Chief Executive Kim Rivers says Trulieve has created Florida’s dominant cannabis brand by getting a head start in store openings and nurturing fierce customer loyalty.

In the three years since Florida voters legalized medical marijuana, one cannabis company has put on a clinic in marketing, pleasing customers and turning a profit.

Quincy-based Trulieve routinely outsells all of its state-licensed competitors combined.

Chief Executive Kim Rivers says Trulieve has created Florida’s dominant cannabis brand by getting a head start in store openings and nurturing fierce customer loyalty.

“We like to say we don’t have customers, we have Trulievers,” Rivers said in an interview.

If Rivers ran a company with back-of-the-pack market share, that line would be little more than a cringe-worthy bit of marketing speak. But consider this: Trulieve dominates Florida’s medical marijuana market. In the week of Oct. 4 through Oct. 10, for instance, Trulieve accounted for 54 percent of all THC products sold in the state, according to statistics from the Florida Department of Health.

>>MORE: Trulieve begins Florida smokable medical cannabis sales

In other words, one company sold more vape cartridges, oils and tinctures than all 12 of its competitors combined. The No. 2 company, Surterra Wellness, sold just 11.6 percent of THC products purchased by Florida patients.

The Department of Health breaks out sales of smokable marijuana separately, and Trulieve holds a commanding lead in that category, too. Trulieve sold 37.5 percent of all flower, well ahead of second-place player Liberty Health, which had 20.5 percent market share in that category.

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After Florida voters in 2016 legalized medical marijuana, Trulieve began aggressively opening dispensaries. It operates 37 locations statewide, and on that front, Trulieve has only a narrow lead. Surterra Wellness has 34 stores. However, Trulieve is generating more sales per store than its rival.

Meanwhile, Trulieve’s unaudited financial statements show a company that’s practically printing profits. The company reported a net income of $72 million for the first half of 2019 on revenues of $102 million.

“We are a very financially disciplined company,” Rivers said.

>>READ ALSO: As marijuana legalization spreads, companies drop THC testing of employees

Rivers notes that Trulieve reports its results as a Canadian company and doesn’t use generally accepted accounting principles, so its hefty bottom line comes from calculations a bit different from those American investors are used to seeing. Even so, the company is profitable and is reinvesting its earnings in growth.

Rivers said Trulieve sells 230 items, more than its competitors. Trulieve customer Karen Seeb Goldstein, a cannabis advocate who lives in Broward County, said the company’s product selection stands out.

“They have a tremendous variety. It’s nice to know you can have what works for you,” Goldstein said.

Goldstein also lauded Trulieve’s liberal return policy.

In one savvy move, Trulieve has focused on blanketing Florida before expanding elsewhere. Other cannabis companies have proven more willing to open fewer stores across multiple states.

“We chose to focus on penetrating a market,” Rivers said. “We decided to take a very deep and focused approach, as opposed to taking a wide and shallow approach.”

Andrew Livingston, director of economics and research at Vicente Sederberg, a Denver law firm that focuses on cannabis, said the strategy makes sense.

“There’s more efficiencies that can be gained by going deep in one state rather than going wide in a number of states,” Livingston said. “You can’t move cannabis across state lines, but you can move it within a state.”

As Trulieve dominates in Florida, even some of its strongest competitors are still finding their way. For instance, Surterra Wellness announced Oct. 7 that it would change its name.

Surterra Wellness, headed by Palm Beach County billionaire William “Beau” Wrigley, said it will use the corporate moniker Parallel and the retail brand Goodblend. The company made a splash last year by announcing a partnership with singer Jimmy Buffett that includes marketing cannabis under the Coral Reefer brand.

Surterra might have the best-known celebrities, but Trulieve so far has held onto its market-leading position.

“Despite their best attempts, Trulieve’s other major competitors haven’t been able to winnow away at their market share as much as they’d like,” Livingston said.

Trulieve, for its part, has begun to expand to California, Connecticut and Massachusetts.

“Our goal is to build a national brand,” Rivers said.

jostrowski@pbpost.com

@bio561

This story originally published to palmbeachpost.com, and was shared to other Florida newspapers in the GateHouse Media network via the Florida Wire. The Florida Wire, which runs across digital, print and video platforms, curates and distributes Florida-focused stories. For more Florida stories, visit here, and to support local media throughout the state of Florida, consider subscribing to your local paper.