Inside Verano’s $202M Quarter with COO Trip McDermott
Verano’s turnaround strategy is the focus of the latest Trade to Black podcast, where host Shadd Dales and Anthony Varrell spoke with Verano Chief Operating Officer Trip McDermott. The company, which recently reported $202 million in revenue, 56% gross margins, and 33% EBITDA margins, has been emphasizing quality and operational discipline as the foundation of its performance.
McDermott explained that Verano has spent the last 18 months refining processes across the supply chain, including scaling back automation where it reduced product quality. He stressed that every employee is viewed as a “temporary custodian” of the product, with training designed to give staff broader context beyond their immediate tasks. Retaining and promoting internally has been a key focus, with cross-training ensuring continuity and efficiency.
Florida has been central to Verano’s strategy, with capacity expansions aligned to Amendment 3 preparations. McDermott noted quality improvements extend beyond cultivation into retail, where hospitality and customer education are treated as essential. On product mix, Verano balances in-house brands with select third-party vendors, using strict COA and ingredient reviews, while avoiding the “Best Buy” model of oversaturation.
The COO highlighted a shift away from chasing every market trend, describing past mistakes of trying to be “all things to all people.” Instead, Verano is now focusing on core competencies, rationalizing SKUs, and pursuing innovation carefully. For instance, while infused pre-rolls and vapes remain growth categories, McDermott said Verano invests heavily in R&D before launch, aiming for top-tier products rather than quick entries. On hemp beverages, he characterized the space as “bifurcated” and “messy,” drawing comparisons to the CBD boom eight years ago. For now, Verano is monitoring competitors while questioning whether drinks represent the best use of capital.
Discussing future growth, McDermott pointed to potential adult-use flips in Virginia, Pennsylvania, and Florida as transformative opportunities. He emphasized the importance of advanced planning—staffing, automation, lab expansion, and demand forecasting—so operations are ready when new markets open. While buying patterns remain consistent between medical and recreational, he noted the surge in demand can create openings for well-prepared brands to capture share.
McDermott also shared his personal journey from finance in oil and gas to cannabis, describing how he cold-called companies listed on packaging a decade ago to learn about the industry before moving to Denver and eventually joining Verano. He credited data-driven cultivation improvements, knowledge sharing across facilities, and a relentless focus on quality as key drivers of efficiency.
