Trulieve, like many other major U.S. multi-state cannabis operators, has begun exploring the Farm Bill-compliant, hemp-derived THC beverage space as a means to spark continued growth while federal cannabis legalization remains in limbo.
The company this week announced Onward, its new line of hemp-derived THC seltzers, which it will distribute in part through a deal with Total Wine & More, a massive beer, wine and liquor distributor with 277 stores across 29 states. While Trulieve isn’t tapping into Total Wine’s full footprint just yet, CEO Kim Rivers assured investors that this new product is not just a “fly-by-night” venture.
“We’re not approaching it that way. We’re approaching with an eye toward growing an actual product line and a business within Trulieve,” she said, comparing it to the measured approach the company took with establishing medical cannabis operations in Florida, where it now runs 160 dispensaries along with major cultivation and manufacturing facilities.
At this stage, Trulieve said it’s still trying to learn as much as it can about the hemp-derived THC beverage market segment and its consumers. To that end, its partnership with Total Wine was strategic in terms of the data insights and in-store sampling it provides.
“The markets that we’ve chosen to enter with them are markets where we have teams on the ground that can interact with customers and sales associates to get that feedback loop going,” she said, adding that Trulieve is targeting alcohol consumers who may be interested in switching to THC.
Rivers said Trulieve is planning new lines and product expansion for its hemp THC business. The company will focus the retail rollout on Florida for now but Rivers said that once the company gets comfortable, there will be some rapid distribution expansion in other markets. Onward is also available direct-to-consumer in 36 states.
The introduction of Onward comes after a year where Trulieve saw its revenue increase 5% to $1.2 billion but recorded an adjusted net loss of $19 million.
