For Quality Roots in Monroe, out-of-state buyers, particularly those from Ohio, represent roughly 30% of the marijuana retailer’s sales.
But with Ohio voters approving adult-use marijuana at the polls on Nov. 7, Quality Roots and the dozens of operators near the border could see a major decline in revenue.
The only question remaining is when.
“I don’t see the (out-of-state) sales relaxing,” Aric Klar, CEO of Quality Roots, told Crain’s. “It’s going to take Ohio five to 10 years to build out its cannabis infrastructure to match Michigan. Prices are going to be high and inventory low for a long time, so I think consumers are still going to make that drive to Michigan for a long time to come.”
Myles Baker, an attorney for the cannabis practice at Detroit-based law firm Dickinson Wright, believes Ohio will come on board much quicker.
“It will be at least 18 months before the Michigan market feels it,” Baker said. “Ohio doesn’t have rules in place yet for adult use, but if they can get the act together in a reasonable amount of time there’s no reason to think they can’t be competitive quickly.”
Baker picked that time frame because according to the ballot measure Ohioans will vote on, the new law goes into effect 30 days after the vote and the first licenses must be issued within nine months after that.
The issue of its competitiveness with Michigan, however, comes down to price and access.
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