Emerging cannabis markets are always abuzz with opportunity. New operators, ancillary service providers, and multi-state brands alike view newly legal states as fertile ground for growth. At this week’s IgniteIt Ohio Valley market spotlight event in Cincinnati, it was clear that many in the industry see Ohio as one of the nation’s most promising new markets.
“This is the most exciting market in the country,” exclaimed Steve Ernest, director at Chicago Atlantic, during an investment panel.
As one of the most active lenders in the cannabis industry, Ernest has witnessed many markets rise and fall. He described Ohio as being in its “Goldilocks moment” — that sweet spot where demand and prices are high, growth is steady, and deal flow remains abundant.
Ohio hit $3 billion in cannabis sales earlier this year. The adult-use market has exceeded expectations, generating $702 million in its first year. The Buckeye State kicked off medical marijuana sales in 2019.
Despite the enthusiasm, Ohio’s rollout hasn’t been without hiccups. A major concern discussed at IgniteIt was advertising. The Division of Cannabis Control (DCC) has yet to finalize cannabis marketing guidelines, leaving operators uncertain about how to promote their businesses in a compliant manner.
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Thomas Haren, an attorney who has worked closely with state officials on cannabis policy, said from the stage that “advertising is a main priority” for regulators, with clearer rules on the way. Currently, cannabis businesses must submit all marketing materials to the state for approval, along with a $100 fee. However, with no clear rubric in place, operators claim that the process is both costly and inconsistent.
“Operators are paying to submit items without a clear understanding of what is acceptable,” explained Stella Morrison, founder of CannaContent. “There’s been a history of inconsistencies where some operations get the ‘OK’ to do something, but then another operator will submit something very similar and get rejected.”
Hemp debate takes center stage
Beyond advertising, the future of intoxicating hemp dominated conversations throughout the IgniteIt event. Ohio legislators are currently working to amend portions of cannabis legislation in SB56, with much of the debate focused on how to manage the growing hemp market.
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Three state lawmakers provided a brief update on SB56 during their time on stage, stating that any disagreements will likely be resolved during a forthcoming conference committee. The Ohio Senate rejected the latest version of the bill from the House, with Senator Shane Wilkin telling GreenState that it was mostly due to hemp regulations.
“It’s got to be tested, we’ve got to know where it came from,” Wilkin said. “It’s about safety and keeping it away from kids.”
Cannabis operators argue that competition from unregulated hemp is hurting their business, while legislators are concerned about untested products and minors gaining access to intoxicating products. Ohio Governor Mike DeWine previously called for a statewide hemp ban, which was blocked in court; however, lawmakers hope to even the playing field instead.
“We should not be racing toward the bottom; [we’re] elevating the floor to what we expect,” said Andrew Makoski, chief legal counsel for the DCC, of creating parity between marijuana and hemp.
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At the end of the day, one thing was clear: there’s plenty more to come from the Buckeye State. Elliot Lane, president of IgniteIt, told GreenState the team was thrilled with the platform’s Ohio debut, which drew both national and local attention.
“We’re so excited and humbled by the engagement we saw in Cincinnati. The leading operators, investors, and policy leaders showed up—the handshakes yesterday will resonate for months and years to come,” Lane concluded.
