- Cannabis grower and product maker Flora Growth is developing its own approach to riding troubling economic forces, boasting a 604 percent YOY increase in the H1 reporting period this year
- Market analysts predict the global cannabis market’s value will rise during the next five years at a CAGR of 24.3 percent to arrive at annual valuation of $82.3 billion
- Flora Growth is levying the potential of recent cooperative agreements to increase the reach of its product distribution pipeline, including new exports to Switzerland, the Czech Republic and the United States
- Europe is predicted to be the fastest-growing region for cannabis sales during the next few years as a result of Europeans’ recognition of cannabis’ medical benefits and the ongoing advance of legalization
Cannabis cultivator, brand manufacturer and global distributor Flora Growth (NASDAQ: FLGC) is offering a bit of pain relief to economies battered by recent uncertainty over a costly worldwide pandemic, a war in Europe’s breadbasket and the retail supply chain disruptions that have resulted from them.
The Canadian company with a productive base of operations in Colombia’s fertile greenbelt is licensed to cultivate cannabis on a 100-hectare (about 247-acre) farming facility and then deliver its product to its GMP-certified processing facility in the nation’s capital, where beauty, phytotherapeutic and nutraceutical products are prepared for market.
And analysts foresee that market continuing to burst with opportunities. Reportlinker.com stated last month that it expects the global cannabis market to end the year with a valuation of $27.7 billion and to grow at a CAGR of 24.3 percent through 2027 to achieve $82.3 billion in sales at the conclusion of the next five years. Europe is expected to be the fastest-growing region.
“The market in Europe is majorly driven by the awareness of medical benefits of cannabis in the region coupled with the healthcare system present in several European countries that covers the health expenditure of most patients in these regions. As the legalization of cannabis in European countries is at a nascent stage, this creates a considerable opportunity for companies to establish themselves in the region,” the report states (https://cnw.fm/Zw56a).
Flora’s brand division is focused on developing plant-based consumer products, such as cannabinoid-infused juices, gummies, topicals, inhalables, and skin care. But the company also prioritizes the manufacture of “cannabinoid-derived medical formulations that can be sold domestically and internationally” (https://cnw.fm/YNSa7).
In September, the company announced that it had completed its first exports of high-CBD dried cannabis flower to Switzerland and the Czech Republic and of CBD isolate to the United States.
“We are proud to help increase access to safe, legal CBD and THC to consumers all over the globe,” Flora Growth Chairman and CEO Luis Merchan stated at the time (https://cnw.fm/q4BKn). “We look forward to working closely with our partners in Europe and North America to bring high-quality Colombian cannabis products and raw materials to market.”
Flora has pursued acquisitions and partnerships that will help its distribution supply chain grow. Two recent examples include the receipt of about 75 SKUs from the No Cap Hemp Co. brand and a collaboration with Colombia’s Misak indigenous tribe’s pharmaceutical arm to speed up the fulfillment of company cannabis exports by taking advantage of the tribe’s approved license for medicinal and scientific use cannabis.
The agreements are helping Flora to effectively improve its profitability through overhead management and vigilance in regard to working capital.
“With all three of our core pillars generating revenue in the second half of 2022 … we believe we have a path to profitability that few global cannabis companies can achieve in this difficult environment,” Merchan stated in August (https://cnw.fm/oeJV7).
For more information, visit the company’s website at www.FloraGrowth.com.
NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://cnw.fm/FLGC
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