The third annual Ohio Cannabis Health & Business Summit brought vendors, speakers and industry leaders to the International Exposition Center in Berea in early October. About 5,700 people attended the convention as well, up from 4,500 last year, according to summit founder and CEO Lenny Berry.
With recreational use now legal in Ohio, the event also drew pro-cannabis entrepreneurs eager to harness a wide-open marketplace. One is Tom Mikulski, a Portage County landlord whose past enterprises include oil wells, car washes and mini-storage facilities.
Having spent a decade supporting recreational dispensaries in Michigan as a silent partner, Mikulski is now fully committed to the Ohio cannabis industry, he said. A long-time recreational user himself, he also worked alongside a local cannabis processor on its wholesale operationsprior to legalization.
“I see (legalization) as a good thing – it’s not like alcohol where it’s at every corner,” said Mikulski. “Seventy-five percent of people are using (marijuana) wisely, they’re not just using it to get high. I use it for sleep and pain relief. I was a framer and carpenter by trade, and just beat up over the years from hard work.”
Before Ohio voters approved the legalization of recreational cannabis in 2023, Mikulski toured 20 regional dispensaries and cultivation facilities, which culminated in creation of a new cannabis company with summit founder Berry. Called Tom & Berry’s Special Reserve, the startup plans to sell buds and pre-rolled joints at regional dispensaries beginning early 2025.
The newly formed company is collaborating with a to-be-named local grower, while a processing partner is still to be determined. Mikulski said that his negotiation expertise from real estate has translated nicely to a burgeoning industry.
“The negotiation skills on pricing and budget that I learned are what I use in cannabis,” Mikulski said. “Research and my knowledge of how to make a proper business plan are the biggest things that carried over.”
A bit of everything
Ohio has surpassed $87.12 million in recreational marijuana sales since the program launched on August 6, according to the state’s Division of Cannabis Control. While it’s an exciting time for Ohio’s 120-plus dispensaries, some cannabis companies remain behind on the revenue side, said Berry, also co-owner and chief visionary officer of hemp producer Organic Plus Brandsin North Ridgeville.
Three men sat at a table smiling
Summit founder and CEO Lenny Berry, center, with ex-Browns quarterback Bernie Kosar and Demitri Downing, founder of the Arizona-based Marijuana Industry Trade Association.
“Next year’s summit will have more attendees interested in the cannabis industry, because we will have a full year of getting the word out that legalization is in full effect,” Berry said in an email. “The state is still operating with the medical rules that won’t fully change until the beginning of 2025.”
Medical marijuana has been legal in Ohio since House Bill 523 legalized the substance and created the Ohio Medical Marijuana Control Program. Under new state laws, the status of certain cannabis-related activities went from illegal to regulated. For example, dispensaries must still abide by restrictions on underage sales, while unlicensed growers and traffickers will continue to face prosecution.
Akron resident Kathy Menditto had a booth at this year’s event, where she distributed business cards and spoke with attendees about her new cannabis-centered human resources firm. Deliberate HR is a one-woman shop for companies facing an evolving regulatory landscape along with rapid growth and ongoing social stigma.
Federal marijuana prohibition, for example, creates unique challenges in payroll, benefits and various financial transactions, noted Menditto, a 20-year HR veteran in sectors including finance, manufacturing and retail.
During her study of the cannabis industry, Menditto learned that a significant portion of businesses do not have an in-house HR department. That leaves complicated compliance and employee engagement tasks to already harried managers – a summit attendee had been sued by a former worker due to discrepancies found in an outdated employee handbook.
Menditto believes she’s well-equipped to handle similar issues, even as she’s new to cannabis herself.
“I worked for small companies where I was the only HR person, so I was always responsible for everything,” Menditto said. “So, I know what a small business needs when it comes to HR. A manager doing HR duties is not adequate, because the cannabis business is already under strict regulations. Human resources throws a whole other layer onto that when it comes to compliance. Owners and managers cannot be expected to know everything.”
A deep dive into a new career
As Menditto delved deeper into cannabis, she recognized a lack of experienced HR professionals working in the field nationwide. Certain agencies specializing in marijuana focused primarily on payroll, neglecting critical areas of policy development and regulatory oversight, she said.
“The nice thing about HR is that it’s universally applied to every industry,” Menditto said. “You have the same minimum wage laws and the same equal employment opportunity laws. But there is a lot of compliance, and there’s a lot of reporting. Having to stay up to date becomes a struggle, because there’s so much.”
The emerging sector offers its own hurdles for Menditto as she builds her new business.
“Cannabis is still very new in Ohio, so there are a lot of unknowns,” she said. “I’ve always worked in established companies, and I’m starting my own business in an industry that people went to jail for working in just a few years ago. It is mind blowing how fast things change.”
Patrick Wurzbacher came to cannabis from Just Candy, a bulk sweets distribution company near Cincinnati. Wurzbacher, now product manager for Ohio-headquartered medical and recreational marijuana distributor Backroad Wellness, said the fast-paced cannabis environment took some getting used to.
“There’s a lot of change in regulations being in a new industry,” said Wurzbacher, who moderated a branding seminar during the October cannabis summit. “Technically, we’re still waiting on rules for adult use, so we’re going to have a whole new set of standard operating procedures. As far as the culture, these have got to be the nicest people I’ve ever met. There are so many people when we see each other at a networking event, we are straight up pulling each other in for a hug.”
Wurzbacher interned for Backroad Wellness while a student at University of Cincinnati, joining the company full-time still 60 credits short of a business degree. The chance to secure a good job without a diploma demonstrates the inclusive and welcoming nature of cannabis, he added.
“At 24, I was able to climb the ranks quickly and get a management position, and I don’t necessarily think that’s unheard of (in cannabis),” Wurzbacher said. “If you have the drive and the work ethic, many of these companies are willing to take a chance on you.”
H/T: www.wosu.org
