As medical marijuana industry matures, sales rising substantially

COLUMBUS — Sales at Ohio's medical-marijuana dispensaries continue to climb despite — or perhaps because of — the coronavirus pandemic. Dispensaries sold about $17 million worth of products between May 14 and June 18, the most recent period for which statistics are available. In the early days of the program, dispensaries generally sold less than $1 million worth of products in a week, but that figure has gradually grown to well over $3 million per week in recent months, even as sales of most consumer products have fallen as the virus continues to spread. Sales are so high that some cultivators and processors are struggling to fill orders from dispensaries. Marijuana entrepreneurs, industry insiders and patients see many reasons behind the increase. Chief among them: the industry's natural growth, as more dispensaries open, more products become available, and more patients receive marijuana cards. Dispensaries saw patients stock up at the beginning of the coronavirus outbreak in March, said Todd Yaross, chief executive officer of the Terrasana Cannabis Co., which has several dispensaries in Ohio. However, that only partly explains the gradual rise in sales figures, he said. "When the pandemic started to take hold, it led to convergence in medical markets of a couple things," Yaross said. "One was fear of not knowing if we were going to be able to be open." Dispensaries got the green light even as Gov. Mike DeWine shuttered much of the rest of the state's economy in March. The number of patients with medical marijuana cards also has risen gradually, Yaross said. More than 136,000 people have marijuana recommendations from a doctor, and more than 81,000 have bought marijuana from a dispensary, according to figures from the Ohio Medical Marijuana Control Program. "We saw 50 new patents so far in July," said Brian Wingfield, who co-owns the Ohio Cannabis Co. dispensary in Coshocton. State officials approved telemedicine appointments and curbside pickup to encourage social distancing, which might have attracted even more patients, said Tim Johnson, a marijuana cardholder and co-founder of the Ohio Cannabis Chamber of Commerce advocacy group. "I like the fact that they also included a drive-thru walk-up window" among other temporary allowances for dispensaries, he said. But "the industry hasn't picked up on it because they want to make sure that's going to be a permanent rule. No dispensary wants to put the money into the drive-up window unless they know they can keep it." The variety of products in dispensaries has vastly expanded since the program began in earnest at the start of 2019, when the plant material was the only product available. Vaping is the most common way to consume the plant material, Wingfield said. "A few months ago, all you could get was the actual bud or the flower material," he said. "Then they added tinctures; we're getting breakfast bars, caramel, oils, gummies, lozenges. People who don't want to vape are now getting better options." Johnson also stressed that more dispensaries are open and are more spread out around the state, which means a shorter drive for many patients. As of Thursday, 51 dispensaries had certificates of operation, and although many are clustered in and around big cities such as Columbus, Cincinnati, Cleveland and Dayton, some opened in rural areas in recent months. When state officials declared marijuana dispensaries essential businesses and allowed them to remain open early in the pandemic, it gave the industry a legitimacy it had lacked, Johnson said. "That opened the door of recognition" and made patients feel more comfortable seeking permission to participate in the program, he said. Victoria Kahn, a marijuana cardholder and activist who lives in Columbus, said a large share of Ohioans are working remotely, or are reluctant to venture out, giving them more opportunities to use medicinal pot. "Patients are feeling more comfortable trying cannabis with less fear of being remanded or fired," she said. In addition, prices have fallen as Ohio's medical marijuana industry has matured, patients and advocates say, making the program more accessible. An ounce of the flower material (which lasts up to a month) can be found for about $200, said Mary Jane Borden, a marijuana cardholder and co-founder of the Ohio Rights Group advocacy organization. "Recall that at the beginning of the program, ounces were as high as $450," she said. However, some people are still priced out of the program by a high barrier for entry, Borden said. The price of acquiring a recommendation remains around $200, which is out of reach for many people, she said. ——— ©2020 The Columbus Dispatch (Columbus, Ohio) Visit The Columbus Dispatch (Columbus, Ohio) at www.dispatch.com Distributed by Tribune Content Agency, LLC.