Planet 13's leadership, including co-CEOs Robert Groesbeck and Larry Scheffler and CFO Dennis Loganr ecently discussed the company’s strategic initiatives and market outlook in a webinar hosted by Pablo Zuanic of Zuanic & Associates.
The conversation covered significant updates on VidaCann integration, Florida expansion, lifestyle brand launch and updates on California and Illinois stores.
Florida Expansion And VidaCann Integration
Planet 13 PLNH completed the acquisition of VidaCann on May 10, 2024, enhancing its footprint in Florida. The transaction, valued at $54 million, included cash, stock and vendor take-back notes.
This integration brings Planet 13's total to 30 dispensaries in Florida, with an additional five stores under construction.
VidaCann’s projected revenue run rate has increased from $32 million to $50-52 million annually post-acquisition. Future expansion plans include new stores in Miami, Orlando and Tampa, aiming for 31 stores by year-end.
Launch Of Lifestyle Brand And Apparel Line
Planet 13 introduced a lifestyle brand and apparel line to increase brand awareness and create an additional revenue stream.
This initiative leverages e-commerce platforms and traditional marketing channels previously inaccessible to cannabis companies. The apparel line targets various lifestyle segments, including sports and entertainment, with a soft rollout already generating a positive reception.
Updates On CA And IL Stores
The Santa Ana store in California focuses on managing costs and increasing traffic despite a competitive and challenging market. Wholesale opportunities in CA have shown significant growth, particularly in the gummy and flower segments.
Meanwhile, in Illinois the company’s store in a suburban area near Milwaukee continues to perform well, attracting traffic from the metro Milwaukee market and neighboring casino complexes.
During the Q&A, Logan addressed concerns about market challenges, emphasizing the importance of vertical integration and the benefits of the new stores in Florida.
Vertical Integration Strategy
Logan emphasized the critical role of vertical integration in Planet 13’s strategy. "We have probably 800 pounds a month of cultivation capacity right now and we could increase that by 10% to 15% using the existing footprint," Logan explained. Currently, about 60% of their product is vertically integrated in Nevada with the rest going to the wholesale market.
Logan noted that acquiring additional retail stores allows Planet 13 to divert more products from the competitive wholesale market, capturing higher margins. "If we can get 1 or 2 more stores, we can push an additional 150 to 200 pounds of product through another retail store in the county." This strategy not only boosts revenue but also strengthens their market position.
"We're looking specifically at retail-only standalone in Clark County, avoiding areas outside our core market to maximize traffic to our stores," he added.
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