Can the big gulp change the marijuana world? Perhaps

Convenience store operators drew attention to last August’s Gallop survey that found cannabis use is outpacing cigarette use… and it has prompted them to think more about expanding sales potential. This could be HUGE as they sell over $24 billion worth of beer annually!

Convenience stores are already at the forefront of trends like lottery tickets, Airborne and of course the Big Gulp. In 1976, Coke suggested that 7-Eleven use an outrageous 32-ounce cup to sell fountain drinks. It was a big jump from the then-current 20 ounces, but it became such a money-maker that automakers had to change the design of cup holders. Big Gulp helps Coke and convenience stores make nice profits.

Again, Canada leads the way

Convenience store partners around marijuana began in 2018 when Canada Couche-Tard, parent company of Circle K, formed a joint venture with Toronto-based Fire & Flower, an adult cannabis retailer with more than 100 company-owned stores, in 2019. ACT agreed to provide capital to Fire & Flower to accelerate its expansion strategy.

The alliance has since expanded to include the opening of seven co-located Circle K cannabis stores in Alberta and Ontario, Canada, operated under Fire & Flower corporate or technology licensing business models.

The companies intend to pursue additional opportunities to expand the Circle K co-location store program. “Couche-Tard continues to see encouraging prospects in the cannabis market and is committed to learning more about how the market is developing in Canada and beyond,” said Alex Miller, Executive Vice President of Operations, North America. Couche-Tard believes it’s a natural extension to combine its convenience shopping experience with the growing demand for cannabis products, he added.

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US movement

Convenience is a strong channel in retail, and people want more access to cannabis,” said Ben Kovler, Founder, Chairman and CEO of Green Thumb. “The new RISE Express model is a major step forward in making it easier and more efficient for patients to purchase high-quality cannabis as part of their daily routine when they stop by their local grocery store.”

Jackson’s Food Stores are also expected to enter the cannabis market this year. Jackson BevCo, owned by Jacksons Food Stores based in Boise, Idaho, works with CordovaCann Corp. Together, a Toronto-based consumer goods and retail company focused on cannabis. A managed services agreement (MSA) between the companies will facilitate the opening of retail cannabis stores within or adjacent to C-stores operated by Jackson BevCo, which has 65 Big Smoke and Tobacco Connection stores in the western United States

The retail cannabis stores opened under the MSA will be owned and operated by Jacksons, who will pay Cordova a royalty based on a percentage of revenue generated. The first of these stores are scheduled to open in Washington, Oregon and Arizona.

RELATED: The alcohol industry is taking big gulps from marijuana companies

“Cannabis is clearly an opportunity for c-stores at some point, but we’re still five years to 10 years away,” predicted Alex Morrison, senior business analyst at Cadent Consulting Group. When the time comes, Morrison believes cannabis will have the most success in the convenience channel, because that’s where most people already do their age-restricted purchases, including tobacco, alcohol, and the lottery.

With combined US and Canada sales of over $671 billion and over 155,000 convenience stores nationwide, the market potential is HUGE!