Gas, Lotto, Beer...and Weed? Cannabis Is Coming to Circle K's in Florida

Quick stops at convenience stores often mean buying gas, lottery tickets, beer, cigarettes and snacks, which are consistently among the best-selling items. But a major cannabis player wants to add weed to that shopping list via a newly inked deal with Circle K in Florida. Green Thumb Industries, a Chicago-based multistate operator, plans to open at least 10 mini-dispensaries next to existing c-stores in central Florida cities and coastal St. Petersburg, executives said in an announcement today. The cannabis retail, called Rise Express, will be housed under the same roof but will be separate from Circle K’s operations. Per regulations, the dispensaries will have their own entrances, with security, and will take up space formerly occupied by car washes or other adjacent businesses. Amid an Industry Squall, Is Cannabis Having Its ‘Bubba Gump Moment?’ Similar to a landlord-tenant arrangement, the deal has been in the works for “a couple of years,” according to Ben Kovler, founder, chairman and CEO of GTI. It breaks new ground by giving cannabis a high-profile spot in mainstream American commerce, continuing to legitimize the industry and potentially providing a roadmap for other companies to follow. “To use a Wayne Gretzky analogy, we see it as playing to where the puck is going,” Kovler told Adweek, noting the vertically-integrated company was “patient” and took pains to “get it right” as a first mover. Making headlines The announcement comes as cannabis, often a hot-button topic, has vaulted back into the national conversation. President Joe Biden recently pardoned some 6,500 people convicted of federal cannabis crimes while promising to review weed’s stringent Schedule I classification. Meantime, voters in five states—Arkansas, Maryland, Missouri, North and South Dakota—will consider new legalization measures on next month’s midterm ballots. And the first major pro sports league, MLB, just signed a deal with Charlotte’s Web as its official CBD sponsor, giving the industry a sense of positive momentum. “These are macro signals that demonstrate cannabis going deeper in the mainstream now that large corporations are publicly taking a stake in these partnerships,” Lisa Buffo, founder and CEO of the Cannabis Marketing Association, told Adweek. GTI’s alliance with Circle K “is a notable break into mainstream retail by meeting consumers where they are in their routine errands,” Buffo said. “By bringing a dispensary to the day-to-day, it positions cannabis as a consumer package good that can be sold with convenience in mind.” Petite pot shops The GTI mini-dispensaries will measure anywhere from 600 to 1,500 square feet, depending on the available real estate, and will carry a curated selection of the company’s in-house brands like Dogwalkers pre-rolls, RYTHM flower, Incredibles gummies and &Shine vapes. “We see it as a good opportunity to build brands and brand loyalty and make life easier for consumers,” Kovler said. The small-scale shops, which will be designed similarly to GTI’s 77 Rise dispensaries in 15 U.S. markets, will include ordering kiosks and other features meant to make turnarounds speedy for consumers. They will begin rolling out in 2023 during a “test and learn phase,” Kovler said. Florida gold, Bill & Ted Florida was attractive to GTI because it’s the third-largest cannabis market in the U.S., behind only California and Colorado, per data from Leafly, with more 700,000 consumers registered in its medical cannabis program. GTI competitor Trulieve, based in Tallahassee, dominates the state, operating a quarter of the licensed dispensaries, according to MJBiz. Like other medical-only states, Florida has considered legislation to legalize weed for recreational sales. Analysts think prohibition will likely lift in the coming years, with GTI situated to take advantage of another green rush. Circle K, owned by a Canadian parent called Alimentation Couche-Tard, has 600 stores in Florida, where cannabis players aren’t limited in the number of retail doors they can own. The deal with GTI is exclusive, Kovler said, and could expand to more Circle K locations depending on consumer response. There’s a well-known pop culture connection that played no official role in the agreement, but almost made it pre-ordained, with even Kovler mentioning the reference. An extended scene of stoner favorite flick Bill & Ted’s Excellent Adventure was shot outside the c-store, with the memorable line, “Strange things are afoot at the Circle K.”