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Canada: The World’s Next Marijuana Marketplace

Australia does not exist at the forefront Canada’s collective mindset. For Canadians who haven’t traveled to the land down under, knowledge of this part of the world is limited to a few antiquated stereotypes like boxing kangaroos and Crocodile Dundee. What Canadians and the rest of the planet may not realize is that Australia is the next major marijuana market.

The Canadian-born Canopy Growth Corporation is at the forefront of this new business opportunity. They recently partnered with AusCann, a burgeoning marijuana producer in Australia, in hopes of implementing proven strategies in a similar market. Marijuana.com spoke about the deal with Mark Zekulin, President of Tweed which is one of Canopy’s companies and arguably the most popular, well-branded marijuana across the country.

 

Canopy recently made a deal to acquire 15% of AusCann.  What details can you share with us?

As AusCann takes a leadership role in Australia’s emerging medical cannabis industry, they came to us seeking an experienced company to be their partner. Canopy is receiving a 15% stake in AusCann, as well as further options. The two companies will aim to work together in Australian and international markets while, Tweed provides strategic and operational consultation to AusCann.

Is Tweed going to be handling elements like production for AusCann?

This partnership will allow us to offer expertise and advice from Tweed and Tweed Farms to AusCann. That will include our insights on the operations, production and quality assurance aspects of producing cannabis, as well as from a business perspective, with strategy and advice. Best practices established at Tweed and Tweed Farms will be shared with AusCann to produce clean, consistent products that Australians can trust.

Why did you feel it was a good deal at this time?

As the Australian government begins to lay out a framework for legal medical cannabis, AusCann has the same opportunities and challenges that Tweed and its sister companies faced several years ago. We have confidence that the Australian medical cannabis market will grow similarly to Canada and we think the lessons we learned in our early days will prove invaluable to the team at AusCann.

[They have] already positioned themselves as an early leader in Australia’s nascent medical cannabis industry, and its position is bolstered by its strong leadership team, consisting of former legislators, public health experts, and medically-focused entrepreneurs.

What are Canopy’s expectations for the Australian market? Is demand comparable to Canada and the U.S.?

We believe the Australian market will be similar in size to the Canadian medical market, though differences in the systems can of course be expected.

Medical cannabis laws are still being finalized in Australian Parliament, with final implementation expected late 2016 and product expected to go to market in 2017. Australian patients will have access to a wide array of AusCann products in 2017.

Working with Canopy’s subsidiaries Tweed and Tweed Farms, AusCann is in the process of developing world-class production standards that they will use to grow clean, consistent medical strains.

Will Canopy and AusCann be able to ship seeds to each other legally and freely across international borders?

At this point, there are still legal barriers that prevent us from shipping seeds, but this may change as regulations develop and mature in both countries. However, much of the value of this partnership lies in the expertise and advice that Tweed and Tweed Farms can offer, as well as the potential to collaborate across borders.

Will there be any cross-breeding for new strains between Canadian and Australian varieties of pot?

Both Tweed and AusCann view the development of leading genetics as a priority. While there are no current plans for cross-breeding, this certainly could occur over time.

 

Canada’s significance to the North American and global marijuana markets cannot be understated. With legalization set for Spring 2017, world leaders and policy influencers are focusing their attention on Canada’s ability to regulate a new industry and collect upwards of $5 billion in annual tax revenues. More details on Canada’s outlook and many other significant global marijuana moves will be discussed and debated at the upcoming Lift Cannabis Expo in Downtown Toronto on May 28th and 29th. The event that’s easily “Canada’s Biggest Cannabis Trade Show” is attracting all of the industry heavyweights. For folks who can’t make the trip, Weedmaps and Marijuana.com will be on the showroom floor to facilitate and report on the latest developments in our rapidly growing global industry.

Cover Photo Courtesy of Bruce Stanfield

Thanks to marijuana.com


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