Key Objectives

Objective I: Build MedMen Brand Through Flagship Retail Stores

  • Capitalize on first mover advantage by opening stores in top markets
  • Build brand awareness and customer acquisition through marketing

Objective II: Expand Retail Footprint and Create Omnichannel Experience

  • Continue to deepen market share in core markets such as California
  • Leverage data and insights to launch delivery, loyalty and targeted CPG brands

Objective III: Drive Profitability Through Investments in Supply Chain

  • Scale manufacturing to increase share of higher-margin private label brands
  • Leverage national scale to maximize operating leverage and control supply chain

We Are A Retailer

First and foremost, we are a cannabis retailer. Retail is the focal point of this industry and where long-term value will be created for four main reasons:

  1. Cannabis Regulations Favor Retailers: While two-thirds of Americans want access to legal cannabis, they also do not want to see a “pot shop in every corner” – this has resulted in the implementation of regulated oligopolies for licensing and incredibly arduous zoning restrictions in most of the states with legal marijuana and it is anticipated that future states will follow the same model. This regulatory framework has created significant first-mover advantages and long-term defensibility for cannabis retailers. There are three layers of protection for retailers in the industry.

    First, the limited number of licenses that are issued to retailers in our core markets creates a regulatory barrier to entry for new operators. For example, in the entire state of New York, there are only 10 total master licenses, which allow for four retail stores per license holder. In the City of Los Angeles, there are fewer than 200 retail licenses available for a population of over 10 million residents and 40 million tourists visiting the county annually. The limited number of licenses provides outsized economics for first-movers like MedMen who now hold these licenses.

    The second layer of defensibility for retailers is the zoning restrictions for cannabis, which are some of the strictest in retail. For example, in Los Angeles, adult use cannabis dispensaries must be a minimum of 700 feet from any school, church, park, or other dispensary. We estimate that less than 15% of Los Angeles real estate is compliant for cannabis. By being an early mover and making significant investments into our government affairs and real estate teams, we have been able to use these restrictions to create a moat around our stores. Given our first-mover approach, we are the only cannabis store on Robertson Boulevard near Beverly Hillsand the only store on Fifth Avenue, among others. Even additional licenses were to issued, these zoning restrictions protect first-movers from increased competition. Securing the most prime real estate in each jurisdiction – which we have done in California, Nevada, New York and Florida – is the defensibility we have built around our business model.

    The final layer of defensibility is our ability to build the biggest cannabis retail brand in the world and serve as the trusted advisor to millions of first-time consumers. We take this responsibility seriously and are constantly finding ways to improve our retail experience and better serve our loyal customers.

  2. Retailers Control the Supply Chain: Large national product brands do not yet exist in cannabis. Given the state-level nature of the industry and a growing macro trend towards locally sourced products, it will be quite some time until cannabis product brands exist with a strong level of national brand equity. National retailers such as Whole Foods, Nordstrom and Costco are successful because they can constantly adapt their product mix to changing consumer needs. MedMen is the most recognized name in cannabis retail, attracting consumers into our stores for excellent service and education as to what products will best fit the experience they seek.

    Unlike alcohol where there are laws preventing retailers from putting their own brands on their shelves, there are no such restrictions in cannabis. As a result, it is the retailers that control access to shelf space and thus have more power in shaping what brands emerge in cannabis. Retailers are also able to hold margins even as wholesale pricing fluctuates. Like Starbucks, retailers are able to keep pricing constant.

  3. Retail Experience and Consumer Touchpoint: What we’ve seen across all consumer verticals is that trusted retailers are able to capture consumer loyalty and outsized market share. The best example of this is Whole Foods, which is synonymous with natural foods and a healthy lifestyle to millions of consumers who are discovering the benefits of various new food and beverage categories. Their retail experience is focused on helping consumers discover a world previously unfamiliar to them and becoming their customers’ trusted guide. Despite imitators over the years, Whole Foods has maintained its market leader position in large part because of its early move into key cities such as Los Angeles, San Francisco and New York City where it built early brand recognition and equity. Our industry-leading retail concept has fundamentally changed the way consumers are shopping for cannabis and we take pride in constantly pushing ourselves to be at the forefront of cannabis retail.

  4. Real-Time Data and Insights: We track millions of data points at the point of sale in our stores. Given the unique requirement for consumers (in both adult use and medical markets) to swipe their drivers license or passport at check-in, we have the ability to capture detailed demographic and marry that with purchase information through the millions of transactions. Through our business intelligence team, we use this data across the company from retail site selection to product development to merchandising. Through our proprietary Enterprise Resource Planning (“ERP”) system, we have the ability to compile data across every state we operate in and analyze trends and insights in order to stay ahead of the competition We can also use this data to continue strengthening our ecosystem, by launching delivery and loyalty programs.


MedMen will be licensed for 70 retail stores across 9 states inclusive of pending acquisitions announced to date.

MedMen's National Footprint Retail

Stores Permitted Under Licenses Stores Currently Operational
Arizona 3 3
California 17 13
Florida 35 8
Illinois 4
Massachusetts 2 0
Michigan 1 1
Nevada 3 3
New York 4 4
Virginia 1 0
TOTAL: 70 33
 MedMen Licensed Factories


This chart includes pending acquisitions and two stores managed by MedMen but not owned by the Company.

Our Brands

We launched our flagship brand, [statemade], our first line of cannabis products consisting of four product types (vape pens, drops, flower and pre-rolls) conveniently classified by seven desired effects – from “max” to “zzz”. We also recently launched an in-house brand called MedMen Red, which is available in our retail stores.

The principal objective of launching our own in-house brands is to capture the extra margin on those sales, to enhance four wall economics and to build customer loyalty. Our longer-term goal is to have approximately half our sales from brands that we wholly own, while still selling other popular third-party brands – similar to the strategy taken by other successful retailers such as Costco and Whole Foods.

We also invest in leading brands and companies, providing them with access to growth capital and a strategic partner which can help them scale nationally while improving MedMen’s bottom line. We have already announced two such transactions - Lowell Smokes and Old Pal.

Four-Wall Economics

Given the average unit volumes and EBITDA margins for our existing footprint, we target revenue per store of $20 million in and EBITDA margins of 30% for the adult use market. We believe there is meaningful upside to our four-wall economics due to the following factors:

  • The growth of the MedMen brand will allow us to continue taking outsized market share
  • By launching a loyalty program, we expect to significantly increase customer lifetime value of our core customers by driving repeat purchasing
  • Over 80% of the dispensaries in our core market, Los Angeles, are still unlicensed and the expectation is for these stores to be shut down over time
  • The introduction of credit card processing, which is currently not allowed for cannabis retail, is expected to increase basket sizes for our customers

Technology-Enabled Retail

Our day to day activities have created an unprecedented volume of valuable data. We know our customer habits: how often they purchase, what products they prefer, and what offers can help drive spending.

In 2018, we launched an in-store pickup feature on our website, which allows customers to place orders ahead of time. Customers using this option have already generated higher basket sizes than those purchasing in store. Going forward, we look to further leverage the strength of our data with opportunities provided by digital to further enhance sales and margins.

We expect to launch a best in class loyalty plan soon which should drive repeat purchases and increased basket sizes. We are also working on infrastructure for a comprehensive delivery service in all our markets as delivery becomes a meaningful portion of the cannabis industry.