Sale of Recreational Marijuana Begins in Ohio

YOUNGSTOWN, Ohio – As of Tuesday, three dispensaries in Mahoning, Trumbull and Columbiana counties are licensed to sell nonmedical marijuana to adults age 21 and older.

The Ohio Division of Cannabis Control announced Monday that it has issued the first round of operating certificates to 98 dispensaries across the state, including Green Leaf Therapy in Struthers, FRX Health in East Liverpool and G Leaf in Warren, according to data.

Mariah Chirchiglia, operations manager at Green Leaf Therapy, said they’re ready.

“We’re very organized,” she said. “We have a system down to get you in and out whether you’re a medical or recreational purchase.”

Green Leaf Therapy opened its dispensary last year at 93 S. Bridge St. in Struthers to sell medical marijuana. The state plans to award recreational certificates to those dispensaries that have an existing medical cannabis license first.

“The state has projected triple the numbers we see on a regular basis,” Chirchiglia said. “So we’re expecting to see anywhere from the 400 to 500 people range per day.”

She said inventory has already been adjusted to meet anticipated demand. 

“We’ve been fully stocked and ready to go,” Chirchiglia said. “We’ve been ready for several months because we didn’t know when the state was going to give us the green light.”

Adults age 21 and older must present a valid driver’s license, identification or passport to purchase recreational cannabis. State law allows individuals to buy and possess up to 2.5 ounces of marijuana and grow up to six plants per individual or 12 plants per household.

Voters in November 2023 approved the legalization of recreational marijuana use, but sales were placed on hold as the state developed a regulatory program.

Chirchiglia said the transition to recreational sales means an opportunity for more jobs and additional tax revenue for the municipality and state.

“As far as expanding, I guess it just depends on what future demand looks like,” she said. The operation was also awarded a second license for just recreational marijuana, but Chirchiglia said it’s not clear as to whether the company would open a second location or sell the license.

“We’ve just been really focused on perfecting Struthers,” she said.

Legal marijuana purchases are subject to a 10% tax, which would be divided among administrative costs, addiction treatment, municipalities with dispensaries and jobs and social equity programs related to the cannabis industry, according to The Associated Press.

The sale of recreational marijuana in Ohio has been a longtime coming for Brian Kessler, chairman of Riviera Creek LLC, a marijuana cultivator and processor in Youngstown.

Kessler, one of the early investors in the cannabis industry as it took hold across the United States, has worked toward the legalization of marijuana in Ohio for nearly 10 years. His company, Riviera Creek, was awarded a cultivation license in 2017 to grow cannabis for medical purposes, after voters approved the measure earlier.

“The fact that we can now get state-tested, regulated products to anyone over 21 – and they don’t have to get it in dangerous ways – is exciting,” he said.

Kessler said Riviera Creek’s Youngstown operation supplies most of the medical dispensaries across Ohio. Earlier this year, the company added a new “grow room” in anticipation of recreational sales.

“We have two more rooms under construction right now, and we plan to have those finished by the end of the year,” he said, and they anticipate another three rooms in 2025. “If demand continues to be there, we have room to add two to three more rooms in our current facility.”

Kessler said it’s unclear as to how the public will respond to Riviera Creek’s products, since he said they are considered the premium brand now on the market. “We might not be the best price product, but we never have been,” he noted.

The company is planning for business to increase between 30% and 50% through recreational sales, Kessler said. “It will result in more jobs and more economic development, which is great.”

Approximately 100 people are currently employed at Riviera Creek, Kessler said. In the short-term, he said that another 15 to 25 jobs would be added to payroll, with approximately 25 jobs added each year based on demand.

Kessler said Ohio proved a reliable test market, and he hinted at new products being introduced toward the end of this year as the recreational use program rolls out.

“What’s being turned on right now is that medical dispensaries will now be able to sell medical and adult-use,” he said.

Kessler expects more rules introduced later this year that will allow dispensaries to expand their product line. As it stands, recreational marijuana products are limited to those currently sold under the medical licenses.

Kessler said his role over the past decade has been to work with the state and its distribution system to ensure consumers purchase safe, state-tested and regulated products, instead of potentially harmful marijuana off the street.

“They’ll be able to comfortably acquire something and not have to worry about how it could hurt them,” he said. “We’re thrilled.”

Recreational marijuana sales also present an opportunity for economic development in Ohio, Kessler added.

“We’re opening a $2 billion industry overnight,” he said. “When does that happen?”

Pictured at top: Marijuana plants harvested at Riviera Creek.

Copyright 2024 The Business Journal, Youngstown, Ohio.