Adding Fuel to the Fire: GTI Inks Deal with Circle K to Sell Marijuana at Florida Gas Stations

Oct 21, 2022 Chicago, IL

Chicago-based Green Thumb Industries Inc. (“GTI”) made national news Wednesday when it announced a groundbreaking partnership that will allow it to sell marijuana at Circle K gas stations in Florida. The initial rollout is expected to begin next year in 10 Circle K stores in what GTI calls the “test and learn phase.” Under the agreement, GTI will lease space from Circle K and set up “RISE Express” medical marijuana dispensaries adjacent to the gas stations. The dispensaries will offer flower, pre-rolls, gummies, and vapes.

The agreement is significant in several ways. First, it is an innovative approach to expanding retail marijuana operations. Gas stations seem like a natural fit for marijuana sales given that they already cater to consumer seeking age-restricted products like alcohol and tobacco. Second, it has the potential to dramatically expand GTI’s operations and Florida patient access to medical marijuana—the gasoline and convenience store retailer has roughly 600 locations in Florida. Not surprisingly, GTI is ramping up cultivation to increase its supply of product. The company’s new 28-acre cultivation facility in Ocala, Florida is expected to be operational by the end of this year. Third, this agreement is another step toward the de-stigmatization of marijuana, as a major retailer is opening its doors and customers to marijuana sales. The industry had another normalization boost earlier this month as President Biden pardoned simple possession convictions.

While we are excited about the GTI-Circle K agreement, there are still hurdles to clear for this model to be successful. For example, state regulators will want to make sure that the dispensaries include adequate safety measures, which may prove challenging for a small sublease at a gas station. Further, the dispensaries may have a difficult time getting required zoning and municipal approvals. And even if this model is a triumph, it will not be widespread outside of Florida because the vast majority of states that have legalized marijuana have limited-license regimes.

Florida is an intriguing market and one we will have our eyes on the next couple of years. In addition to the GTI-Circle K rollout, we are expecting the release of an application in the not-too-distant future for new medical marijuana licenses. It will also be interesting to see whether Floridians will be able to vote on recreational marijuana in 2024, after previous legalization attempts were rejected by the Florida Supreme Court.

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Adding Fuel to the Fire: GTI Inks Deal with Circle K to Sell Marijuana at Florida Gas Stations

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