Canada is Quickly Losing Market Share in Germany…Who Will Benefit From This?!?

During the last two years, we published several articles about Germany being the key to the success of the cannabis industry in the European Union (EU), and MJBizDaily recently published an article that supports the same thesis.

Although we expected Canada to capture the lion’s share of the German cannabis industry, companies in Denmark, in the Netherlands and in Portugal, are also benefiting from the growth of the German market.

According to data from the Federal Institute for Drugs and Medical Devices (BfArM), Germany imported approx. 10,500 kilograms of dried flower and extracts in the first six months of the year. This amount is more than 6% higher on a year-over-year basis and we expect growth to accelerate in the years ahead.

The article from MJBizDaily reported that independent German government data show that Canada was the largest supplier of cannabis to Germany in 2021 (accounting for approximately one-third of the country’s imports).

The percentage of cannabis imported from Canada decreased from 38% in 2017 to approx. 33% in 2021 (according to a report by Der Spiegel that cited government data) and we find the decline to be significant.

During the last two years, several large-scale Canadian Licensed Producers (LPs) have acquired cannabis production and processing facilities in countries that are a part of the EU. After analyzing the data on Canada’s cannabis exports to Germany, the trend makes a lot more sense.

Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) has highly focused on the cannabis opportunity in the EU and has acquired several assets to enhance its leverage to it. Although Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) has also been capitalizing on the EU, we believe Tilray Brands has more attractive growth prospects.

If you are interested in learning more about cannabis companies that are capitalizing on Germany and on the EU, please send an email to support@technical420.com with the subject “Leading EU Cannabis Operators” to be added to our distribution list.

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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