Trulieve Twitter ads ‘a huge step into normalizing cannabis,’ CEO says

Trulieve CEO Kim Rivers sits down with Yahoo Finance Live to discuss the cannabis brand's latest advertising campaign on Twitter, the industry's difficulties in advertising on traditional platforms, the cannabis industry's outlook, and potential regulation.

Video Transcript

DAVE BRIGGS: A glimmer of hope for beaten-down cannabis stocks today. Shares of Green Thumb Industries and Trulieve, two of the biggest multistate operators in the country, up more than 11% over the last five days. The optimism over a new policy from Elon Musk's Twitter advertising guidelines. For the first time ever, cannabis ads are now live on the social-media platform.

One company taking advantage is Trulieve, and their CEO Kim Rivers joins us now. Kim, always nice to see you. How significant a game changer is this for your company and the industry?

KIM RIVERS: I mean, to have a platform of Twitter's size with approximately 400 million people live on the platform, it's an incredible opportunity for the cannabis industry. It's a huge step into normalizing cannabis for the American population, and we're thrilled to be the first company to be advertising live with Twitter as of today.

DAVE BRIGGS: Yeah, we have one of your ads, and we'll put that up on the screen for everyone. Twitter's policy, though, also reads, "Advertisers may not promote nor offer the sale of cannabis." So, Kim, are they in effect taking your money while handcuffing you at the same time?

KIM RIVERS: You know, like I said, I think it's a tremendous step forward in normalizing cannabis, which we know, of course, is overwhelmingly supported by the American people as represented by all of the states that have legal cannabis programs. And so, you know I would say that certainly we would hope that there will be incremental progress and change to the policy, but we are very thankful and thrilled to have the opportunity.

And just as a reminder, we are, as cannabis companies, prohibited from advertising on many normal channels. So we cannot advertise through traditional TV, through traditional radio and other traditional media. So really having access again to the 400 million Twitter users to build brand awareness, to build education around cannabis and the benefits is a great step in the right direction.

DAVE BRIGGS: So how about other platforms in terms of Meta, TikTok? Is there any progress or discussion there?

KIM RIVERS: So, I mean, we're very hopeful that this will begin-- this will be the first step and that other social channels will begin reviewing their policies as well. Certainly our team is poised and ready and would be thrilled to take advantage of any other opportunities that present themselves. Trulieve as a hashtag actually has strong followings on many of those platforms and, again, would love to be able to have a relationship in a more formal fashion.

DAVE BRIGGS: Yeah, it's really hard being shadow banned. I experienced that myself in posting anything about the industry at all.

You mentioned television and radio and even billboards. Is there any discussion on trying to change those guidelines, and how difficult does it make it for your industry?

KIM RIVERS: Yeah, you know, I mean, it's just a patchwork. I mean, we see this, and we're proficient, right, at understanding and balancing and operating between kind of what's legal and what's acceptable and then what's not given the fact that, of course, we don't have a uniform federal policy around cannabis in the US. Although, of course, we're on the forefront of trying to affect change there. Because those channels, those traditional channels are regulated through the federal government, that's obviously difficult for them to change those policies and processes without changes, again, at the federal level.

That being said, listen, I mean, the American consumer, we all consume media in lots of different ways today, right? It's not just traditional methods. And so I do think there's going to come a time when other channels such as Twitter like we're talking about, other social channels-- certainly there's availability for streaming services, et cetera, that don't necessarily have those same restrictions.

So I think you're going to see the industry continue to evolve and continue to get creative and to meet people where they're at. And I think that unfortunately if folks don't change policies, they potentially risk getting left behind.

DAVE BRIGGS: Yeah. This good news comes on the heels of a lot of tough news to start the year. Colorado sales were down 20% last year. Tilray made some massive job cuts. Cannabis prices in Canada plummeted 40%. Businesses like yours exiting California as far as a market.

When you talk about policy, when you talk about our elected officials in DC, what does the industry need above all else to reverse these trends?

KIM RIVERS: Yeah, I mean, I would say that-- I mean, look, cannabis demand is alive and well. We're certainly seeing inflationary pressures just like every other business and pressure on wallet for consumers. Again, I mean, when, you know, your eggs are more expensive, your gas is more expensive, you know, you have less available income.

But what we know is that cannabis consumers are also very loyal and that they have, in many cases, replaced other-- you know, whether it's spices or other prescription medications for cannabis in their everyday life. So what we need is we need comprehensive and actual real policy change coming out of DC. Certainly it would seem that SAFE Banking, which is literally just a policy to say let's keep cash off the streets and enable our businesses to bank funds and to utilize banking services like any other normalized business in the US, would be a step in the right direction.

We're optimistic that Biden-- President Biden and kicking off his review of scheduling could have some real significant and positive impact for the industry as we look at whether or not it makes sense for cannabis to continue to be classified in the same category as heroin and other hardcore illegal substances. So, you know, I think that there is positive change to come, but, you know, listen, we need for Congress to step up to really take action that is not just lip service when it's election time but actual real policy and substantive reform.

DAVE BRIGGS: In the meantime, it's Elon Musk here with some good news for the industry.

KIM RIVERS: That's right.

DAVE BRIGGS: Trulieve CEO Kim Rivers, good to see you. Thanks so much.

KIM RIVERS: Hey, thank you so much.