A recent example was Trulieve announcing its partnership with Ethan Zohn to become the spokesperson for Momenta, which supports not only the wellness-focused brand but also our growing reach in new markets like Massachusetts and West Virginia.
I’m equally excited about diversifying our product offerings coast to coast to serve the needs of a broader array of consumers, both retail and wholesale. Trulieve’s exclusive partnerships with respected brands such as Wiz Khalifa’s Khalifa Kush are an extension of those efforts.
TL: How does Trulieve’s nationwide Supplier Diversity Initiative reflect your company’s vision for the cannabis industry?
VC: We believe that cannabis is truly for all! Trulieve’s supplier diversity initiative exemplifies how the entire company stands behind this truth from both a consumer and business standpoint. This program creates accessible pathways for more entrepreneurs to participate in this growing industry—even if they’re not directly touching the plant. There’s an opportunity for nearly every business function, from marketing and software services to cleaning supplies, training, construction and other ancillary services, to be a part of this community. Ultimately, we believe that our business partners should be as diverse as the communities we operate in.
TL: How has your background across the consumer, retail and foodservice verticals translated to your marketing leadership success at Trulieve to help the company drive its strategic expansion?
VC: From an expansion standpoint, understanding the nuances of various customer journeys is instrumental in building marketing plans that actually resonate with a target demographic. These insights also inform decisions around entering certain markets and how to scale or pace expansion opportunities.
My experience across different verticals allows me to look at each cannabis consumer segment across our markets and identify marketing opportunities that naturally align with their lifestyle. For example, within foodservice, convenience or “ready-to-eat” offerings coexist with at-home meal solutions for the same products. One product format doesn’t meet the needs of a singular consumer since each person has different needs at various points in the day or week. For edibles or cannabis-infused beverages, this affects the SKU mix as much as it does the marketing plan that informs consumers how our specific offering meets their needs.
TL: As a woman executive of one of the largest cannabis companies in the world, do you feel a personal responsibility to help pioneer a path for other women to participate and succeed in the industry? Explain.
VC: While I certainly feel this responsibility in my current role, I’ve also advocated for gender equity in the workplace throughout my career. The challenges of the cannabis industry are similar to those in banking, technology and high-growth sectors. I hope my leadership approach galvanizes more talented women to enter the industry and make an impact in their own way.
TL: Where do you find confidence in your professional life?
VC: My confidence in my professional life stems from what my family instilled in me from a very early age. Being encouraged, challenged and celebrated by family is such an integral part of who I am that I just step forward boldly. I carry that experience with me in everything that I do.
I am fortunate to be surrounded by so many strong female family members who were tremendous role models. It doesn’t hurt that the men in my family were also committed to raising strong women by ensuring that their daughters and nieces had opportunities to grow and compete for generations.
TL: Working among a strong executive leadership team at Trulieve, what’s your best piece of advice for those seeking respect among their work peers?
VC: Building credibility is essential regardless of your title. This comes down to delivering on what you promise consistently and ahead of schedule, if possible.
TL: Who do you admire most as a trailblazer for women’s rights during the past century? Why?
VC: This is a tough one to answer since I admire so many female leaders, including Eleanor Roosevelt, Justice Ruth Bader Ginsburg, Madeleine Albright, Barbara Jordan, Angela Merkel and Rihanna.
If I had to choose one, I’d say Malala Yousafzai because she risked her own life to advocate for girls’ education at such a young age. I am a very forward-thinking person, and I admire all the change enacted by many of today’s young women, including my own daughters, in ways big and small every day.
TL: What obstacles (if any) have you had to overcome that were there simply because of your gender?
VC: While I consider being a mother to three great humans my greatest achievement, I have to admit that it impacted my career. After going on maternity leave three times, I’ve had to prove that I was the same capable and ambitious person I was before. Additionally, it can be tough to see colleagues who were once peers advance beyond where I am today because they did not have to take a “break” from their careers.
TL: Why or why didn’t your upbringing have an impact on where you are today as a corporate leader?
VC: My upbringing was my foundation. My family’s pride and support have always been the wind beneath my wings. Culturally, we think in terms of the family and wider community. My achievements are not only my own—and this mentality is reflected in how I lead, always thinking beyond myself as an individual.
jiawangkun | Adobe Stock
Vermont Receives More Than 400 Prequalification Applications from Cannabis Businesses
The state is accepting prequalification applications from cultivators, product manufacturers and retailers as it prepares to launch a commercial adult-use cannabis market this fall.
