COLUMBUS – Approaching five years since Michigan marijuana shops rang up their first sales, Ohio has joined the growing fray of U.S. states selling recreational cannabis.
Ohio’s market launched on Tuesday, Aug. 6, with 120 stores permitted to sell marijuana to adults, 21 and over, with a valid ID.
Image courtesy Motley Fool
During the first five days, Ohio sales totaled $11.5 million, an average of nearly $2.3 million per day, according to data released by Ohio Department of Commerce. Michigan marijuana is selling at a rate of nearly $9 million per day, more than three times Ohio’s average daily sales.
While Ohio sales are significant, the new south-of-the-border competition has gone mostly undetected by Michigan’s market, even among shops near the border that depend on sales to Ohio residents.
“At the moment, we’re not too worried about it,” said Camden Miller, a manager with the Pinnacle Emporium located along the Ohio border in Lenawee County’s Morenci. “The supply and demand isn’t there yet in Ohio, and just like Michigan … until you get it oversaturated, you’re not going to see prices come down.
“Within the next few years, I’m sure it will start having more of an impact.”
Ohio budgeters predict Ohio marijuana sales will approach $1.5 billion in the first year and capture nearly $150 in new excise taxes.
There are only a few Ohio shops open within a 30-minute drive from the Michigan border — two in Toledo, Ohio, and one in Bowling Green, Ohio — but the state’s Department of Cannabis Control plans to allow more stores to open in the future.
In the meantime, Miller said Ohio residents seem willing to continue driving further for the deals and selection available in Michigan.
A large percentage of Pinnacle Emporium’s business comes from outside Michigan, including Ohio, with customers often “stocking up” and placing orders averaging over $100 and sometimes approaching $1,000.
Miller said stores in Ohio are selling 1/10 of an ounce (1.6 grams) of flower for nearly $50.
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