Exclusive news and research on the wine, spirits and beer business

Interview, Part 2: Planet 13 Co-CEO Larry Scheffler

December 14, 2021

In the second part of our interview, Planet 13 co-CEO Larry Scheffler discusses the Las Vegas-based player’s expansion into new markets like California, Illinois, and Florida, as well as potential acquisition activity, on-premise consumption lounges, and what the future holds for the company.

SND: What is the status of on-premise consumption in Nevada?

Scheffler: The law was passed last June, and we’re waiting for the rules to be written by the state and county for consumption lounges. We’ll have about an 8,500 square foot consumption lounge inside and then a balcony of about 7,200 square feet overlooking the Strip, with a splash pool up there four inches deep. You can take your shoes off and dance in the water. There will be nothing like it in the world.

SND: In addition to your superstores in Las Vegas and Orange County, California, Planet 13 is on the move in other key markets as well. What can you tell me about those plans?

Scheffler: In Chicago, we have a license, and because it’s a recreational market, we’ll have a superstore. It’s always been a target market of ours. We’re currently putting in LOIs on different sites. Florida’s a little different. We will only be doing neighborhood stores in Florida until recreational comes into play, maybe by 2022 or 2024. Then we’ll start the superstores there. Probably Miami first, then Orlando and Tampa/St. Pete. We think Florida will be one of the leading states for cannabis and for our company in the United States because of the 130 million visitors coming to the state every year. We only have 55 million coming to Vegas. So you can see the size and volume of traffic down there.

SND: As you continue to expand Planet 13’s footprint to new markets, will you consider acquiring existing retail players when the opportunity presents?

Scheffler: Every state is different. In Florida, if we can get a jumpstart and get someone that is a private company that has already got a number of dispensaries and a grow going, that’s in our wheelhouse. If we have to start from scratch, we’ll do that. That’s why we’re looking at land to build our own grow, as well as existing sites.

SND: Looking ahead a few years, how do you envision the U.S. cannabis market as a whole, and Planet 13’s place in it?

Scheffler: We’ll concentrate an awful lot on Florida. That’s really top of our menu. Chicago will also be good. We’re looking at a few other sites as well. I think everybody’s got the same thought, and that is, when it does go legal at the federal level, big tobacco, big pharma, the Googles and Amazons and so on are all going to come in and try and buy up the five or seven players that have the biggest and best footprint, best business model, and probably pay a premium. That’s the exit for a lot of us in the cannabis market. I still think it’ll be three to five years before it’s legal at the federal level, although they could surprise us.

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.

Tagged : ,


Previous :  Next :