Vermont won’t officially open its cannabis business licensing process until April 1, but the state has already received more than 400 prequalification applications from entrepreneurs looking to participate in the adult-use market, which is slated to launch this fall.
As of midday on March 29, 427 business hopefuls had submitted applications for prequalification, according to an Associated Press report.
The official application process opens April 1 for small growers and testing facilities, May 1 for all cultivators, July 1 for product manufacturers and wholesalers, and Sept. 1 for retailers, the news outlet reported.
In January 2018, Vermont became the first state in the U.S. to legalize cannabis through legislation, rather than through a voter-approved ballot initiative.
Gov. Phil Scott signed legislation March 25 that establishes fees for cannabis cultivators and retailers, AP reported, and Vermont’s Cannabis Control Board plans to start approving prequalification applications at its meeting on April 4, the news outlet reported.
The Las Vegas-based, vertically integrated company announced $29.9 million in revenue for Q4 of 2021 and $119.5 million in revenue for the entire year.
Planet 13, the Las Vegas-based, vertically integrated powerhouse that recently began offering cannabis-themed weddings and is branching out in markets such as California and Florida, has announced fourth-quarter (Q4) and full-year financial results for 2021.
Those numbers include the Q4 2021 revenue of $29.9 million, a 48% increase from Q4 2020, and $119.5 million in full-year revenue, up 70% compared to all of 2020, according to a press release.
Meanwhile, in 2021, Planet 13 established $66 million in gross profit, a net loss of $19.5 million, and an adjusted EBITDA of $16.9 million.
"During a quarter that is seasonally slower and marked by significantly less tourist traffic, Planet 13 was able to maintain a market share above 10 percent in the Las Vegas cannabis market. In addition to the competitive performance demonstrated by our SuperStore and neighborhood store, our brands grew 21 percent in a market that was down 5 percent in Q4," Larry Scheffler, co-CEO of Planet 13, stated in the release. "Similarly, while the California market was down sequentially in Q4 , our Orange County store grew 7.2 percent in the quarter on the back of increased brand awareness."
"Over the last couple months, the Planet 13 team has been working hard to operationalize all of the exciting new assets we've acquired over the past year. We are making strong progress on our Florida roadmap working in dual tracks to bring cultivation and retail online," added Bob Groesbeck, co-CEO of Planet 13. "In California, we closed the acquisition of Next Green Wave in March allowing us to become vertically integrated in the state and bring our award-winning brands to Planet 13's California fans."
Feydzhet Shabanov | Adobe Stock
Bermuda House of Assembly Approves Legislation to Legalize Cannabis
The Cannabis Licensing Act of 2022 will establish a regulatory framework for the cultivation and sale of cannabis.
Bermuda’s House of Assembly has passed a cannabis legalization bill for the second time, sending it to the governor for Royal Assent.
The Cannabis Licensing Act of 2022, passed in an 18-6 vote, would establish a regulatory framework for the cultivation and sale of cannabis in Bermuda, a British Overseas Territory.
The legislation, introduced by Home Affairs Minister Walter Roban, creates a series of cannabis licenses that will be issued through a licensing authority, according to a Caribbean National Weekly report.
Smoking cannabis in public will be prohibited except in designated shops, the news outlet reported. Selling cannabis to anyone under the age of 21 will also remain illegal.
The House of Assembly approved the legislation last year, only to have the Senate block its passage, Caribbean National Weekly reported.
Since the Senate cannot veto legislation more than once, the bill will go to the Upper House next week as a formality, but will ultimately pass and be sent to Gov. Rena Lalgie, according to the Royal Gazette.
Upon the legislation’s latest passage on March 25, Roban, who was standing in for Attorney General Kathy Lynn Simmons, repeated a speech that Simmons delivered in the House last year. He said cannabis prohibition was “an unjust colonial legacy” and evidence of “systemic, racialized disparities” where Black individuals were criminalized by a white oligarchy, according to Caribbean National Weekly.
“We need radical new thinking—increasingly, legalization is not that radical at all,” Roban said, adding that there is public support for cannabis policy reform in Bermuda.
Lalgie has indicated that the legalization of adult-use cannabis is not permitted under the United Kingdom’s international obligations, Caribbean National Weekly reported, and Roban has admitted that a shift in policy could cause tension with UK leadership.
“The totality of the proposed legislation provides for better effective regulatory control to displace the illicit market and full economic access at a time when families are suffering and looking for new economic opportunities,” he said, according to Caribbean National Weekly. “It will provide the greatest good for the greatest number."
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Tony Lange
Melissa Schiller
Patrick Williams
