Ascend Wellness Expands Amid Ohio Cannabis Market Growth
Ascend Wellness Poised for Major Expansion in Ohio and Beyond.
- Ascend Wellness’s strategic placement of its dispensaries across Ohio is a critical component of its market leadership strategy.
- “We expect to be over 50 dispensaries by the end of next year,” John Hartmann affirmed, signaling strong growth plans.
- Ascend Wellness is eyeing growth in other key states, particularly Pennsylvania.
Ascend Wellness Holdings (CSE: AAWH.U, OTCQX: AAWH), a multi-state operator in the cannabis industry, is strategically positioned to emerge as a cannabis company in the Ohio cannabis market. Ascend Wellness’s approach to Ohio is informed by its successful transitions in New Jersey and Maryland. Reflecting on these experiences, John Hartmann said in an interview on “Trade to Black” podcast, “We’ve seen a very nice two to 2.5 times lift from the prior run rate of medical sales in those dispensaries,” underscoring the company’s ability to adapt and thrive in new adult-use markets. Ohio, with its population of approximately 9 million adults, is poised to become a substantial market for adult-use cannabis. The state’s strong medical cannabis market, which reported nearly half a billion dollars in sales last year, sets a promising precedent. This track record provides a solid foundation for Ascend’s optimistic projections for Ohio, where they expect similar growth dynamics.
Ascend Wellness’s strategic placement of its dispensaries across Ohio is a critical component of its market leadership strategy. The company operates five dispensaries located in key urban, suburban, and rural areas, ensuring a wide market reach. One standout location is their flagship store in downtown Cincinnati, adjacent to the Hard Rock Hotel, Casino, and Convention Center. “It is a phenomenal location that our team identified and built a beautiful store there,” Hartmann remarked, highlighting the strategic importance of prime real estate.
In terms of future expansion, Ascend is prepared to adapt to any regulatory changes that might allow for additional licenses. “We are working on citing additional real estate should the expectation for the additional licenses come through as we expect,” said Hartmann, indicating the company’s readiness to scale operations in response to favorable regulatory developments.
While Ascend’s cultivation capacity in Ohio is currently modest, the company has made strategic supply arrangements to ensure a strong product offering in their dispensaries. “Our team has signed terrific supply arrangements to complement our Ohio grow,” Hartmann explained. This approach ensures that Ascend can meet customer demand while balancing its wholesale and retail operations effectively.
Ascend’s strategy varies by market, with some states like New Jersey and Illinois seeing strong wholesale operations. “In states like Maryland and Ohio, we will figure out the right balance of cultivation and production investment versus what we can source on the open market,” Hartmann added, emphasizing a tailored approach to each market’s unique dynamics.
Beyond Ohio, Ascend Wellness is eyeing growth in other key states, particularly Pennsylvania. With four dispensaries currently in operation and another under construction, Ascend is positioning itself for potential adult-use legalization in Pennsylvania. “We are excited about what we’re hearing out of Pennsylvania,” Hartmann noted, citing the governor’s support for adult-use cannabis as a positive indicator for future market opportunities.
Ascend’s broader expansion strategy includes increasing its overall footprint by 50% by the end of next year, with plans to grow from 36 to over 50 dispensaries. This ambitious goal underscores the company’s commitment to cementing its presence in existing markets and exploring new opportunities. “We expect to be over 50 by the end of next year,” Hartmann affirmed, signaling strong growth plans.
