If there was a theme to the Grow Up Conference’s CannaVision Global Executive Conference on Monday, May 28, it could have been “Go International or Go Home.”
The panels oscillated between exploring foreign markets (and how to get into them) and the constraints faced by producers who continue to serve the domestic market.
Not all was doom and gloom on the home front: Erin Butler, CFO of Canadian Cannabis Exchange, told the crowd that there was a 20% year-over-year increase in domestic wholesale flower pricing, with the 2023 figure itself a 19.4% improvement over 2022. By the end of 2025, the company estimates that the average wholesale price per gram will be $1.81, a figure not seen in the domestic industry in several years.
The positive domestic findings uplifted the conference as it began, but were quickly followed by panels on how to crack international markets and how to restructure a company after being unable to pay debts as they become due.
Christopher McGrath of Deloitte Canada, summarizing a report the agency worked on with the Cannabis Council of Canada, stated that excise duty as a percentage of Canadian cannabis revenue more than doubled from October 2019 to Q3 2024, with an even steeper increase as a percentage of cost of goods sold (COGS) and gross sales amount (GSA).
On a panel about the complexities of bringing cannabis to markets abroad, John Fowler, co-founder of 7 Acres and current President at Muskoka Grown told the crowd that, “learning from the Canadian experience, there’s a lot of cost with brand building. It’s easy to say we’re going to stick a logo on something. You can fill a room with Canadian brands that have done that.”
He says that in Canada, “there is lots of temptation to do everything.” Instead, Fowler’s company focuses on cultivation to supply a small number of international partners, including those in Germany and Australia.
Edward Woo, VP of International Business Development at Pure Sunfarms, says his company has been in a “fortunate position with the large-scale cultivation we have in terms of our ability to have that scale at an attractive price.”
But, he says, the “philosophy we’ve always taken is crawl, walk, run.”
Producers who want to break into international markets, he says, should ensure the market is sustainable and has a well-developed regulatory system, and should focus on trying to build a sustainable business.
Attiyah Ferouz of AgCann Consultants, a moderator for one of the panels, pointed out that Canada has an advantage when it comes to serving other markets, as the GACP standard, which is the baseline requirement many international markets impose on dried cannabis imports, is close to the GPP.
There is a higher standard of EU-GMP certification, which allows Canadian producers to conduct tolling and sometimes eliminates the need for an EU-GMP partner in the importing country to receive and process the products. Ferouz says that this is a significantly more complex process, with an 18-month timeline and a $250,000 investment.
The Canadian advantage
Still, international markets appreciate Canada and its personnel in the industry.
Chris Leddy of Shweed says that “we are rich in what we know,” and that our quality assurance-focused regulatory framework can provide international partners the reassurance they are looking for when partnering with companies from abroad.
Panellists at the conference played the name game, naming international markets they were excited about when prompted by the moderator.
Stephanie Pow of Emerald Lane Recruitment said, “We’re super excited about France, and bringing talent from Quebec into France. Jersey Island [in the British Islands] is another one we’re excited about.”
It seemed that everyone agreed that Germany is currently the hot market for Canadian producers, buoyed by the fact that it is estimated the country is home to almost half of all medical cannabis prescriptions in the export market, according to Germany’s Fin Hansel.
Knowing your way around the market is key to success in Germany. For one, Hansel notes that while there are approximately 200 wholesalers, the top 5 account for around 60% of the market. While “demand is growing like crazy right now,” Hansel also says that he thinks “there’s a tendency toward long-term collaboration.”
After lunch, attention turned to insolvencies, or “navigating capital restructurings,” in which panellists brought their lessons learned.
Zachary George, CEO of SNDL, said that it is a “long and daunting process,” and was frank in sharing that the company’s IPO was overleveraged and that it took a material amount of dilution to fix his business.
His company “took a conservative posture” when it was coming out of a restructuring process. They deployed a credit portfolio, which itself led to an M&A pipeline.
The rockstar of the conference was former Dragon’s Den star Michael Wekerle, who, during a panel on securing capital in the space, provided a surprisingly well-informed and nuanced take on the industry.
He observes that the boom and bust cycle the industry has faced has followed a similar pattern to that of other Canadian industries.
“I love investing in these industries because it’s decimated. A lot of time, people are hanging on too late,” noting that since capital has dried up, executives at producers are more willing to pick up the phone and have a meeting with you if you’re interested in putting money in the space.
Harrison Jordan is the founder and managing lawyer of Substance Law, a law firm focusing on regulated substances, including cannabis.
