Acreage Holdings Gears Up for Ohio’s Adult-Use Cannabis Market
The TDR Three Key Takeaways regarding Acreage Holdings and Ohio’s Adult-Use Cannabis Market:
- Executive VP Kate Ols said “In a medical market, we saw our dispensaries in Ohio and our manufacturing facility really operating at the top of the pack.”
- According to EVP Kate Ols, Acreage Holdings’ strategy involves a balanced approach to vertical integration, leveraging its retail presence and supply chain capabilities.
- Acquisition by Canopy USA to enhance Acreage Holdings’ market expansion.
Acreage Holdings (CSE: ACRG.A.U, ACRG.B.U, OTC: ACRHF, ACRDF), a multi-state operator in the cannabis industry, gears up for Ohio’s adult-use cannabis market. Kate Ols, Executive Vice President of Acreage Holdings, gave an exclusive interview on “Trade to Black” podcast on Friday and discussed the company’s strategic positioning and future plans. The insights shared highlight Acreage Holdings’ operational framework and its readiness to capitalize on the new opportunities presented by Ohio’s change to adult use regulations.
Acreage Holdings has established itself as a vertically integrated operator in Ohio’s medical cannabis market. “In a medical market, we saw our dispensaries in Ohio and our manufacturing facility really operating at the top of the pack. We had the maximum number of licenses,” Ols noted. With the passage of Issue Two, which allows for adult-use cannabis sales, Acreage Holdings is poised to expand its operations significantly.
The company’s current infrastructure includes five retail licenses, the maximum allowed for any operator from the first round of applications. These stores, located in key areas such as Cleveland, Akron, and Columbus, provide a solid foundation for growth.
Acreage Holdings’ strategy involves a balanced approach to vertical integration, leveraging its retail presence and supply chain capabilities. “We’ve got this balanced vertical integration here, where we’ve already had a dominant retail presence. And we’re really excited to be able to take advantage of that and actually be able to start making adult-use sales later this month with the existing stores,” Ols emphasized.
Ols highlighted the importance of expanding infrastructure in line with market needs. “Right now, that level one cultivation license gives us about 25,000 square feet of cultivation area, but then we’re able to expand it now with Issue Two, up to 100,000.” This strategic expansion ensures that Acreage Holdings can meet the anticipated demand without overproducing.
Drawing from experiences in other states, Acreage Holdings is prepared for the challenges and opportunities of a new adult-use market. “We learned from every state that flips adult use. The most recent that we went through was the Connecticut launch,” Ols mentioned. The company’s approach in Ohio will mirror successful strategies from other limited license markets like Illinois, focusing on efficient and smooth launches.
The passage of Issue Two has already sparked significant consumer interest in Ohio. “As soon as Issue Two passed, the calls and people showing up at the front door started like the next day. They’re like, ‘I’m really excited to come purchase cannabis,’” Ols said. With an excise tax equal to Michigan’s, Ohio is expected to attract not only local consumers but also those from neighboring states like Indiana and Pennsylvania, which have not yet adopted adult-use cannabis laws.
The acquisition of Acreage Holdings by Canopy USA is expected to bring additional benefits, including operational efficiencies and market expansion. “I think the real value of the company will be able to gather from this is now rather than having three distinct operating teams from these three companies, we’re able to have some overlap, find some efficiencies and probably some savings there,” Ols explained. Want to be updated on all things Psychedelic, Cannabis, AI, and Crypto? Subscribe to our Daily Baked in Newsletter!
