Interview, Part 2: Curaleaf CEO Matt Darin On Entering The Hemp-THC Category
July 9, 2024In the second part of our interview, Curaleaf CEO Matt Darin discusses the leading multistate operator’s launch of new hemp-derived THC products, the future of the up-and-coming category, and progress across Curaleaf’s core business in the dispensary channel.
SND: What makes DTC a compelling way to launch the new hemp THC lineup?
Darin: First of all, it’s highly scalable. Our ability to create an online marketplace that can distribute throughout the country allows us to basically enter a lot of markets immediately. In recent years, businesses moved online, and consumers have become accustomed to purchasing things online and getting them delivered directly to their door.
The world has moved to digital. Consumers’ ability to now have gummies and seltzers delivered is a relatively new concept that I think many, maybe even most, consumers aren’t even aware of. But we have millions of consumers signed up through our platform and visiting our website, and we have a great opportunity to leverage that.
SND: What effects do you think the hemp-derived THC market will have on the regulated cannabis market?
Darin: While some in the industry have viewed this as somewhat of a threat, we see it as a really huge opportunity to legitimize the industry and to help grow the overall THC business.
The biggest thing that I see is that the hemp THC category is for those who today are not visiting dispensaries, yet are going to be new entrants into this market. That’s a lot of why we’re focused on the low-dosage products and the beverage category. It’s generating a whole new class of consumers who have not historically been cannabis consumers, but are comfortable with the beverage form factor. I think the hemp THC market’s ability to speak to and acquire new customers is ultimately going to be a major benefit for the cannabis business over time.
SND: Can you give us an update on Curaleaf’s dispensary business?
Darin: Demand continues to be very strong for cannabis throughout the United States and now internationally as well, as we continue to focus on the 15 countries outside the U.S. that we’re now operating in.
In the U.S., there have been some market catalysts that have been a real boost to the industry. New York has been one where it took years to get the adult-use program off the ground, but now it’s making progress. You have up to 180 legal dispensaries that are now open in New York. The opportunity to sell our products throughout those is a great growth catalyst. You’ve got another major market that’s about to launch in Ohio, which is one of the seven largest states in the country and is going to be a big market.
We’ve got Florida and Pennsylvania hopefully on the horizon as well. So you continue to have these growth catalysts, and then you see new markets opening up and issuing new licenses in places like Kentucky and the Carolinas.
When you combine the growth coming from both the regulated cannabis industry—some of these new markets that are opening up—along with the hemp industry, you’re looking at over $60 billion of combined business, which is getting on par with many other mature industries.
All this growth has happened in the absence of any federal reform. And despite that, the market continues to grow and states continue to recognize the upside opportunity in legalizing cannabis.
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