When cannabis was regulated and the market launched in Ohio, there was only a medical program with very few dispensaries. It goes without saying that it was crucial for operators to enter this sector as quickly as possible - something that can be quite challenging given the usual timeline for constructing a CEA facility. "The first iteration of our facility was designed to be constructed very quickly, just to speed up our entry into the market," Mike Lentz from Klutch Cannabis explains. "We were just trying to make the best product we could," Pete Nischt from Klutch points out.
© Klutch Cannabis
With no help from advertising and little public awareness, Klutch grew its market share through word of mouth in the beginning until the time was ripe to expand production. That's when Mike realized they could squeeze more out of their infrastructure by going vertical rather than horizontal. That was just the first of three expansions that followed, and now the company is wrapping up its fourth.
Against the ceiling
Over the years, the company has evolved, integrating advanced equipment like Pipp's Mobile Vertical Grow Racks and VAS' In-Rack Airflow System to maximize its cultivation footprint and ensure optimal airflow. "As we've grown, we've embraced vertical farming solutions like Pipp's racking system and advanced airflow distribution to enhance efficiency and quality," says Mike.
© Klutch Cannabis
Ohio is a limited-license market, where growers are constrained by square footage rather than plant count when running a cultivation business. "So, maximizing space is critical. Pipp's customizable systems allow us to stack two tiers with six-foot heights, maintaining full-sized plants and optimizing yield without compromising plant health. We can double our production capacity within the same licensed footprint," explains Pete.
Keys of verticality
Working in a vertical farming environment presents unique safety challenges, particularly for employees operating at elevated levels. Compounding this, Ohio enforces some of the most rigorous worker safety and facility compliance standards in the country. "Ohio has some of the most stringent regulations in the nation," says Mike. "Thanks to Pipp's modular solutions, we've been able to maintain full compliance without sacrificing operational efficiency or worker well-being." Pipp's ELEVATE® Platform System, an innovative modular catwalk system provides safe, secure access to upper tiers, allowing team members to perform tasks with confidence and minimizing the risk of workplace accidents.
© Klutch Cannabis
Another critical factor is environmental control, particularly air distribution. "One of the biggest upgrades in our new facility is a more consistent air distribution system," says Mike. "With the new VAS 2.0 In-Rack Airflow System, we can extend our benching while maintaining airflow velocity, ensuring uniform climate conditions across all tiers.
To maximize efficiency and sustainability, Klutch has implemented a fully automated and scalable irrigation system that not only reduces labor costs but also ensures precise and consistent nutrient delivery to every plant. "With automation, we can accurately control water and nutrient distribution, minimizing waste and optimizing plant performance through advanced crop steering techniques," says Mike. In addition to intelligent irrigation, Klutch has integrated energy-efficient LED lighting and a high-performance HVAC system equipped with reheat capabilities. This setup allows for fine-tuned environmental control, improving plant health while significantly reducing overall energy consumption. "By leveraging LED technology and a reheat HVAC system, we maintain optimal growing conditions year-round, all while cutting energy usage and supporting sustainable operations," Mike adds.
Four expansions
Every expansion is always a ride, and the unexpected is always around the corner to throw a wrench in the works. However, with three expansions already under their belt, things went very smoothly for Klutch. "Our first facility was constructed quickly to meet aggressive state deadlines," Mike recalls. "Now, we take a more measured approach. This latest expansion, our fourth, has been our smoothest yet. We identified an older building with solid infrastructure, started construction in April 2024, and we're ready to bring in plants in under a year - an impressive turnaround given current market lead times."
© Klutch Cannabis
Perhaps the biggest challenge was obtaining approval to operate the new cultivation facility, and that's where Pete's expertise came into play. "This is the first license in Ohio to have two operational cultivation facilities," notes Pete. "We worked closely with regulators and city officials to ensure compliance while pushing the boundaries of what was possible within the limits of our licensed cultivation area."
Klutch collaborates closely with an in-house breeder and leading industry partners - such as Cookies and Josh D - to deliver exclusive, in-demand strains. "We're constantly chasing the finest genetics," says Mike. But Klutch's innovation doesn't stop at cultivation. The company also runs a state-of-the-art processing facility, crafting a comprehensive lineup of concentrates, including premium solventless extracts. Expanding further into infused products, Klutch has partnered with California powerhouse Kiva Confections to bring award-winning edibles to Ohio, while also building its own distinctive in-house edibles line.
On the retail front, Klutch has expanded its footprint with high-end dispensaries across Ohio. "We currently have two dispensaries open and four more in development," Pete shares. "Our goal is to provide a premium experience, from cultivation to retail."
© Klutch Cannabis
Operating in a challenging market
While Klutch has enjoyed significant growth, Ohio's cannabis market has faced challenges, including price compression and competition from Michigan's well-established cannabis industry. "Ohio has a long history of cannabis consumption, but many consumers were crossing the border to Michigan for cheaper products," Pete explains.
At the same time, he points out that there's always demand for premium products, and that's always been at the core of Klutch's values. "Every jar we produce has to be the best," Pete emphasizes. "We've sold out every harvest since 2019, and that's because we stay true to our brand values – quality, consistency, and passion. With adult-use legalization on the horizon, we're positioning ourselves to meet that demand with premium, Ohio-grown cannabis."
© Klutch Cannabis
The perpetual harvest schedule at the new facility will kick off around mid-summer, Mike points out, also giving Klutch the opportunity to introduce products and genetics that align with the latest market trends. "There's a lot of stuff we haven't put out yet," says Pete. "The expanded cultivation area gives us more flexibility for small batches that we think customers appreciate. We are now much more agile in pivoting to market trends when necessary. With this new expansion, considering how smoothly things have gone and are continuing to go, the stars have really aligned for us."
For more information:
Klutch Cannabis
klutchcannabis.com
Pipp Horticulture
info@pipphorticulture.com
www.pipphorticulture.com