How Is Colombia Selling and Shipping Thousands of Pounds of Weed to the US and Europe, Already?
Think cannabis prices have found a bottom in the US and Canada? Think again as low-cost providers like Colombia have started shipping cannabis and cannabis products around the world at much lower costs than the US and Canada can compete with the current tax structures in place.
Flora (NASDAQ: FLGC) is an international cannabis corporation that sources cannabis derivatives from all-natural, low-cost production. Flora is establishing a networked, design-driven collective of plant-based wellness and lifestyle products to deliver the most compelling customer experiences possible, one community at a time. To deliver cannabis derivatives to its brand house, commercial, and life science departments, Flora operates one of the biggest outdoor cannabis cultivation facilities. It does this by using natural and economical cultivation techniques.
On September 26, Flora Growth made the first shipments of CBD isolate from Colombia to the United States and highly concentrated dried cannabis flower to the Czech Republic and Switzerland. According to Luis Merchan, chairman and C.E.O. of Flora Growth, the firm’s worldwide distribution network keeps developing, especially after adding these three market-leading nations.
He added that demand for the firm’s Colombia cultivation operation, which supplies premium, high-margin flowers, and byproducts, has been growing. These exports are evidence of their team’s capability to operate effectively in a highly complex international regulatory environment and generate additional revenue for the company.
In the fourth quarter of 2022, Flora successfully exported roughly 1,000 kg of dried cannabis and its derivatives to Europe and the U.S. following the approval of Resolution 539. Resolution 539 permitted licensed cannabis cultivators with export restrictions to export dried cannabis flowers. These initiatives are a part of the Flora Lab One and Cosechemos farm facility’s full commercialization in Bucaramanga, Colombia.
The company also upped the cap on manufacturing psychoactive derivatives for local use in the Colombian medical market. The firm also amended its originally stated export quota of 43,000 kg to include numerous varieties of T.H.C. flower, notably four more high-THC genotypes.
Flora’s Secret; Adoption of Resolution 539 and Multiple Acquisitions
According to Luis Merchan, Floral being the biggest commercial cannabis cultivator in Colombia means their capacity to activate their farm and equitably distribute is almost unrivaled. The firm now has direct sales and distribution channels to Germany and across Europe thanks to the firm’s takeover of Franchise Global Health, which was only finalized last week.
Since Resolution 539 was adopted last year, Flora has concentrated on fostering the export and marketing of dried cannabis flowers to Europe. In addition to accelerating Flora’s immediate opportunity for medical products in Germany, the acquisition of Franchise Global Health and the merging of the German and European teams also positions the business well for a possible new leisure market.
A commercial website for Flora has also been developed, allowing qualified clients to purchase high-CBD and high-THC dry flowers and byproducts and learn more about Flora’s cultivation and cultivation practices. In Merchan’s words, Flora is delighted to contribute to increasing consumer access to legal, safe T.H.C. and CBD worldwide. The firm is eager to work alongside its North America and Europe partners to promote premium cannabis goods and raw materials from Colombia.
Following the completion of Flora’s acquisition of JustCBD in February 2022, the Company now owns a defined C.P.G. brand with an investment of more than 300 products, a direct-to-consumer business with more than 300,000 clients, and a network of more than 14,000 retailers both domestically and internationally. In the 2020 fiscal year, JustCBD generated audited sales of $28 million and $7 million in EBITDA across various product categories.
With extensive distribution across various mainstream U.S. channels, the acquisition has enhanced Flora’s infrastructure in the U.S.
More Cannabis Companies Enter In Distribution Agreements
Aurora Cannabis Inc. released its 2022 fourth quarter and full-year financial results on September 20. In terms of high-margin medical cannabis sales worldwide, Aurora continued to be the leading Canadian L.P. International medicinal cannabis gross revenue rose by 70.3% and 35.4%, respectively, from fiscal 2021 to Q4 2021. The company confirmed that Adjusted EBITDA will continue to be profitable and save $150 to $170 million in yearly costs by December 31, 2022. Aurora’s balance sheet was also improved by a $155.3 million accretive debt reduction in the fourth quarter of 2022. The company successfully acquired Thrive Cannabis and invested most of its funds in Bevo Farms.
Meanwhile, Medical Marijuana, Inc. revealed that its subsidiary, Kannaway, on September 8, had reached a distribution agreement with longtime partner Complete Hemp Technologies to expand its capabilities in the European market (C.H.T.). With the agreement, C.H.T. will provide daily operations and storage to Kannaway and the services it already provides to Kannaway throughout Europe. This will lower costs and boost profitability in one of the Company’s most important international markets.
To enable growth throughout Europe, Medical Marijuana has been working with C.H.T. for many years. This partnership uses C.H.T.’s strong contacts with government officials and expertise in producing the best cannabis-based products on the market. Furthermore, C.H.T. will now provide distribution services, taking care of the requirement to transfer items once they have been produced and spending money on extra storage space and staff costs.
On September 15, I.M. Cannabis Corp. and Sundial Growers Inc. declared that, as part of its entire agreement with I.M.C., SNDL has conducted its first overseas export to Israel. The shipping of 1,000 kg of premium dried cannabis flower products to Israel for distribution and processing in the medical marijuana market has been agreed upon by SNDL and I.M.C.
The growth is an essential milestone for SNDL as it enters the global market. With the successful export, I.M.C. has made a huge stride in streamlining its large international operations, encompassing Germany, Canada, and Israel. The international market presents SNDL with a fresh opportunity to boost sales of cannabis-related products. The Company thinks that access to top-notch cannabis products made by reliable Canadian growers will become simpler as additional international markets develop their legal frameworks.
On September 22, Tilray Brands, Inc. declared that F.L. Group S.R.L., a subsidiary of Tilray Medical in Italy, has been given permission by the Italian Ministry of Health to import and offer Tilray’s THC25 medical cannabis oral solution. F.L. Group has built a nationwide pharmaceutical distribution network to distribute Tilray Medical’s THC25 oral solution in Italy. In this country, the availability of medical cannabis is highly restricted.
Patients in Italy can obtain Tilray and other medicinal cannabis products with a prescription from their doctor. Tilray Medical is a significant supplier of medical cannabis products in 22 countries, with a wide selection of T.H.C. and CBD medications with EU-GMP certification. To guarantee that patients receive the best possible outcome and a consistent supply of their medical cannabis products, Tilray has carefully selected its line of medical cannabis products.
As the cannabis industry continues to evolve, more growth and expansions are still expected of these companies. The future is bright for the cannabis industry, and these firms have positioned themselves as forerunners in the international market. Indeed, only good things will come for them as cannabis legalization continues to spread.